PREPARATORY CLASSES: ACCOUNTING ASSIGNMENT 3

Q1. Satya Paul started a new business on April 1, 2011. For the first quarter his transactions are
listed below:
1. Started business with Rs.10,00,000 capital in cash.
2. Opened a bank account and deposited Rs.9,90,000 in the bank.
3. Paid towards rent Rs.60,000 by cheque.
4. Bought stationery Rs.7,000 paid in cash.
5. Invested Rs.1,00,000 in government bonds through bank account.
6. Bought machinery for Rs.2,50,000 paid through bank account.
7. Bought furniture for Rs.1,50,000 from M/s Furniture Mart on credit.
8. Bought goods for Rs.4,00,000 paid by cheque.
9. Bought goods for Rs.2,00,000 from X Ltd. on credit.
10. Sold goods for cash Rs.5,50,000.
11. Made part payment to X Ltd. in cash Rs.1,50,000.
12. Sold goods to Y on credit for Rs.2,50,000.
13. Received part payment from Y by cheque for Rs.1,75,000, allowed him a discount of
Rs.5,000 for prompt payment.
14. Received interest on investment Rs.1,000 by cheque.
15. Paid salary to employee by cheque Rs.1,10,000.
Q2. Journalize the following transactions, post them to ledger and prepare the trial balance:
2003 April
1 Sham commenced business with Rs.200000 in cash.
April
3 He buys merchandise of Rs.150000 on credit from Dhamesh.
April
5 He buys furniture for Rs.30000 on credit from Narain.
April
8 He pays Narain Rs.29000.
April
10 He pays Dhamesh Rs.30000.
April
15 Cash sales Rs.50000.
April
18 He sells goods to Rajesh on credit Rs.7000.
April
30 Salary paid in cash Rs.5000.
Rent paid to landlord Rs.4000.
Q2. Give journal entries for the following transactions giving in each case the nature of account:
a) Ajit started business by investing cash Rs.50,00,000.
b) He bought goods of Rs.40,0000 and furniture of Rs.500,000.
c) Purchased office space for Rs.10,00,000.
d) Purchased goods for cash Rs.30,0000 & on credit Rs.25,000.
e) Paid cartage Rs.20,000.
f) Sold goods for cash Rs.2,55,000 & for cash to Avtar Rs.24,000.
g) Sold goods to Mahendra on credit Rs.46,500.
h) Paid freight Rs.12,000.
i) Deposited cash into bank Rs.80,000.
j) Paid salary Rs.46000.
k) Withdrew from the bank Rs.50,000 for office use & Rs.30,000 for private use.
l) Mahendra became insolvent, only Rs.30,000 could be realized from him.