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Recording of Business Transactions

Accountancy
Inter FIrst Year
English
Very Short Answer Questions
Q1. What is Voucher?

Q2. State accounting equation

Q3. What is cash system of accounting?

Q4. What is mercantile system of accounting?

Q5. What is an account?

Q6. State the types of accounts

Q7. What are personal accounts?

Q8. What are nominal accounts

Q9. State different types of personal accounts

Q10. What is Journal?

Q11. What is Journalising?

Q12. What is Journal Entry?

Q13. What is ledger?

Q14. What is posting?

Q15. What do you mean by balancing of an account?

Q16. What is debit balance?

Q17. What is credit balance?

Short Answer Questions
Q1. How vouchers are prepared?

Q2. Explain Accounting equation with an example

Q3. Explain briefly systems of recording transaction

Q4. Explain classification of accounts with examples

Q5. State the rules of debit and credit with examples

Q6. Explain briefly the systems of accounting

Q7. What do you mean by posting? Explain the rules relating to posting

Essay Questions
Q1.

Journalise the following transactions of Mr. Prahlad and post them in the ledger and balance the same (2019, February):

Date Transaction Amount (₹)
1 Prahlad invested cash in the business 50,000
3 Paid into Bank 6,000
5 Purchased Furniture for 2,000
7 Purchased goods for 5,000
10 Sold goods for 10,000
15 Withdrew cash from bank 2,000
25 Paid interest 800
30 Paid Salary 8,000

Required: Journalise the transactions, post them in the ledger, and balance the accounts.

Problems
Q1.

Journalize the following transactions in the books of Atma Ram (2019):

Date (Jan) Transaction Amount (₹)
01 Started business with cash 25,000
03 Purchased computer 5,000
06 Purchased goods for cash 6,000
07 Purchased goods on credit from Mahesh 8,000
10 Purchased goods for and paid by cheque 7,000
12 Sold goods for cash 10,000
15 Goods sold for Rs.15,000 of which Rs.8,000 received in cash and by a cheque. 7,000

Required: Journalize the transactions.

Q2.

Journalize the following transactions (2019):

Date (March) Transaction Amount (₹)
01 Mr Anthony Commenced business with cash Rs. 13,000 and stock Rs.7,000 20,000 total
02 Bought plant 5,000
03 Paid for postage 500
05 Paid for Sundry Expenses 500
06 Paid into bank 10,000
07 Paid salaries 5,000
09 Cash withdraw from bank for office use 1,200

Required: Journalize the transactions.

Q3.

Write journal entries in the books of Sudha (2019):

Date (April) Transaction Amount (₹)
01 Started business with a capital of 90,000
01 Purchased goods from Tharun on credit 20,000
02 Sold goods to Sonu 30,000
03 Purchased goods from Ragav for cash 25,000
04 Sold goods to Toni for cash 16,000
05 Goods retuned to Tharun 5,000
06 Bought furniture for cash 15,000
18 Sold goods to Sudip 12,500
19 Goods returned by Sudip 2,000
25 Cash received from Sudip 5,500
28 Goods taken by Sudha for domestic use 3,000

Required: Write journal entries.

Q4.

Prepare Pavan account from the following (2018, March):

Date Transaction Amount (₹)
1 Goods purchased from Pavan 38,000
6 Cash paid to Pavan 5,000
10 Goods returned to Pavan 1,500
14 Paid to Pavan by Cheque 6,800
20 Discount allowed by Pavan 500
26 Goods purchased from Pavan for Cash 2,500
28 Furniture purchased from Pavan 8,000

Required: Prepare Pavan's Account.

Q5.

Prepare Sudha account from the following (2018, February):

Date Transaction Amount (₹)
1 Amount due from Sudha 8,000
4 Goods sold to Sudha 11,000
12 Goods returned by Sudha 4,000
16 Cash received from Sudha 3,000
22 Received cheque from Sudha 6,000
28 Sudha account settled with 10% discount (To be calculated)

Required: Prepare Sudha's Account.

Q6.

Prepare Swami's account from the following (2018, January):

Date Transaction Amount (₹)
2 Amount due to Swami 12,000
8 Goods purchased from Swami 16,000
15 Goods returned to Swami 5,000
20 Cash paid to Swami 16,000
24 Goods purchased from Swami 9,000
30 Swami's account is settled by cheque with 10% discount (To be calculated)

Required: Prepare Swami's Account.

Q7.

Prepare Machinery account from the following (2018, March):

Date Transaction Amount (₹)
1 Purchased machinery from Vikram & co 42,000
6 Machinery purchased from Virat 16,000
12 Machinery costing Rs. 8,000 sold for 5,000
16 Depreciation provided on Machinery 3,000
22 Goods purchased from Swami 9,000
30 Purchase of machinery for cash 8,000

Required: Prepare the Machinery Account.

Q8.

Prepare the Ledger accounts from the following particulars in the Books of Rani (2018, June):

Date Transaction Amount (₹)
1 Received cash from Shiva 75,000
4 Bought goods for cash 40,000
6 Sold to Suresh 40,000
12 Bought goods from Praveen 50,000
16 Sold goods to Ganesh 35,000
20 Withdrew cash for personal use 20,000
26 Received commission 2,000
30 Paid rent 5,000
31 Paid salary 10,000

Required: Prepare the Ledger Accounts.

Q9.

From the following information prepare Praveen's Account as on 31-03-2014 (2018, March):

Date Transaction Amount (₹)
7 Balance due from Praveen 3,500
7 Sold goods to Praveen 1,500
10 Purchased goods from Praveen 1,000
15 Paid cash to Praveen 800
23 Received cash from Praveen 500
25 Returned goods to Praveen 200
  Praveen settled account with 10% discount (To be calculated)

Required: Prepare Praveen's Account.