Accounting Exercises.docx

Exercise 1

a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) r) s) t)

A started business with cash Rs.1,00,000 Borrowed from B Rs.50,000 Purchased Furniture Rs.20,000 Purchased Furniture from C on credit Rs.10,000 Purchased goods for cash Rs.5,000 Purchased goods from D Rs.2,000 Purchased goods from M on cash Rs.3,000 Purchased goods from L on credit Rs.4,000 Sold goods for cash to H Rs.20,000 Sold goods for cash Rs.9,000 Sold goods to S Rs.15,000 l) Sold goods to T on credit Rs.15,000 m) Received cash from S n) Paid cash to D o) Deposited into bank Rs.20,000 p) Withdrew cash for personal use Rs.1,000 q) Withdrew from bank for office use Rs.3,000 r) Salary Paid Rs.9,000 s) Paid rent by Cheque Rs.2,000 t) Interest received from bank Rs.8,000

Exercise 2 1) 2) 3) 4) 5) 6) 7) 8) 9)

R started business with cash Rs.10,0000 Paid into bank Rs.7,000 Bought goods for cash Rs.500 Draw cash from bank for office Rs.100 Goods sold to K Rs.150 Bought goods from H Rs.225 Received from K (in full settlement)Rs.145 Paid to H (in full settlement) Rs.215 Cash sales for the month Rs.800 Paid Rent Rs.50 Paid Salary Rs.100 10) Purchased goods from A Rs.1,000 11) Returned goods to A Rs.100 12) Paid to A Rs.600 13) Sold goods to N Rs.2,000 14) Goods returned by N Rs.250 15) Received from N Rs.1,500 16) Salary due to a clerk Rs.1,000 17) Paid rent Rs.15,000 (Rent has been paid till June 2016) 18) Commission received Rs.2,000 (Half of the commission is received in advance) 19) Brokerage due but not received Rs.1,000 20) Charge interest on loan to T (Rs.2,00,000) at 18% p.a. for 2 months

Exercise 3 1) Bought goods from S for Rs.30,000 against a current dated cheque 2) Bought goods from H of the list price of Rs.30,000 at a trade discount of 10% 3) Bought goods from M of the list price of Rs.1,25,000 less 20% trade discount and 2% cash discount and 40% payment was made by cheque 4) Rejected and returned 10% of the goods supplied by S 5) Sold goods to A of the list price of Rs.1,25,000 less 20% trade discount and received a current dated cheque under a cash discount of 2% 6) Goods costing Rs.500 given as charity (Sale price Rs.600) 7) Goods costing Rs.1,000 distributed as free samples (Sale price Rs.1,200) 8) Goods destroyed by fire (sale price Rs.1,000 cost Rs.800) 9) Paid rent of the building Rs.12,000. Half of the rent is used by the proprietor for his own use. 10) Paid Income tax (on behalf of owner) Rs.8,000 11) 11) Bought furniture worth Rs.25,000 from T suppliers 12) 12) Charged depreciation on furniture @10% p.a. for one month (furniture Rs.12,000) 13) 12) Pay Interest on capital (Rs.60,000) at 15% p.a. for six months 14) 14) Charge interest on drawings (Rs.10,000) at 18% for six months 15) 15) Sold goods worth Rs.20,000 to G on credit of 2 months. Later G turned insolvent and only 70 paise in a rupee could be recovered from him. 16) 16) Received cash Rs.9,000 for a bad debt written off last year