Accounting Rules - Principles Of Accounting

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Increases in assets Decreases in assets Increases in liabilities & Capital Decreases in liabilities & Capital All Expenses All Incomes Debit Credit Credit Debit Debit Credit

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Pay Expenses Withdraw money for office use Pay cash into bank Buy stock/goods for resale Return stock/goods to supplier Sell business stock/goods Stock /goods returned by customer Payment to creditor Receipt from debtor Carriage on purchases Carriage on sales Discount to customers Discount from supplier Write off bad debt

Individual expense Cash Bank Purchases Bank/Cash/Creditor Bank/Cash/Debtor Sales Returns Creditor Bank/Cash Carriage Inwards Carriage Outwards Discount Allowed Creditor Bad debts

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Account to be Debited and Account to be Credited Q1. From the following transactions prepare account to be debited and account to be credited. (a) Started business with Cash $ 40,000 (b) Started business with Bank $ 30,000 (c) Started business with Land and Building $ 60,000 (d) Started business with Furniture and Fittings $ 50,000 (e) Started business with Motor Car $ 50,000

Q2. From the following transactions prepare account to be debited and account to be credited. (a) Started business with Cash $ 50,000

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(b) Bought goods for cash $ 5,000 (c) Sold goods for cash $ 7,000 (d) Purchased goods for cash $ 10,000 (e) Goods sold for cash $ 15,000

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Q3. From the following transactions prepare account to be debited and account to be credited. (a) Started business with Cash and Bank $ 40,000 and $ 50,000 respectively (b) Bought goods for cash $ 10,000 (c) Sold goods and received by cheque $ 12,000 (d) Goods purchased and paid by cheque $ 7,000 (e) Goods sold for cash $ 5,000

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(a) Purchased Land and Building $ 1,00,000 (b) Bought Motor van for cheque $ 20,000 (c) Sold the old Furniture $ 500 (d) Plant and Machinery purchased for $ 25,000 (e) Sold Motor cycle for cash $ 1,000

Q4. From the following transactions prepare account to be debited and account to be credited.

Q5. From the following transactions prepare account to be debited and account to be credited (a) Rent paid by cash $ 2,000 (b) Paid Salaries by cash $ 10,000 (c) Telephone charges paid by cash $ 1,000 (d) Paid Electricity charges by cash $ 1,500 (e) Paid Stationary by cash $ 500

Q6. From the following transactions prepare account to be debited and account to be credited. (a) Paid Insurance by cheque $ 2,000 (b) Paid Staff Welfare Fund by cheque $ 1,000

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(c) Paid Salaries of employees by Cheque $ 20,000 (d) Telephone charges paid by cheque $ 3,000 (e) Paid Rent by cheque $ 2,000 Q7. From the following transactions prepare account to be debited and account to be credited. (a) Received Commission by cash $ 3,000 (b) Interest received by cash $ 2,000 (c) Salary received by cash $ 5,000 (d) Incentives received by cash $ 1,000 (e) Received Dividend by cash $ 500 Q8. From the following transactions prepare account to be debited and account to be credited. (a) Bought goods on credit from Lal Chand $ 10,000 (b) Sold goods to Azhar $ 15,000 (c) Purchased goods on credit from Sonia $ 2,000 (d) Goods sold for credit to Zaheer $ 5,000 (e) Bought goods from Shilpa $ 4,000 (f) Sold to Saleem $ 3,000

Q9. From the following transactions prepare account to be debited and account to be credited. (a) Received cash from Sultan $ 3,000 (b) Paid cash to Smith $ 2,000 (c) Received cash from Pollock $ 5,000 (d) Paid cash to Rahul $ 6,000

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(a) Paid Cheque to Dravid $ 5,000

(e) Received cash from Sony $ 10,000

Q10. From the following transactions prepare account to be debited and account to be credited.

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(b) Received cheque from Lara $ 10,000 (c) Paid cheque to Simon $ 15,000 (d) Received cheque from Jack $ 5,000 (e) Paid cheque to Lee $ 7,000

Q11. From the following transactions prepare account to be debited and account to be credited. (a) Stalin bought goods from us $ 5,000 (b) Bought goods from Stella $ 3,000

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(d) Bought goods from Tony $ 15,000 (e) Tiny sold goods to us $ 10,000 Q12. From the following transactions prepare account to be debited and account to be credited. (a)Started business with cash $2,500 (b)Bought goods by cash $12,000 (c)Sold goods for cash $20,000 (d)Paid carriage inwards in cash $1,500 (e)Received commission in cash $1,000

(c) Sold goods to Black well $ 9,000

Q13. From the following transactions prepare account to be debited and account to be credited. (a)Bought goods for cheque $ 2,000 (b)Sold goods for cheque $ 3,000 (c)Bought furniture in cash $1,200 (d)Sold machinery for cash $12,000 (e)Returned goods to Ahmed $100

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Q14. From the following transactions prepare account to be debited and account to be credited (a)Alwin returned goods to us $250 (b)Bought goods on credit from Sathya $1,500 (c)Sold goods on credit to Samuel $1,800 (d)Issued a cheque to Mathew for $ 2,800 (e)Paid travelling expenses in cash $25

Q15. From the following transactions prepare account to be debited and account to be credited (a)Returned furniture to Sunil $2,000 (b)Alfred issued a cheque to us $ 600 (c)Withdrew cash from the business for personal use $120 (d)Withdrew cash from the business bank account for personal use $1,250 (e)Cash sales deposited into business bank account $ 2,500

Q16. From the following transactions prepare account to be debited and account to be credited (a)Anand deposited cash in our bank account $ 4,000 (b)Paid cash to Sabig for the settlement of his account $1,000 (c)Raasi settled his account by cheque $1,400 (d)Introduced additional capital into the business $3,000 by cheque (e)Paid rent of building by cheque $600 (f)Received Interest in cash $5,000

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a. Started business with cash $ 5 000 b. Deposited cash in the bank account $ 3 000

Q 17. From the following transactions prepare account to be debited and account to be credited

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c. Bought goods on credit from Samson for $ 2 000 d. Sold goods on credit to Ramson for $ 2 500 e. Purchased a motor car from Universal Motors on credit for $ 3 500 f. Bought furniture for $ 500 and paid by cheque g. Paid Universal Motors by cash h. Received cheque from Ramson for $ 1 500 i. Paid office expenses in cash $ 100 j. Received commission from Tom by cheque $ 250

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a. Started business with cash $ 20 000 b. Deposited cash into bank account $ 10 000 c. Purchased goods on credit from B. Blue $ 8 000 d. Credit sales to Y. Yellow $ 12 000 e. Paid salaries by cheque $ 500 f. Bought fittings by cash $ 1000 g. Paid B. Blue by cash $ 5 000 h. Received a cheque from Y. Yellow $ 8 000 i. Withdrew $ 300 from the bank for personal use j. Took $ 1 000 from the cash till and put into bank

Q 18. From the following transactions prepare account to be debited and account to be credited

Q 19. From the following transactions prepare account to be debited and account to be credited a. Started business with $ 2 000 in cash. b. Paid $ 1 800 of the opening cash into the bank account for the business. c. Bought office furniture on credit from Better Furniture for $ 120. d. Bought a motor van paying by cheque $ 150.

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e. Bought works machinery from Evansons on credit $ 160. f. Returned faulty furniture costing $ 62 to Better Furniture. g. Sold some of the works machinery for $ 75 cash. h. Paid amount owing to Better Furniture $ 58 by cash. i. Took $ 100 out of bank and put it in cash till. J. J. Smith lent us $ 500- Giving us money by cheque. Q 20. From the following transactions prepare account to be debited and account to be credited a. Started business with cash $ 2 000. b. Received a loan of $ 5 000from Micky by cheque. c. Bought machinery for cash $ 200. d. Bought office equipment on credit from Goodview Ltd. For $ 800. e. Took $ 300 out of bank and put it into the cash till. f. Repaid part of Mickys loan by cheque $ 2 000. g. Paid amount owing to Goodview Ltd. $ 800 by cheque. h. Repaid part of Mickys loan by cash $ 500. i. Bought additional machinery on credit from Donald for $ 1 500. Q. 21. Based on the following transactions, find out the Account to be debited and Account to be credited. a) b) c) d) e) f) Started business with cash $2,500 Bought goods by cash $12,000 Sold goods for cash $20,000 Paid carriage inwards in cash $1,500 Received commission in cash $1,000

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Bought goods for cheque $ 2,000 Sold goods for cheque $ 3,000 g) h) Bought furniture in cash $1,200

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i) j) k) l) m) n) o) p) q) r)

Sold machinery for cash $12,000 Returned goods to Ahmed $100 Alwin returned goods to us $250 Bought goods on credit from Sathya $1,500 Sold goods on credit to Samuel $1,800 Issued a cheque to Mathew for $ 2,800 Paid travelling expenses in cash $25 Returned furniture to Sunil $2,000 Alfred issued a cheque to us $ 600

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Withdrew cash from the business for personal use $120 s) t) u) v) w) x) y) z) Withdrew cash from the business bank account for personal use $1,250 Cash sales deposited into business bank account $ 2,500 Anand deposited cash in our bank account $ 4,000 Paid cash to Sabig for the settlement of his account $1,000 Raasi settled his account by cheque $1,400 Introduced additional capital into the business $3,000 by cheque Paid rent of building by cheque $600 Received Interest in cash $5,000

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