BBA-MBA Integrated Programme

BM114 – Principles of Financial Accounting

Assignment
1. From the following transactions of M/s Read and Write, write up the Journal,
Ledger and Trail balance in proper format:

2008
Jan. 01 Assets: Cash in hand Rs 2,000, Cash at Bank Rs, 68,000, Stock of goods Rs
40,000,
Machinery Rs 1,00,000, Furniture Rs, 10,000, M/s Surya Bros. owe Rs 15,000, M/s Balu
Bros. owe Rs 25,000.
Liabilities: Loan Rs 50,000, Sum owing to Jain Bros Ltd. Rs 20,000.

Jan. 02 Bought goods on credit from Samuel & Co. Rs. 10,000
Jan. 03 Sold goods for cash to Dhiraj & Co. Rs. 4,000
Jan. 04 Sold goods to Surya Bros. on credit Rs. 10,000
Jan. 05 Received from Surya Bros. in full settlement of amount due on Jan. Rs. 1 14,500
Jan. 06 Payment made to Jain Bros. Ltd. by cheque Rs. 9,750, They allowed discount Rs.
250
Jan. 09 Old furniture sold for cash Rs. 1,000
Jan. 10 Bought goods for cash Rs. 7,500
Jan. 11 Balu Bros. pay by cheque; cheque deposited in Bank Rs. 25,000, Paid for repairs
to machinery Rs. 1,000
Jan. 13 Bought goods of Jain Bros. Ltd. Rs. 10,000
Jan. 16 Received cheque from Surya Bros., cheque deposited in bank Rs. 9,500, Discount
allowed to them Rs. 500
Jan. 17 Paid cheque to Jain Bros. Ltd. Rs. 10,000
Jan. 18 Bank intimates that cheque of Surya Bros. has been returned unpaid
Jan. 19 Sold good for cash to Key Bros. Rs. 6,000
Jan. 21 Cash deposited in bank Rs. 5,000
Jan. 24 Paid Municipal Taxes in cash Rs. 1,000
Jan. 25 Borrowed from Maheshwari Investment Co. Ltd for constructing own premises.
Money deposited with bank for the time being Rs. 10,000
Jan. 26 Old newspapers sold Rs. 200
Jan. 28 Paid for advertisements Rs. 1,000
Jan. 31 Paid rent by cheque Rs. 1,500
Jan. 31 Paid salaries for the month Rs. 3,000
Jan. 31 Drew out of bank for private use Rs. 2,500
Jan. 31 Surya Bros. becomes insolvent, a dividend of 50 P in the rupee is received.
Jan. 31 An old amount, written off as bad debt in 2006 is recovered. Rs. 1,500

2. Record the following transactions in the Three-columnar Cash Book:

2008 Jan. 1 Balances: Cash Rs. 500, and Bank (Cr.) Rs. 2,000.
,, 2 Invested additional capital of Rs. 12,000.
,, 5 Deposited Rs. 8,000 in the bank.
,, 8 Received from Roy Rs. 890, allowed him discount Rs. 5.
,, 12 Paid Rs. 1,200 to Ghose who allowed us discount of Rs. 30.
,, 15 Bought merchandise for cash Rs. 700.
,, 17 Sold merchandise for cash Rs. 1,000.
,, 18 Purchased furniture by cheque Rs. 1,500.
,, 19 Received a crossed cheque of Rs. 230 from Sundram in full settlement of the debt of Rs. 240.
,, 22 Paid commission Rs. 150 by cheque.
,, 25 Withdrew for personal use Rs. 300.
,, 26 Paid to Krishnan Rs. 700 by cheque; discount received Rs. 20.
,, 27 Withdrew for personal use Rs. 300.
,, 29 Received dividend by an order cheque Rs. 30, deposited in the bank on the same day.
,, 30 Cleared telephone bill Rs. 50.
,, 31 Paid manager’s salary Rs. 350, rent Rs. 200 and wages Rs. 150.
 3. Shri Ramaswamy maintains a Columnar Petty Cash Book on the Imprest
system. The imprest amount is Rs. 500. From the following information, show how
his Petty Cash Book would appear for the week ended 15th September, 2007.
10.9.2007
Balance in hand Rs. 500
Postage 12.30
Stationery 32.10
Entertainment 5.40
11.9.2007
Travelling and Conveyance 12.60
Miscellaneous Expenses 1.10
Entertainment 7.20
12.9.2007
Repairs 156.70
13.9.2007
Postage 17.40
Entertainment 12.70
Travelling 38.40
14.9.2007
Stationery 67.30
Entertainment 4.10
15.9.2007
Miscellaneous Expenses 1.20
Postage 5.10
Repairs 48.30