Q.1.Bhushan & Company purchased a Machinery on 1st April, 2009, for Rs.

54,000 and
spent Rs.6,000 on its installation. On 1st December, 2010, it purchased another
machine for Rs. 30,000.
On 30th June 2011, the first machine purchased on 1st April, 2009, is sold forRs.
36,000 and on the same date it purchased a new machinery for Rs. 80,000.
On December 1, 2012, the second machine (purchased on December 1, 2010) was
also sold off for Rs.26,000.
Depreciation was provided on machinery @ 10% p.a. on Original Cost Method annually
on 31st March. Give the machinery account for four years. (8)

Or

A Company, which closes its books on 31st March every year, purchased on 1st July,
2010, machinery costing Rs. 30,000. It purchased further machinery on 1st January,
2011, costing Rs. 20,000 and on 1st October, 2011, costing Rs. 10,000. On 1st April,
2012, one-third of the machinery installed on 1st July, 2010, became obsolete and was
sold for Rs. 3,000.
Show how the machinery account would appear in the books of the Company, it being
given that machinery was depreciated by Diminishing Balance Method at 10% per
annum. Prepare Machinery Account and Deprecation Account.

Q.2. On July 1, 2005 Pushpak Ltd. purchased a machinery for Rs. 5,70,000
and paid Rs. 30,000 for its overhauling and installation. Depreciation is
provided @ 20% p.a. on Original Cost Method and the books are closed on
31st March every year. The machine was sold on 31st January 2008 for a
sum of Rs. 1,60,000. You are required to show the Machinery Account and
Provision for Depreciation Account for three years. (6)

Or

A machine as purchased on 1st October 2012 at a cost of Rs. 3,00,000 and

Rs. 20,000 were spent on its installation. The depreciation is written off at
10% p.a. on the Diminishing Value Method. The books are closed on 31st
March every year. The machine was sold for Rs. 1,30,000 on 1st July
2015. Show the Machinery Account and Provision for Depreciation Account
for all the years.

Q.3. Prove that the Accounting Equation is satisfied in all the following
transactions of Rajaram. Also prepare a Balance Sheet:−
1. Started business with Cash Rs. 1,20,000.
2. Purchased a typewriter for Cash for Rs. 8,000 for office use.
3. Purchased goods for Rs. 50,000 for cash.
4. Purchased goods for Rs. 40,000 on credit.
5. Goods costing Rs. 60,000 sold for Rs. 80,000 on credit.
6. Paid for Rent Rs. 1,500 and for salaries Rs. 2,000.
7. Received Rs. 800 for Commission.
8. Withdrew for private use Rs. 5,000 in cash. (4)

Or
Prepare Accounting Equation from the following and also prepare a Balance Sheet:-
1. Raghu started business with Cash Rs.1,50,000.
2. Bought goods for cash Rs.80,000 and on credit for Rs.40,000.
3. Goods costing Rs.75,000 sold at a profit of 331/3%. Half the payment received in
cash.
4. Goods costing Rs.10,000 sold for Rs.12,000 on credit.
5. Paid for Rent Rs.2,000 and for salaries Rs.4,000.
6. Goods costing Rs.20,000 sold for Rs.18,500 for Cash.
7.Interest charged on capital was Rs.500.
8.Purchased motorcycle for personal use Rs.10000.

Q. On comparing the Cash Book with Pass Book of Naman it is found that
on March 31, 2017, bank balance of Rs. 40,960 showed by the Cash Book
differs from the bank balance with regard to the following:
(a) Bank charges Rs. 100 on March, 31 2017, are not entered in the Cash
Book.
(b) On March 21, 2017, a debtor paid Rs. 2,000 into the company's bank in
settlement of his account, but no entry was made in the Cash Book of the
company in respect of this.
(c) Cheques totalling Rs. 12,980 were issued by the company and duly
recorded in the Cash Book before March 31, 2017, but had not been
presented at the bank for payment until after that date.
(d) A bill for Rs. 6,900 discounted with the bank is entered in the Cash
Book without recording the discount charge of Rs. 800.
(e) Rs. 3,520 is entered in the Cash Book as paid into bank on March 31st
2017, but not credited by the bank until the following day.
(f) No entry has been made in the Cash Book to record the dishonour on
March 15, 2017 of a cheque for Rs. 650 received from Bhanu.
Prepare a reconciliation Statement as on March 31, 2017.(6)
Q. On 31st December, 2014 the Cash Book of Basu showed an overdraft
of Rs. 18,000 with the Bank of India. The balance did not agree with
balance as shown by the Bank Pass Book and you find that Basu had paid
into the Bank on 26th December four cheques for Rs. 10,000; Rs.
12,000; Rs. 6,000 and Rs. 8,000. Of these the cheque for Rs. 6,000 was
credited by the bank in January, 2015. Basu had issued on 24th December
three cheques for Rs. 15,000, Rs. 12,000, and Rs. 7,000. The first two
cheques were presented to the bank for payment in December and the
third in January, 2015.
You also find that on 31st December, 2014, the bank had debited Basu's
Account for Rs. 500 for interest and Rs. 20 for charges but Basu has not
recorded these amounts in his books.
You are required to prepare a Bank Reconciliation Statement as on 31st
December, 2014 and ascertain the balance as per bank Pass Book.(4)

Q. On 1st January, 2018, Dinesh purchased goods from Chander for Rs.
60,000 plus CGST and SGST @ 6% each. Dinesh pays Rs. 7,200 in cash
and accepts a bill drawn by Chander for the balance amount payable after
two months. On the due date Dinesh is able to manage Rs. 20,000 in cash
and he arranges with Chander for the retirement of the bill in consideration
of this payment and a fresh bill at four months for the balance plus interest
at 18% per annum. The second bill is duly met on maturity.
make the necessary Journal entries in the books of Chander and Dinesh.
(6)

Q.
1. Journalise the following transaction in the books of Rajni:
Geeta's acceptance of Rs. 20,000 which had been discounted with
the bank for Rs. 19,500 has been returned by the Bank dishonoured.
Noting charges paid by Bank Rs. 25.
2. Journalise the following in the books of X:
Y's acceptance for Rs. 2,00,000 which was discounted by X from the
bank has been dishonoured, noting charges paid by bank being Rs.
100.(4)
Or
On Jan. 1, 2017 Neha sold goods for Rs. 20,000 to Muskan and drew upon
her a bill of exchange payable after two months. One month before the
maturity of the bill Muskan approached Neha to accept the payment
against the bill at a rebate @12% p.a. Neha agreed to the request of
Muskan and Muskan retired the bill under the agreed rate of rebate.
Journalise the above transactions in the books of Neha and Muskan.

Q. Rectify the following errors:-

(i) Goods for Rs. 5,500 were purchased from Modern Traders on credit, but
no entry has yet been passed.
(ii) Purchase Return for Rs. 1,500 not recorded in the books.
(iii) Goods for Rs. 2,000 sold to 'Geeta Traders' on Credit were entered in
the sales book as Rs. 200 only.
(iv) Goods of the value of Rs. 1,800 returned by Sunil & Co. were included
in stock, but no entry was passed in the books.
(v) Goods purchased for Rs. 900, entered in the purchases book as Rs.
9,000.
(vi) An invoice for goods sold to X was overcast by Rs. 100. (6)
Q. Give Journal Entries to rectify the following errors:-
1. Goods purchased from Ajay for Rs. 2,600 were recorded in Sales Book
by mistake.
2. Goods for Rs. 4,400 sold to Surendra was passed through Purchase
Book.
3. A customer returned goods worth Rs. 1,000. It was recorded in
'Purchase Return Book'.
4. A credit sale of Rs. 126 to Rajesh was entered in the books as Rs. 162.
5. Sale of old chairs and Table for Rs. 700 was treated as sale of goods.
6. Rent of proprietor's residence, Rs. 800, debited to Rent A/c.(6)

Or

There was a difference of Rs. 430 in a Trial Balance. It was placed on the
Debit side of a Suspense A/c. Later on the following errors were
discovered. Pass rectifying entries and prepare Suspense A/c.
1. Purchases book was overcast by Rs. 100.
2. Sales book was overcast by Rs. 1,000.
3. Goods for Rs. 800 purchased from Umakant, though entered in the
purchase book, has not been posted to his account.
4. An amount of Rs. 500 has been posted to the credit side of commission
account instead of Rs. 570.
5. Goods sold to Bharti for Rs. 4,400 has been posted to her account as
Rs. 4,000.
6. Goods sold to X for Rs. 750 were recorded in purchase book.

Q. Prepare Two Column Cash Book from the following transactions and balance the book
on 31st Jan., 2019:
-

2019
Jan. 1 Cash in hand Rs.50,000; Bank overdraft Rs. 1,90,000.
Jan. 2 Purchased goods from Rajesh Kumar of the list price of Rs. 50,000 at 5% trade
discount and payment made by cheque.
Jan. 6 Goods sold for Rs. 80,000 and payment received by cheque. Cheque
deposited into Bank on same day.
Jan. 10 Goods purchased for cash Rs. 19,800.
Jan. 15 Furniture sold for Rs. 1,77,000 and payment received by cheque & cheque
deposited into Bank on same day.
Jan. 18 Salaries paid Rs. 4,500.
Jan. 21 Settled the amount due to Ram Rs. 2,000 by paying cash Rs. 1,910.
 Jan. 22 Cash received from Jai Rs. 14,780 in full settlement of his account of Rs.
15,000.
Jan. 23 Paid Life Insurance premium Rs. 1,500.

Jan. 31 Deposited with bank the entire balance after retaining Rs. 7,000 cash in
hand.

(6)

Q. Pass entries in the books of Mukerjee & Sons. assuming all transactions have taken place
within the state of Uttar Pradesh. Assume CGST @9% and SGST @ 9%.

2018
March Purchased goods for Rs. 5,00,000 from Mehta Bros.
1
March Sold goods for Rs. 8,00,000 to Munjal & Co.
10
March Paid for advertisement Rs. 40,000 by cheque.
15
March Purchased furniture for office use Rs. 50,000 and payment
18 made by cheque.
March
25 Paid for printing and stationery Rs. 8,000.

March 31 Payment made of balance amount of GST.

(3)
 Q. Prepare a Purchase Book in the books of MIs Modern Furniture House, Lucknow
(U.P) from the following transactions assuming CGST @ 6% and SGST @ 6% :-

2017
June 5 Bought from Mohan Lal & Co., Kanpur (U.P) :-
20 Godrej Chairs @ Rs. 2,000 each
5 Godrej Tables @ Rs. 6,000 each
Trade Discount 20%
10 Purchased from Bharat Bhushan & Sons, Varanasi (U.P) :-
5 Almirahs @ Rs. 12,000 each
2 Revolving Chairs @ Rs. 20 ;000 each
Trade Discount 10%
14 Purchased from Surya Traders, Lucknow (U.P)
80 Desks @ Rs. 2,500 each
10 Sofa Sets @ Rs. 20,000 each
Trade Discount @ 15%
20 Purchased for cash from Gopi Chand Haldi Ram, Delhi :-
4 Tables @ Rs. 5,000 each
25 Bought Furniture for office use from New Furniture House,
Faridabad on Credit :
5 Chairs @ Rs. 2,500 per Chair.
2 Tables @ Rs. 5,000 per Table.

Or

Record the following transactions in the Sales Book of Ganesh & Co. of Jaipur (Rajasthan).
who deal in Furniture. Assume CGST @ 6% and SGST @ 6% :-

2017
June Sold to Gupta Furniture House, New Delhi :-
4
120 Chairs @ Rs 2,500 per Chair
25 Table @ Rs. 8,000 per Table
Less: 5%
8 Sold to Raja Furniture House, Ahmedabad (Gujarat) :-
 8 Almirahs @ Rs. 15,000 each
9 Steel Cabinets @ Rs. 20,000 each
Less: Trade discount of 10%
12 Sold old Computer for Rs. 1,500 to Mohan & Co. on Credit.
20 Sold 4 Sofa sets @ Rs. 25,000 each to Varun & Co. for cash
25 Sold to New Furniture House, Jaipur:-
5 Sofa sets @ Rs. 20,000 each
10 Tables @ Rs. 8,000 each
28 Purchased from Ram Lal & Co. Jaipur on credit :-
50 chairs @ Rs. 2,000 each

(4)

Q. The following balances were extracted from the books of Modern Traders as at 31st
March. 2017:-

Particulars (Rs.) Particulars (Rs.)

Capital Account 85,000 Printing and Stationery 800
Drawings Account 5,000 Sundry Creditors 23,000
Plant and Machinery 40,000 Sales 1,20,000
Stock on 1-4-2016 15,000 Postage 800
Purchases 82,000 Bad-Debts 400
Sundry Debtors 20,600 Provision for Doubtful Debts 800
Furniture 5,000 Discount received 400
Freight Inward 2,000 Rent Revenue 1,200
Carriage Outward 500 Insurance 700
Rent, Rates and Taxes 4,600 Salaries 20,000
Wages 1,300
Cash in Hand 6,200
Cash at Bank 25,500

Prepare Final Accounts for the year ended 31st March, 2017 after taking into account
the following:
(i) Stock on 31st March, 2017 was valued at Rs. 15,000.
(ii) Goods costing Rs. 6,000 were sent to a customer on "Sale on Return basis" for
Rs. 7,200 on 26th March 2017 and had been recorded in the books as actual sales.
(iii) Provision for Doubtful Debts is to be maintained at 5% of the Debtors.
(iv) Prepaid Insurance was Rs. 100.
(v) Provide Depreciation on Plant and Machinery @ 10% and on Furniture @ 5%.

Or

Following are balances from the trial balance of Ritesh Traders as at 31st
March 2008:

Particulars Rs. Particulars Rs.

Opening Stock 5,620 Interest on Securities 6,400

Purchases 1,54,200 Land and Building 10,00,000
Sales 3,74,800 Securities 6,00,000
Wages 1,26,000 Cash in Hand 25,600
Carriage Inward 900 Bank Overdraft 3,40,000
Freight on Purchase 4,900 Discount Allowed 1,500
Salaries 8,000 Discount Received 420
Insurance 2,800 Bill Payable 4,000
Repair to Machinery 1,400 Loan (Cr.) 11,000
Drawings 5,600 Bills Receivable 7,000
Customer's A/c 15,800 Capital Account 13,47,600
Postage 500 Suppliers A/c 40,000
Trade Expenses 1,000 X's Loan (Cr.) 18,600
Plant and Machinery 1,82,000

Prepare Trading and Profit & Loss Account for the year ended 31st March
2008 and Balance Sheet as at that date after taking into account the following
adjustments :
(i) Closing Stock was valued at Rs. 19,000.
(ii) Depreciation to be provided on Land and Building @ 5% p.a. and on Plant
& Machinery @ 10% p.a.
(iii) Write off Rs. 2,000 as Bad debt.
(iv) Insurance was prepaid Rs. 700.
(v) Create provision for doubtful debts @ 5% on debtors.
(vi) Wages include Rs. 4,800 for installation of a new machinery.
Q. The following trial balance has been prepared by an inexperienced accountant.
Redraft it in a correct form :-

Name of Accounts (Rs.) ( Rs.)

Dr. Cr.

Land and Building 1,20,000

Plant and Machinery 92,000
Wages 18,200
Discount Allowed 1,620
Discount Received 730
Purchases 1,26,000
Sales 2,40,000
Return Inwards 6,500
Return Outwards 3,370
Opening Stock 15,000
Debtors 30,000
Creditors 20,000
Carriage on Sales 3,280
Carriage on Purchase 2,800
Insurance 1,500
General Expenses 6,100
Cash in Hand 2,400
Bank Overdraft 12,100
Capital 1,54,000
Drawings 4,800
Total 4,30,200 4,30,200