Journal

S.NO. Date Particular Ledger Folio Number

1 12/1/2016 Business A/C Dr 1
2 Capital 2
3 12/3/2016 Bank A/C 3
4 Cash A/C 4
5 12/5/2016 Bank A/C 3
6 Goods A/C 5
7 12/8/2016 Bank A/C 3
8 Goods A/C 5
9 ### Furniture A/C 6
10 Bank A/C 3
11 ### Arvind A/C 7
12 Goods A/C 5
13 ### Goods A/C 5
14 Amrit A/C 8
15 ### Amrit A/C 8
16 Goods A/C 5
17 ### Arvind A/C 7
18 Cash A/C 4
19 ### Goods A/C 5
20 Cash A/C 4
21 ### Business A/C Dr 1
22 Cash A/C 4
23 ### Cash A/C 4
24 Operational A/C 9
25 ### Bank A/C 3
26 Amrit A/C 8
27 ### Stationary A/C 10
28 Goods Purchase A/C 5
29 Rent A/c 11
30 Cash A/C 4
31 Salary A/C 12
32 Cash A/C 4
33 ### Cash A/C 4
34 Goods 5
Nature of Account Debit Credit
Personal 400000
Personal 400000
Personal 2000
Real 2000
Personal 15000
Real 15000
Personal 16000
Real 16000
Real 2500
Personal 2500
Personal 2400
Real 2400
Real 10000
Personal 10000
Personal 500
Real 500
Personal 2300
Real 2300
Real 1000
Real 1000
Personal 2000
Real 2000
Real 110
Real 110
Personal 9450
Personal 9450
Real 200
Real 200
Real 5000
Real 5000
Nominal 2000
Real 2000
Real 2000
Real 2000
Personal Real Nominal
D - Receiver D Comes In D Expenses, loss
C - Giver C Goes Out C Income, gain
Individual Tangible Salary
Company Intagible Interest Rx
Bank Account Goods Loss
Furniture Profit
Goodwill
Cash
Journalise the following transactions in the books of Mr.Kumar, post them in the Ledger and prepare trial b
Journal Entry for Mr Kumar

Ledger Folio
S.NO. Date Particular Number
1 01.03.2018 Purchase Goods A/C Dr 1
to Cash a/c
Being goods purchase on cash

2 02.03.2018 Cash a/c Dr 2

to Sales A/C
Being goods sold for cash

3 03.03.2018 Purchase A/C Dr 3

to Gopal A/c
being goods purchase from Gopal

4 05.03.2018 Milton A/C Dr 4

to Sales A/c
being goods sold to Milton

5 07.03.2018 Cash A/c Dr 5

to Milton A/C
being received cash from milton

6 09.03.2018 Gopal A/c Dr 6

to Cash A/C
being cash paid to Gopal

7 20.03.2018 Furniture A/C Dr 7

to Cash A/C
being purchase furniture from cash

Ledger Accounts
Purchase Goods A/C
Debit
Date Particular JFNO
01.03.2018 To Cash A/c

01.04.2018 To Balance b/d

 Cash A/C
Debit
Date Particular JFNO

02.03.2018 to Sales A/C

20.03.2018 to Furniture A/C

01.04.2018 To Balance b/d

Sales A/C
Debit
Date Particular JFNO

05.03.2018 To Milton
31.03.2018 to Balance b/d

Gopal A/C
Debit
Date Particular JFNO
03.03.2018 To Purchase A/c

09.03.2018 To Cash A/c

01.04.2018 to Balance b/d

Milton A/C
Debit
Date Particular JFNO

07.03.2018 To Cash A/c

31.03.2018 to balance b/d
 Furniture A/C
Debit
Date Particular JFNO

31.03.2018 to balance b/d

hem in the Ledger and prepare trial balance.

Nature of
Account Debit Credit
Real 25000
25000

Real 50000
50000

Personal 19000
19000

Personal 8000
8000

Real 6000
6000

Personal 5000
5000

Real 7000
7000

edger Accounts
chase Goods A/C
Credit
Amount Date Particulars JF No Amount
25000
03.03.2018 By Gopal A/C 19000

31.03.2018 By Balance c/d 6000

25000 25000
6000
Cash A/C
Credit
Amount Date Particulars JF No Amount
01.03.2018 By Purchase good 25000
50000
07.03.2018 By Milton 6000
09.03.2018 by Gopal A/c 5000
7000
31.03.2018 By Balance c/d 21000

21000

Sales A/C
Credit
Amount Date Particulars JF No Amount
02.03.2018 By Cash A/C 50000
8000
42000

01.04.2018 By Balance c/d 42000

Gopal A/C
Credit
Amount Date Particulars JF No Amount
19000

5000
31.03.2018 By Balance c/d 24000
24000

Milton A/C
Credit
Amount Date Particulars JF No Amount
05.03.2018 by Sales A/C 8000
6000
2000
01.04.2018 By Balance c/d 2000
Furniture A/C
Credit
Amount Date Particulars JF No Amount
20.03.2018 by purchase A/c 7000
7000
01.04.2018 by Balance c/d 7000
 Personal Real Nominal
D - Receiver D Comes In D Expenses, loss

C - Giver C Goes Out C Income, gain

Individual Tangible Salary
Company Intagible Interest Rx
Bank Account Goods Loss
Furniture Profit
Goodwill
Cash

TRIAL BALANCE of Kumar Account

S.No. Ledger Account Debit Credit
1 Purchase Goods A/C 6000
2 Cash A/C 21000
3 Sales A/C 42000
4 Gopal A/C 24000
5 Milton A/C 2000
6 Furniture A/C 7000
Total 51000 51000
 Enter the following transactions in journal and post them in the ledger of Mr.Albert and balance the

Ledger
Folio Nature of
S.NO. Date Particular Number Account Debit Credit
1 01.08.2018 Plant & Machinery A/C dr Real 250000
to capital A/C 250000
being started business with
Plant & machinery

2 01.08.2018 Stocks dr real 90000

to capital A/C 90000
being started business with
Stocks

3 01.08.2018 Furniture dr Real 7000

to capital A/C 7000
being started business with
Furniture

4 01.08.2018 Cash A/c dr Real 50000

to capital A/C 50000
being started business with
Cash

5 01.08.2018 by Purchase Goods Nominal 150000

to Sundry Creditors 150000
being started business with
Sundry Creditors

6 02.08.2018 Sundar A/C Personal 150000

To Sales A/C 150000
being good sold to Sundar

7 03.08.2018 Purchase Goods A/C Real 65000

to Natarajan 65000
being purchase goods from
Natarajan

4 04.08.2018 Sundar A/C Personal 125000

to cash A/C 125000
being cash paid by Sundar

5 06.08.2018 Natarajan A/C Nominal 2000

 to Purchase A/c 2000
being goods returned to
Natarajan

6 10.08.2018 Natarajan A/c dr Personal 28000

to cash A/c 28000

being cash paid to Natarajan

7 31.08.2018 Rent A/c dr Nominal 5000

to Cash A/C 5000

being cash paid towards rent

8 31.08.2018 Salary A/c dr Nominal 9000

to Cash A/c 9000
being cash paid towards
salary

Plant & Machinery A/C

Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 to Capital A/C 250000

31.08.2018 By Balance c/d

01.09.2018 to Balance b/d 250000

Capital A/C
Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 By Plant & Machinery
01.08.2018 By Stocks
01.08.2018 By Furniture
01.08.2018 By Cash A/C
31.08.2018 to Balance b/d 397000
01.09.2018 By Balance c/d

Stock A/C
Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 to Capital A/C 90000
31.08.2018 by Balance c/d
01.09.2018 to Balance b/d 90000

Furniture A/C
Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 to Capital A/C 7000
31.08.2018 by Balance c/d
01.09.2018 to balance b/d 7000

Cash A/C
Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 to Capital a/C 50000

Sundry Creditors A/C

Debit
Date Particular JFNO Amount Date Particulars
01.08.18 By Purchase Goods A/C

Sundar A/C
Debit
Date Particular JFNO Amount Date Particulars
02.08.2018 to sales A/c 150000
04.08.2018 to cash A/c 125000

Sales A/C
Debit
Date Particular JFNO Amount Date Particulars
02.08.2018 to sunder

Natarajan A/C
Debit
Date Particular JFNO Amount Date Particulars
06.08.2018 to Purchase A/c 2000 03.08.2018 by purchase a/c
10.08.2018 to cash A/C 28000
30000

Rent A/C
Debit
Date Particular JFNO Amount Date Particulars
31.08.2018 to cash A/c 5000

Salary A/C
Debit
Date Particular JFNO Amount Date Particulars
31.08.2018 to Cash A/C 9000
r.Albert and balance them

Personal Real Nominal

D - ReceiveD Comes I D Expenses, loss
C - Giver C Goes OutC Income, gain
Individual Tangible Salary
 Company Intagible Interest Rx

Bank Acco Goods Loss

Furniture Profit
Goodwill
Cash

Credit
JF No Amount

Balance c/d 250000

Credit
JF No Amount
Plant & Machinery 250000
90000
7000
50000
397000
Balance c/d 397000

Credit
 JF No Amount

Balance c/d 90000

Credit
JF No Amount

Balance c/d 7000

Credit
JF No Amount

Credit
JF No Amount
Purchase Goods A/C 150000

Credit 6 02.08.201 Sundar A/C

JF No Amount To Sales A/C
 7 03.08.201 Purchase A/C
to Natarajan

Credit 6 02.08.201 Sundar A/C

JF No Amount To Sales A/C
150000

7 03.08.201 Purchase A/C

to Natarajan

7 31.08.201 Rent A/c dr

to Cash A/C
Credit
JF No Amount
purchase a/c 65000 8 31.08.201 Salary A/c
to Cash A/c

Credit
JF No Amount

Credit
JF No Amount
150000
150000
65000
65000

150000
150000

65000
65000

5000
5000

9000
9000
 0

Transa
Assets
ction
Stock of
No. Cash Debtors
Goods
i. Pandiyan started business with cash Rs. 60,000

60000

ii. He purchased furniture Rs.10,000

-10000
50000
iii. He paid rent Rs. 2,000

-2000
48000
iv. He purchased goods on credit from Mr. Mahesh Rs. 30,000

30000
48000 30000
v. He sold goods (cost price Rs. 20,000) for cash Rs. 25,000

25000 20000
73000 10000

Assets = Cash (73000) + Goods (10000) + Furniture (10000) = 93000

Liabilities = 30000 (Creditors)

Capital = 63000

Assets (93000) = Liabilities(30000) + Capital (63000)

Name of the Company:

Balance Sheet as at 31 March, 2019

Note As at 31
Particulars
No. March,2018
 `

A EQUITY AND LIABILITIES

1 Shareholders’ funds

(a)Share capital

(b)Reserves and surplus

(c)Money received against share

Warrants

Share application money pending

2

Allotment

3 Non-current liabilities

(a)Long-term borrowings

(b)Deferred tax liabilities(net)

 (c)Other long-term liabilities

(d)Long-term provisions

4 Current liabilities

(a)Short-term borrowings

(b)Trade payables

(c)Other current liabilities

(d)Short-term provisions

TOTAL

B ASSETS

1 Non-current assets

(a) Fixed assets

(i)Tangible assets
(ii)Intangible assets
(iii)Capital work-in-progress
(iv)Intangible assets under
development
(v)Fixed assets held for sale
(b)Non-current investments
(c)Deferred tax assets(net)
(d)Long-term loans and advances
 (e)Other non-current assets
2 Current assets
(a)Current investments
(b)Inventories
(c)Trade receivables
(d)Cash and cash equivalents
(e)Short-term loans and advances
(f)Other current assets
TOTAL
 (Figures in rupees)

= Liabilities Capital Total

Furniture Total

60000 60000 60000

10000
10000 60000 60000 60000

2000
10000 58000 58000 58000
00

30000
10000 88000 30000 58000 88000

5000
10000 93000 30000 63000 93000

As at 31
Amount (in
March,2019 Assets USD)
 (I)Fixed
` Assets

(A)Tangible
Assets

Building

Machinery

Equipments

Furniture 10,000.00

Less :
Accumulate
d
Depreciatio
n

(B)Intangibl
e Assets

Goodwill

Patent

(C)Financial
Assets
Securities
Investment

(II)Current
Assets

Cash in
Hand & at 73,000.00
Bank

Stock or 10,000.00
Inventory

Sundry
Debtors

Bills
Receivables

(III)Loans &
Advances

Loan to
Employees

Security
Deposits

Total Assets 93,000.00

 Amount (in
Assets USD)
(I)Shareholders’
Equity

Equity Share Capital 63,000.00

or Common Stock

Preferred Stock

Retained Earnings

(II) Long Term

Liabilities

Secured Loans

- Debentures &
Bonds

- Loans from banks

Unsecured Loans

- Fixed Deposits

- Other loans from

Banks or
Subsidiaries
(III) Current
Liabilities or Short
Term Liabilities

30000
Accounts Payable

- Sundry Creditors

- Bills Payable

Bank Overdrafts

Outstanding
Expenses or
Accrued Expenses

Short Term Bank

loans

(IV) Provisions

Provisions for
Income Tax

Proposed Dividend

Total Liabilities 93,000.00

Transa
Assets
ction
Liabilit
Stock Plant & = Capital
Debto Furnit ies
No. Cash of machin Total
rs ure
Goods ery

50000 50000
250000
90000

7000
150000

Assets=(Liabilities+Owner’s Equity)

Assets Liabilities Owner Equity

Total

Total Asset= total liabili+ total shareholder equity

397000 200000 1 +x

197000 x

0.985
 Amount (in
Assets USD)

(I)Fixed Assets

(A)Tangible Assets

Building 500,000.00

Machinery 700,000.00
250000

Equipments 200,000.00

Furniture 75,000.00
7000

Less : Accumulated Depreciation -120,000.00

(B)Intangible Assets

Goodwill 50,000.00

Patent 20,000.00

(C)Financial Assets
Securities Investment 100,000.00

(II)Current Assets

Cash in Hand & at Bank 500,000.00

50000
Stock or Inventory 300,000.00
90000

Sundry Debtors 250,000.00

Bills Receivables 50,000.00

(III)Loans & Advances

Loan to Employees 25,000.00

Security Deposits 50,000.00

Total Assets ###

347000

347000 -200000
147000
 Amount (in
Assets USD)
(I)Shareholders’
Equity

Equity Share Capital 700,000.00

or Common Stock

50000
Preferred Stock 500,000.00

Retained Earnings 125,000.00

(II) Long Term

Liabilities

Secured Loans

- Debentures & 300,000.00

Bonds

- Loans from banks 200,000.00

Unsecured Loans

- Fixed Deposits 150,000.00

- Other loans from 50,000.00

Banks or Subsidiaries
(III) Current
Liabilities or Short
Term Liabilities

Accounts Payable

- Sundry Creditors 250,000.00

150000
- Bills Payable 100,000.00

Bank Overdrafts 50,000.00

Outstanding
Expenses or Accrued 75,000.00
Expenses

Short Term Bank 50,000.00

loans

(IV) Provisions

Provisions for 50,000.00

Income Tax

Proposed Dividend 100,000.00

Total Liabilities ###

200000
x
Problem 4 (5 marks)
Hindustan company has incurred the following expenditure and you are required to identify the capital, re
i. Rs.60,000 travelling expenses of their sales manager who travelled to J
ii. Rs.500 spent for installing machinery.
iii. Rs.6,00,000 spent on research and development.
iv. Rs.500 paid for fuel.
Rs.600 was spent on alteration of a machinery in order to reduce power consumption.

Expense
S.No. Particular Amount Type

Deferred
Capital Revenue Revenue
Expense Expense Expense
(CE) (RE) (DRE)

1 Travelling Expense 60000 RE 60000

2 Machine Installation Cost 500 CE 500

3 R&D 600000 DRE 600000

4 Fuel 500 RE 500

5 Machine Alteration 600 DRE 600

Total 500 60500 600600

Capital Expense (CE) 500

Revenue Expense (RE) 60500
Deferred Revenue Expense
(DRE) 600600
 identify the capital, revenue and deferred revenue expenses.
nager who travelled to Japan to attend a meeting in order to increase sales – trip was quite successful.

Reason

Revenue Expense as sales meeting was

successful and would benefit for the
current year.
It is including the fixed asset cost i.e
capital expense.

It is deferred revenue as R&D revenues

are deferred more than one year.
It is an operational cost therefore
categorised as revenue expense.

It is a revenue whose benefit will be

deferred in future years also, as
alteration done to reduce power
consumption
 Accounting Equation

Particulars Assets = Liabilities

Credit
Cash Furniture Rent Goods Mahesh

Capital Inducted 60000 0

Purchased Furniture -10000 10000 0
Rent Paid -2000 2000 0
Purchased Goods on Credit 30000 30000
Sold Goods by Cash 25000 -20000 0
Total 73000 10000 2000 10000 = 30000
95000 95000

Balance Sheet

Liabilities Amount Assets Amount

Capital A/c 65000 Cash A/C 73000
Mahesh A/C 30000 Rent A/C 2000
Goods A/C 10000
Furniture A/C 10000
Total 95000 Total 95000
 Capital

60000
0
0
0
5000
65000
95000
1 Plant & Machinery A/C
Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 to Capital A/C 250000

31.08.2018 By Balance c/d

01.09.2018 to Balance b/d 250000

2 Stock A/C
Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 to Capital A/C 90000
31.08.2018 by Balance c/d
01.09.2018 to Balance b/d 90000

3 Furniture A/C
Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 to Capital A/C 7000
31.08.2018 by Balance c/d
01.09.2018 to balance b/d 7000

4 Cash A/C
Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 to Capital a/C 50000 by sunder
by natarajan
by rent
by salary
50000
31.08.2018 to balance 117000
01.09.2018 by balance

5 Sundry Creditors A/C

Debit
Date Particular JFNO Amount Date Particulars
01.08.18 By Purchase Goods A/C
 31.08.2018 to balance 150000
01.09.2018 by balance

6 Capital A/C
Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 By Plant & Machinery
01.08.2018 By Stocks
01.08.2018 By Furniture
01.08.2018 By Cash A/C
31.08.2018 to Balance b/d 397000
01.09.2018 By Balance c/d
7 Sundar A/C
Debit
Date Particular JFNO Amount Date Particulars
02.08.2018 to sales A/c 150000
04.08.2018 to cash A/c 125000
31.08.2018 By Balance c/d
01.09.2018 to balance 275000

8 Sales A/C
Debit
Date Particular JFNO Amount Date Particulars
02.08.2018 by sunder
31.08.2018 to balance 150000
01.09.2018 by balance

9 Purchase A/C
Debit
Date Particular JFNO Amount Date Particulars
01.08.2018 to Sundry Creditors 150000 06.08.2018 by natarajan
03.08.2018 to Natarajan 65000
215000
31.08.2018 by balance
01.09.2018 to balance 213000

10 Natarajan A/C
 Debit
Date Particular JFNO Amount Date Particulars
06.08.2018 to Purchase A/c 2000 03.08.2018 by purchase a/c
10.08.2018 to cash A/C 28000

31.08.2018 to balance 35000

01.09.2018 by balance

11 Rent A/C
Debit
Date Particular JFNO Amount Date Particulars
31.08.2018 to cash A/c 5000
31.08.2018 by balance
01.09.2018 to balance 5000

Salary A/C
Debit
Date Particular JFNO Amount Date Particulars
12 31.08.2018 to Cash A/C 9000
31.08.2018 by balance
01.09.2018 to balance 9000
 Credit TRIAL BALANCE of Account
JF No Amount S.No. Ledger Account Debit Credit
1 Plant & Machinery 250000
2 Stock 90000
250000 3 Furniture A/C 7000
4 Cash A/C 117000
5 Sundry Creditors 150000
6 Capital 397000
7 Sundar 275000
8 Sales A/C 150000
Credit 9 Purchase 213000
JF No Amount 10 Natarajan 35000
11 Rent 5000
90000 12 Salary 9000
Total 849000 849000

Credit
JF No Amount

7000

Credit
JF No Amount
125000
28000
5000
9000
167000

117000

Credit
JF No Amount
150000
 150000

Credit
JF No Amount
250000
90000
7000
50000
397000
397000

Credit
JF No Amount

275000

Credit
JF No Amount
150000

150000

Credit
JF No Amount
2000
213000

213000
 Credit
JF No Amount
65000

35000

Credit
JF No Amount

5000

Credit
JF No Amount

9000