ACCOUNTANCY CLASS 11 QUESTION BANK SHORT ANSWER QUESTIONS

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1 ACCOUNTANCY CLASS 11 QUESTION BANK SHORT ANSWER QUESTIONS 1. MEANING AND OBJECTIVES OF ACCOUNTING 1. Explain the meaning of accounting. 2. Name the main characteristics of accounting. 3. What is Accounting cycle? 4. Only financial transactions are recorded in Accountancy. Explain the statement. 5. What is the meaning of recording in terms of money? 6. What is book-keeping? How does it differ from Accounting? 7. What are the types of accounting? 8. Give four advantages of accounting. 9. State five limitations of accounting. 10. Define assets. Explain the types of assets. 11. What is stock? Explain its types. 12. Give two examples of each of the following:- a) Current liabilities b) Current assets c) Tangible assets d) Intangible assets 13. Explain the following in brief :- a) Capital b) Assets c) Revenue d) Debtors e) Purchases 14. What is meant by generally accepted accounting principle( GAAP) 15. What is meant by Basic Assumption of Accounting? 16. Give an equation for calculating external equity. 17. State the transaction in which there is increase in one liability and decrease in another. 18. State the transaction in which there is increase in one liability and decrease in owners capital. 2. CONCEPTS AND PRINCIPLES OF ACCOUNTING: 1. Explain the meaning and significance of business entity assumption. 2. Explain going concern assumption in short. 3. Explain the meaning and significance of money measurement assumption. 4. When should the revenue be recognized? 5. Explain the following in 50 words each:- a) Verifiability and Objectives of Evidence Principle b) Accounting Period Assumption

2 c) Principle of Materiality d) Principle of Timeliness 6. Explain the Principle of full disclosure in short. 7. Explain the following in lines:- a) Duality Principle b) Principle of Consistency c) Principle of Prudence d) Principle of Variations in Accounting Practices BASIC ACCOUNTING TERMS Give any three examples of revenue Distinguish between debtors and creditors Gistinguish between profit and gain Distinguish between fixed assets and current assets Distinguish between revenue expenditure and capital expenditure Distinguish between expenses and losses Give two characteristics of a business transaction Give two examples of each of following:-current assets,current liabilities, tangible assets, intangible assets. ACCOUNTING STANDARDS WHAT ARE ACCOUNTING STANDARDS Explain the nature of accounting standards Accounting standards ensure the consistency and comparability of financial statements. Explain State four advantages of accounting standards Name any six accounting standards BASIS OF ACCOUNTING What is cash basis of accounting. What is accrual basis of accounting In which basis of accounting outstanding expenses are recorded Write two advantages of accrual basis of accounting Which basis of accounting is recognized under the companies act, Accounting equations Prove that accounting equation equation holds good under all circumstances. Give at least two illustrations. Explain in short the meaning of accounting equations Give two basic purposes of accounting equations Describe the fundamental accounting equation. How are revenue and expenses related to it. Why are the rules of debit and credit same for both liability and credit

3 Capital and revenue Define capital expenditure. Give six examples of capital expenditures Define revenue expenditure. Give six examples. What is the difference between capital expenditure and revenue expenditure. What do you mean by deffered revenue expenditure? Show how it is treated in accounts. How do you deal with an amount expended with a view to advertise a new product? Explain what is meant by capital receipts? Give examples Explain revenue receipts. Give two examples What are capital losses and revenue losses? Give three examples Explain capital profits and revenue profits. Provision and reserves Is it necessary to make provisions/ Give four examples of provisions Give three characteristics of reserves Distinguish between provisions and reserves. Give five examples of capital reserve. Distinguish between revenue reserves and capital reserves How are secrets reserves created? Write two advantages of secret reserves. 3. DOUBLE ENTRY SYSTEM: 1. What are the types of accounts? Give two examples of each. 2. Every debit must have a corresponding credit. Discuss. 3. State the types of personal accounts. 4. Give the rules of debit and credit of the three types of accounts. 5. Give the four reasons of the popularity of double entry system. 6. What is Intangible Real Account? Give two examples of such types of accounts. 7. Give two examples of Representative Personal Accounts. 4. BOOKS OF ORIGINAL ENTRY- JOURNAL: 1. What is a Voucher? Prepare an imaginary specimen of a Voucher. 2. What are compound journal entries? Give an example. 3. What is trade discount? Give an example. 4. Distinguish between Trade Discount and Cash Discount. 5. Is it possible to pass a single journal entry for two or more transactions? 6. Write short notes on the following:- a) Narration b) Ledger Folio

4 c) Opening entry d) Compound entry 5. BOOKS OF ORIGINAL ENTRY-CASH BOOK: 1. Give three advantages of Sub-division of Journal. 2. Name the various books of original entries. 3. Elucidate the following statements:- a) Only cash transactions are recorded in Cash Book b) Cash Book is both journal and ledger 4. Why does the Cash Book always show debit balance? 5. How does a Cash Book serve dual purpose? 6. What is a contra entry? How will you recognize it from among other entries in a Cash Book? 7. What are contra entries? Why are these not posted into the ledger? 8. Name the various types of two Column Cash Books. 9. What is the advantage of having a Cash Book without Cash Column? 10. Explain the statement Cash book is a Journalized Ledger 11. Distinguish between Cash Book and Cash a/c. 12. Give the meaning of Imprest System of Petty Cash Book. 13. Prepare a proforma of analytical Petty Cash Book with imaginary figures. 6. SPECIAL PURPOSE SUBSIDIARY BOOKS: 1. Give specimen of the following with two entries each:- a) Purchase book b) Purchase return book 2. Give specimen of columnar Purchase book. 3. Give a specimen of Purchase Return book. 4. When is a debit note prepared? 5. What is the meaning of Credit Note? 6. Explain Debit and Credit note in five sentences. 7. Give a specimen of Bills Receivable Book incorporating two entries therein. 8. Give a specimen of Bills Payable Book incorporating two entries therein. 7. LEDGER: 1. What is the difference between books of Original entry and Ledger? 2. Enumerate four advantages of Ledger. 3. What are the rules of posting in the Ledger? 4. Explain the procedure of balancing the nominal accounts. 5. Prepare a Compound Entry with the help of imaginary figures and show its posting. 6. Prepare an Opening Entry with the help of imaginary figures and show its posting. 7. Prepare a Purchase Book with atleast two items in it and show its posting. 8. Prepare a Sales Book with atleast two items in it and show its posting. 9. Give three items in a Bills Receivable Book and show its posting.

5 8. BANK RECONCILIATION STATEMENT: 1. What us the purpose of preparing a Bank Reconciliation Statement? 2. Give four causes of the difference in the cash book balance (bank column) and pass book balance. 3. Prepare a bank reconciliation statement, taking imaginary figures, starting with the credit balance as per Cash Book. 4. Which balances are called Overdraft of Cash Book and Pass Book? 5. Name four items which are added in the Debit balance of Cash Book. 6. Name four items which are deducted in the Debit balance of Cash book. 7. While preparing Bank Reconciliation Statement, will you add or deduct the following to or from the cash book overdraft balance? a) Cheques drawn but not cleared. b) Interest on bank overdraft. c) Cheques paid into the bank but not collected. d) Interest on investments collected by the bank. [Ans. (i) less (ii) Add (iii) Add (iv) Less 8. While preparing Bank Reconciliation Statement, will the following items be added or deducted from the cash book overdraft balance:- a) Cheques deposited but dishonoured b) The receipt side of Cash book overcast c) Interest on overdraft d) Direct amount deposited by the customer into bank [Ans. (i) Add (ii) Add (iii) Add (iv) Less 9. While preparing a Bank Reconciliation Statement from the debit balance of the pass book, indicate whether the following will be added or deducted:- a) Insurance premium paid by the bank b) Interest and dividend collected by the bank c) Payment of Bills Payable by the bank on behalf of the customer d) Interest allowed by the bank e) Cheques deposited into the bank but not yet cleared 9. ERRORS AND RECTIFICATION: 1. What is meant by rectifying entry? 2. Give an example of two sided error. Also give its rectifying entry. 3. Give an example of one sided error. Also give its rectifying entry. 4. What do you mean by Suspense Account? 10. CAPITAL AND REVENUE: 1. Define capital expenditure. Give six examples of capital expenditure. 2. Define Revenue expenditure. Give six examples of revenue expenditure. 3. What is the difference between capital expenditure and revenue expenditure? 4. What do you understand by deferred revenue expenditure? Show how it is treated in accounts.

6 5. How would you deal with an amount expected with a view to advertise a new product? 6. Explain what is meant by capital receipts. Give examples. 7. Explain Revenue receipts. Give atleast two examples. 8. What are capital losses and revenue losses? Give three examples of each. 9. Explain capital profits and revenue profits. 11. DEPRECIATION: 1. Define the term Depreciation. 2. State four main causes of providing depreciation. 3. Give four advantages of Straight Line Method of providing depreciation. 4. State two demerits of Reducing Instalment Method of providing depreciation. 5. Distinguish between straight line method and written down value method of providing depreciation. 6. Write short note on original cost method of providing depreciation with a suitable example. 7. Briefly explain the need for providing depreciation. 8. Explain the factors determining the amount of depreciation 9. Explain briefly the straight line method of providing depreciation 10. State any 2 demerits of straight line method. 11. For which type of assets is straight line method considered suitable. 12. State any two merits of written down value method of depreciation. 13. Enumerate any two examples of assets for which the written down value method is considered suitable. 14. Distinguish between depreciation and obsolescence. 15. Distinguish between provision and Reserve. 16. Explain the effect of depreciation on profit and loss account. 17. Explain the effect of depreciation on Balance Sheet. 18. Is depreciation affected by obsolescence and fluctuations? State with reasons. 12. RESERVES AND PROVISION: 1. Give three characteristics of Reserves. 2. Give four examples of provisions. 3. Distinguish between Reserves and Provisions. 4. Is it necessary to make provisions? 5. Explain with an example the provision for doubtful debts. 13. FINAL ACCOUNTS: 1. What is meant by Indirect Expenses? Give two examples. 2. What are the objects of preparing a Balance Sheet? 3. Write the various assets in order of liquidity in a balance sheet. 4. When assets are listed in order of their liquidity in a balance sheet, which should be listed first, Buildings or Cash in hand? 5. Explain the current assets and two items of current liabilities.

7 6. Mention four items of current assets and two items of current liabilities. 7. Write a short note on Contingent liability. 8. Give any four points of difference between a Balance Sheet and a trial balance. 9. When liabilities are listed in order of liquidity in a balance sheet, which should be listed first capital or creditors? 10. What is the need of preparing manufacturing account? 11. Distinguish between manufacturing account and trading account. 12. Prepare a Pro-forma of manufacturing account with imaginary figures. 14. FINAL ACCOUNTS WITH ADJUSTMENTS: 1. What do you understand by closing inventory? Illustrate the principle involved in its valuation. 2. What is meant by Outstanding Expenses? Give its adjusting entry. 3. Write notes on the following: a) Contingent liability b) Accrued income c) Unearned income d) Provision for doubtful debts 4. What is meant by deferred revenue expenditure? 5. Explain the following adjustments and give their treatment in final accounts: a) Goods given away as charity. b) Goods taken by the proprietor for personal use. c) Goods destroyed by fire. d) Dishonour of Bill Receivable. 6. Distinguish between trading account and profit and loss account. 7. Distinguish between trial balance and balance sheet. 8. Distinguish between fixed assets and current assets. 9. Distinguish between tangible assets and intangible assets. 10. Distinguish between capital expenditure and revenue expenditure. 11. Distinguish between capital receipts and revenue receipts. 12. Distinguish between revenue expenditure and deferred revenue expenditure. 13. Prepare a proforma balance sheet in the order of liquidity. 14. Prepare a proforma balance sheet in order of permanence. 15. BIILS OF EXCHANGE: 1. Give a definition of a bill of exchange with four characteristics. 2. What are the parties to a bill of exchange? 3. Prepare an imaginary specimen of a bill of exchange. 4. What is a promissory note? Give a specimen of it. 5. Write 3 characteristics of promissory note. 6. State the name of parties to promissory note. 7. Give four differences between promissory note and bill of exchange.

8 8. What are the different uses available to a holder for dealing with bills receivable? 9. What is meant by retiring a bill under rebate? 10. Explain: a) Days of grace b) Endorsement of bills of exchange c) Renewal of bills of exchange d) Date of maturity 11. What is meant by noting of a bill? 12. What do you mean by accommodation of a bill? 13. Distinguish between an accommodated bill and a trade bill. 16. ACCOUNTS FROM INCOMPLETE RECORDS: SINGLE ENTRY SYSTEM 1. Write three defects of single entry system. 2. What are the differences between single and double entry system? 3. Explain the procedure of calculating profit by statement of affairs method in single entry system. 4. State 4 points of difference between Statement of Affairs and Balance Sheet. 5. Distinguish between a receipts and payments account and a cash book. 6. Distinguish between an income and expenditure account and a profit and loss account. 7. Distinguish between a receipts and payments account and income and expenditure account. 8. Distinguish between subscriptions and donations. 9. How would you treat entrance fees in accounts? 10. Explain the accounting treatment of life membership subscriptions. 11. How would you treat special donation in accounts. 12. Explain the accounting treatment of income and expenses relating to a special fund. 13. How would you account for the cost of prizes purchased for distribution if a prize fund is maintained 14. How would you account for the cost of construction of a building if building fund is maintained? 17. ACCOUNTS OF NON-PROFIT ORGANIZATIONS: 1. Give 3 essential features of receipts and payments account. 2. Why and by whom an income and expenditure account is prepared? 3. What are the essential features of income and expenditure account? 4. Give four points of distinction between receipts and payments account and income and expenditure account. 5. How would a non- profit organization deal with the following items: a) Outstanding subscriptions b) Subscriptions received in advance c) Donations d) Tournament fund e) Sale of an old asset

9 6. List the items that you will exclude from the income and expenditure account and in each case state briefly in a sentence or two why you excluded that item. 7. Explain revenue expenditure. 8. Explain: a) Capital fund. b) Legacy. 9. How will you deal with sale of old assets while preparing the final accounts of a nontrading organization? 10. How is life membership fees dealt with while preparing the final accounts of a nontrading concern? 18. TRIAL BALANCE 1. Explain the objectives of Trial Balance 2. Explain the limitations of a Trial Balance 3. Explain error of omission and give two examples of such omissions. 4. If the trial balance tallies, can it be concluded that there are no errors. 5. Explain error of commission and give two examples of such errors. 6. Explain error of principle and give two examples of such errors. 7. Explain compensating error and give two examples of such errors. 8. Is a tallied trial balance a conclusive proof of the accuracy of the ledger accounts? 9. Name the errors which do not affect the trial balance. 10. Explain the meaning and utility of suspense account. 11. List the errors which affect the trial balance. 12. If a trial balance does not tally at the end of the accounting period even after all the reasonable steps to locate the errors have been taken what step would you suggest to proceed further. Introduction to the use of computers in accounting Name different information systems Define AIS. Name AIS sub systems Name some type of reports. Computerized accounting system Give the names of different accounting packages Give names of two multi- user operating systems.

10 ACCOUNTS QUESTION BANK FOR CLASS 11 JOURNAL ENTRIES Question 1 Journalise the following transactions in Peters Journal Apr 1 st Peter started business with cash Rs.10,000 Apr 2 nd Bought goods for cash from Soans Rs.2,000 Apr 3 rd Purchased goods on credit from Shah & Shah Rs.1,000 Apr 6 th Purchased office furniture and equipment (from M.S.Rao on credit) Rs.1,200 Apr 17 th Distributed goods as free samples Rs.100 Apr 24 th Paid Mr. Bhatt for providing tea to staff during the month Rs.65 Apr 25th Bought goods of the list price of Rs.6,000 from Khanna Bros less 15% trade discount and 2% cash discount and paid 40% price at the same time. Apr 25th Purchased goods from Suresh of the list price of 20% trade discount and paid him by cheque Apr 26th Dinesh who owed us Rs.14,000 was declared insolvent and a payment of 60 paise in a rupee received from his estate. Apr 27th Goods purchased for Rs.20,000 at 10% trade discount and 5% cash discount. Payment made by cheque Apr 27th Ajay Singh was declared bankrupt. He owed Rs.2,500 to us. This amount was written off as bad. Apr 27th purchased furniture for Rs.6,000 for the proprietor and paid the amount by cheque. Apr 28 th Provide 9% interest on capital amounting to Rs.2,00,000. Apr 29 th Purchased goods for cash Rs.10,000 and spent Rs.200 for the carriage. Apr 29 th Purchased machinery for cash Rs.50,000 and spent Rs.500 for its carriage. Apr 29th Paid Rs.20,000 for cement, Rs.10,000 for timber and Rs.5,000 as wages for the construction of building. Apr 30th Purchased and old machinery for Rs.20,000 and spent Rs.2,500 on its Immediate repairs. Question 2 Journalise the following transactions in the books of Canary. May 2 nd 1983 Started Business with cash Rs.2,600, Goods Rs.9,400, Machinery Rs.6,900 and a balance at bank Rs.7,500. May 4 th Took loan from Jerome Rs.10,400 May 7 th Bought goods from Aarey worth Rs.8,300 on 5% trade discount and 10% cash discount, terms if paid within the month. May 11 th Sold half the goods bought of Aarey to Bright at 10% above cost, receiving half the sale value in cash at 1% cash discount. May 17 th Bought machinery worth Rs.6,800 and paid Rs.27 on transporting it. May 22 nd Deposited Rs.5,000 as fixed deposit in State Bank May 25 th Deposited Rs.3,000 in bank

11 May 29 th May 30 th The proprietor transferred Rs.2,500 worth of house furniture to office. Paid Aarey half by cheque and half by cash. Question 3 Enter the following transactions in Pradhan s Journal for the month of January Jan 1 st Dr.Pradhan commenced business with a loan of Rs.30,000 from Nathan. Jan 4 th Purchased office premises for Rs.20,000 from Janardhan, who accepted a small plot of land (belonging to Dr. Pradhan valued at Rs.10,000 in part payment). Half the balance was paid in cash on which2 ½ % discount was extended; the other half being due in three months. Jan 8 th Dr.Gordhan sent him a bill of Rs.600 for repairs done to the premises. Jan 10 th Purchased goods worth Rs.6,000 at 2 ½ % trade discount and 5% cash discount (if payment is made within a week) from Dr.Vardhan. Half the amount was paid in cash. A quarter of these goods was sold to Dr.Savdhan at 15% above invoice value. Jan 13th Dr.Savdhan returned half the consignment and also sent us a cheque for the amount due. We immediately sent the returned goods back to whom they were purchased from and also paid the amount due. Jan 15th Paid Rs.82 for two cylinders of cooking gas, one of which is kept aside for the proprietor to take home. Jan 21st Dr.Savdhan s cheque was returned dishonoured because the signature was in pencil. Jan 29 th Received free samples from various parties valued at Rs.800. Jan 30 th Purchased machinery costing Rs.50,000 on credit from sintex limited. Paid Rs.1,200 as transport charges and Rs.700 as erection charges in cash. Question 4 Journalise the following transactions. Purchased a new plant costing Rs.3,00,000 from Batliboi and company, paying Rs.1,00,000 only immediately by cheque. Paid the contractors, Dunkerley and company Rs.2,50,000 of which 1/5 th was for repairs, 2/5 th for enclosing the office building terrace and the balance for a pucca godown. Mr. A s account for supplies to the company showed a balance payable of Rs.16,000. The same parties account as a customer of the company, showed he owed the company Rs.20,000. The account was settled by a single cheque issued by one party to the other. Instructed Mr. Sonawala to send goods worth Rs.2,000 to Mr.Chandiiwala. Office equipment worth Rs.17,000 was stolen from the office in a midnight robbery and the security chief Mr. Lightfinger was held personally responsible. Paid Rs.9,500 as income tax and Rs.3,400 as sale tax. Mr. Sonawala sent us a bill for the goods sent to Mr. Chandiwala, allowing us a 10% trade discount. We in turn sent our bill to Mr. Chandiwala at 20% above cost and 3% trade discount.

12 Inspector eagle invited us to come to the police station and handed over stolen equipment recovered worth Rs.6,000. Instructed Mr. Chandiwala to pay Mr. Sonawala the amount due by us and to send the balance to us. Mr. Chandiwala complied. Mr. Pithalwala s cheque for Rs.60,000 was dishonoured for the 10 th time over the last year and we decided to write off the amount as bad. Interest on investments earned Rs.1,050 was sent to us by cheque for Rs.950, the balance being deducted as income tax. Mr. Pithalwala won the Maharashtra state lottery and came personally to pay us in cash the amount previously written off as bad. Question 5 Journalise the following transactions X1 Bought Goods for Rs. 10, X1 Purchased Goods from Ram Rs. 20, X1 Bought Goods from Shyam, for Rs. 30,000 against a currentdated cheque X1 Purchased goods from Sohan of the list price of Rs. 30,000 at a trade discount of 10% X1 Bought goods of the list price of Rs.1,25,000 from Mohan less 20% trade discount and 2% cast discount and paid 40% by cheque X1 Rejected and returned 10% of goods supplied by Ram X1 Rejected and returned 10% of goods supplied by Sohan. Question 6 Journalise the following transactions X1 Sold goods for Rs. 10, X1 Sold goods to Sachin for Rs. 20, X1 Sold good to Amit for Rs. 30,000 against a current dated cheque X1 Sold goods to Atul of the list Price of Rs. 3,000 at a trade discount of 10% X1 Sold goods to Sunil 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% X1 Sold goods Sahil of the list price of Rs. 1,25,000 less 20% trade discount and 2% cash discount and paid 40% by cheque X1 Sold goods costing Rs. 40,000 to Anita for cash at a profit of 25% on cost less 20% on cost less 2% on cost less 20% trade discount and charged 8% sales tax and paid cartage Rs. 100 (not to be charged from customer) X1 Sold goods costing Rs. 40,000 to Anil at a profit of 20% on sales less 20% on sales less 20% trade discount and charged 8% sales tax and paid cartage Rs. 100(to be charged from customer.) X1 Sachin rejected and returned 10% of goods X1 Atul rejected and returned 10% of goods.

13 Question 7 Journalise the following transactions in the books of Bharat Tulsian. Received Rs. 975 from Hari Krishn in full settlement of his account for Rs. 1,000. Received Rs. 975 from Shyam on his account tor Rs. 1,000. Received a first and final and final dividend of 60 paise in the rupee from the Official Receiver of Mr. Rjan who owed us Rs. 1,000. Paid Rs. 480 to Mohan in full settlement of his account for Rs. 50. Paid Rs. 480 to Sohan on his account for Rs. 500 Question 8 Journalise the following transactions in the books of Bharat Tulsian X1 Withdrawn goods for personal use (sale price Rs. 600, cost Rs. 500) X1 Goods costing Rs. 500 given as charity. (sale price Rs. 600) X1 Goods costing Rs. 1,000 distributed as free samples. (sale price Rs. 1,200) X1 Goods stolen in transit (sale price Rs. 1,000 cost Rs.800) X1 Goods destroyed by fire (sale price Rs. 1,000 cost Rs. 800) X1 Goods stolen by an employee (sale price Rs. 1,000 cost Rs. 600) X1, Goods used in making of furniture (sale price Rs. 2,000, cost Rs. 1,500) Question 9 Journalise the following transactions X1 Paid into bank Rs. 11,000 for opening a current account X1 Withdrew for private expenses Rs. 1, X1 Withdrew from bank Rs. 3, X1 Withdrew from bank for private use Rs. 3, X1 Placed on Fixed Deposit A/c at Bank by transfer from current from current account Rs. 5,000 Question 10 Journalise the following transactions. Paid rent of building Rs. 12,000 half of the building used by the proprietor for residential use. Paid fire insurance of the above building in advance Rs. 1,000. Paid life insurance premium Rs. 2,000. Paid income-tax Rs.3,000. Salary due to clerk Rs Charge depreciation on 10% p.a for one month (furniture Rs. 12,000). Provide interest on capital (Rs. 60,000) at 15% p.a. for six months. Charge interest on drawing (Rs. 10,000) at 18% p.a for two months. Provide interest on loan on Ram (Rs. 1,00,00) at 18% p.a for two months.

14 Charge interest on loan to Shyam (Rs. 2,00,00) at 18% p.a for two months. Received commission Rs. 1,000 half of which is I advance. Brokerage due to us Rs Question 11 On X1 Mohan, a customer, paid cash Rs. 950 on account of Rs.1,000. Journalise and post it into the ledger. Question 12 On X1 Mohan, a customer, paid cast Rs. 950 in full settlement of his account of Rs. 1,000. Journalise and post it into the ledger. Question 13 Pass the opening entry in the journal of Ram (as on 1 st April 20X1) and post the same into the ledger. Cash-in-hand Rs.1,000, Cash at Bank Rs. 5,000, Stock of Rs.20,000, Land and Building Rs.1,00,000, Plant and Machinery Rs. 50,000, Furniture and Fixtures Rs.25,000, Owings from X Ltd. Rs.12,500, Prepaid Insurance Rs.500, Interest received in advance Rs.250, Loan from Y Ltd. 10,000, Owing to Z Ltd. Rs. 3,750 Question 14 On April 1, 20X1, the position of Kishore Bros. was as follows. Cash-in-hand Rs.140, Cash at Bank Rs. 3,220, Bills Receivable Rs. 860, Jai Ram (Dr.) Rs. 200, Ram Kumar (Dr.) Rs. 601, Office furniture Rs Stock-in-hand Rs. 5,200. Daulat Ram (Cr.) Rs. 2,184, Hari Ram (Cr.) Rs. 2,712, Bills Payable Rs. 1,000. Journalise the following transactions X1 Bought Goods for Rs. 10, X1 Purchased Goods from Ram Rs. 20, X1 Bought Goods from Shyam, for Rs. 30,000 against a currentdated cheque X1 Purchased goods from Sohan of the list price of Rs. 30,000 at a trade discount of 10% X1 Bought goods of the list price of Rs.1,25,000 from Mohan less 20% trade discount and 2% cast discount and paid 40% by cheque X1 Rejected and returned 10% of goods supplied by Ram X1 Rejected and returned 10% of goods supplied by Sohan. Question 15 Journalise the following transactions X1 Sold goods for Rs. 10, X1 Sold goods to Sachin for Rs. 20,000

15 03.01.X1 Sold good to Amit for Rs. 30,000 against a current dated cheque X1 Sold goods to Atul of the list Price of Rs. 3,000 at a trade discount of 10% X1 Sold goods to Sunil 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% X1 Sold goods Sahil of the list price of Rs. 1,25,000 less 20% trade discount and 2% cash discount and paid 40% by cheque X1 Sold goods costing Rs. 40,000 to Anita for cash at a profit of 25% on cost less 20% on cost less 2% on cost less 20% trade discount and charged 8% sales tax and paid cartage Rs. 100 (not to be charged from customer) X1 Sold goods costing Rs. 40,000 to Anil at a profit of 20% on sales less 20% on sales less 20% trade discount and charged 8% sales tax and paid cartage Rs. 100(to be charged from customer.) X1 Sachin rejected and returned 10% of goods X1 Atul rejected and returned 10% of goods. Question 16 Journalise the following transactions in the books of Bharat Tulsian. Received Rs. 975 from Hari Krishn in full settlement of his account for Rs. 1,000. Received Rs. 975 from Shyam on his account tor Rs. 1,000. Received a first and final and final dividend of 60 paise in the rupee from the Official Receiver of Mr. Rjan who owed us Rs. 1,000. Paid Rs. 480 to Mohan in full settlement of his account for Rs. 50. Paid Rs. 480 to Sohan on his account for Rs. 500 Question 17 Journalise the following transactions in the books of Bharat Tulsian X1 Withdrawn goods for personal use (sale price Rs. 600, cost Rs. 500) X1 Goods costing Rs. 500 given as charity. (sale price Rs. 600) X1 Goods costing Rs. 1,000 distributed as free samples. (sale price Rs. 1,200) X1 Goods stolen in transit (sale price Rs. 1,000 cost Rs.800) X1 Goods destroyed by fire (sale price Rs. 1,000 cost Rs. 800) X1 Goods stolen by an employee (sale price Rs. 1,000 cost Rs. 600) X1, Goods used in making of furniture (sale price Rs. 2,000, cost Rs. 1,500) Question 18 Journalise the following transactions X1 Paid into bank Rs. 11,000 for opening a current account X1 Withdrew for private expenses Rs. 1, X1 Withdrew from bank Rs. 3,000

16 04.01.X1 Withdrew from bank for private use Rs. 3, X1 Placed on Fixed Deposit A/c at Bank by transfer from current from current account Rs. 5,000 Question 19 Journalise the following transactions. Paid rent of building Rs. 12,000 half of the building used by the proprietor for residential use. Paid fire insurance of the above building in advance Rs. 1,000. Paid life insurance premium Rs. 2,000. Paid income-tax Rs.3,000. Salary due to clerk Rs Charge depreciation on 10% p.a for one month (furniture Rs. 12,000). Provide interest on capital (Rs. 60,000) at 15% p.a. for six months. Charge interest on drawing (Rs. 10,000) at 18% p.a for two months. Provide interest on loan on Ram (Rs. 1,00,00) at 18% p.a for two months. Charge interest on loan to Shyam (Rs. 2,00,00) at 18% p.a for two months. Received commission Rs. 1,000 half of which is I advance. Brokerage due to us Rs Question 20 On X1 Mohan, a customer, paid cast Rs. 950 on account of Rs.1,000. Journalise and post it into the ledger. Question 21 On X1 Mohan, a customer, paid cast Rs. 950 in full settlement of his account of Rs. 1,000. Journalise and post it into the ledger. QUESTION22 Pass the opening entry in the journal of Ram (as on 1 st April 20X1) and post the same into the ledger. Cash-in-hand Rs.1,000, Cash at Bank Rs. 5,000, Stock of Rs.20,000, Land and Building Rs.1,00,000, Plant and Machinery Rs. 50,000, Furniture and Fixtures Rs.25,000, Owings from X Ltd. Rs.12,500, Prepaid Insurance Rs.500, Interest received in advance Rs.250, Loan from Y Ltd. 10,000, Owing to Z Ltd. Rs. 3,750 Question 23 On April 1, 20X1, the position of Kishore Bros. was as follows. Cash-in-hand Rs.140, Cash at Bank Rs. 3,220, Bills Receivable Rs. 860, Jai Ram (Dr.) Rs. 200, Ram Kumar (Dr.) Rs. 601, Office furniture Rs. 660.

17 Stock-in-hand Rs. 5,200. Daulat Ram (Cr.) Rs. 2,184, Hari Ram (Cr.) Rs. 2,712, Bills Payable Rs. 1,000. Required : What was the amount of capital of Kishore Bros on that date? Show the journal entry to open his books. Question 24. On X1 Mohan, a customer, paid cash Rs. 950 on account of Rs.1,000. Journalise and post it into the ledger. Question 25. On X1 Mohan, a customer, paid cash Rs. 950 in full settlement of his account of Rs. 1,000. Journalise and post it into the ledger. Question 26. Pass the opening entry in the journal of Ram (as on 1 st April 20X1) and post the same into the ledger. Cash-in-hand Rs.1,000, Cash at Bank Rs. 5,000, Stock of Rs.20,000, Land and Building Rs.1,00,000, Plant and Machinery Rs. 50,000, Furniture and Fixtures Rs.25,000, Owings from X Ltd. Rs.12,500, Prepaid Insturance Rs.500, Interest received in advance Rs.250, Loan from Y Ltd. 10,000, Owing to Z Ltd. Rs. 3,750 Question 27 On April 1, 20X1, the position of Kishore Bros was as follows. Cash-in-hand Rs.140, Cash at Bank Rs. 3,220, Bills Receivable Rs. 860, Jai Ram (Dr.) Rs. 200, Ram Kumar (Dr.) Rs. 601, Office furniture Rs Stock-in-hand Rs. 5,200. Daulat Ram (Cr.) Rs. 2,184, Hari Ram (Cr.) Rs. 2,712, Bills Payable Rs. 1,000. Required : What was the amount of capital Kishore Bros. On the date? Show the journal entry to open his books. Question 28. follows. On 1 st January 2001, the position of V. Mathur was as Stock-in-hand Rs 2,400, Bills Payable Rs. 400, Cash at Bank Rs. 1,800, Plant & Machinery Rs.1,000, Owing by debtors Rs. 500, Owing to Creditors Rs. 800, Investments Rs. 2,000, Loan from S. Sethi Rs. 1,500. Required : What was the amount of V. Mathur s Capital on this data? Show an opening journal entry. Question 29. Journalise the following transactions. Shyam became insolvent. A first and final composition of 75 P. in the rupee was received from his offical receiver.

18 He owed me a debt of 100 Received cash for a bad debt written-off last year 50 Rent due to landlord 80 Depreciation on office furniture 10 Salaries due to clerks 500 Question 30. Journalise the following transactions in the Journal of Mr. Tulsian X1 Started business with cash Rs. 2,00,000, Goods Rs. 1,00,000, Furniture Rs. 50, X1 Opened Current Account with Rs.1,00, X1 Placed an order with Ritik Roshan for the supply of goods of the list price of Rs. 1,00,000. In this connection, we paid 9% of the list price as an advance by cheque X1 Ritik Roshan supplied gods of the list price of Rs. 1,00,000 Less 12% trade discount. Packing and Delivery charges Rs. 1, X1 Purchased goods Murli of the list price of Rs. 1,00,000 Less 12% trade discount and paid him by cheque under a cast discount of 5%. Question 31. journalise the following transactions. a)bought goods from arun for Rs at a trade discount of 15 % and cash discount of 2 %. Paid 80 % amount immediately. b)purchased goods for Rs from X and supplied it to Y for Rs Y returned goods worth Rs 7800 which in turn were returned to X. c)sohan who owed us Rs was declared insolvent and 40 paise in a rupee is received from him in full settlement. d)purchased a motor car for Rs and paid Rs 5000 for its repairs and renewals. e)purchased goods from ashok and co for Rs 5000 at 20 % trade discount.half the payment was made in cash. f)paid to ashok out of business funds for the repairs of proprietors house. g)purchased building for Rs and paid 2 % brokerage on its purchase. Also incurred Rs on its registration. Payment for building was mede by cheque and brokerage and registration charges were paid in cash SUBSIDIARY BOOKS Question 1

19 Enter the following transactions in the four subsidiary books required for the proprietor Mr. Raj, thereafter complete the monthly totaling of the books Oct, 1 st Mr. A Sold goods worth 10% trade discount. Oct 3 rd Mr. Otter bought off Mr. Raj, 4 cases of goods, each valued at Rs.7,000 less Rs.3,000 trade discount. Oct 6 th Mr. Sam supplied goods valued Rs.25,000 as per invoice prepared. Oct 8 th Ten percent of the goods of Mr. A were rejected. Oct 10 th Record invoice for Rs.30,000 less Rs.3,000 received from Mr. Andrews. Oct 15 th Goods bought off Sam were dispatched to Mr. Armour at 50% above cost. Oct 18th Mr.Raj bought from Mr. Taj, 4 cases each costing Rs.10,000 Rs.5,000, Rs.6,500 and Rs.7,400 respectively. Oct 24 th One case sold earlier, was rejected by Mr. Otter. Oct 24th Twenty percent of the consignment of the 10th October was rejected for a wrong size. Oct 25th Recorded a debit note for Rs.2,000 and a credit note for Rs.4,000 issued to Mr. Hardy and Mr. Jack respectively. Oct 30th Dispatched a consignment worth Rs.65,000 to Mr. Sail and sent the invoice (clearly specifying the credit period of one month), by registered post. Oct 30th Record a sales return for Rs.1,400 from Ratan, against a sale order of Rs.45,000 executed last month. Oct 31st The invoice for goods worth Rs.90,000 gross, received by Mr. Raj s godownkeeper, from Mr. Bali, was recorded, subject to a 15% trade discount allowed. QUESTION-2 Enter the following transaction in the purchase book of pawan electrical stores, new delhi: June2 purchased goods from surya electric store, chandi chowk, on credit(invoice no. 480):- 200tube Rs 50 each 50 table Rs 400 each 20 Rs 100 each Trade discount 15% 10 bought goods from new lights traders, Connaught place, on credit ( invoice no. 1508) 20 tables Rs 500 each 40 ceiling Rs 600 each 10 electric Rs 200 each Tr4asde discount 20 % 20 purchased goods from ravindra electric co, patel nagar, on credit ( invoice no 1508)- 120 dozens Rs 80 per dozens 20 water Rs 120 each Less trade discount 10% 22 bought from sunny lamp, lajpat nagar, for cash (invoice no 705)- 5 electric Rs 175 each

20 28 bought from fashion furniture co, chitra gupta road, on credit (invoice no 3450)- 12 Rs 200 each 2 Rs 100 each QUESTION-3 ENTER THE FOLLOWING TRANSACTIONS IN THE purchase book of superior cloth house: April 4 purchased from radha Krishna and sons, vide invoice no meters cotton cloth Rs 40 per metre 80 meter woolen 80 per metre Trade discount 20 %; paid % 12 purchased from raghubir parshad and co, vide invoice no merte silk Rs 100 per metre 150 metre cotton 50 per metre Trade discount 15 %; paid 10% 20 purchased from modern furniture house, delhi:- 10 Rs 200 per chair 25 purchased from hari om and sons, vide invoice no metre woolen Rs 70 per metre: paid 10 % 200 metre cotton Rs 35 per metre; paid 10% Trade discount is 20 % and freight charges are Rs 150 QUESTION 4 Prepare a sales nook from the following transactions of navketan furniture house : May 1 sold goods to five star furniture co new delhi, on credit:- 150 Rs 200 each 40 Rs 600 each Discount 10 % 15 sold goods to vishal furniture house, Faridabad:- 10 Rs 2000 each 5 sofa Rs 3000 each Trade discount 15 % 20 sold goods to parkash furniture house, Chandigarh:- 100 Rs 180 each Less : 5 % 25 sold to moon light furniture co for cash:- 50 Rs 175 each 28 sold on credit to sunil machinery store :- 2 old Rs 500 per machine 1 old type writer for Rs 1200 QUESTION 5

21 RECORD THE FOLLOWING TRANSACTIONS IN THE SALES BOOK OF GANESH ELECTRONICS, NEW DELHI JAN 3 SOLD TO RUCHIKA ELECTRONICS, VIDE INVOICE NO color T.V Rs each Less trade discount 20 %; and VAT is 10 % 10 sold to garima electronics, vide invoice no washing Rs 8000 each Less trade discount 25 %; and VAT is 10 % 12 sold to raghav and sons, vide cash memo no color T.V Rs each less trade discount 15 % and VAT is 10 % 16 sold to nitin trading co, vide invoice no music Rs each 10 colour T.V Rs each Less trade discount 20 %; VAT %; freight charged Rs 2500 LEDGER Question 1 The following data is given by Mr. Singh, the owner, with a request to compile only the two person accounts of Mr. Herbert and Mr. Robert in his ledger for the month of April Apr 1 st Mr. Singh owes Mr. Robert Rs.15,000; Mr. Herbert owes Mr. Singh Rs.20,000 4 th Mr. Robert sold goods worth 10% trade discount to Mr. Singh. 5 th Mr. Singh sold to Mr. Herbert goods priced at Rs.30, th Record a purchase of Rs.25,000 net from Robert, which were sold to Herbert at a profit of Rs.15, th Mr. Singh rejected 10% of Mr. Robert s goods of 4 th April. 19th Mr. Singh issued a cash memo for Rs.10,000 to Mr. Herbert who came personally for this consignment of goods urgently needed by him. 22nd Mr. Herbert cleared half his total dues to Mr. Singh enjoying a ½ per cent cash discount (of the payment received Rs.20,000 was by cheque).

22 26th Robert s total dues (less Rs.10,000 held back) were cleared by cheque, enjoying a cash discount of Rs.1,000 on the payment made. 29th close Herbert s account to record the fact that all but Rs.5,000 was cleared by him, by a cheque, because he was declared bankrupt. 30 th Balance Roberts accounts. Question 2 From following details prepare Sunils account and balance it. What does the closing balance indicate? 2001 Rs April 1 Opening balance (Cr) 16,300 April 6 Purchased goods from Sunil 50,000 April 7 Returned goods to Sunil 2,000 April15 Issued a cheque to Sunil 20,000 Discount allowed by him 400 Question Rs May 1 Opening balance (Dr) 8,600 May 12 Sold goods to him 40,000 May 14 Goods returned by him 1,000 May 16 Received cash from him 10,000 May20 Received a cheque from him 10,000 Discount allowed to him 300 Question 4 Sinha has the following transaction with Neville 2007 Dec 1 st Balance due from Neville Rs 2280 Dec 7 th Sold goods for Rs 8000 on credit. Dec 10 th Cheque received in full settlement of account, less 5 % cash discount. Dec 15 th Sold goods for Rs 8500 on credit. Dec 19 th Holt accepted a bill for 3 months drawn on him for Rs Dec 25 th Sold goods for Rs 600 on credit. Dec 27 th Received cheque for Rs 550 and allowed cash discount Rs 50 Dec 29 th Holts cheque for Rs 550 returned by bank marked `refer to drawer. Show how the account of Holt as would appear in the ledger of Sinha Question 5 Opening balance Rs.10,000 (Dr) Sold goods Rs.20,000 (gross) at 10 % discount. Goods returned by him Rs.3,000 gross. Received a cheque of Rs.4,700 in settlement of a debt of Rs.5,000. The above cheque returned dishonored. Received cash Rs.17,000.

23 He paid Rs 500 for the repairs of the bicycle of Damodar s son. He supplied household goods Rs.2,000 for Damodars house. Sold goods Rs.9,000 and freight on his behalf Rs.2,000. Balance the account and state what the balance indicates. Question 6 Baidyanath supplies you the following information about his customer Maruti Ram. You are requested to prepare Maruti Ram s account in the books of Baidyanath and Baidyanaths account in books of Maruti Ram. Amount due from Maruti Ram Rs.9,200 Sold goods to him net Rs.9,000 after allowing 10 % trade discount. He returned goods Rs.1,000 (gross). Received Rs.5,000 from him. Allowed him discount Rs.200 He repaired the car of the business and sent us the bill of Rs 1000 he sent his T.V to us for getting it repaired. We paid Rs.800 for its repairs. Maruti became insolvent and only 20% of the amount due could be recovered from his private estate. Question 7 B. Gates has the following transaction with P. Hopkins for the month of January Jan 1 st Balance due from P. Hopkins Rs.2,270 4 th Credit given for goods returned Rs.270; cheque received in settlement of account less 2.5% cash discount. 6 th Sold goods for Rs.7,000 on credit. 10th Received a letter from P. Hopkins in which he stated that he would forward a cheque for Rs.7,000 on 24th January. 24 th Received a cheque for Rs.6,850 and allowed cash discount of Rs th P. Hopkins cheque for Rs.6,850 returned by bank marked Refer t o the drawer. Show how the account of p Hopkins would appear in the ledger of B Gates and balance the account on 31 st jan Show how the acc Prepare Ramana s account up to 31 st Dec in the books of Raja fashions and find out whether he is a debtor or creditor Dec 4 sold goods to Ramana Rs 5000 Dec 7 cash received from Ramana Rs 4000 Dec 12 returned goods by Ramana Rs 200 Dec 17 purchased goods from Ramana Rs 2000 Dec 19 received cash from Ramana Rs1000 Dec 21 goods returned from Ramana Rs1000 Dec 24 Ramana purchased goods from Raja fashions Rs1500 Dec 28 Ramana bought goods for cash Rs 800

24 Question 56 Prepare Rajesh account in the books of Rakesh: 2000 Dec 1 st Purchased from Rajesh 2,000 3 rd Sales to Rajesh 10,000 6 th Returned goods to Rajesh th Cheque received from Rajesh 1, th Goods purchased from Rajesh 3, th Cash paid to Rajesh 6, st Sales to Rajesh 800 QUESTION T.K sinha has the following transactions with Mr. Neville holt Dec1 balance due from Neville holt Rs 2280 Dec 7 sold goods on credit for Rs Dec 10 cheque received in full settlement of account, less 5 % cash discount. Dec 15 sold goods on credit for Rs Dec 19 n. holt accepted a bill for 3 months drawn on him for Rs Dec 25 sold goods on credit for Rs 600. Dec 27 received cheque for Rs 550 and allowed cash discount Rs 50. Dec 29 n. holts cheque for Rs 550 returned by bank marked refer to drawer Show how the account of n. holt as would appear in the ledger of T.K sinha. Question 57 PREPARE Vikram a/c in the books of Akram 1999 Jan 1 st Purchased goods from Vikram 5,000 3 rd Cash paid to Vikram 2,500 5 th Goods returned to Vikram th Sold goods to Vikram for cash 2,500 9 th Sold goods to Vikram 3, th Goods returned by Vikram th Cheque received from Vikram th Purchased goods from Vikram 2, st Account of Vikram settled with 10% discount Question 58 Prepare Kumar s ledger account in the Books 1999 Dec 1 st Purchased goods from Kumar 40,000 3 rd Sold goods to Kumar 20,000

25 6 th Goods returned to Kumar th Cheque received from Kumar 1, th Purchased goods from Kumar 4, th Cash paid to Kumar 6, th Goods sold to Kumar 600 Question 59 From the following transaction prepare Suman and Company account 1993 Jan 1 st Amount due to Suman and Company th Sold goods to Suman and Co for cash th bought furniture from Suman and Co 13, th Krishna returned goods 1, th Purchased goods from Suman and Co 8, th Goods returned to Suman and Co th Suman and company s account settled with cheque. Question 60 Prepare X and Co account from the following 1987 Feb 1 st Amount due from X and Co 1,000 3 rd Sold goods to X and Co th Purchased furniture from X and Co th Goods returned from Murthy th X and Co purchased goods from us 1, th Goods returned from X and Co th X and Co s account settled with discount of Rs 20 ount of P. Hopkins would appear in ledger of B. Gates and balance account on 31 st January CASH BOOK Question 1 Enter the following transactions in the Cash book of Mr. Boman Irani Jan, 1 st Cash balance Rs.10,000, Bank overdraft Rs.4,500 2nd Sold goods worth Rs.5,000 to Mr. Christopher at 10% trade discount and 5% cash discount; half the payment received on the spot of which half was by cheque. 4 th Purchased from K. Arun Rs.2,350 5 th Deposited Rs.6,000 in the bank. 6 th Paid office rent by cheque Rs.5,600 8 th Received Rs.3,400 from Mr. Austin as commission in full settlement of Rs.3,500.

26 9 th A cheque received from Rebello was endorsed in favour of Irani Rs.3,750. A discount of Rs.250 was earned. 12 th Withdrew for personal use Rs.1,500 14th Received a cheque from Pereira in settlement of sale of goods which was sold earlier to him at 10% trade discount, terms Rs.2, th Received from Pai on behalf of Chowdary Rs.7, th Purchased goods from Machado and paid by cheque Rs.1, th Withdrew from bank Rs.200 for office use and Rs.300 for personal use. 22 nd Direct payment into bank by Martin Rs.6,000 (after deducting 3% discount) 25 th Paid salaries to workers in advance Rs th Paid by cheque to Arun Rs.2,270 in full settlement. 31 st Withdrew cash in excess of Rs.500 from bank Question2 Enter the following transactions in a triple column cash book; 1990 May 1 cash in hand Rs4000 Bank over draft Rs sold goods for cash Rs sold goods for cheque and paid into bank the same day Rs sold goods for cheque Rs paid ram lal by cheque Rs815 He allowed discount Rs 20 9 bought goods and paid for them by cheque Rs banked Rs received a cheque from suresh and paid it into bank Rs490 Discount allowed Rs received a cheque from bhagwan a cheque for Rs 1850 in full settlement of his account of Rs 1900.the cheque was banked on the same day. 28 with drew from bank for office use Rs 2000 and for personal use Rs bank collected interest on securities RS 800. TRIAL BALANCE Question 1 The following is the Trial balance of Shah for the period ended 31 st November Particulars Debit Credit Capital 11,000 Drawings 650 Sundry expenses 1,205 Purchases and sales 13,550 21,700

27 Returns 300 Debtors and Creditors 3,695 2,400 Cash and Bank Balances 15, ,100 35, During the month of December 1981, the last month the following transactions were recorded and a rectification effected for a transaction made earlier which was wrongly recorded. Credit purchases of goods for Rs.7,900 Credit sale of goods worth Rs.13,200 Purchases worth Rs.400 were returned. A credit purchase worth Rs.500 of November was recorded as a credit sale in November and therefore rectified in December 1981 Cash sale of goods worth Rs.1,000. Prepare a Trial balance for the year ended 31 st December Question 2 The following is the Trial Balance of Saldanha as on 27 th December 1985 Particulars Debit Credit Capital and Drawings 4,000 50,000 Purchases and Sales 87,000 1,10,000 Returns 2,000 1,000 Cash and Overdraft 12,000 8,000 Debtors and Creditors 40,000 19,000 Discounts 1,000 2,000 Interest on overdraft 3,000 Salaries and wages 4,000 Rent 3,000 1,000 Plant and Machinery 35, ,91,000 1,91, The following transactions took place from 27 th to 31 st December Dec, 27 th Sub tenant Irene paid Rs.3,000 due from her for the year. 28 th Cash sales Rs.8,000 and credit sales Rs.15, th Paid Hillary a trade creditor Rs.4,500 by cheque in full settlement of Rs.5, th Cash purchases Rs.2,000 and credit purchases Rs.7, st Received a cheque for Rs.3,900 in full settlement of Rs.4,000 from Philomena. 31 st Deposited Rs.15,000 in Bank. 31 st Received a Debit voucher from the bank informing us of Interest on overdraft Rs.500 and bank charges of Rs st Paid office and other expenses for the month Rs.300 Take out a trial balance as on 31 st December 1985.