ACCOUNT Tally Busy PDD
ACCOUNT Tally Busy PDD
ACCOUNT Tally Busy PDD
NAME: -
PH. NO.: -
ID NO.: -
JOINING DATE: -
Traditional Approach
1. Personal Account
✓ Natural P.A: - It relates to Transactions of human beings like
Ram, Ajay etc.
2. Impersonal Account: -
✓ Real Account: - Land & Building, Investment, Fixed Deposits
etc.
Liability
Expenses
Revenue
Losses Income
Gain
ASSET
Fixed Assets
Definition: - A fixes Assets refer to long-term tangible assets that are used
in the operations of a business.
Investment
Definition: - An Asset or item acquired with the goal of generating income or
appreciation.
Example: -
• Stock
• Bonds
• Fixed Deposited
• Shares
• Debenture Etc.
Expenses
Definition: - a Cost that businesses incur in running their operation.
Capital
Definition: - The Capital means the assets and cash in a business. Capital
may either be cash, machinery, receivable accounts, property, or house.
Capital may also reflect the capital gained in a business or the assets of the
owner in a company.
Liability
Definition: - Liability is a term in accounting that is used to describe any
kind pf financial obligation that a business has to pay at the end of an
accounting period to a person or a business.
Short-Term Long-Term
Definition: - Short -Term Liabilities are Definition: - Long-Term liabi-
Within a year whereas long term liabilities -lities are due more than one
Are due after one year or more than that. Year in the future.
Example: -
1. Bank Loan
2. Creditors
3. Advance Received
4. Outstanding expenses
5. Bills Payable
Revenue
The money generated from normal business operations, calculated as the
average sales price times the number of units sold.
Example: -
Cost of goods sales – sales return
Income
Commission Received
Interest Received
Rent Received
Bad debts Recover
GOODS AND SERVICES TAX
Journal Entries (In case of Intra-state supply of goods and services i.e. sales
within the same state):
1. For purchase of goods:
2. For sale of goods:
Journal Entries (In case of Inter-state supply of goods and services i.e.
sales from one state to another state):
CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is
levied @12% on inter-state sale and purchase.
CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is
levied @ 12% on inter-state sale and purchase.
Question .6 Following are the transactions of R. Singh & Co., Kanpur (UP) forthe
month of July, 2022. You are required to Journalise them:
2022
July1 Started business with cash 80,000
July 1 Cash paid into bank 50,000
July 1 Bought stationery of Rs. 300 plus CGST and SGST @
6% each for cash
July 2 Bought goods of RS. 21000 plus CGST and SGST
@6% each for cash
July 5 Sold goods of RS. 7500 plus CGST and SGST @6%
each for cash
July 6 Bought office furniture of RS. 5000 plus CGST and
SGST @6% each from Banerjee Bros.
July 11 Sold goods of RS 10000 plus CGST and SGST @6%to
Ramesh & Co.
July 12 Received cheque from Mahindra from the amount
July 16 Sold goods of RS. 5000 plus IGST @ 6% each to
Mahindra
July 20 Bought goods of RS. 20000 plus IGST @12% for cash
from S. Seth & Bros., Delhi
July 23 Bought goods of RS. 2250 plus IGST @12% for cash
from S. Narain & Co., Ludhiana (Punjab)
July 26 Ramesh & Co. paid on account 2,500
July 28 Paid to S. Seth & Bros. by cheque in full settlement 22,000
July 31 Rent is due to S. Sharma but not yet paid. 1,000
Question 10.
Record the following transactions in the Journal of Ashoka Furniture Traders:
2022
Jan 1 Started business with cash 50000
Jan 2 Deposited into bank from his saving account 350000
Jan 10 Purchased machinery of RS 15000 was given inn exchange
and Balance was paid by cheque. IGST was levied and charged
@ 12%
Jan 15 Paid installation charges for machinery 2000
Jan 20 Purchased timber from Singh & Co. of the list price of RS
20000 plus CGST and SGST @ 6% each he allowed 10% Trade
discount.
Jan 25 Timber costing RS 5000 was used for furnishing the office
sold furniture to Rakesh of the list price of RS 10000 and
Jan 31 allowed him 105% Trade discount. Charged CGST and SGST @
6% each
Jan 31 Old furniture valued at RS 500 was taken from Rakesh in
exchange. CGST and SGTS @ 6% each was paid.
Feb 10 Sent cheque to Singh &b Co. in full settlement 19000
Feb 15 Received from Rakesh in full settlement 9000
Feb 20 Paid wages 15000
Feb 25 Issued a cheque for RS 5000 in favor of the landlord for rentof
February.
Question: - 1
prepare Trading Account from the following particulars for the year
ended March 31, 2021:
Purchases ₹2,20,000
Sales ₹4,00,000
Direct Expenses ₹70,000
Closing stock ₹30,000
Gross Profit: ₹1,40,000
Question: - 2
prepare Trading Account from the following particulars for the year
ended March 31, 2021:
Opening Stock ₹56,250
Purchases ₹1,57,500
Sales ₹3,05,000
Wages ₹15,750
Carriage₹5,500
Closing stock ₹45,000
Question 3
Prepare a trading account of Mr.Rachit for the year ended 31st
March 2021:
Opening stock ₹10,000
Purchases ₹1,58,900
Purchases return ₹ 900
Sales 2,62,600
Sales return ₹2,600
Direct expenses ₹5,000
The closing stock was valued at ₹20,000.
Question: -5
This information is provided by Mr. Neelesh
Stock on 01.04.2020 ₹ 20,000
During the year Sales was₹ 4,06,000;
Purchases ₹2,94,000;
Carriage Inwards ₹ 8,000;
Clearing charges ₹10,000;
Dock Charges ₹2,000
Sales Return ₹6,000;
Purchases Return ₹ 4,000;
Stock on 31,03.2021was ₹ 30,000.
prepare Trading Account for the year ending31.03.2021.
Gross Profit: ₹ 1,00,000
Question: -6
Prepare a Trading Account from the following particulars for the
year ended 31st March 2018
Opening Stock ₹50,000
Purchases ₹1,30,000
Sales ₹3,15,000
Factory rent ₹10,000
Purchases return ₹10,000
Sales return ₹15,000
Wages ₹8,000
Carriage on purchases ₹3,500
Manufacturing Exp. ₹8,900
Custom Duty ₹2,100
Motive power ₹2,000
Dock charges ₹3,000
Coal, Gas, and Water ₹3,000
Factory Manager Salary ₹12,000
Commission on Purchase ₹8,000
Value of Closing stock ₹60,000
Question 8
Prepare Trading Account for the year ending 31st March 2021 from
the following information.
Opening stock ₹1,70,000
Purchases return ₹ 10,000
Sales ₹3,50,000
Wages ₹50,000
Sales return ₹ 20,000
Purchases ₹ 1,50,000
Carriage inward ₹ 20,000
Carriage outward ₹ 12,000
Goods sent on consignment ₹20,000
Closing stock ₹1,60,000
Question 10
Prepare a trading account of Mr. Arham from the following figures.
Purchases ₹5,40,000
Sales ₹10,40,000
Salaries & wages ₹3,50,000
Returns outward ₹12,000
Trading expenses ₹8,000
Factory expenses ₹11,000
Carriage inwards ₹8,000
Returns inward ₹40,000
Commission on purchase ₹2,000
Opening Stock ₹60,000
Income tax ₹40,000
Dock Charges ₹10,000
Clearing Charges ₹5,000
Closing stock: Market value ₹ 1,35,000 Cost Price ₹ 1,30,000
Gross Profit: ₹5,06,000
Note: As per the conservatism principle of accounting, The
closing stock is valued at cost price or market price whichever is
less.
Question 11
Calculate the cost of goods sold and gross profit from the following
figures.
Opening Stock ₹80,000
Purchases ₹4,40,000
Sales ₹10,40,000
Wages & Salary ₹1,50,000
Returns outward ₹12,000
Office expenses ₹4,000
Factory expenses ₹14,000
Carriage inwards ₹10,000
Returns inward ₹20,000
Dock Charges ₹8,000
Clearing Charges ₹2,000
Packing Charges (Factory) ₹6,000
Packing Charges (Show Room) ₹8,000
Closing stock is valued at ₹ 1,35,000
Question 12
Calculate the gross profit from the following figures.
Cost of goods sold ₹10,00,000
Gross Profit ratio 20%
Question 14
Prepare a trading account of Mr.Krish from the following figures.
Opening stock ₹30,000
Purchases ₹5,00,000
Sales ₹8,00,000
Excise Duty ₹10,000
Import Duty ₹10,000
Railway Freight ₹8,000
Household Expenses ₹20,000
Salaries & wages ₹50,000
Returns outward ₹10,000
Office expenses ₹14,000
Discount on purchase ₹16,000
Trade expenses ₹18,000
Interest received ₹13,000
Factory expenses ₹11,000
Haulage ₹10,000
Carriage inwards ₹8,000
Returns inward ₹20,000
Discount allowed ₹4,000
Commission ₹2,000
Income tax ₹40,000
Dock Charges ₹2,000
Clearing Charges ₹5,000
Closing stock is valued at
Closing stock: Market value ₹ 50,000 Cost Price ₹ 55,000
Question 15
Calculate the gross profit from the following figures.
Net profit for the year ₹1,25,000
Office expenses ₹24,000
Discount Allowed ₹16,000
Trade expenses ₹15,000
Selling expenses ₹25,000
Administration expenses ₹30,000
Factory expenses ₹25,000
Factory Wages ₹15,000
Commission received ₹15,000
Interest received ₹10,000
Carriage Inward ₹10,000
QUESTION: - 2
QUESTION: - 3
Ans. Gross Profit Rs. 38,400, Net Profit Rs. 20,370, Balance Sheet Rs. 1,64,110
❖ THE FOLLOWINGS ARE THE BALANCES OF ASHOK KUMAR AS ON
30th JUNE, 2003:
DEBIT Rs. CREDIT Rs.
TAKING INTO ACCOUNT THE FOLLOWING ADJUSTMENTS, PREPARE THE TRADING AND
PROFIT LOSS ACCOUNT AND BALANCE SHEET AS ON 30th JUNE, 2007.
1,08,901 1,08,901
Information:
I. WRITE OFF Rs.2,000 AS BAD DEBTS AND PROVISION FOR DOUBTFULL
DEBTS IS TO BE MAINTAINED AT 5% ON DEBTORS.
II. LOAN FROM X WAS TAKEN 1st MAY, 2008 .NO INTEREST HAS BEEN PAID
SO FAR.
III. INCLUDED IN GENERAL EXP. IS INSURANCE PREMIUM Rs.1, 200 PAID
FOR ONE YEAR ENDING 31st MARCH, 2009.
IV. 1/3 OF WAGES AND SALARIES IS TO BE CHARGED TO TRADING A/c AND
BALANCE TO P&L A/c.
V. CLOSING STOCK WAS VALUED AT Rs.50, 000.
BALANCE SHEET (31st DEC., 2008)
NOTE:
I. SALES TAX COLLECTED IS LIABLITY BECAUSE IT HAS BEEN COLLECTED FROM THE CUSTOMERS
AND IS PAYBLE TO THE GOVT.
II. INTEREST ON LOAN WILL BE CALCULATED FOR EIGHT MONTHS.
YOU ARE REQUIRED TO PREPARE FINAL ACCOUNTS FOR THE YEAR ENDING 31
DEC 1981 TAKING INTO ACCOUNT THE FOLLOWING ADJUSTMENTS
I. CLOSING STOCK ON 31/12/2008 WAS VAULED AT Rs.4, 340.
II. COMMISSION INCLUED Rs.300 BEING COMMISSION RECEVIED IN ADVANCE.
III. SALARIES HAVE BEEN PAID FOR 11 MONTHS.
IV. BANK LOAN HAS BEEN TAKEN AT 10% P.A INTEREST.
V. DEPRECIATE BUILDING BY 5% AND SCOOTER BY 15%.
VI. WRITE OFF Rs.200 AS FURTHER BAD DEBTS AND MAINTAIN BAD DEBTS
PROVISION AT 5% ON DEBTORS.
VII. SCOOTER IS USED FOR BUSINESS AS WELL AS FOR PRIVATE PURPOSE
EQUALLY.
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❖ From The following Trial Balance of Sovera Medicos prepare a Profit and
Loss account for the year ended December 31,2001.
Trial Balance
Particulars Dr (Rs) Cr (Rs)
Capital 2,50,000
Inventory (on Jan 1,2001) 60,000
Accounts Receivable 1,00,000
Accounts payable 70,000
Sales 6,00,000
Purchases 3,70,000
Sales Returns 20,000
Purchases Returns 10,000
Discount Received 10,000
Bills Payable 40,000
Rent Payable 10,000
Insurance 10,000
Drawings 20,000
Land and Buildings 1,50,000
Freehold Property 50,000
Plant and Machinery 50,000
Petty Expenses 6,000
Cash at Bank 20,000
Furniture 30,000
Freight 20,000
Wages 15,000
Salaries 15,000
Advertising 10,000
Postage and Telephones 10,000
General 34,000
Expenses
Adjustments:
1. Inventory was valued on 31ST December ,19X1 AT RS 95,000
2. Depreciate Plant and Machinery by 15% and furniture by 10%
3. Provide for interest on capital at 10% and interest on drawing at 6%
4. Provide for following outstanding expenses:
Wages RS 10,000
Salaries RS 7,000
General RS 5,000
Expenses
5. Insurance was prepaid to the extent of RS 3,000.
6. A sum of RS2,000 was earned by the of discount, but not yet received and hence not included in
accounts.
7. A sum of RS 3,000 represents rent received in advance but not yet due.
8. A provision of 2% is required on debtors towards bad and doubtful debts.
9. A provision of 50% towards taxation on profits (before taxation) is required.
❖ The following is The Trial Balance of Kamal Enterprises for the year ended
31st December, 2006.You are required to prepare a Profit and a Loss account
and Balance Sheet after taking into account the adjustments given below.
Trial Balance
Dr. Cr.
Particulars Rs Particulars Rs
Cash in hand 500 Sales 1,50,300
Cash at bank 1,200 Purchase returns 5,000
Office furniture 6,000 Accounts payable 12,000
Accounts receivable 15,000 Bills payable 8,000
Commissions 1,200 Discount received 1,000
Bills receivables 3,500 Dividend received 2,000
Power and Fuel 6,000 Rent received 3,500
Plant and Machinery 24,000 Capital 27,000
Office expenses 2,000
Carriage inwards 1,200
Carriage outwards 3,500
Rent, Rates and Taxes 1,700
Leasehold premises 25,000
Wages 30,000
Salaries 7,000
Opening Inventory 12,000
Sales returns 2,000
Purchases 60,000
Drawings 7,000
2,08,800 2,08,00
Adjustments:
1. Closing Inventory as on 31-12-2006, RS 18,000.
2. Depreciate Plant and Machinery at 10%.
3. Salaries outstanding RS 1,000, Power and Fuel outstanding RS 2,000.
4. RS5,000 was spent on Plant and Machinery but wrongly included in
wages.
5. to provide for bed and doubtful debts for RS 1,500.
6. Discount earned but not received RS100.
7. Commission due but not recorded RS200.
8. Rent received includes RS500received in advance.
❖ The following is the Trial Balance of Rajan Jeweller’s as on December
31,2005.
Dr. Cr.
Particulars RS Particulars RS
Opening Inventory 72,000 Capital 5,00,000
Purchases 2,25,000 Sales 3,50,000
Furniture 15,000 Purchase returns 1,800
Motor car 30,000 Murthy 32,000
Buildings 4,25,000 Varadan 24,000
Gangappa 12,000 Commission 7,500
Gourishankar 20,000
Mathews 18,000
Advertisements 22,000
RepaiRs and maintenance 13,000
General expenses 16,000
Insurance 7,000
Cash in hand 3,500
Cash at bank 6,000
Salaries 30,000
9,15,300 9,15,300
Note:
To arrive at accounts receivables and accounts payables you have to add
necessary ledger accounts.
You are required you draft Profit and Loss accounts and Balance sheet as on
31st December 2005.
Trial Balance
Dr Cr
Particulars RS Particulars RS
Cash on hand 1,500 Sales 2,50,000
Cash at bank 3,000 Returns outwards 2,000
Purchases 1,10,000 Capital 56,000
Returns inwards 1,500 Accounts payable 30,000
Wages 20,000
Power and Fuel 8,000
Carriage outwards 6,000
Carriage inwards 5,000
Opening Inventory 6,000
Land 10,000
Buildings 80,000
Machinery 30,000
Patents 15,000
Salaries 12,000
Sundry expenses 6,000
Insurance 1,000
Drawings 8,000
Accounts receivable 15,000
Total 3,38,000 3,38,000
You are required to prepare a Trading and Profit and Loss account for the year
ended 31.12.2006 and a Balance as at 31.12. 2006.Adjustments to be made are
given below.
1. Closing Inventory as at 31.12.2006, RS20,000.
2. provisions for bad and doubtful receivables at 5% on debtors.
3. Outstanding salaries RS 5,000, outstanding wages RS 3,000.
4. Depreciation at 10% on all assets.
❖ Prepare Trading and Profit and Loss account and Balance sheet from the
following data of Premier and Company.
Trial Balance as on 31.12.2005
Adjustments:
1. Provision for bad and doubtful receivables @5% on accounts receivables
2. Interest on Bank Loan outstanding RS 7,000
3. Closing Inventory as on 31.12.2005 RS 1,20,000.
❖ From the following Trial Balance of Sun shine and Company prepare
Trading, Profit, and Loss Account and Balance sheet.
Trial Balance as on 31.12.2004
Particulars Debit Credit
RS RS
Capital 25,000
Loans 5,000
Sales 35,000
Accounts Payable 4,000
Bills Payable 5,000
Purchase Returns 2,000
Dividends Payable 3,000
Plant and Machinery 13,000
Buildings 17,000
Receivables 9,650
Purchases 18,000
Discount Allowed 1,200
Wages 7,000
Salaries 3,000
Travelling Expenses 750
Freight 200
Insurance 300
Commission Paid 100
Cash on Hand 100
Bank 1,600
Repairs 500
Interest on Loans 600
Opening Inventory 6,000
Additional Data:
Additional Information:
1. Closing Inventory as on 31st December 2003, RS 50,000
2. Outstanding wages RS 5,000
3. Depreciation on Plant and Machinery at 10% and Furniture at 5%