|Opening stock||Stock in hand|
|Purchase return||Purchase account|
|Fright charges||Direct expenses|
|Carriage inwards or Purchases||Direct expenses|
|Cartage and coolie||Direct expenses|
|Manufacturing wages||Direct expenses|
|Coal, gas, water||Direct expenses|
|Oil and fuel||Direct expenses|
|Factory rent, insurance, electricity, lighting and heating||Direct expenses|
|Postage and telegrams||Indirect expenses|
|Telephone charges||Indirect expenses|
|Rent paid||Indirect expenses|
|Rates and taxes||Indirect expenses|
|Audit fees||Indirect expenses|
|Interest on bank loan||Indirect expenses|
|Interest on loans paid||Indirect expenses|
|Bank charges||Indirect expenses|
|Legal charges||Indirect expenses|
|Printing and stationery||Indirect expenses|
|General expenses||Indirect expenses|
|Sundry expenses||Indirect expenses|
|Discount allowed||Indirect expenses|
|Carriage outwards or sales||Indirect expenses|
|Traveling expenses||Indirect expenses|
|Bad debts||Indirect expenses|
|Repair renewals||Indirect expenses|
|Motor expenses||Indirect expenses|
|Depreciation on assets||Indirect expenses|
|Interest on investment received||Indirect income|
|Interest on deposits received||Indirect income|
|Interest on loans received||Indirect income|
|Commission received||Indirect income|
|Discount received||Indirect income|
|Rent received||Indirect income|
|Dividend received||Indirect income|
|Bad debts recovered||Indirect income|
|Profit by sale of assets||Indirect income|
|Sundry income||Indirect income|
|Loan from others||Loan Liabilities|
|Bank loan||Loan Liabilities|
|Bank overdraft||Bank OD|
|Bills payable||Current Liabilities|
|Sundry creditors||Sundry creditors|
|Mortgage loans||Secured loans|
|Expense outstanding||Current Liabilities|
|Income received in advance||Current Liabilities|
|Other liabilities||Current Liabilities|
|Cash in hand||Cash in hand|
|Cash at bank||Bank account|
|Fixed deposit at bank||Deposit|
|Bills receivable||Current asset|
|Sundry debtors||Sundry debtors|
|Closing stock||Stock in hand|
|Stock of stationery||Current asset|
|Loose tools||Fixed asset|
|Fixtures and fittings||Fixed asset|
|Motor vehicles||Fixed asset|
|Plant and machinery||Fixed asset|
|Land and building||Fixed asset|
|Leasehold property||Fixed asset|
|Prepaid expenses||Current asset|
|Income outstanding||Current asset|
Trading account: Buying and selling of goods.
|Dr. Receiving aspect Giving aspect Cr.|
|Direct expenses||Amount||Direct Income||Amount|
|To||(-)purchase return||xxx||By||Closing stock||xxx|
|To||Cartage and coolie||xxx|
|To||Factory rent, fuel power||xxx|
|To||Gross profit (transfer to profit and loss account)||xxx|
|To Profit and loss account: Actual profit and loss of the business|
|Indirect expenses or payments||Amount||Indirect income or receipts||Amount|
|To||Postage and Telegram||xxx||By||Interest on investment received||xxx|
|To||Telephone charges||xxx||By||Interest on deposits received||xxx|
|To||Rent paid||xxx||By||Interest on loans received||xxx|
|To||Rate and taxes||xxx||By||Discount received||xxx|
|To||Insurance paid||xxx||By||Discount received||xxx|
|To||Interest on bank loan||xxx||By||Rent received||xxx|
|To||Bank charges||xxx||By||Bad debts received||xxx|
|To||Printing and stationery||xxx||By||Net loss||xxx|
|To||Carriage outward (sales)|
|To||Depreciation on assets|
|Balance sheet: Actual financial position|
|Bank loan||xxx||Cash in hand||xxx|
|Bank overdraft||xxx||Cash at bank||xxx|
|Bills payable||xxx||Fixed deposit at bank||xxx|
|Expenses outstanding||xxx||Bills receivable||xxx|
|Net profit||xxx||Stock of stationery||xxx|
|Land and building||xxx|
Journalize the following Transactions using the debit and credit given by the American accounts
- Question 1
|1. Commenced business with cash 10,000|
|2. Deposited into bank 5,000|
|3. Purchased goods for cash 3,000|
|4. Sold goods for cash 2,500|
|5. Purchased goods from A on credit 4,000|
|6. Sold goods to B on credit 4,500|
|7. Withdraw from bank 3,000|
|8. Paid A on account 2,000|
|9. Received from B on account 2,500|
|10. Took loan from C 5,000|
|11. Gave loan to D 4,000|
|12. Paid salary 1,000|
|13. Cash withdraw from the business for personal use 200|
|14. Rent paid to E 1,000|
|Cash||Cash in hand|
- Question 2 (Rakesh and company)
- Started business with cash Rs. 2,000, Bank Rs. 20,000.
- Issued cheque for goods purchased Rs. 1,000.
- Bought goods for cash Rs.8,000.
- Bought furniture from Anil for cash Rs.100.
- Bought goods from harish Rs. 1,500.
- Bought goods from chandan on credit Rs. 5,800.
- Returned damaged goods to Chandan Rs.800.
- Bought goods from Naveen and paid by cheque immediately Rs.400.
- Sold goods to Gupta Rs. 1,000.
- Received a cheque from Guptha Rs.1,000 for goods sold.
- Paid commission Rs.2,000.
- Paid wages by cheque Rs.4,000.
- Draw cheque for personal use Rs.4,000.
- Draw cash for personal use from bank Rs.3,000.
- Receive a cheque from Manju Rs.2,800.
- Borrow loan from Anand’s Rs.1,000.
- Paid Anand’s Loan with interest Rs.1,000.
|Purchase return||Purchase account|
- Question 3 (Haridas and company)
1. Started business with cash Rs.10,000,furniture Rs.4,000 and machinery Rs.5,000.
2. Bought goods from Anil on credit Rs. 4,000 and for cash Rs.5,000.
3. Sold goods to Rajesh on credit Rs.5,000 and for cash Rs.3,000.
4. Bought goods from Arun Subject to trade discount of 2% of Rs.2,000.
5. Sold goods to Ramesh subject to trade discount of 5% of Rs.4,000.
6. Paid salary Rs.1,000, printing Rs.150 and wages rs.100.
7. Received rent Rs.500, commission Rs.400.
8. Received a cheque from Ganesh Rs.1,000.
|Trade discount||Indirect expenses|
- Question 4 (Memorandum book)
- Commenced business with cash Rs. 10,000.
- Purchased goods for cash Rs.3,000.
- Opened a bank account with Rs.2,000.
- Purchased stationery Rs.1,00.
- Purchased furniture Rs.1,000.
- Sold goods to A Rs.2,000.
- Purchased goods from B Rs.2,000.
- Sold goods for cash Rs.1,000.
- Paid for postage Rs.20.
- Took loan from C Rs.1,500.
- Paid rent Rs.300.
- Withdraw from bank Rs.800.
- Received from A on account Rs.500.
- Paid commission by cheque Rs.200.