Analyze the following transactions.

(a)              Ramesh started his business with cash 50,000

(b)              Borrowed from Nikhil 5,000
(c)              Purchased furniture 1,500.
(d)              Purchased furniture from Mohan on credit 10,000
(e)              Purchased goods for cash 12,000
(f)               Purchased goods from Ram on credit 1,000
(g)              Sold goods for cash 20,000
(h)              Sold goods to Hari on credit 40,000
(i)                Received cash from Hari 10,000
(j)                Paid cash to Ram 1,000
(k)              Deposited into bank 8,000
(l)               Withdrew cash for personal use 10,000
(m)           Withdrew from bank for office use 3,000
(n)             Withdrew from bank for personal use 10,000
(o)              Received cash from a customer, Shyam 2200
(p)              Paid salary by cheque 3,000
(q)              Received donation in cash 10,000
(r)               Paid to Ram by cheque 8,000
(s)               Paid salary 10,000
(t)               Paid rent by cheque 1,000
(u)            Goods withdrawn for personal use 17,000
(v)              Paid an advance to suppliers of goods 1,000
(w)            Received an advance from customers 3,000
(x)              Paid interest on loan 8,000
(y)              Paid installment of loan 8,000
(z)               Received Interest/ Interest allowed by bank 1,000

Solution

Analysis Of Transaction
Dr
Cr
Transaction Particulars L.F. RS
 Cash A/C
Dr. 50000

a
To Capita
A/C (Started
Dr. Nikhilwith
business A/ CCapital ) 5000
(Borroewd From Nikhil )
b

Furniture A/C 15000

Dr Cash A/C
c (Being purched
furniture )
furniture A/c 10000
Dr. Mohans's A/C
d (Purchaed furniture on credit
)
Purchaes A/C 12000
Dr. Cash Ac
e (Good purchaed on
cash )
Purchaes A/C 1000
Dr. Ram's A/C
f (Goods purched
from Ram on Credit )
Cash A/C 20000
Dr. Sales A/c
g (Goods sold on
cash
Haris's A/C 40000
Dr. Sales A/c
h (Goods sold to Haris
on credit )
Cash A/C 10000
Dr. Haris's A/C
i ( Cash
received from Haris )
10000
Ram's A/C
J Dr. Cash A/C
(Cash paid to Ram )
8000
Bank A/C
K Dr. Cash A/C
(Deposited into Bank )
Drawings A/C 10000
Dr. Cas A/C
L (Cash withdrew
for personal account )
Cash A/C 3000
Dr. Bank A/C
m (For
office withdrew frombank )
 Drawings A /C 10000
Dr. Bank AC
n (Withdrew from
bank for personal use )

Cash A/C 2200

Dr. Shyam's A/C
o (Received cash from
shyam)
3000
Saalry A /C
p Dr. Bank
A/C
( Salary Paid by Cheque )
10000
Cash A/C
q Dr. Donation
A/C
( Donation receive din cash )
Ram's A/C 8000
Dr. Bank A/C
r ( Paid to
Ram by Cheque )
10000
Salary A/C
s Dr. Cash A/c
( salary Paid)
Rent A/C 1000
Dr. Bank A/C
t ( Rent
aid by cheque )
Drawing's A/ C 17000
Dr. Purchaes A/C
u
(Withdrawn goods for personal use )
Advance to supplier A/C Dr. 1000
Cash A/C
v ( paid Advance of suppliers
goods )
3000
Cash A/C
w Dr. Advance from
Customer's A/C (Received
advance from customer )
8000
Interest on Loan A/C
x Dr. Cash A/C
( Paid interst loan )
Loan A/C 8000
Dr. Cash A/C
y ( paid
instalment loan )
Bank A/C 1000
Dr. Bank Interst A/C
z ( Received interst
allowed by bank
Gand Total 267200
Dr

RS
50000

5000

15000

10000

12000

1000

20000

40000

10000

10000

8000

10000

3000
10000

3000

2200

10000

8000

10000

1000

17000

1000

3000

8000

8000

1000
267200
Journalise the following transactions, post them in the Ledger & balance the account
1.            Ram started business with a capital of Rs. 10,000.
2.           He purchased goods from Mohan on credit Rs. 2,000.
3.           He paid cash to Mohan Rs. 1,000.
4.           He sold goods to Suresh Rs. 2,000.
5.           He received cash from Suresh Rs. 3,000.
6.           He further purchased goods from Mohan Rs. 2,000.
7.            He paid cash to Mohan Rs. 1,000.
8.           He further sold goods to Suresh Rs. 2,000.
9.           He received cash from Suresh Rs. 1,000

Mr.Ram
Journal

Date31st L F (Ledger
march ,06 Particulars Polio )
1 Cash Account Dr
Capital account Cr
2 Purchase Account 3 Dr
To Mohan
3 Mohan Dr
To Cash
4 Suresh Dr
To Sales
5 Cash Account Dr
To Suresh
6 Purchase Accout Dr
To Mohan
Mohan Dr
7 To Cash
Account
8 Suresh Dr
To Salles Account
9 Cash Account Dr
To Suresh

Total

Ledger
1.Cash Account
 Dr.
Date particulars Amount Rs
1 To Capital Ac 10000
2 To Suresh 3000
3 To Suresh
1000
14000
1-Apr Balance B/D 12000

2.Capital Account

Dr
Date Particulars Amount Rs

Mar. 31 Baance C/D 10000

10000

3.Purchase Account

Dr
Date Particulars Amount Rs
2 To Mohan 2000
6 To Mohan 2000

4000

1-Apr Balance B/D 4000

4.Mohan

Dr.
Date Particulars Amount Rs
3 To Cash 1000
7 To Cash 1000
Balance C/D 2000

4000
 5.Suresh

Dr.
Date Particulars Amount Rs
4 To sales 2000
8 To sales 2000

4000

6.Sales Account

Dr.
Date Particulars Amount RS
31-Mar To Balance C/D 4000

4000

Mr.Ram
Trial Balanace
As on 31st March
2006

Particulars Debit
Amount
Cash Account 12000
Capital Account
Purchase Account
Mohan 4000
Suresh
Sales Account
…......or Nill

Total 16000
e Ledger & balance the accounts, Trial Balance as on 31st March, 2006.
00.
2,000.

000.

r.Ram
Journal

Debit Amount Credit

(RS) Amount (RS)
10000
10000
2000
2000
1000
1000
2000
2000
3000
3000
2000
2000
1000
1000
2000
2000
1000
1000
24000 24000

Ledger
1.Cash Account
 Cr
Date Particulars Amount
3 Mohan 1000
7 Mohan
March 31 1000
Balance C/d
12000
14000

2.Capital Account

Cr
Date Particulars Amount Rs

1 Cash Account 10000

10000
1-Apr Balance B/D 10000

3.Purchase Account

Cr.
Date Particulars Amount
31-Mar

Balance C/D 4000

4000

4.Mohan

Cr.
Date Particulars Amount Rs
2 Purchases
6 purchases
2000
2000
4000
1-Apr Balance B/D 2000
 5.Suresh

Cr.
Date Partculars Amount RS
5 Cash A/C 3000
9 Cash A/C 1000

4000

6.Sales Account

Cr.
Date Particulars Amount Rs
4 Suresh 2000
8 Suresh 2ooo

4000
1-Apr By Balance B/D 4000

am
Trial Balanace
As on 31st March
2006

Credit
Amount
10000

2000
….........or Nill
4000

16000
 Problem :3
Equation

Selected Transactions from Shah Transport Services began on June 1, 2016 by Za

a. Zahid Shah invested Rs. 600,000.
b. Truck was Purchase by business for Rs. 430,000.
c. Equipment purchased on credit for Rs. 9,000.
d. A bill of Rs. 7,200 for transporting goods was sent to Mr. Ashraf Abbasi, a customer.
e. Cash of Rs. 6,000 is received from the customer who was billed in d. 
f. Received Rs. 22,300 is cash for transporting goods.
g. A payment of Rs. 5,000 was made on the equipment purchased in c. 
h. Paid expenses of different types for Rs. 1,700 in cash.
i. Equipment of Rs. 1,200 was withdrawn from business for Zahid Shah’s personal use.

Shah Tranport Equation

Accounting Equation

Assets
S.No.
Cash Truck Equipment A/C Receivable
a 600000
Bal 600000
b (-430000) 430000
Bal 170000 430000
c 9000
Bal 170000 430000 9000
d 7200
Bal 170000 430000 9000 7200
e 6000 (-6000)
Bal 176000 43000 9000 1200
f 22300
Bal 198300 43000 9000 1200
g (-5000)
Bal 193300 43000 9000 1200
h (-1700)
Bal 191600 430000 9000 1200
i (-1200)
Bal 191600 430000 7800
Total RS. 630600
 June 1, 2016 by Zahid Shah as?

, a customer.

personal use.

Equities
A/C Payable O.E
600000
600000

600000
9000
9000 600000
7200
9000 607200

9000 607200
22300
9000 629500
(-5000)
4000 629500
(-1700)
4000 627800
(-1200)
4000 626600
RS.630600
 Problem : 4
Equation

Prove that the Accounting Equation is satisfied in all following transactions of Wajeeha Ejaz owner of busine
I. Started business with cash value of Rs. 500,000.
II. Rent paid in advance for a year Rs. 6,000.
III. Purchased merchandising inventory for cash Rs. 80,000 and on account Rs. 20,000 from Mr. Tahir.
IV. Purchased Marketable securities for cash Rs. 100,000.
V. Cash Sales Rs. 30,000 (cost 20,000).
VI. During the period rent expires Rs. 2,000.
VII. Commission paid during the trading was Rs. 1,000.
VIII. Received cash dividend Rs. 4,000 on marketable securities.
IX. Paid to Rs. 19,500 to Mr. Tahir in full settlement.
X. Withdrew inventory for personal purpose by owner of worth Rs. 6,000

Solution

Assets Equities
S.No.
Cash Prepaid Rent Inventory M.Sequrities A/C Payable
I 500000
Bal 500000
II (-6000) 6000
Bal 494000 6000
III (-80000) 100000 20000
Bal 414000 100000 20000
IV (-100000) 100000
Bal 314000 6000 100000 100000 20000
V 30000 (-20000)
Bal 344000 6000 80000 100000 20000
VI (-2000)
Bal 344000 4000 80000 100000 20000
VII (-1000)
Bal 343000 4000 8000 100000 20000
VIII 4000
Bal 347000 4000 8000 100000 20000
IX (-19500) (-20000)
Bal 327500 4000 8000 100000 0
X (-6000)
Bal 327500 4000 2000 100000 0
Total R.S 505500 R.S 505500
jeeha Ejaz owner of business enterprises?

00 from Mr. Tahir.

Equities
O.E
500000
500000

500000

500000

500000
10000
510000
(-2000)
508000
(-1000)
507000
 4000
511000
500
511500
(-6000)
505500
R.S 505500
Prove that the Accounting Equation is satisfied in all following transactions of Wajeeha Ejaz owner of bu
I. Started business with cash value of Rs. 500,000.
II. Rent paid in advance for a year Rs. 6,000.
III. Purchased merchandising inventory for cash Rs. 80,000 and on account Rs. 20,000 from Mr. Tahir.
IV. Purchased Marketable securities for cash Rs. 100,000.
V. Cash Sales Rs. 30,000 (cost 20,000).
VI. During the period rent expires Rs. 2,000.
VII. Commission paid during the trading was Rs. 1,000.
VIII. Received cash dividend Rs. 4,000 on marketable securities.
IX. Paid to Rs. 19,500 to Mr. Tahir in full settlement.
X. Withdrew inventory for personal purpose by owner of worth Rs. 6,000
f Wajeeha Ejaz owner of business enterprises?

20,000 from Mr. Tahir.