1) Journalise the following transactions, show ledge accounts and prepare the trial balance in the

books of M/s Vishnu & Bros:

a) Sep. 1: Commenced business with cash Rs. 7,00,000 and Furniture Rs.75,000 as capital.
b) Sep.2 : Opened bank account with Yes Bank and deposited Rs.6,50,000
c) Sep. 4: Sold goods to Mr Ayush Rs.7,000
d) Sep. 7: Sold goods to Ms Aishwarya Rs. 17,000 and received back worth Rs. 500
e) Sep 8: Received from Ms Aishwarya through cheque in full settlement and offered 1% discount
f) Sep. 10: Bought Machinery from M/s Dhairya & Bros. Rs. 1,70,000, paid 10% through bank and
remaining with loan from PNB.
g) Sep. 14: Purchased furniture of Rs. 20,000 from M/s Shravani & Bros
h) Sep. 16: Paid for transportation of furniture Rs. 200
i) Sep. 20: Sold goods to M/s Deval & Bros worth Rs. 20,000 at a trade discount of 10% and
received Rs. 8,000 through cheque
j) Sep. 24: Purchased goods from M/s Navneet & Bros Rs. 9,500.
k) Sep. 27: Settled M/s Navneet & Bros account in full and received Rs. 100 discount .
l) Sep. 28: Purchased raw materials worth Rs. 10,800 and returned worth Rs. 200 and settled the
payment through cheque
m) Sep. 29: Sold plant worth Rs. 12,000 at a loss of Rs.2,000.
n) Sep. 30: Paid wages through bank Rs. 22000 which includes Rs. 3,000 is paid in advance.

2) Journalise the following transactions, show ledge accounts and prepare the trial balance in the
books of M/s Ritika & Bros:

a) July. 1: Commenced business with cash Rs. 5,00,000 and Buildings Rs.50,000 as capital.
b) July.2 : Opened bank account with HDFC and deposited Rs.4,50,000
c) July. 4: Sold goods to Mr Sreeram for cash Rs.25,000
d) July. 7: Sold goods to Ms Sankeerthana Rs. 30,000 and Rs. 15,000 in cash
e) July 8: Received from Ms Sankeerthan through cheque in full settlement and offered Rs. 200
discount
f) July. 10: Bought Machinery from M/s Shreya & Bros. Rs. 2,50,000 and with 90% loan from ICICI
Bank.
g) July. 14: Purchased Building of Rs. 1,00,000 from M/s Gayatri & Bros and with 80% loan from
HDFC Bank.
h) July. 16: Paid for building registration Rs. 10000 through cheque.
i) July. 20: Sold goods to M/s Maheswar & Bros worth Rs. 80,000 at a trade discount of 10% and
received Rs. 52,000 through cheque
j) July. 24: Purchased goods from M/s Bhumika & Bros Rs. 11,500.
k) July. 27: Settled M/s Bhumika & Bros account in full and received Rs. 100 discount .
l) July. 28: Purchased stationary worth Rs. 12,000 and returned worth Rs. 500 and settled the
payment through cheque
m) July. 29: Sold plant worth Rs. 10,000 at a profit of Rs.1,000.
n) July. 30: Paid salaries through bank Rs. 15000.

3) Show the accounting equation with the following details

a) Commenced business with cash Rs. 15,00,000 and Buildings Rs.500,000 as capital.
b) Opened bank account with Yes Bank and deposited Rs.4,50,000
c) Purchased machinery with cash Rs. 2,00,000
d) Sold goods and received cash Rs. 3,00,000
e) Raised loan Rs. 3,75,000
f) Paid salaries Rs. 1,15,000
 g) Received commission Rs. 1,000
h) Purchased raw materials Rs. 15,000

4) Prepare trial balance with the following details

Particulars Amount
Opening stock 127000
Purchases 845000
Sales 4115000
Sales Returns 60000
Carriage 5000
Gas&fuel 12000
Wages 54000
Salaries 60000
Rent 5500
Commission 12000
Received
Interest Paid 4000
Share capital 350000
PPE 1500000
Buildings 800000
Furniture 200000
Debtors 520000
Creditors 282000
Investments 480000
Loan from bank 125000
Carriage outwards 25000
Cash 186500

5) Rectify the following entries

a) Goods sold to Mr Ram Rs. 1,25,000 entered as purchases Rs. 12,50,000
b) Purchased machinery Rs. 5,15,000, but entered as sold buildings Rs. 5,05,000
c) Paid salaries Rs. 1,07,500, wrongly entered as Rs. 1,70,500
d) Paid insurance Rs. 50,000, entered as Rs. 5,000.

6) Prepare Trading, Profit & Loss account and Balance sheet of M/s Ayush Exports Ltd from the
following trial balance

Particulars Debit Credit

Opening stock 127000
Purchases 845000
Sales 4115000
Returns 60000 20000
Carriage 5000
Gas&fuel 12000
Wages 56000
Salaries 60000
 Rent 5500
Commission 2000 3000
Interest 4000
Share capital 350000
PPE 1500000
Buildings 800000
Furniture 200000
Debtors 520000
Creditors 275000
Investments 480000
Loan from bank 125000
Carriage outwards 25000
Cash 186500
4888000 4888000

Adjustments:
a) Closing stock stood at Rs. 1,30,000
b) Create bad debts at 5%
c) Provide depreciation @ 10% and 15% on furniture and PPE respectively
d) Rent outstanding Rs. 1,500

7) Prepare Trading, Profit & Loss account and Balance sheet of M/s Arnav Steels Ltd from the
following trial balance

Particulars Debit Credit

Opening stock 12000
Purchases 90000
Sales 325000
Returns 5000 1000
Carriage 1500
outwards
Electricity 1200
Salaries & Wages 4000
Wages 5000
Stationary 1000
Commission 1000 2000
Interest 2600 2000
Share capital 90000
PPE 225000
Buildings 145000
Furniture 30000
Debtors 17000
Creditors 28900
Fixed Deposits 30000
Loan from bank 150000
Carriage Inwards 15000
Cash 13600
 598900 598900
Adjustments:
a) Closing stock – cost – Rs. 12,000 and market value is Rs. 18,000
b) Create bad debts at 2.5% and provision for bad debts at 5%
c) Provide depreciation @ 15% and 20% on furniture and PPE respectively
d) Wages outstanding Rs. 2000
e) Interest payable Rs. 200
f) Commission received in advance Rs. 1,000
g) Electricity paid in advance Rs.200

8) Prepare cash flow from operating activities of M/s Arnan Aryan Ashutosh(AAA) Exports
Ltd for the FY 22-23:
Particulars 2021-22 2022-23
Profit & Loss A/c 2,12,500 3,19,700
Accumulated Depreciation 1,05,000 1,19,200
General Reserve 2,05,000 2,11,700
Provision for Debts 1500 2200
Accounts Receivables 45,000 32,000
Outstanding Rent 7,700 3,200
Accounts Payables 33,000 22,000
Inventory 21,000 36,000
Prepaid Insurance 3,500 0
Salaries Payable 12,000 19,200

9) Prepare cash flow statement for FY 2022-23, from the following balance sheets :

Liabilities 31.03.22 31.03.23 Assets 31.03.22 31.03.23

Equity share capital 10,00,000 10,00,000 Goodwill 1,00,000 80,000
8% Pref. Share capital 2,00,000 3,00,000 Land and Building 7,00,000 6,50,000
General Reserve 1,20,000 1,45,000 Plant and Machinery 6,00,000 6,60,000
Securities Premium --- 25,000 Investments 2,40,000 2,20,000
Profit & Loss A/c. 2,10,000 3,00,000 Stock 4,00,000 3,85,000
11% Debentures 5,00,000 3,00,000 Debtors 2,88,000 4,15,000
Creditors 1,85,000 2,15,000 Cash and Bank 88,000 93,000
Provision for tax 80,000 1,05,000 Prepaid Expenses 15,000 11,000
Proposed Dividend 1,36,000 1,44,000
24,31,000 25,34,000 24,31,000 25,34,000
Additional Information:
1. Investments were sold during the year at a profit of Rs.15,000.
2. During the year an old machine costing Rs 80,000 was sold for Rs.36,000. Its written down value
was Rs.45,000.
3. Depreciation charged on Plant and Machinery @ 20% on the opening balance.
4. There was no purchase or sale of Land and Building.
5. Provision for tax made during the year was Rs 96,000.
6. Preference shares were issued for consideration of cash during the year
7. Debentures redeemed at 10% premium – assume redemption at the beginning of the year
10) Prepare trial balance with the following details
Opening stock – Rs. 27525, Purchases – Rs. 212555, Sales – Rs. 850220, Purchase returns
– Rs. 300, Sales Returns – Rs. 600, Wages – Rs. 5295, Rent – Rs. 955, Prepaid Salaries –
Rs. 1255, Wages payable – Rs. 625, Debtors – Rs. 25275, Share Capital – Rs. 40000,
Investments – Rs. 52395, Buildings – Rs. 555555, PPE – Rs. 152775, Furniture – Rs.
75555, Loan from bank – Rs. 222555, Commission received – Rs. 1275, Interest paid – Rs.
5555, Discount received – Rs. 320
11) A machinery was purchased on 01/07/2019 for Rs. 4,75,000 and spent Rs. 25,000 on its
installation. The estimated scrap value of the machinery is Rs. 0 and expected life is 5 years.
The machinery was sold on 31/12/2022 for Rs. 1,17,000. Calculate the profit/loss on the
sale of machinery.
13) Rectify the following entries
a. Purchased buildings worth Rs. 12,00,000 and was wrongly entered through purchases
account
b. Paid salaries Rs. 27,250 but was entered as received commission Rs. 22,750.
c. Goods sold on credit to Mr Durga Prasad Rs. 2,02,000 but was recorded as cash sale