NOTES


CA-Foundation > Principles and Practice of Accounting > Accounting Process - Subsidiary Books (Old & New)

Record the following transactions in a Simple Cash Book of Mr. Mohit for the month

March 2011

2011 Mar.1  Started business with cash Rs. 55,000.

4. Opened a current account with bank and deposited Rs. 20,000

7. Purchased goods for cash Rs. 15,000.

9. Paid electricity bill Rs. 1,000

11. Invested in Government  Bonds Rs. 3,000.

17. Sold goods for cash Rs. 7,000.

20. Paid life insurance premium of Mr. Mohit Rs. 2,400.

22. Purchased goods for cash Rs. 5,000 @ 10% trade discount

23. Received dividend Rs. 4,000.

26. Paid for transport Rs. 760.

28. Received an account from Rahul Rs. 3,240.

31. Deposited into bank cash in excess of Rs. 4,000.



Ans.
                                                                                            In the Books of Mr. Mohit

Receipts (Dr.)                                                                        Simple Cash Book                                                 Payments(Cr.)

Date

Particulars

R. No.

L. F.

Amount

Date

Particulars

V. No.

L. F.

Amount

2011

 

 

 

 

2011

 

 

 

 

Mar. 1

To Capital A/c (Being business started with cash)

 

 

55,000

Mar .4

By Bank A/c (Being current account opened with Bank)

 

 

20,000

17

To Sales A/c (Being goods sold for cash)

 

 

7,000

7

By Purchase A/c ( Being goods purchased for cash)

 

 

15,000

23

To Dividend A/c (Being dividend received )

 

 

4,000

9

By Electricity Bill  A/c (Being electricity bill paid)

 

 

1,000

28

To Rahul’s A/c ( Being cash received on account)

 

 

3,240

11

By Govt. Bonds A/c (Being investments purchased)

 

 

3,000

 

 

 

 

 

20

By Drawings A/c ( Being life insurance premium of proprietor paid)

 

 

2,400

 

 

 

 

 

22

By Purchase A/c ( Being goods purchased for cash at 10% trade discount)

 

 

4,500

 

 

 

 

 

26

By Transport A/c (Being transport charges paid)

 

 

760

 

 

 

 

 

31

By Bank A/c (Being excess cash deposited into bank)

 

 

18,580

 

 

 

 

 

31

By Balance c/d

 

 

4,000

 

 

 

 

69,240

 

 

 

 

69,240

Apr. 1

To balance b/d

 

 

4,000

 

 

 

 

 

Working Notes :     

     1.    Calculation of excess amount deposited into bank:

Total of Receipt side                        Rs.  69,240
(-) Total of payment side                  Rs.  46,660

                                                     22,580

Less Balance carried forward           Rs.  4,000
Excess amount deposited into bank Rs. 18,580

     2.    Life Insurance Premium is the personal expenditure of the proprietor thus treated as ‘Drawings’.

 


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Notes of Accounting Process - Subsidiary Books (Old & New)



  1. Enter the following transactions in Sales Book of M/s. Pranat Engineers Ltd., Delhi. 2016

    Jan. 2. Sold to M/s. Ajanta Electricals, Delhi 5 pieces of Ovens @ Rs.6,000/- each less Trade discount@ 10%

           8. Sold to M/s. Ajanta Electricals Plaza, 10 pieces of Tablets @ Rs.8,000/-each less trade discount 5%

         15. Sold to M/s. Haryana Traders, 5 pieces of Juicers @ Rs.3500/- each less trade discount @10%


    see in detail

  2. Post into the ledger the entries of Sales Book prepared in Question1
    see in detail

  3. Record the following transactions in a Simple Cash Book of Rupam Traders for the month January 2011

    2011             

         1.   Cash in hand Rs. 20,000

    3. Received cash on account from Govind Rs. 4,000.

         6.  Purchased machinery Rs. 6,000

         9.  Insurance Premium paid Rs. 1,500

    12. Sold goods for cash Rs. 8,000
    13.  Received commission Rs. 1,800
    15. Purchased postal stamps Rs. 250

         18 . Purchased goods for cash from Mehta Bros Rs. 1,750.

         23.  Cash paid to Rampal Rs. 2,500 on account.

    26.  Paid rent Rs. 3,300.

         28.  Sold old furniture Rs. 5,000

         29.  Deposited into bank Rs. 2,200.

    Paid salary to office staff Rs. 4,700
    see in detail

  4. Record the following transactions in a Simple Cash Book of Mr. Mohit for the month

    March 2011

    2011 Mar.1  Started business with cash Rs. 55,000.

    4. Opened a current account with bank and deposited Rs. 20,000

    7. Purchased goods for cash Rs. 15,000.

    9. Paid electricity bill Rs. 1,000

    11. Invested in Government  Bonds Rs. 3,000.

    17. Sold goods for cash Rs. 7,000.

    20. Paid life insurance premium of Mr. Mohit Rs. 2,400.

    22. Purchased goods for cash Rs. 5,000 @ 10% trade discount

    23. Received dividend Rs. 4,000.

    26. Paid for transport Rs. 760.

    28. Received an account from Rahul Rs. 3,240.

    31. Deposited into bank cash in excess of Rs. 4,000.


    see in detail

  5. Record the following  transactions of Mr. Tejas in Cash Book with cash and bank columns for the month October 2011.

    2011 Oct.

         1. Cash balance Rs. 25,000 Bank Balance Rs. 18,000.

         3.  Paid for printing and stationery Rs. 7,400

         8. Cash sales Rs. 23,000.

         9. Cash purchases Rs. 26,000.

         10.  Deposited cash into bank Rs. 5,000.

         12.  Withdrew from bank for personal use Rs. 3,500.

         12.  Received bearer cheque from Suraj in full and final settlement Rs. 9,900 and deposited the same into bank.

         17.  Withdrew from bank for office use Rs. 8,000

         18.  Received cash from Abhijit on account Rs. 7,850.

         19.  Received bearer cheque from Abhay Rs. 5,400

         22.  Paid legal charges Rs. 2,600 by cheque.

         23.  Paid for cartage Rs. 600.

    26.  Cheque received from Abhay deposited into bank for collection.

         28.  Paid telephone bill Rs. 4,000.


    see in detail


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