JOURNAL, LEDGER, TRIAL BALANCE AND BRS

1. Journalize the following transactions in the books of ravi brothers, Chennai.

March 2020 Particulars Rs.
1 Commenced business with 50,000
2 Purchased goods for cash 10,000
4 Paid carriage 50
8 Purchase machinery for 20,000
10 Sold goods to Madan on account for 15,000

2. Journalize the following transactions of M/s. XYZ and Co. (Dec 2022)
2022 Particulars Rs.
1 Business started with 2,50,000 and
cash deposited with bank 1,50,000
3 Purchased Machinery on credit From Rangan 50,000
6 Bought furniture from Ramesh for cash 25,000
12 Goods sold to Yesodha 22,500
16 Goods returned by Yesodha 2,500
15 Goods sold for cash 50,000
17 Bought goods for cash 25,000
20 Cash received from Yesodha 10,000
21 Cash paid to Ramola 20,000
25 Cash withdrawn from Bank 50,000
29 Paid advertisement expenses 12,500
30 Bought office stationery for cash 5,000
31 Cash with drawn from bank for personal use by the Owner 6,250
31 Paid salaries 15,000
31 Paid rent 2,500
3. Journalise the following transactions: (Dec 2022)
2018, January 1 Mr. Ravi commenced business with cash 250,000
Jan 2 Building 71,00,000 and bank balance of $1,00,000
Jan 3 Purchased goods for cash $7,000.
Jan 4 Purchased goods for $7,500 from Dhanam & Co.
Jan 5 Sold goods to Swamy and Co. 79,500.
Jan 6 Sold goods to Nithya and Co. $6,500.
Jan 7 Sold goods $2,000.
Jan 8 Obtained a loan from Indian bank 220,000.
Jan 9 Purchased furniture $2,000
Jan 10 Purchased land by issuing a cheque $25,000.
 4. Journalise the following transactions of Mr.kalyan ltd,2022.
March 2022 Particulars Rs.
1 Mr. Kalyan commenced a business with cash 2,00,000
2 Purchased goods for cash 50,000
3 Purchased goods from Mr. Ram 60,000
5 Sold goods to Mr. Ravi 60,000
7 Commission paid to ’X’ 2,000
9 Purchased furniture 5,000
16 Paid wages 6,000
22 Goods sold for cash 2,00,000
28 Paid salaries 20,000
5. Journalise the following transactions.
Purchased goods for cash 10,000
Purchased stationery for cash 500
Purchased furniture for cash 3,000
Soldra goods for cash 8,000
Sold goods to jane for cash 3,000
Sold goods to James 2,000
Paid rent to krishnan,the landlord 300
Paid salary of 8,000
Paid lokesh,the manage his salary of 3,000
Paid freight on goods purchased 300
Paid freight on machinery purchased 400
Paid wages 500
Paid wages to install a machine 1,000
Received 800 from kamal
6. Enter the following transactions in the journal books of Manohar & Company.
Prepare Journal, ledger accounts and Trial balance
Particulars Rs.
Business started with cash 11,50,000
Cash deposited with bank 3,50,000
Purchased Machinery on credit From Rangan 60,000
Bought furniture from Rajan for cash 55,000
Goods sold to John 72,000
Goods returned by John 2,000
Goods sold for cash 70,000
Bought goods for cash 55,000
Cash received from John 30,000
Cash paid to Raj 40,000
Cash withdrawn from Bank 60,000
Paid advertisement expenses 12,000
Bought office stationery for cash 6,000
Cash with drawn from bank for personal use by the Owner 25,000
Paid salaries 20,000
Paid rent 15,000
7. Enter the following transactions in Ravi's cash book with discount, Bank and
Columns. (Dec 2023)
June 2020
1 Cash balance 18,500
3 Cash sales 33,000
7 Paid Dravid 15,850
Discount allowed by him 150
13 Sold goods to Manohar on credit 19,200
15 Cash withdrawn for personal expenses 2,400
16 Purchased goods from Charles on credit 14,300
22 Paid into Bank 22,750
25 Cash received from Manohar 19,200
Allowed him discount 200
26 Draw a cheque for office use 17,500
27 Paid cash to Saravanan 2,950
Discount received from him 50
28 Paid cash Charles less discount 14,200
29 Cash Purchases 13,500
30 Paid for Advertisement 600
31 Paid salaries 12,000
8. Enter the following transactions in a three column cash book.
2018 Jan 1st Cash in hand 410
Balance at Bank 8,920
2nd Cash sales 4,500
Paid into Bank 4,000
5th Purchased Stationery 100
8th Paid Mahesh by cheque 280
Discount received 20
12 Gave a cheque for cash purchases 1,500
15th Cash withdrawn for personal use 500
18th Received from Suresh, a cheque
for 1970 in full settlement of account
for $2,000 and deposited it in bank
20th Drew from bank 1,000
21st Paid wages 800
 25th Bank returned cheque of Suresh dishonored
31St Bank charges as per pass book 10

9. From the following particulars, prepare a Bank Reconciliation statement as on

31.03.2018.
(i) Balance as per pass book ₹2,400.
(ii) Cheque sued to creditors amounting to ₹1,340 were not presented to the bank
before 31.03.2018.
(iii) Cheques amounting credited before 31.03.2018.
to ₹1,900 deposited into bank were not collected and credited before 31.03.2018
10. The cash book of Mr. David showed a balance of ₹25,000 on 23rd September
2019. This did not agree with the pass book. From the following particulars
ascertain the balance as per pass book. (Dec 2023)
i. Cheque paid but not cleared by bank before 23.09.2019, ₹5,000
ii. Cheque issued in favour of customer but not presented prior to 23.09.2019,
₹6,750.
iii. Commission charged by bank not entered in cash book ₹250.
iv. Interest on government securities collected and credited by bank not yet entered
in cash book ₹4,000.
v. No record has been made in the cash book relating to dishonor of a cheque ₹50.
 FINAL ACCOUNTS
1. Prepare Trading, Profit & Loss A/c and Balance Sheet from the following Trial
Balance of Mr. Ramesh & Co
Particulars Debit Balance Credit Balance
Sundry Debtors 92000
Plant & Machinery 20000
Interest 430
Rent and Insurance 5600
Conveyance charges 1320
Wages 7000
Sales Returns 5400
Purchases 1,50,000
Opening Stock 60,000
Ramesh’s Drawings 22,000
Trade Expenses 1350
Salaries 11200
Advertising 840
Discount 600
Bad Debts 800
Business Premises 12,000
Furniture & Fixtures 10,000
Cash in Hand 2060
Ramesh’s Capital 70,000
Purchase Returns 2600
Sales 2,50,000
Sundry Creditors 60,000
Bank overdraft 20,000
Adjustments:
(i) Closing Stock Rs. 90,000
(ii) Provide depreciation
Premises at 2.5%; Plant & Machinery at 7.5% & Furniture & Fixtures at 10%.
(iii) Write off Rs. 800 as further bad debts
(iv) Provide for doubtful debts at 5% on Sundry debtors.
(v) Outstanding Rent was Rs. 500 and outstanding Wages Rs. 400
(vi) Prepaid Insurance Rs. 300 and Prepaid Salaries Rs.700
2. From the following Trail balance prepare Trading and Profit and Loss Account for
the year ended 31st December 3018 and balance sheet as on that date. (Dec 2023)
Particulars Debit Credit
Opening Stock 40,000 -
Debtors / Creditors 30,000 15,000
Bills Receivable / Bills Payable 15,000 7,500
Capital - 1,00,000
Carriage inward 1,500
Wages 13,000
Salaries 10,000
Telephone 1,000
Repairs 350
Purchases / Sales 85,000 1,67,200
Miscellaneous Expenses / 350 450
Miscellaneous Receipts
Cash at Bank 17,000
Commission - 2,500
Plant & Machinery 65,800
Furniture 9,000
Bad Debts / Bad Debts Provision 5,200 550
2,93,200 2,93,200
The following additional information is to be taken into consideration:
i. Closing stock amounted to ₹50,000
ii. Interest on Capital to be provided for at 2.5% p.a.
iii. Provide outstanding liabilities
Salaries ₹2,500
Wages ₹1,750
Rent ₹87,500
3. From the following Trail balance prepare Trading and Profit and Loss account for
the year ended 31s December 2021 and balance sheet as on that date. (Dec 2023)
Particulars Rs.
Opening stock 1,06,000
Wages 22,000
Carriage inwards 2,000
Commission (Dr) 3,000
Purchases 1,20,000
Return inward 4,400
Trade expenses 5,800
Rent 2,000
Plant 26,000
Salaries 4,600
Cash in hand 2,000
Cash at Bank 10,000
Debtors 30,000
Income tax 5,000
Drawings 7,000
Return outwards 1,500
Sales 2,52,000
Discount received 4,000
Capital 70,000
Creditors 8,300
Loan (Cr) 14,000
Additional information:
i. Closing stock amounted to ₹1,15,000
ii. Outstanding salaries to ₹1,000
iii. Provision for bad debts at 5%
iv. Depreciation on plant at 5%
4. The following are the ledger balances extracted from the books of Mr. X. (Sem)
X's capital 50000
Overdraft 8400
Sales 3,01,000
Return inwards 5,000
Furniture 5,200
Premises 40,000
Creditors 26,600
Opening stock 44,000
Debtors 36,000
Rent 2,000
Purchases 2,20,000
Discount (Cr.) 800
General expenses 8,000
Commission allowed 4,400
Provision for doubtful debts 5000
Taxes 4,000
Salaries 18,000
Carriage on purchase 3,600
Bad debts written off 1,600
Total 3,91,800 3,91,800
Adjustments:
(i) Stock on hand on 31.12.2015 was estimated as ₹40,120.
(ii) Write off depreciation on business premises ₹600 and furniture ₹570.
(iii) Make a provision of 5% on debtors for bad and doubtful debts.
(iv) Allow interest on capital at 5% and carry forward ₹1,400 for unexpired
insurance. Prepare final accounts for the year ended 31.12.2015.
5. The following particulars have been exacted from the books of Mr. Rajan Ltd. You
are required to prepare trial balance

Particulars Amount Particulars Amount

Drawings 40,000 Commission 2,500
Cash at bank 17,000 General Expenses 8,000
Cash in hand 65,000 Furniture 5,000
Wages 10,000 Capital 2,00,000
Purchases 20,000 Sales 1,60,000
Stock 60,000
Buildings 1,00,000
Debtors 44,000
Bills receivable 29,000
Rent 4,500
 6. From the following trial balance of m/s Ram Prasad and sons, on December
2022,prepare trading ,profit and loss account for the year ended 31st December 2022
and balance sheet as on that date
Debit balances Amount Credit balance Amount
Machinery 4,000 Capital 9,000
Cash at bank 1,000 Sales 16,000
Cash in hand 500 Sundry creditors 4,500
Wages 1,000 Interest received 300
Purchases 8,000
Stock on 1st January 2022 6,000
Sundry debtors 4,400
Bills receivable 2,900
Rent 450
Commision 250
General Expenses 800
Salaries 500
Total 29,800 Total 29,800
Adjustments:
• Depreciate machinery at 10%
• Wages outstanding 100
• Rent prepaid 300
• Stock on 31st December 2022 8,000
7. The following are the balances extracted from the books of Mr. Ganesh Ltd , as on 31-12-2019,
prepare trading and profit and loss account for the year ending 31-12-2019 and balance sheet on
that date
Debit balances Amount Credit balances Amount
Drawings 4,000 Capital 20,000
Cash at bank 1,700 Sales 16,000
Cash in hand 6,500 Sundry creditors 4,500
Wages 1,000
Purchases 2,000
Stock on 1-1-19 6,000
Buildings 10,000
Sundry debtors 4,400
Bills receivable 2,900
Rent 450
Commission 250
General Expenses 800
Furniture 500
Total 40,500 Total 40,500
8. Prepare trading profit and loss account and balance sheet from the
following Trial balance of Mr.M.Madan
Debit balances Amount Credit balances Amount
Sundry debtors 92,000 Madan's capital 70,000
Plant and machinery 20,000 Purchased returns 2,600
Interest 430 Sales 2,50,000
Rent, rates, taxes and insurance 5,600 Sundry creditors 60,000
Conveyance charges 1,320 Bank overdraft 20,000
Wages 7,000
Sales returns 5,400
Purchases 1,50,000
Opening stock (01-01-2016) 60,000
Madan’s drawings 22,000
Trade expenses 1,350
Salaries 11,200
Advertising 840
Discount 600
Bad debts 800
Business premises 12,000
Furniture and fixtures 10,000
Cash in hand 2,000
4,02,600 4,02,600

Adjustments:
• Stock on hand on 31.12.2016-90,000
• Provide depreciation on furniture on premises at 2.5%; plant and machinery at
7.5% and furniture and fixtures at 10%
• Write off 800 as further bad debts
• Provide for doubtful debts at 5% on sundry debtors
• Outstanding rent was 500 and outstanding wages 400
• Prepaid insurance 300 and prepaid salaries 700