ASSIGNMENT FOR BIBS 1ST YEAR STUDENTS BY CA MOHIT ARYA

Question 1
Journalize the following transactions in the books of Mr.Chandran for April 2014. Also Post
Ledgers and Prepare a Trial Balance.
April. 1

Started business with cash Rs.40,000 and furniture Rs.10,000.

April.5

Paid tuition fee of the son Rs.1,000

April.8

Paid household expenses Rs.1,400.

April.10

Sold personal car for Rs.18,000 and the amount is brought into the business.

April. 15

Withdrew goods for personal use Rs.2, 000.

April. 16

Sold goods to Nain on credit Rs.8, 000.

April.18

Sold old typewriter Rs.1, 000.

April.19

Purchase goods on credit from Ramesh Rs.20, 000

April.20

Received interest on investment Rs.6, 000.

April.22

Received commission from Manohar Rs.2, 000.

April.23

Receive a cheque from Navin Rs.5, 000.

April.25

Issued a cheque to Ramesh Rs.12, 000

April.26

Received cash from Anand on account Rs.4, 000

April.27

Paid cash to Bhagwan on account Rs.1, 000.

April.28

Returned goods to Ramesh Rs.1, 000.

April.29

Navin returned goods Rs.500.

April.30

Paid rent Rs.1, 000.

Paid salaries Rs.12, 000.

Question 2
Journalize the following transactions in the books of Rajesh Traders ,Post ledger and Prepare
trial balance:
Date
2012
April 1
April 10
May 10
May 20
May 25
June 15
June 30
Aug.31
Sept.10
Oct.05
Nov.30
Dec.31
2013
Jan.15
Feb.10

Particulars
Rajesh started his business with cash Rs 1,00,000
Rajesh opened an account in a bank with cash Rs 30,000
Purchased goods from Mohan Singh on credit Rs 40,000 and also paid carriage of
Rs 2,000
Sold goods to Rajeev Rs 20,000
Due to some quality defect Mohan Singh returned goods of Rs 10,000
Sold goods to Ayesha for Rs 70,000
Paid rent of Rs 10,000
Purchased Furniture for cash of Rs 8,000
Paid through a cheque of Rs 5,000 for advertisement
Withdrawn Rs 6,000 from Bank for personal use
Recovered Rs 65,000 from Ayesha in full settlement of his account
Salaries paid to employees Rs 15,000
Interest received from Bank Rs 2,000
Rajeev has become insolvent Rs 80 paisa in the rupees on a debt of Rs 20,000 was
recovered as a compensation

Question 3
Trial balance of Rahul did not agree. Rahul put the difference to suspense account.
Subsequently, he located the following errors :

(i) Wages paid for installation of Machinery Rs. 600 was posted to wages account.
(ii) Repairs to Machinery Rs. 400 debited to Machinery account.
(iii) Repairs paid for the overhauling of second hand machinery purchased Rs. 1,000 was debited to
Repairs account.
(iv) Own business material Rs. 8,000 and wages Rs. 2,000 were used for construction of building.
No adjustment was made in the books.
(v) Furniture purchased for Rs. 5,000 was posted to purchase account as Rs. 500.
(vi) Old machinery sold to Karim at its book value of Rs. 2,000 was recorded through sales book.
(vii)Total of sales returns book Rs. 3,000 was not posted to the ledger.
Rectify the above errors and prepare suspense account to ascertain the original Difference in Trial
Balance

Question 4
Trial balance of John did not agree. He put the difference to suspense account and discovered the
following errors :
1. In the sales book for the month of January total of page 2 was carried forward to page 3 as Rs.
1,000 instead of Rs. 1200 and total of page 6was carried forward to page 7 as Rs. 5,600 instead of
Rs. 5,000.
2. Wages paid for installation of machinery Rs. 500 was posted to wages account as Rs. 50.
3. Machinery purchased from R & Co. for Rs. 10,000 on credit was entered in Purchase Book as Rs.
6,000 and posted there from to R & Co. as Rs. 1,000.
4. Credit sales to Mohan Rs. 5,000 were recorded in Purchases Book.
5. Goods returned to Ram Rs. 1,000 were recorded in Sales Book.
6. Credit purchases from S & Co. for Rs. 6,000 were recorded in sales book. However, S & Co. was
correctly credited.
7. Credit purchases from M & Co. Rs. 6,000 were recorded in Sales Book as Rs. 2,000 and posted
there from to the credit of M & Co. as Rs. 1,000.
8. Credit sales to Raman Rs. 4,000 posted to the credit of Raghvan as Rs. 1,000.
9. Bill receivable for Rs. 1,600 from Noor was dishonoured and posted todebit of Allowances
account.
10. Cash paid to Mani Rs. 5,000 against our acceptance was debited to Manu.
11. Old furniture sold for Rs. 3,000 was posted to Sales account as Rs. 1,000.
12. Depreciation provided on furniture Rs. 800 was not posted.