Practice Problem #3

Practice Problem #4

Financial Accounting
Miss Swapna started a small book shop. The following are the transactions entered into by her in the month of April-May 2001. Apr 1 Obtained a loan from Mr. Sujit, Rs. 150,000 in cash 2 Opened a bank account in Mahim Bank Ltd. by depositing cash. 3 Obtained a loan from Bandra Bank Ltd. Rs. 1,50,000 4 Purchased books of Rs. 1,00,000 from McGraw-Hill on credit 5 Purchased books worth Rs. 50,000 from Prentice-Hall for cash. 6 Sold books for cash Rs. 7000 6 Bought office stationery for cash Rs. 200 7 Purchased air-conditioner for Rs. 50,000 from Voltas on credit. 8 Sold books for cash Rs. 5000 10 Sold books to CBA College Library worth Rs. 10,000 on credit. 11 Paid conveyance to peon, Mr. Ramu, Rs. 70. 12 Sold books for cash Rs. 7000 14 Purchased books worth Rs. 50,000 from McMillan on credit 14 Sold books for cash Rs. 10,000 17 Sold books to ABC College Library worth Rs. 20,000 on credit. 17 Sold books for cash Rs. 3000 20 Received a cheque for Rs. 8,500 from CBA College for the books supplied to them on April 10. 24 Sold books to ABC College Library worth Rs. 40,000 on credit. 26 Signed a maintenance contract with Voltas Ltd. for the maintenance of the air-conditioner and paid a cheque for Rs. 5000 towards the annual maintenance charge. 29 Sold books for cash Rs. 7000 30 Gave a gift of books worth Rs. 5000 to the library of a municipal school. May 1 Issued a cheque for Rs. 2350 to BSES for electricity charges; and another cheque for Rs. 1005 to MTNL for telephone charges. 3 Paid salary to clerk Rs. 5000 in cash; and wages to peon Rs. 2000 in cash. Rent for the book shop is due for payment, Rs. 7500. Required (a) Record the above transactions in the journal; (b) Summarise the journal entries in the ledger; and (c) Summarise the ledger into a trial balance.

Financial Accounting
Miss Ayushi started a small shop selling music audio cassettes and compact discs. She runs the business by the name Raaga Stores. The following are the transactions entered into by her in the month of October-November 2001. Oct 1 Sold personal jewelry for Rs. 10,000 and with this money opened a current account in the name of Raaga Store with Shamrao Bank. 2 Obtained a loan from Mrs. Avanti Rs. 50,000 in cash. 2 Paid cash Rs. 2000 to Shamrao Bank as processing charges for loan. 4 Obtained a loan from Shamrao Bank of Rs. 2,50,000. 4 Hired a stall at Juhu Road by paying a deposit of Rs. 50,000 by cheque. 5 Hired Mr. Kanhyalal, a carpenter to make the shop counter, display racks and a table and paid him cash Rs.25,000 for the same. 7 Bought three cushion chairs from Living Room for cash Rs. 9,000 9 Bought office stationery for cash Rs. 1000 11 Purchased CDs worth Rs. 100,000 from Venus Music Ltd. on credit 12 Purchased CD worth Rs. 10,000 from T-Series Ltd. for cash. 14 Spent Rs. 5000 in cash on inauguration ceremony of the shop. 17 Issued a cheque for Rs. 5,000 towards advertisement in West Side Plus. 18 Finally, the shop was opened for business. Mr Akash was the first buyer. He purchased some CDs for Rs. 1000 and paid the cash. 18 Cash sales Rs. 75000. 19 Cash sales Rs. 35000 23 Cash sales Rs, 25000 24 Educational CDs worth Rs. 30000 sold to G. B. High School on credit. 25 Paid Rs. 3000 as security deposit to MTNL for internet connection. 26 Cash sales Rs. 5000. 27 Paid off the dues of Venus Music Ltd. by cheque. 28 Issued a cheque of Rs. 4000 to Sanjay Pai for printing visiting cards. 29 Issued a cheque of Rs. 8000 to Pani Grahi for painting signboard. 30 Received dues from G. B. High School in cash. 31 Issued a cheque for Rs. 3000 to Shamrao Bank towards interest on loan. Required (a) Record the above transactions in the journal; (b) Summarise the journal entries in the ledger; and (c) Summarise the ledger into a trial balance.