ANSWERS TO SAMPLE ACCOUNTING QUESTIONS

Accounting Process: Journal Ledger Throughout the year Trial Balance Final Account Trading Account Profit/Loss Account End of the year Balance Sheet Rules Debit The Receiver Credit The Giver Debit What Comes In Credit What Goes Out Debit Expense/Loss Credit Income/Profit

Types of Accounts: Personal Account Natural Account Artificial Account Real Account Tangibles Nominal Account Expense or Loss Income or Profit Example: Transaction Done Purchased Machinery: Rs 10000 Paid Salary: Rs 5000 Purchased Goods: Rs 20000 Paid Ram: Rs 1000 Rent Received: Rs 11000

Accounts Affected Machinery Account(Real),Cash Account(Real). Salary Account, Cash Account. Purchase Account, Cash Account. Rams Account, Cash Account. Rent Account, Cash Account.

Basic Steps: Journal Posting: Identify Account Type, Apply Rule and Pass Entry. Ledger Entry: Classify. Journal Entry: (Please go to the next page)

Date

Particulars
Machinery A/C Dr

Ledger Folio

Debit 100000 5000

Credit 100000 5000

To Cash A/C Dr Salary A/C Dr To Cash A/C Dr Purchase A/C Dr To Cash A/C Cr Ram A/C Dr To Cash A/C Dr Cash A/C Dr Rent A/C Cr

20000 20000 1000 1000 11000 11000

Answer 3
Journal
Date Particulars Ledger Folio Debit Credit Cash A/C Dr 5000 Stock A/C Dr 3000 Furniture A/C Dr 2000 To Capital A/C Cr 10000 Narration: Being Mr N started business with Cash Rs 5000,Stock Rs 3000,Furniture Rs 2000. Purchase A/C Dr 3000 To Cash A/C Cr 3000 Being Purchased Goods from Mr Y for Rs 3000. Expense A/C Dr 200 To Cash A/C Cr 200 Being Paid Expenses Rs 200. Ys A/C Dr 1000 To Cash A/C Cr 1000 Being Paid Mr Y on Account Rs 1000. Ts A/C Dr 4000 To Sales A/C Cr 4000 Being Sold Goods to Mr T for Rs 4000 Wages A/C Dr 800 To Cash A/C Cr 800 Being Paid Wages Rs 800. Cash A/C Dr 3950 Discount A/C Dr 50 To Ts A/C Cr 4000 Being Received from Mr T in full settlement of his account Rs 3950.

BAL C/D stands for Balance Carried Down.

Ledger:
Fold the page in half. Left half is Debit Side and right Half being Credit Side. In the Colns from left to right, fill in, on both the sides, the date, Particulars, Journal Folio and Amount. In the rows from top to bottom, write down all the accounts affected after seeing the Journal Entries. Thereafter, fill in the ledger with entries for each account as below. In the end, balance them. Debit Side Credit Side Date Particulars J/F Amount Date Particulars J/F Amount Cash Account To Capital 5000 By 300 Expense To Ts A/C 3950 By Y 1000 By Wages 800 By Bal C/D 6850 8950 8950 Stock Account To Capital 3000 By Bal C/D 3000 3000 3000 Furniture Account To Capital 2000 By Bal C/D 2000 2000 2000 Purchase Account To Y 3000 By Bal C/D 3000 3000 3000 Ys Account To Cash 1000 By 3000 Purchase A/C To Bal C/D 2000 3000 3000 Ts Account To Sales 4000 By Cash 3950 A/C By 50 Discount 4000 4000 Sales Account To Bal C/D 4000 By T 4000 4000 4000 Wages Account To Cash 800 By Bal C/D 800 800 800

To T

50 50 10000

Discount Account By Bal C/D Capital Account By Cash By Stock By Furniture Expense Account By Bal C/D

50 50 5000 3000 2000 10000 300 300

To Bal C/D

10000 To Cash 300 300