Beruflich Dokumente
Kultur Dokumente
• Revenues
Income earned from sales; revenue from services commission
income; interest income; professional fee etc.
• Expenses
Amount spent to operate a business: salaries ; rent; insurance; etc.
• Dividends
Part of profit to be distributed to the shareholders.
• Retained Earnings
PAT (-) Dividends
Assets
Resources which have value and which help in the conduct of the
business operations.
• Bank
• Overdraft
• Motor Vehicles
• Profit earned on sale of old M/E
• Commission paid to sales fleet
• Loan given to a friend
• Profit on sale of goods
• Discount given to customers
Solution
Liabilities
Capital
Simple books of accounts in which all the business transactions are originally
recorded in chronological order and from which they are posted in ledger
accounts.
Journal Proper
• Mohan started a stationery shop in the name of ‘Zen Y Stationers’ in Gomti Nagar Lucknow. He
commenced business with his past savings of Rs 1,00,000 in cash ; a shop of Rs 5,00,000 that was owned
by his family; and furniture of Rs 20,000 that was also provided by his family. Mohan opened a current
account in SBI and deposited Rs 25,000 in that bank account. He also purchased wooden racks for Rs
20,000 for the storage and display of the items, from Deluxe Furniture house on credit basis. Mohan then
furnished his shop with the stationery items he purchased the following stationery items: paper reams
worth Rs 25,000 from JK Papers, different types of pens of Rs 15,000 from Linc Pens pvt. ltd., pencils,
sharpeners eraser etc. of Rs 10,000 from Hindustan Pencils pvt. ltd., against cash payment. At the end of
the month Mohan received an electricity bill amounting to Rs 2,000 from the state electricity board, which
he paid through cheque. He also paid wages to two of his helpers Suraj Rs 3,000 and Ramu Rs 2,000, in
cash. The sales done by him during the month amounted to Rs 75,000. Mohan does not have knowledge
of accounting so he has approached you for help. You are required to help Mohan in assessing whether he
has done a fair job and should he continue doing this business or should he wind up? You may use the
balance sheet equation method and/or final accounts methods to assist him in the decision making. Also
give necessary arguments for the same.
Books of Zen ‘Y’ Stationers
Journal Proper
Dr Cash A/c Cr
Date Particulars J.F. Rs Date Particulars J.F. Rs
1,75,000 1,75,000
Dr Building A/c Cr
5,00,000 5,00,000
Dr Furniture A/c Cr
Date Particulars J.F. Rs Date Particulars J.F. Rs
20,000 20,000
Dr Purchase A/c Cr
50,000 50,000
Dr Electricity A/c Cr
2,000 2,000
Dr Wages A/c Cr
5,000 5,000
Dr Sales A/c Cr
Date Particulars J.F Rs Date Particulars J.F Rs
. .
31 To Balance c/d 75,000 By Cash A/c 75,000
Jan
75,000 75,000
TRIAL BALANCE
1 Capital **
2 Assets **
3 Expenses & Losses **
4 Income & Gains **
5 Liabilities
Total *** ***
Trial Balance In The Books of Mohan
as on 31 Jan , 200…..
Particulars Rs Particulars Rs
Capital 25,000 Discount Received 1,000
Salaries 6,000 Machinery 10,000
Purchases 26,000 Insurance 5,000
Sales 47,000 Interest Received 2,000
Trade Expense 1,000 Rent Received 5,000
Opening Inventory 7,000 Free Distribution of 4,000
good
Debtors 35,000 Creditors 20,000
Drawings 10,000 Overdraft 4,000
Trial Balance of Khaitan Sons Ltd .as on 31 Dec, 200…..
1. Bad Debts
Cash A/c------------------------------Dr
Bad Debts A/c ---------------------Dr
To Debtor's Personal A/c
A. Uninsured
Loss by Fire/ Theft -------------------------------------Dr.
To Purchases A/c
B. Insured
a) Insurance Company A/c -----------------------------Dr.
To Purchases A/c
Bank A/c---------------------------------------------Dr.
Profit & Loss A/c ---------------------------------Dr.
To Insurance Company A/c
8. Interest on Capital
Interest A/c ---------------------------------------Dr
To Capital A/c
9. Interest on Drawings
Drawings A/c -----------------------------------Dr
To Interest A/c
1 Sohan is declared insolvent. Recd from his official receiver a first and final
settlement of 60 paisa in a rupee on a debt of Rs 4,000.
2 Received cash for a bad debt written off last year Rs 700
3 Taken out goods worth Rs 500 for personal use and worth Rs 600 for free
distribution as samples
4 Goods worth Rs 3,000 were destroyed by fire , but the General Insurance
Company Ltd accepted to pay 7/10 of the claim amount.
5 Provide 5% interest on drawing of Rs 2,000.
6 Wizcraft Computer Systems signed an agreement with a client to design a soft
ware. The agreement provided for payment of a fee of Rs 50,000 on
completion of the work.
7 Appointed an office secretary for a monthly salary of Rs 10,000/-
8 A sale of Rs 1,000 on June 1 is on terms of “2/10 , n/30”.On June 11 the buyer
clears the payment.
Solution