1.

1/3/11

Record the following transactions in a 3- Column Cash Book Balance for Cash is Rs50 (DR) Balance for Bank is Rs400 (CR) Cash sales Rs600 Paid for purchase of machinery by cheque Rs1,000 Paid wages Rs40 Received cheque from Mr. A (in full settlement of Rs500) amounting to Rs480. Gave a cheque to Mr. B Rs400 Withdrew cash from bank for office use Rs500 Received cheque from Mr. A endorsed to Mr. C in full settlement of Rs520 Cheques issued to Mr. C dishonored Paid life insurance for proprietor Mr. D Rs80.

3/3/11 5/3/11 8/3/11 10/3/11 13/3/11 15/3/11 16/3/11 20/3/11 30/3/11

2. (i) (ii) (iii) (iv) (v) (vi)

Journalise the following for Tanya Auto Spares Ltd Rent due to landlord Rs800 Depreciation on office furniture Rs1,000 Goods purchased worth Rs25,000 from Dhal Moot Ltd less 20% trade discount and 2% cash discount. Deposited into bank Rs20,000 Kajodhar a debtor became bankrupt paid only pay 25 paise in every rupee on a debt of Rs2,500. Received cash for bad debts written off last year of Rs500.

3. Daya bought a vehicle for Rs1,20,000 on 1/3/2010. Depreciation is computed at 10% per annum. The vehicle was sold on 1/4/2012 for Rs99,000 cash. Compute depreciation using: Straight Line, Diminishing Value and Sum-to-Digit method. Prepare all ledger accounts from 1/3/2010 to 1/4/2012 under diminishing value method only. If the vehicle could travel for 250,000 km in its entire life and the resale vale was Rs50,000, compute the depreciation using Unit-of-use method if number of kilometers traveled in 2010 was 75,000 km.

4. Record the following in the Purchase Book Mar 1 Purchased from Baramanki Traders - 20 tables @ Rs200 each - 20 chairs @ Rs80 each - Less Trade discount @ 10% - Plus Delivery and cartage charges Of Rs20 Mar 7 Purchased from Khathai Lal (Mithaiwala) - 10 pkt sweets @ Rs200 each - 5 kg Dahi @ Rs20/kilo - Less Trade discount 5. Batook purchased a machinery on 1-1-2008 for Rs2,40,000 and spent Rs10,000 on its erection and installation.. On 1-7-2008 it purchased another machine for Rs1,10,000. On 1/8/2010, it sold the first machinery bought on 1/1/2008 for Rs1,45,000 and again on the same date bought another machinery for Rs2,20,000. Depreciation is provided at 10% per annum on diminishing value. The financial year ends on 31st December each year. Prepare Machinery, Depreciation, Provision for Depreciation and Sale of Machinery accounts from 1-1-2008 till 31-12-2010. Show the Balance Sheet also for 31-12-2010. 6. Ballu purchased a machine for Rs2,00,000 on 1-1-2003. The machine was depreciated at 10% pa under WDV method. On 1-1-2006 the firm changed its depreciation method to SLM without changing the rate of depreciation. Prepare Machinery, Depreciation, Provision for Depreciation accounts using SLM from 1-1-23 till 31-12-2006. The financial year is 31 December each year. Any under charge or over charge in depreciation using the wdv to be adjusted in the Profit and loss account. 7. Tony bought 3 vehicles from Vineet Automart for Rs1,20,000 each . Tony agreed to pay 40% deposit and the balance to be paid in 3 equal installments. Vineet agrees but charges Tony interest of 15% per annum. Tony is also required to provide depreciation on the vehicles @ 20% pa using Diminishing Value method. The financial year ends on 31st December each year. Prepare journal entries and ledger accounts for Tony and Vineet Automart. (Where necessary show all workings)