Q1. Record the following transactions in the Purchases Book of Krishna General Stores, Delhi:
Solution – In the Book of Krishna General Store
Purchases Book
Q2. Verma Bros. carry on business as wholesale cloth dealer. From the following write up their Purchases Book for January, 2025:
Show the posting from Purchases Book to Ledger accounts also.
Solution – In the Book of Krishna General Store
Purchases Book
Working Note =
- Only Credit Purchases recorded in Purchases book. Cash transaction shows in cash book
- Printer is assets so it is not recorded in Purchases Book.
Q3. From the following transactions of Kamal, prepare Purchases Book and Post in Ledger:
Solution – In the Books of Kamal, Guwahati
Purchases Book
Q4. Prepare Sales Book from the following transactions of Mohan Traders dealing in Furniture. Open the ledger account also.
Solution – In the Books of Hema Traders, Kolkata
Sales Book
Q5. From the following particulars, prepare Sales Book of M/s. Gyan & Bros., Delhi, dealer of stationery and post in Ledger Accounts:
Solution – In the Books of M/s Gyan & Bros Delhi
Sales Book
Working Note – Only Credit Sale recorded in a sales book so Sold old newspaper is not recorded in Sales Book.
Q6. From the following particulars, prepare Sales Book of Raj & Co. Kolkata who deals in furniture:
Show the Posting from Sales Book to Ledger Accounts.
Solution – In the Books of Raj & Co. Kolkata
Sales Book
Working Note – Sold Old Printer is not recorded in Sales Book.
Q7. Prepare Purchases and Sales Book from the following transactions of Rahul, Bengaluru:
Solution – In the Books of Rahul, Bangalore
Purchases Book
In the Books of Rahul, Bangalore
Sales Book
Q8. Prepare Purchases Return Book of Aruna Stores, Kolkata from the following transactions and post them in Ledger:
Solution – In the Books of Aruna Stores
Purchases Return Books
Q9. Record the following transactions in the Purchases Return Book of Kamla Stores, Delhi for April, 2024:
Solution – In the Books of Kamla Stores, Delhi
Purchases Return Book
Q10. Prepare Sales Return Book of Shiv Shankar, Delhi from the Following transactions and post them in Ledger:
Solution – In the Book of Shiv Shankar, Delhi
Sales Return Book
Q11. Enter the following transactions in the Sales Return Book of Ravi Computers, Delhi:
Write up the Ledger Accounts.
Solution – In the Book of Ravi Computers, Delhi
Sales Return Book
Working Note – Computer Mouse are Sold to him for cash so it is not recorded in Sales Return Book.
Q12. Prepare Returns Inward and Returns Outward Books of Manoj, Mumbai from the following transactions and post them in Ledger Accounts.
Solution – In the Books of Manoj, Mumbai
Returns Inward Book
Q13. (Closing Entries) Give the necessary entries in the Journal Proper of Ram on 31st March, 2025 to close his books:
Freehold Premises 30,000; Plant and Machinery 20,000; Sundry Debtors 25,000; Purchases 37,500; Sales 95,000; Discount (Dr.) 150; Discount (Cr) 175; Sundry Creditors 12,500; Carriage Inwards 375; Carriage Outwards 600; Furniture and Fixtures 2,500; Wages 5,000; Bad Debts 750; Salaries 3,600; Commission (Cr) 2,125; Capital Account 25,000; Bills payable 7,500; Bills Receivable 9,000; Trade Expenses 2,550; Opening Stock 22,075; Closing Stock 10,000; Ram’s Loan Account 20,000; Cash in Hand 75; Cash at Bank 3,125.
Solution –
In the Book of Ram
Journal
Q14.(Adjustment Entries). From the following information available on 31st March, 2025, pass the necessary Adjustment Entries in the Journal for the year ending on that date:
(i) Interest accrued 2,500.
(ii) Wages for March, 2024 outstanding 10,000.
(iii) Insurance prepaid 1,500.
(iv) Commission due to manager 6% on net profit after charging such commission. The profit before charging such commission was 1,06,000.
(v) Interest due on loan but not paid. Loan of 1,50,000 was taken at 9% p.a. 9 months before end of the year.
Solution – Journal
- Trading Account :–
Preparation of Trading Account is the first stage of preparing final accounts. It is the financial statement which shows result of buying and selling of goods and/or services during an accounting period.
Features of Trading Account:
- It is first stage in the preparation of final accounts of a trading entity.
- It records only net sales and direct cost of goods sold.
- The balance of this account shows Gross Profit or Gross Loss.
- Gross Profit or Gross Loss is transferred to Profit and Loss Account.
Format of a Trading Account:-
Profit and Loss Account:-
Profit and Loss Account is prepared after preparing the Trading Account. It is prepared to determine net profit earned or net loss incurred by the business during an accounting period.
Format of Profit and Loss Account:
Q15. R. Chetan, Kolkata has the following balances in his books on 1st March, 2025: Cash 15,400; Cash at Bank 82,500; Stock 1, 92,500; Plant and Machinery 4,40,000
Sundry Debtors: Rajesh 27,500; James 13,750.
Sundry Creditors: Rao 19,250, Samanta; 35,750; Capital 7, 16,650
The following are the transactions for the month of March, 2025:
Record these transactions in his subsidiary books, post to the Ledger and prepare a Trail Balance as on 31st Mar, 2025.
Solution –
Trial Balance
As on 30th April 2024
Q16. On 1st Mar, 2025, Shri Kailash Chand, Lucknow commenced business with cash 50,000. The following are his transactions for the month of Mar, 2025. Record them in proper books post them to the Ledger and take out his Trial Balance:
Solution –
