CHAPTER 1

Ex. 1.2

Monik Traders
Journal
1-04-2006 to 30-04-2006
Folio No. 001

Amount (Rs.)
Date Voucher No. Account Heads and Description of the L. F.
2006 Transaction Debit Credit

April 1 001 Dr.…Cash 001 2,25,000

Cr.… Monik Varma’s Capital 002 2,25,000
(Received cash from Monik Varma towards
his capital.)
1 002 Dr.…State Bank of India Current A/C 003 2,00,000
Cr.… Cash 001 2,00,000
(Opened a current account with State Bank
of India.)
1 003 Dr.…Office Rent 004 3,000
Cr.… State Bank of India Current A/C 003 3,000
(Office rent paid for April.)
1 004 Dr.…Scooter 005 32,000
Cr.…Regent Automobiles 006 32,000
(Purchased one scooter from Regent
Automobiles on credit.)
1 005 Dr.… Regent Automobiles 006 8,000
Cr.… State Bank of India Current A/C 003 8,000
(Paid cheque towards down payment.)
Total… 4,68,000 4,68,000

Folio No. 002

Amount (Rs.)
Date Voucher No. Account Heads and Description of the L. F.
2006 Transaction Debit Credit

April 2 006 Dr.…Furniture 007 12,750

Cr.…Cash 001 12,750
(Purchased office furniture.)

1
 2 007 Dr.…Office Equipments 008 17,250
Cr.… State Bank of India Current A/C 003 17,250
(Purchased office equipments.)
5 008 Dr.… Purchases 009 66,000
Cr.… State Bank of India Current A/C 003 66,000
(Purchased 60 units of product A.)
8 009 Dr.… State Bank of India Current A/C 003 27,500
Cr.…Sales 010 27,500
(Sold 20 units of product A.)
10 010 Dr.…Advertisement and Publicity 011 2,500
Cr.… State Bank of India Current A/C 003 2,500
(Paid for advertisement in Delhi Times.)
Total… 1,26,000 1,26,000
Folio No. 003

Amount (Rs.)
Date Voucher No. Account Heads and Description of the L. F.
2006 Transaction Debit Credit

April 12 011 Dr.… Purchases 009 1,07,525

Cr.… BCA & Co. 012 1,07,525
(Purchased 85 units of A on 15 days’
credit.)
16 012 Dr.… LIR & Co. 013 55,825
Cr.… Sales 010 55,825
(Sold 35 units of A on credit of one week.)
19 013 Dr.… Cash 001 16,100
Cr.… Sales 010 16,100
(Sold 10 units of A.)
23 014 Dr.… State Bank of India Current A/C 003 55,825
Cr.… LIR & Co. 013 55,825
(Received cheque from the customer.)
27 015 Dr.… BCA & Co. 012 1,07,525
Cr.… State Bank of India Current A/C 003 1,07,525
(Issued cheque to the supplier.)
Total… 3,42,800 3,42,800

2
 Folio No. 004

Amount (Rs.)
Date Voucher No. Account Heads and Description of the L. F.
2006 Transaction Debit Credit

April 28 016 Dr.… Purchases 009 38,100

Cr.… BCA & Co. 012 38,100
(Purchased 30 units of A on 15 days’
credit.)
28 017 Dr.… LIR & Co. 013 64,000
Cr.… Sales 010 64,000
(Sold 40 units of A on credit of one week.)
30 014
018 Dr.…Salaries 001 3,500 3,500
Cr.…Cash
(Salary paid to the office assistant Ajay
Bafna for April.)
30
019 Dr.…Monik Varma’s Drawings 015 5000
Cr.…State Bank of India Current A/C 003 5000
(Issued cheque to Monik Varma for his
personal use.)
30
020 Dr.…Telephone Expenses 016 750
Cr.…Cash 001 750
(Cash paid to the office owner for using his
telephone during April.)

Total… 1,11,350 1,11,350

Folio No. 005

Amount (Rs.)
Date Voucher No. Account Heads and Description of the L. F.
2006 Transaction Debit Credit

30
021 Dr.…Vehicle Expenses 017 625
Cr.…Cash 001 625
(Cash paid to Preet Fill Station towards
petrol consumed by the Scooter during
April.)

Total… 625 625

3
 Ex.2.1

Monik Traders
Ledger
1-04-2006 to 30-04-2006
Account… Cash Folio No…. 001

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 1 001 To Monik Varma’s capital 001 2,25,000 Dr. 2,25,000
1 002 By SBI current account 001 2,00,000 Dr. 25,000
2 006 By furniture 002 12,750 Dr. 12,250
19 013 To sales 003 16,100 Dr. 28,350
30 018 By salary to Ajay Bafna 004 3,500 Dr. 24,850
30 020 By telephone expenses 004 750 Dr. 24,100
30 021 By vehicle expenses 005 625 Dr. 23,475
Total… 2,41,100 2,17,625 Dr. 23,475

Account… Monik Varma’s Capital Folio No…. 002

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 1 001 By cash 001 2,25,000 Cr. 2,25,000
Total… -- 2,25,000 Cr. 2,25,000

Account… State Bank of India Current A/C Folio No…. 003

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 1 002 To opening of current a/c 001 2,00,000 Dr. 2,00,000
1 003 By office rent 001 3,000 Dr. 1,97,000
1 005 By Regent Automobiles 001 8,000 Dr. 1,89,000
2 007 By Office equipments 002 17,250 Dr. 1,71,750
5 008 By purchase 002 66,000 Dr. 1,05,750

4
 8 009 To sales 002 27.500 Dr. 1,33,250
10 010 By advertisement and publicity 002 2,500 Dr. 1,30,750
23 014 To LIR & Co. 003 55,825 Dr. 1,86,575
27 015 By BCA & Co. 003 1,07,525 Dr. 79,050
30 019 By Monik Varma’s drawings 004 5,000 Dr. 74,050
Total… 2,83,325 2,09,275 Dr. 74,050
Account… Office Rent Folio No…. 004

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 1 003 To State Bank of India C/A 001 3,000 Dr. 3,000
Total… 3,000 -- Dr. 3,000

Account… Scooter Folio No…. 005

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 1 004 To Regent Automobiles 001 32,000 Dr. 32,000
Total… 32,000 -- Dr. 32,000

Account… Regent Automobiles Folio No…. 006

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 1 004 By Scooter 001 32,000 Cr. 32,000
1 005 To State Bank of India C/A 001 8,000 Cr. 24,000
Total… 8,000 Cr. 24,000

Account… Furniture Folio No…. 007

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 2 006 To Cash 002 12,750 Dr. 12,750
Total… 12,750 -- Dr. 12,750

Account… Office Equipments Folio No…. 008

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 2 007 To State Bank of India C/A 002 17,250 Dr. 17,250

5
 Total… 17,250 -- Dr. 17,250

Account… Purchases Folio No…. 009

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 5 008 To State Bank of India C/A 002 66,000 Dr. 66,000
12 011 To BCA & Co. 003 1,07,525 Dr. 1,73,525
28 016 To BCA & Co. 004 38,100 Dr. 2,11,625
Total… 2,11,625 -- Dr. 2,11,625

Account… Sales Folio No…. 010

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 8 009 By State Bank of India C/A 002 27,500 Cr. 27,500
16 012 By LIR & Co. 003 55,825 Cr. 83,325
19 013 By Cash 003 16,100 Cr. 99,425
28 017 By LIR & Co. 004 64,000 Cr. 1,63,425
Total… -- 1,63,425 Cr. 1,63,425

Account… Advertisement and Publicity Folio No…. 011

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 10 010 To State Bank of India C/A 002 2,500 Dr. 2,500
Total… 2,500 -- Dr. 2,500

Account… BCA & Co. Folio No…. 012

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 12 011 By Purchase 003 1,07,525 Cr. 1,07,525
27 015 To State Bank of India C/A 003 1,07,525 …
28 016 By Purchase 004 38,100 Cr. 38,100
Total… 1,07,525 1,45,625 Cr. 38,100

6
Account… LIR & Co. Folio No…. 013

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 16 012 To Sales 003 55,825 Dr. 55,825
23 014 By State Bank of India C/A 003 55,825 ---
28 017 To Sales 004 64,000 Dr. 64,000
Total… 1,19,825 55,825 Dr. 64,000

Account… Salaries Folio No…. 014

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 30 018 To cash paid to Ajay Bafna 004 3,500 Dr. 3,500
Total… 3,500 -- Dr. 3,500

Account… Monik Varma’s Drawings Folio No…. 015

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 30 019 To State Bank of India C/A 004 5,000 Dr. 5,000
Total… 5,000 -- Dr. 5,000

Account… Telephone Expenses Folio No…. 016

Date Voucher Particulars J. F. Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Cr. (Rs.)
April 30 020 To cash paid to office owner 004 750 Dr. 750
Total… 750 -- Dr. 750

Account… Vehicle Expenses Folio No…. 017

Date Particulars J. F. Amount (Rs.) Balance

7
 2006 Voucher Debit Credit Dr. / Amount
No. Cr. (Rs.)
April 30 021 To cash paid to Preet Fill Station 005 625 Dr. 625
Total… 625 -- Dr. 625

Ex.3.1

Monik Traders
Trial Balance As On 30th April 2006
Account Heads L.F. Amount (Rs.)

Debit Credit

Cash 001 23,475

Monik Varma’s Capital 002 2,25,000
State Bank of India Current Account 003 74,050
Office Rent 004 3,000
Scooter 005 32,000
Regent Automobiles 006 24,000
Furniture 007 12,750
Office Equipments 008 17,250
Purchases 009 2,11,625
Sales 010 1,63,425
Advertisement and Publicity 011 2,500
BCA & Co. 012 38,100
LIR & Co. 013 64,000
Salaries 014 3,500
Monik Varma’s Drawings 015 5,000
Telephone Expenses 016 750
Vehicle Expenses 017 625
Total… 4,50,525 4,50,525

Ex.3.2

 Prima-facie evidence of correctness of processing of business transactions.

 Basic statement to facilitate preparation of balance sheet and profit and loss account.

8
Ex.4.2

SHAHRUKH KHANNA AND SONS

Journal
1-04-2006 to 30-04-2006
Voucher Account heads and description Amount (Rs.)
Date No. of the Transaction  
 2006     Debit Credit

Dr… Cash 650000  

1-Apr 1 Cr… Shahrukh Khanna’s Capital   650000
         
1-Apr 2 Dr… HDFC bank C/A 625000  
  Cr… Cash   625000
       
2-Apr 3 Dr… Car 350000  
  Cr… HDFC bank C/A   70000
  Cr… HDFC bank Term Loan   280000
       
3-Apr 4 Dr… Furniture 110000  
  Cr… HDFC bank C/A   110000
       
4-Apr 5 Dr… Purchases 435000  
  Cr… HDFC bank C/A   435000
       
5-Apr 6 Dr… Inauguration expenses 10000  
  Cr… Cash   10000
       
5-Apr 7 Dr… Cash 75000  
  Cr… Sales   75000
       
6-Apr 8 Dr… HDFC bank C/A 75000  

9
   Cr… Cash   75000
       
13-Apr 9 Dr… HDFC bank C/A 294500  
  Cr… Sales   294500
       

18-Apr 10 Dr… Purchases 446000  

  Cr… HDFC bank C/A   346000
  Cr… Nokia Ltd. 100000
25-Apr 11 Dr… HDFC bank C/A 400000  
    Dr… Aamir Corporation Ltd. 44375  
    Cr… Sales   444375
         
30-Apr  12 Dr… Salaries 6500  
    Cr...HDFC bank C/A   6500
         
30-Apr  13 Dr… Salaries 3500  
    Cr… Cash   3500
         
30-Apr  14 Dr... Rent 12000  
    Cr… HDFC bank C/A   12000
         
30-Apr  15 Dr... Vehicle expenses 5000  
    Cr… HDFC bank C/A   3000

Ex.5.1

SHAHRUKH KHANNA AND SONS

Ledger
1-04-2006 to 30-04-2006
Account… Cash

Date Voucher Particulars Amount Balance

No.
2006 Debit Credit Dr/Cr Amount
April 1 1 To Shahrukh Khanna’s 650000 Dr 650000
Capital
1 2 By HDFC bank C/A 625000 Dr 25000
5 6 By Inauguration 10000 Dr. 15000
expenses

10
 5 7 To sales 75000 Dr. 90000
6 8 By HDFC bank C/A 75000 Dr. 15000
30 13 By salaries 3500 Dr. 11500
Total 725000 713500 Dr. 11500

Account: Shahrukh Khanna’s Capital

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 1 1 By cash 650000 Cr. 650000
Total … 650000 Cr. 650000

Account: HDFC bank C/A

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 1 2 To cash 625000 Dr. 625000
2 3 By car 70000 Dr. 555000
3 4 By furniture 110000 Dr. 445000
4 5 By purchases 435000 Dr. 10000
6 8 To cash 75000 Dr. 85000
13 9 To sale 294500 Dr. 379500
18 10 By purchases 346000 Dr. 33500
25 11 To sale 400000 Dr. 433500
30 12 By salaries 6500 Dr. 427000
30 14 By rent 12000 Dr. 415000
30 15 By vehicle expenses 5000 Dr. 410000
Total 1394500 984500 Dr. 410000

Account: Car

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 2 3 To HDFC bank C/A 70000 Dr. 70000
2 3 To term Loan 280000 Dr. 350000
Total 350000 … Dr. 350000

11
 Account: HDFC bank Term Loan

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 2 3 By Santro Car 280000 Cr. 280000
Total … 280000 Cr. 280000

Account: Furniture

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 3 4 To HDFC bank C/A 110000 Dr. 110000
Total 110000 … Dr. 110000

Account: Purchases

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 4 5 To HDFC bank C/A 435000 Dr. 435000
18 10 To HDFC bank C/A 346000 Dr. 781000
18 10 To Nokia Ltd. 100000 Dr. 881000
Total 881000 … Dr. 881000

Account: Inauguration Expenses

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 5 6 To cash 10000 Dr. 10000
Total 10000 … Dr. 10000

Account: Sales

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 5 7 By Cash 75000 Cr. 75000
13 9 By HDFC bank C/A 294500 Cr. 369500

12
 25 11 By HDFC bank C/A 400000 Cr. 769500
25 11 By Aamir Corp. Ltd. 44375 Cr. 813875
Total … 813875 Cr. 813875

Account: Nokia Ltd.

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 18 10 By purchases 100000 Cr. 100000
Total … 100000 Cr. 100000

Account: Aamir Corp. Ltd

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 25 11 To Sales 44375 Dr. 44375
Total 44375 … Dr. 44375

Account: Salaries

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 30 12 To HDFC bank C/A 6500 Dr. 6500
30 13 To Cash 3500 Dr. 10000
Total 10000 … Dr. 10000

Account: Rent

Date Voucher Amount Balance

No. Particulars Debit Credit Dr/Cr Amount
2006,April 30 14 To HDFC bank C/A 12000 Dr. 12000
Total 12000 … Dr. 12000

Account: Vehicle expense

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006,April 30 15 To HDFC bank C/A 5000 Dr. 5000
Total 5000 … Dr. 5000

13
Ex.6

SHAHRUKH KHANNA AND SONS

Trial Balance as on 30-04-2006

Account Heads Debit Credit
RS. RS.
Cash 11500
Shahrukh Khanna’s Capital 650000
HDFC bank C/A 410000
Car 350000
HDFC bank Term loan 280000
Furniture 110000
Purchases 881000
Inauguration expenses 10000
Sales 813875
Nokia Ltd. 100000
Aamir Corp. Ltd 44375
Salaries 10000
Rent 12000
Vehicle expenses 5000
Total 1843875 1843875

14
Ex. 7.2

Kanika and Gaurav Management Consultants

Journal for July 2006
Date Amount (Rs.)
Voucher Account heads and description
No. of the Transactions
2006     Debit Credit
July 1 Dr… Cash 360000 360000
1 Cr… Gaurav Lal’s capital
1 2 Dr… Cash 240000 240000
Cr… Kanika Raj’s capital
1 3 Dr… ICICI Bank C/A 575000 575000
Cr… Cash
Dr… Car 500000 140000
Cr… ICICI Bank C/A 360000
2 4 Cr… ICICI Bank Term Loan
4 5 Dr… Computers 180000 180000
Cr… ICICI Bank C/A
5 6 Dr… Database subscription 125000 125000
Cr… ICICI Bank C/A
5 7 Dr… Magazine subscription 3500 3500
Cr… ICICI Bank C/A
20 8 Dr… Modi Ventures Ltd. 75000 75000
Cr… Consulting Fee
27 9 Dr… ICICI Bank C/A 75000 75000
Cr… Modi Ventures Ltd.
29 10 Dr… Bata and Tata Ltd. 115000 115000
Cr… Consulting Fee
30 11 Dr… Telephone expenses 4500 4500
Cr… ICICI Bank C/A
30 12 Dr… Salaries 25000 25000
Cr… ICICI Bank C/A
30 13 Dr… Salaries 10000 10000
Cr… ICICI Bank C/A
30 14 Dr… Salaries 4000 4000
Cr… Cash
30 15 Dr… Rent 17000 17000
Cr… ICICI Bank C/A
30 16 Dr... Vehicle Expenses 5000 5000
Cr… ICICI Bank C/A

15
 Dr… Gaurav Lal’s Drawings 6000
30 17 Cr… ICICI Bank C/A 6000
31 18 Dr… Kanika Raj’s Drawings 4000 4000
Cr… ICICI Bank C/A

Ex. 8.1

Gaurav and Kanika Management Consultants

Ledger
1-07-2006 to 31-07-2006

Account: Cash

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 1 1 To Gaurav Lal’s Capital 360000 Dr 360000
1 2 To Kanika Raj’s Capital 240000 Dr 600000
1 3 By ICICI Bank C/A 575000 Dr 25000
30 14 By Salaries 4000 Dr 21000
Total 600000 579000 Dr 21000

Account: Gaurav Lal’s Capital

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 1 1 By Cash 360000 Cr. 360000
Total … 360000 Cr. 360000

Account: Kanika Raj’s Capital

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 1 2 By Cash 240000 Cr 240000
Total … 240000 Cr 240000

16
 Account: ICICI Bank C/A

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 1 3 To cash 575000 Dr. 575000
2 4 By Car 140000 Dr. 435000
4 5 By computers 180000 Dr. 255000
5 6 By database subscription 125000 Dr. 130000
5 7 By magazine subscription 3500 Dr. 126500
27 9 To Modi Ventures Ltd. 75000 Dr. 201500
30 11 By Telephone Expenses 4500 Dr. 197000
30 12 By salaries 25000 Dr. 172000
30 13 By salaries 10000 Dr. 162000
30 15 By Rent 17000 Dr. 145000
30 16 By vehicle expense 5000 Dr. 140000
30 17 By Gaurav Lal’s Drawing 6000 Dr. 134000
31 18 By Kanika Raj’s Drawing 4000 Dr. 130000
Total 650000 520000 Dr. 130000

Account: Car

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 2 4 To ICICI Bank C/A 140000 Dr. 140000
4 To ICICI Bank Term 360000 Dr. 500000
Loan
Total 500000 … Dr. 500000

Account: ICICI Bank Term Loan

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 2 4 By Car 360000 Cr 360000
Total … 360000 Cr 360000

Account: Computers

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 4 5 To ICICI Bank C/A 180000 Dr 180000
Total 180000 … Dr 180000

17
 Account: Database subscription

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 5 6 To ICICI Bank C/A 125000 Dr 125000
Total 125000 … Dr 125000

Account: Magazine subscription

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 5 7 To ICICI Bank C/A 3500 Dr 3500
Total 3500 … Dr 3500

Account: Modi Ventures Ltd.

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 20 8 To Consulting Fee 75000 Dr. 75000
27 9 By ICICI Bank C/A 75000 … …
Total 75000 75000 … …

Account: Consulting Fee

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 20 8 By Modi Ventures Ltd. 75000 Cr 75000
29 10 By Bata and Tata Ltd. 115000 Cr 190000
Total … 190000 Cr 190000

Account: Bata and Tata Ltd.

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 29 10 To Consulting Fee 115000 Dr 115000
Total 115000 … Dr 115000

Account: Telephone expenses

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount

18
2006, July 30 11 To ICICI Bank C/A 4500 Dr 4500
Total 4500 … Dr 4500

Account: Salaries

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 30 12 To ICICI Bank C/A 25000 Dr 25000
30 13 To ICICI Bank C/A 10000 Dr 35000
30 14 To Cash 4000 Dr 39000
Total 39000 … Dr 39000

Account: Rent

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 30 15 To ICICI Bank C/A 17000 Dr 17000
Total 17000 … Dr 17000
Account: Vehicle Expenses

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 30 16 To ICICI Bank C/A 5000 Dr 5000
Total 5000 … Dr 5000

Account: Gaurav Lal’s Drawings

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 30 17 To ICICI Bank C/A 6000 Dr 6000
Total 6000 … Dr 6000

Account: Kanika Raj’s Drawings

Date Voucher Particulars Amount Balance

No. Debit Credit Dr/Cr Amount
2006, July 31 18 To ICICI Bank C/A 4000 Dr 4000
Total 4000 … Dr 4000

19
Ex. 9

Kanika and Gaurav Management Consultants

Trial Balance as on 31.07.2006
Account Heads Debit Credit
Cash 21000
Gaurav Lal’s Capital 360000
Kanika Raj’s Capital 240000
ICICI Bank C/A 130000
Car 500000
ICICI Bank Term Loan 360000
Computers 180000
Database Subscription 125000
Magazine Subscription 3500
Consulting Fee 190000
Bata and Tata Ltd. 115000
Telephone expenses 4500
Salaries 39000
Rent 17000
Vehicle Expenses 5000
Gaurav Lal’s Drawings 6000
Kanika Raj’s Drawings 4000
Total 1150000 1150000

20
 CASE

Ex.10.1

Pulkit Enterprises
Journal
1-04-2006 to 30-06-2006
Amount (Rs.)
Date Voucher Account Heads and Description of the
2006 No. Transaction Debit Credit

April 1
001 Dr…. Cash 7,50,000
Cr…. Owner’s Equity 7,50,000
(Contribution towards capital by Pulkit Agarwal.)
1
002 Dr…. PNB C/A-209 7,15,000
Cr…. Cash 7,15,000
(Opened current account.)
1
003 Dr…. Security Deposit 15,000
Cr.… PNB C/A-209 15,000
(Cheque 223401 to Ram Prakash for office.)
1
004 Dr…. Office Equipments 9,500
Cr…. Cash 9,500
(1 Samsung Cell Phone from Mobile Corner.)
1
005 Dr…. Telephone Expenses 3,900
Cr…. Cash 3,900
(Booked a pre-paid one-year cell connection with
Airtel.)
2
006 Dr…. Furniture 37,500
Cr…. PNB C/A-209 37,500
(Cheque 223402 to Modern Furnishers.)
2
007 Dr…. Vehicles 57,600
Cr…. PNB C/A-209 57,600
(Cheque 223403 to Sawhney Motor Co. for 1 Motor
Cycle.)

21
2
008 Dr…. Vehicles 1,650
Cr…. Cash 1,650
(1 Cycle from Sharma Store.)
2
009 Dr…. Printing and Stationery 1,350
Cr…. PNB C/A-209 1,350
(Cheque 223404 to Hari Printers.)
2
010 Dr…. Printing and Stationery 1,325
Cr…. Cash 1,325
(Paid to local stationery shop.)

3 011 Dr…. Computers 42,500

Cr…. PNB C/A-209 42,500
(Cheque 223405 to Taneja Computers for 1
computer.)

5 012 Dr…. Purchases 3,04,500

Cr…. PNB C/A-209 3,04,500
(Cheque 223406 to BCA Ltd. for 150 units of B
vide BCA/INV/0004.)

5 013 Dr…. Freight Inwards 2,350

Cr…. Cash 2,350
(Transporter paid, for 150 units of B.)

6 014 Dr…. PNB C/A-209 69,600

Cr…. Sales 69,600
(Cheque 334501 from FED & Co. for 30 units of B
vide PE/INV/0001.)

6 015 Dr…. Cash 23,850

Cr…. Sales 23,850
(10 units of B vide PE/CM/0001.)

10 016 Dr…. Purchases 2,46,000

Cr…. PNB C/A-209 2,46,000
(Cheque 223407 to HIG Ltd. for 120 units of B vide
HIG/INV/0016.)

10 017 Dr…. Freight Inwards 1,950

Cr…. Cash 1,950
(Transporter paid, for 120 units of B.)

12 018 Dr…. PNB C/A-209 60,000

Cr…. Sales 60,000
(Cheque 445601 from KLJ & Co. for 25 units of B
vide PE/INV/0002.)

22
 14 019 Dr…. PNB C/A-209 84,175
Cr…. Sales 84,175
(Cheque 556701 from NOM & Co. for 35 units of B
vide PE/INV/0003.)

16 020 Dr…. Staff Welfare 1,075

Cr…. Cash 1,075
(Fortnightly bill of snacks.)

18 021 Dr…. Purchases 1,34,225

Cr…. RPQ Ltd. 1,34,225
(65 units of B vide RPQ /INV/0019 on 15 days’
credit.)

18 022 Dr…. Freight Inwards 965

Cr…. Cash 965
(Transporter paid, for 65 units of B.)

21 023 Dr…. TUS & Co. 85,225

Cr…. Sales 85,225
(35 units of B vide PE/INV/0004 on a week’s
credit.)

22 024 Dr…. Purchases 1,33,085

Dr…. Freight Inwards 1,140 1,34,225
Cr…. PNB C/A-209
(Cheque 223408 to BCA Ltd. for 65 units of B vide
BCA/INV/0043.)

28 025 Dr…. PNB C/A-209 85,225

Cr…. TUS & Co. 85,225
(Cheque no. 667801.)

30 026 Dr…. Owner’s Drawings 6,000

Cr…. PNB C/A-209 6,000
(Cheque 223409 withdrawn by Pulkit Agarwal.)

May 1 027 Dr…. Salaries 6,500

Cr…. PNB C/A-209 6,500
(Cheque 223410 to M.Suresh for April.)

1 028 Dr…. Salaries 3,200

Cr…. Cash 3,200
(Paid to Rajesh for April.)

1 029 Dr…. Staff Welfare 1,150

Cr…. Cash 1,150
(Fortnightly bill of snacks.)

23
1 030 Dr…. Office Rent 5,000
Cr…. PNB C/A-209 5,000
(Cheque 223411 to Ram Prakash for April.)

1 031 Dr…. Vehicle Expenses 750

Cr…. Cash 750
(Paid to Vikas Petrol Pump for April.)

3 032 Dr…. PNB C/A-209 1,10,707

Cr…. Sales 1,10,707
(Cheque 556711 from NOM & Co. for 45 units of B
vide PE/INV/0005.)

3 033 Dr…. RPQ Ltd. 1,34,225

Cr…. PNB C/A-209 1,34,225
(Cheque 223412.)
10 034
Dr…. TUS & Co. 1,23,000
Cr…. Sales 1,23,000
(50 units of B vide PE/INV/0006 on a month’s
credit.)

14 035 Dr…. Sales Return 12,300

Cr…. TUS & Co. 12,300
(5 units of B vide return memo no. TUS/RM/0007.)
036 Dr…. Electricity Expenses 925
14 Cr…. Cash 925
(Paid to Ram Prakash for April.)
25 037 Dr…. PNB C/A-209
Dr…. Cash Discount Allowed 1,10,000
Cr…. TUS & Co. 700 1,10,700
(Cheque no. 667809, 15 days before the due date.
Cash discount Rs. 700.)
25 038 Dr…. Advertising and Sales Promotion Expenses 2,065
Cr…. Purchases
(Provided 1 unit of B to NOM & Co. as sales 2,065
incentive.)
28 039 Dr…. PNB C/A-209 1,51,200
Cr…. Sales
(Cheque 556738 from NOM & Co. for 60 units of B 1,51,200
vide PE/INV/0007.)
28 040 Dr…. Freight Outwards 1,125
Cr…. Cash
(Borne on sale to NOM & Co. of 60 units of B vide 1,125
PE/INV/0007.)
29 041 Dr…. Cash 25,750
Cr…. Sales
(10 units of B vide cash memo no. PE / CM/ 0002. ) 25,750

24
 29 042 Dr…. PNB C/A-209 10,000
Cr…. Cash
(Deposited in A/C.) 10,000
29 043 Dr…. Advertising and Sales Promotion Expenses 3,400
Cr…. PNB C/A-209
(Cheque no. 223413 issued to East Delhi News.) 3,400

June 1 044 Dr…. Salaries 6,500

Cr…. PNB C/A-209 6,500
(Cheque 223414 to M. Suresh for May.)

1 045 Dr…. Salaries 3,200

Cr…. Cash 3,200
(Paid to Rajesh for May.)

1 046 Dr…. Staff Welfare 2,250

Cr…. Cash 2,250
(Monthly bill of snacks.)

1 047 Dr…. Office Rent 5,000

Cr…. PNB C/A-209 5,000
(Cheque 223415 to Ram Prakash for May.)

1 048 Dr…. Vehicle Expenses 650

Cr…. Cash 650
(Paid to Vikas Petrol Pump for May.)

1 049 Dr…. Insurance 6,500

Cr…. PNB C/A-209 6,500
(Cheque 223416 to Iffco Tokio Insurance for a
comprehensive insurance policy for 1 year.)
5 050 Dr…. TUS & Co. 87,675
Cr…. Sales
(35 units of B vide PE/INV/0008 on a month’s 87,675
credit.)
8 051 Dr…. Purchases 2,49,993
Cr…. PNB C/A-209
(Cheque 223417 to RPQ Ltd. for 120 units of B vide 2,49,993
RPQ /INV/0041 @ Rs.2,115 per unit minus a trade
discount of 1.5%.)
8 052 Dr…. Freight Inwards 2,250
Cr…. Cash
(Transporter paid, for 120 units of B.) 2,250
10 053 Dr…. PNB C/A-209 1,50,300
Cr…. Sales
(Cheque 556750 from NOM & Co. for 60 units of B 1,50,300
vide PE/INV/0009.)

25
10 054 Dr…. Cash 10,000
Cr…. PNB C/A-209
(Cheque 223418.) 10,000
15 055 Dr…. Purchases 2,56,200
Cr…. RPQ Ltd.
(120 units of B vide RPQ /INV/0056 on a month’s 2,56,200
credit.)
15 056 Dr…. Freight Inwards 2,250
Cr…. Cash
(Transporter paid, for 120 units of B.) 2,250
15 057 Dr…. Vehicles 2,05,000
Cr…. PNB Term Loan
Cr…. PNB C/A-209 1,75,000
(1 Maruti Van from Competent Motors. Cheque 30, 000
224319 for Rs. 30,000. Balance term loan from
PNB.)
15 058 Dr…. PON & Co. 5,170
Cr…. Sales
(2 units of B vide PE/INV/0010 on a week’s credit.) 5,170

25 059 Dr…. NOM & Co 1,66,400

Cr…. Sales
(65 units of B vide PE/INV/0011 on 15 days’ 1,66,400
credit.)
26 060 Dr…. Purchases 1,61,625
Cr…. BCA Ltd
(75 units of B vide invoice no. BCA / INV/ 0084 on 1,61,625
a months’ credit.)
26 061 Dr…. Freight Inwards 1,075
Cr…. Cash
(Transporter paid, for 75 units of B.) 1,075
26 062 Dr…. Owner’s Drawings 2,155
Cr…. Purchases
(Issued 1 unit of B to Pulkit Agarwal for his 2,155
personal use.)
27 063 Dr…. PNB C/A-209 60,000
Cr…. WXY & Co.
(Cheque 778901and 902, for Rs.30,000 each, as 60,000
advance towards 30 units of B to be supplied to the
customer.)
27 064 Dr…. BCA Ltd. 21,550
Cr…. Purchase Return
(Returned 10 units vide return memo no. 21,550
PE/PR/001.)

26
 29 065 Dr…. Purchases 31,275
Cr…. PNB C/C A/C-128
(Cheque 234501 to BCA Ltd. for 15 units of B vide 31,275
invoice no. BCA / INV/ 0090 on a months’ credit.
Freight borne by the supplier.)

30 066 Dr…. RPQ Ltd. 1,28,100

Cr…. PNB C/A-209
Cr…. Cash Discount Earned 1,27,500
(Cheque 223420 towards half of the dues 15 days 600
before the due date. Cash discount Rs. 600.)
30 067 Dr…. RNM Ltd. 45,000
Dr…. Bank Charges 250
Cr…. PNB C/A-209
(Cheque 223421—DD 426589 – as advance against 45,250
40 units of B to be delivered by the supplier.)
30 068 Dr…. WXY & Co. 30,000
Cr…. PNB C/A-209
(Cheque 778902 returned dishonoured.) 30,000

Ex.10.2

Pulkit Enterprises
Ledger
1-04-2006 to 30-06-2006

Account … Advertising and Sales Promotion Expenses

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
May 25 038 To Purchases Provided 1 unit of B to NOM &
Co. as sales incentive. Dr. 2,065
2,065
29 043 To PNB C/A- Cheque no. 223413 issued to East
209 Delhi News. 3,400 Dr. 5,465
Total… 5,465 … Dr. 5,465

Account … Bank Charges

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)

27
June 30 067 To PNB C/A- Cheque 223421—DD 426589 –
209 as advance against 40 units of B
to be delivered by the supplier 250 Dr 250
Total… 250 … Dr 250

Account … BCA Ltd.

Vr.
Date No. Particulars Amount (Rs.) Balance

2006 Debit Credit Dr. / Amount

Account Description Cr. (Rs.)
June 26 060 By Purchases 75 units of B vide invoice no.
BCA / INV/ 0084 on a months’
credit. 1,61,625 Cr. 1,61,625
27 064 To Purchase Returned 10 units vide return
Return memo no. PE/PR/001. 21,550 Cr. 1,40,075

Total… 21,550 1,61,625 Cr. 1,40,075

Account … Cash

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April 1 To Owner’s Contribution towards capital by
001 Equity Pulkit Agrwal 7,50,000 Dr. 7,50,000
1
002 By PNB C/A- 7,15,000 Dr. 35,000
209 Opened current account.
1 1 Samsung Cell Phone from
004 By Office Mobile Corner. 9,500 Dr. 25,500
Equipments
1 Booked a pre-paid one-year cell
005 By Telephone connection with Airtel. 3,900 Dr. 21,600
Expenses
2 1 Cycle from Sharma Store. 1,650 Dr. 19,950
008 By Vehicles
2
010 By Printing and Paid to local stationery shop. 1,325 Dr. 18,625
Stationery
Transporter paid, for 150 units of
5 013 By Freight B. 2,350 Dr. 16,275
Inwards
23,850 Dr. 40,125
6 015 To Sales 10 units of B vide PE/CM/0001.

28
 10 017 By Freight Transporter paid, for 120 units of 1,950 Dr. 38,175
Inwards B.

16 020 By Staff 1,075 Dr. 37,100

Welfare Fortnightly bill of snacks.

18 022 By Freight Transporter paid, for 65 units of 965 Dr. 36,135

Inwards B
7,37,715 Dr. 36,135
Total… 7,73,850
May 3,200 Dr. 32,935
1 028 By Salaries Paid to Rajesh for April.

1 029 By Staff 1,150 Dr. 31,785

Welfare Fortnightly bill of snacks.

1 031 By Vehicle Paid to Vikas Petrol Pump for 750 Dr. 31,035
Expenses April.
036 By Electricity Paid to Ram Prakash for April.
14 Expenses 925 Dr. 30,110
28 040 By Freight (Borne on sale to NOM & Co. of
Outwards 60 units of B vide PE/INV/0007.) 1,125 Dr. 28,985

29 041 To Sales 10units of B vide cash memo no.

PE / CM/ 0002. 25,750 Dr. 54,735
29 042 By PNB C/A-
209 Deposited in A/C. 10,000 Dr. 44,735
Total… 7,99,600 7,54,865 Dr. 44,735
June 3,200 Dr. 41,535
1 045 By Salaries Paid to Rajesh for May.

1 046 By Staff 2,250 Dr. 39,285

Welfare Monthly bill of snacks.

1 048 By Vehicle Paid to Vikas Petrol Pump for 650 Dr. 38,635
Expenses May.
8 052 By Freight Transporter paid, for 120 units of
Inwards B. 2,250 Dr. 36,385
10 054 To PNB C/A- Cheque 223418. Dr. 46,385
209 10,000
15 056 By Freight Transporter paid, for 120 units of
Inwards B. 2,250 Dr. 44,135

26 061 By Freight Transporter paid, for 75 units of 1,075 Dr. 43,060

Inwards B.
7,66,540 Dr. 43,060
Total… 8,09,600

29
Account … Cash Discount Allowed

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
May 25 700
037 To TUS & Co Cheque no. 667809, 15 days Dr. 700
before the due date.
700 … Dr. 700
Total…

Account … Cash Discount Earned

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
June
30 066 By RPQ Ltd. Cheque 223420 towards half of
the dues 15 days before the due 600 Cr. 600
date. Cash discount Rs. 600
… 600 Cr. 600
Total…

Account … Computers

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April
3 011 To PNB C/A- Cheque 223405 to Taneja 42,500 Dr. 42,500
209 Computers for 1 computer.
42,500 … Dr. 42,500
Total…

Account … Electricity Expenses

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
May 036 To Cash Paid to Ram Prakash for April.
14 925 Dr. 925

30
 925 … Dr. 925
Total…

Account … Freight Inwards

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April
5 013 To Cash Transporter paid, for 150 units of 2,350 Dr. 2,350
B.

10 017 To Cash Transporter paid, for 120 units of 1,950 Dr. 4,300
B.

18 022 To Cash Transporter paid, for 65 units of 965 Dr. 5,265

B.

22 024 To PNB C/A- Cheque 223408 to BCA Ltd. for

209 65 units of B vide 1,140 Dr. 6,405
BCA/INV/0043.
6,405 … Dr. 6,405
Total…
June 8 052 To Cash Transporter paid, for 120 units of
B. 2,250 Dr. 8,655
15 056 To Cash Transporter paid, for 120 units of
B. 2,250 Dr. 10,905

26 061 To Cash Transporter paid, for 75 units of Dr. 11,980

B. 1,075
… Dr. 11,980
Total… 11,980

Account … Freight Outwards

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
May 28 040 To Cash
Borne on sale to NOM & Co. of 1,125 Dr. 1,125
60 units of B vide PE/INV/0007.
1,125 … Dr. 1,125
Total…
Account … Furniture

Date Particulars Amount (Rs.) Balance

31
 2006 Vr. Debit Credit Dr. / Amount
No. Account Description Cr. (Rs.)
April 2
006 To PNB C/A- Cheque 223402 to Modern 37,500 Dr. 37,500
209 Furnishers.
37,500 … Dr. 37,500
Total…

Account … Insurance

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
June
1 049 To PNB C/A- Cheque 223416 to Iffco Tokio
209 Insurance for a comprehensive 6,500 Dr. 6,500
insurance policy for 1 year.
6,500 … Dr. 6,500
Total…

Account … NOM & Co

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
June 25 059 To Sales 65 units of B vide PE/INV/0011
on 15 days’ credit. 1,66,400 Dr. 1,66,400
1,66,400 … Dr. 1,66,400
Total…

Account … Office Equipments

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April 1
004 To Cash 1 Samsung Cell Phone from 9,500 Dr. 9,500
Mobile Corner.
9,500 … Dr. 9,500
Total…

Account … Office Rent

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)

32
May
1 030 To PNB C/A- Cheque 223411 to Ram Prakash 5,000 Dr. 5,000
209 for April.
5,000 … Dr. 5,000
Total…
June
1 047 To PNB C/A- Cheque 223415 to Ram Prakash 5,000 Dr. 10,000
209 for May l.
10,000 … Dr. 10,000
Total…
Account … Owner’s Drawings

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April
30 026 To PNB C/A- Cheque 223409 withdrawn by 6,000 Dr. 6,000
209 Pulkit Agrawal
6,000 … Dr. 6,000
Total…
June 28
062 To Purchases Issued I unit of B to Pulkit 2,155 Dr. 8,155
Agrawal for his personal use.
8,155 … Dr. 8,155
Total…

Account … Owner’ Equity

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April 1 By Cash Contribution towards capital by
001 Pulkit Agrawal 7,50,000 Cr. 7,50,000

… 7,50,000 Cr. 7,50,000

Total…

Account … PNB C/A-209

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. Amount
Account Description / (Rs.)
Cr.
April 1 To Cash Opened current account. 7,15,000 Dr. 7,15,000
002

33
1
003 By Security Cheque 223401 to Ram Prakash 15,000 Dr. 7,00,000
Deposit for office.
2 Cheque 223402 to Modern
006 By Furniture Furnishers. 37,500 Dr. 6,62,500
2 Cheque 223403 to Sawhney
007 By Vehicles Motor Co. for 1 Motor Cycle.
57,600 Dr. 6,04,900
2
009 By Printing and Cheque 223404 to Hari 1,350 Dr. 6,03,550
Stationery Printers.

3 011 By Computers Cheque 223405 to Taneja 42,500 Dr. 5,61,050

Computers for 1 computer.

5 012 By Purchases Cheque 223406 to BCA Ltd.

for 150 units of B vide 3,04,500 Dr. 2,56,550
BCA/INV/0004.

6 014 To Sales Cheque 334501 from FED &

Co. for 30 units of B vide 69,600 Dr. 3,26,150
PE/INV/0001.

10 016 By Purchases Cheque 223407 to HIG Ltd. for

120 units of B vide 2,46,000 Dr. 80,150
HIG/INV/0016.

12 018 To Sales (Cheque 445601 from KLJ &

Co. for 25 units of B vide 60,000 Dr. 140,150
PE/INV/0002.)

14 019 To Sales Cheque 556701 from NOM &

Co. for 35 units of B vide 84,175 Dr. 2,24,325
PE/INV/0003.

22 024 By Purchases Cheque 223408 to BCA Ltd. 1,33,085 Dr. 91,240

for 65 units of B vide
BCA/INV/0043.

22 024 By Freight Cheque 223408 to BCA Ltd.

Inwards for 65 units of B vide 1,140 Dr. 90,100
BCA/INV/0043.
85,225 Dr. 1,75,325
28 025 To TUS & Co. Cheque no. 667801.

30 026 By Owner’s Cheque 223409 withdrawn by

Drawings Pulkit Agrawal 6,000 Dr. 1,69,325

34
 8,44,675 Dr. 1,69,325
Total… 10,14,000

May 1 027 By Salaries Cheque 223410 to M. Suresh

for April. 6,500 Dr. 1,62,825

1 030 By Office Rent Cheque 223411 to Ram

Prakash for April. 5,000 Dr. 1,57,825

3 032 To Sales Cheque 556711 from NOM &

Co. for 45 units of B vide 1,10,707 Dr. 2,68,532
PE/INV/0005.

3 033 By RPQ Ltd. Cheque 223412. 1,34,225 Dr. 1,34,307

25 037 To TUS & Co.
Cheque no. 667809, 15 days
before the due date. Cash 1,10,000 Dr. 2,44,307
discount Rs. 700.
28 039 To Sales Cheque 556738 from NOM &
Co. for 60 units of B vide
PE/INV/0007. 1,51,200 Dr. 3,95,507
29 042 To Cash Deposited in A/C.
10,000 Dr. 4,05,507
29 043 By Advertising
and Sales
Promotion Cheque no. 223413 issued to
Expenses East Delhi News. 3,400 Dr. 4,02,107
Total…
13,95,907 9,93,800 Dr. 4,02,107

June 1 044 By Salaries Cheque 223414 to M. Suresh

for May. 6,500 Dr. 3,95,607

1 047 By Office Rent Cheque 123415 to Ram Prakash

for May l. 5,000 Dr. 3,90,607

1 049 By Insurance Cheque 223416 to Ifco Tokio

Insurance for a comprehensive 6,500 Dr. 3,84,107
insurance policy for 1 year.
8 051 By Purchases Cheque 223417 to RPQ Ltd. for
120 units of B vide RPQ
/INV/0041 @ Rs.2,115 per unit
minus a trade discount of 1.5%. 2,49,993 Dr. 1,34,114
10 053 To Sales Cheque 556750 from NOM &
Co. for 60 units of B vide
PE/INV/0009. 1,50,300 Dr. 2,84,414
10 054 By Cash Cheque 223418.
10,000 Dr. 2,74,414

35
 15
057 By Vehicles 1 Maruti Van from Competent
Motors. Cheque 224319 for Rs.
30,000. Balance term loan from 30,000 Dr. 2,44,414
PNB.
27 063 To WXY & Cheque 778901and 902, for
Co. Rs.30,000 each, as advance
towards 30 units of B to be 3,04,414
supplied to the customer. 60,000 Dr.
30 066 By RPQ Ltd.
Cheque 223420 towards half of
the dues 15 days before the due 1,27,500 Dr. 1,76,914
date. Cash discount Rs. 600
30 067 By RNM Ltd. Cheque 223421—DD 426589 –
as advance against 40 units of B
to be delivered by the supplier 1,31,914
45,000 Dr.
30 067 By Bank Cheque 223421—DD 426589 – 1,31,664
Charges as advance against 40 units of B
to be delivered by the supplier
250 Dr.
30 068
By WXY & Cheque 778902 returned
Co. dishonoured. 30,000 Dr. 1,01,664
Total… 16,06,207
15,04,543 Dr. 1,01,664

Account … PNB C/C A/C-128

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
June 30 065 31,275
By Purchases Cheque 234501 to ABC Ltd. for
15 units of B vide invoice no.
BCA / INV/ 0090 on a months’
credit. Freight borne by the 31,275 Cr.
supplier
… 31,275 Cr. 31,275
Total…

Account … PNB Term Loan

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)

36
June 15
057 By Vehicles 1 Maruti Van from Competent
Motors. Cheque 224319 for Rs.
30,000. Balance term loan from 1,75,000 Cr. 1,75,000
PNB.
… 1,75,000 Cr. 1,75,000
Total…

Account … PON & Co.

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
June 15 058 To Sales 2 units of B vide PE/INV/0010 on 5,170 Cr. 5,170
a week’s credit.
5,170 … Cr. 5,170
Total…

Account … Printing and Stationery

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April 2
009 To PNB C/A- Cheque 223404 to Hari Printers. 1,350 Dr. 1,350
209
2 1,325 Dr. 2,675
010 To Cash Paid to local stationery shop.
2,675 … Dr. 2,675
Total…

Account … Purchases

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April
5 012 To PNB C/A- Cheque 223406 to ABC Ltd. for
209 150 units of B vide 3,04,500 Dr. 3,04,500
BCA/INV/0004

10 016 To PNB C/A- Cheque 223407 to HIG Ltd. for

209 120 units of B vide 2,46,000 Dr. 5,50,500
HIG/INV/0016.

37
 18 021 To PQR Ltd. (65 units of B vide RPQ 1,34,225 Dr. 6,84,725
/INV/0019 on 15 days’ credit.)

22 024 To PNB C/A- Cheque 223408 to BCA Ltd. for

209 65 units of B vide 1,33,085 Dr. 8,17,810
BCA/INV/0043.
Total… … Dr. 8,17,810
8,17,810
May 25 038 By Advertising Provided 1 unit of B to NOM &
and Sales Co. as sales incentive. 2,065 Dr. 8,15,745
Promotion
Expenses

Total… 2,065 Dr. 8,15,745

8,17,810
June 8 051 To PNB C/A – Cheque 223417 to RPQ Ltd. for 2,49,993 Dr 10,65,738
209 120 units of B vide RPQ
/INV/0041 @ Rs.2,115 per unit
minus a trade discount of 1.5%.
15 055 To RPQ Ltd. 120 units of B vide RPQ
/INV/0056 on a month’s credit. 2,56,200 Dr. 13,21,938
26 060 To BCA Ltd. 75 units of B vide invoice no.
BCA / INV/ 0084 on a months’
credit. 1,61,625 Dr. 14,83,563
26 062 By Owner’s Issued I unit of B to Pulkit
Drawings Agrawal for his personal use. 2,155 Dr. 14,81,408
29 065 To PNB C/C
A/C -128 Cheque 234501 to BCA Ltd. for
15 units of B vide invoice no.
BCA / INV/ 0090 on a months’
credit. Freight borne by the 31,275 Dr. 15,12,683
supplier
15,16,903 Dr. 15,12,683
Total… 4,220

Account … Purchase Return

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
June
27 064 By BCA Ltd. Returned 10 units vide return 21,550 Cr. 21,550
memo no. PE/PR/001
… 21,550 Cr. 21,550
Total

38
Account … RNM LTD

Date Vr. Particulars Amount (Rs.)

No. Balance
2006 Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
45,000 Dr. 45,000
June 30 067 To PNB C/A – Cheque 223421—DD 426589 –
209 as advance against 40 units of B
to be delivered by the supplier
45,000 … Dr. 45,000
Total

Account … RPQ LTD

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)

April 18 021 By Purchases 65 units of B vide 1,34,225 Cr. 1,34,225

RPQ/PE/INV/0019 on 15 days
credit
… 1,34,225 Cr. 1,34,225
Total…
1,34,225 …
May 3 033 To PNB C/A – Cheque 223412
209
1,34,225 1,34,225 …
Total
15 055 By Purchases 120 units of B vide RPQ 2,56,200 Cr. 2,56,200
June /INV/0056 on a month’s credit.
1,27,500 Cr. 1,28,700
June 30 066 To PNB C/A - Cheque 223420 towards half of
209 the dues 15 days before the due
date. Cash discount Rs. 600
600 Cr. 1,28,100
30 066 To Cash Cheque 223420 towards half of
Discount the dues 15 days before the due
Earned date. Cash discount Rs. 600
2,62,325 3,90,425 Cr. 1,28,100
Total…

Account … Salaries

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)

39
May 1 027 To PNB C/A- Cheque 223410 to M. Suresh for 6,500 Dr. 6,500
209 April.
3,200 Dr. 9,700
1 028 To Cash Paid to Rajesh for April.
9,700 … Dr. 9,700
Total…

June 1 044 To PNB C/A- Cheque 223414 to M. Suresh for 6,500 Dr. 16,200
209 May.
3,200 Dr. 19,400
1 045 To Cash Paid to Rajesh for May.
19,400 … Dr. 19,400
Total…

Account … Sales

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. Amount
Account Description / (Rs.)
Cr.
April
6 014 By PNB C/A- Cheque 334501 from FED & Co.
209 for 30 units of B vide 69,600 Cr. 69,600
PE/INV/0001.
23,850 Cr. 93,450
6 015 By Cash 10 units of B vide PE/CM/0001.

12 018 By PNB C/A- Cheque 445601 from KLJ & Co.

209 for 25 units of B vide 60,000 Cr. 1,53,450
PE/INV/0002.

14 019 By PNB C/A- Cheque 5456701 from NOM &

209 Co. for 35 units of B vide 84,175 Cr. 2,37,625
PE/INV/0003.

21 023 By TUS & Co. 35 units of B vide PE/INV/0004 85,225 Cr. 3,22,850
on a week’s credit.
… 3,22,850 Cr. 3,22,850
Total…
May
3 032 By PNB C/A- (Cheque 556711 from NOM &
209 Co. for 45 units of B vide 1,10,707 Cr. 4,33,557
PE/INV/0005.)
10 034
By TUS & Co. (50 units of B vide PE/INV/0006 1,23,000 Cr. 5,56,557
on a month’s credit.)

40
 28 039 By PNB C/A- Cheque 556738 from NOM &
209 Co. for 60 units of B vide
PE/INV/0007. 1,51,200 Cr. 7,07,757
29 041 By Cash 10 units of B vide cash memo no.
PE / CM/ 0002. 25,750 Cr. 7,33,507
Total… … 7,33,507 Cr. 7,33,507
June 5 050 By TUS & Co. 35 units of B vide PE/INV/0008
on a month’s credit. 87,675 Cr. 8,21,182
10 053 By PNB C/A- Cheque 556750 from NOM &
209 Co. for 60 units of B vide
PE/INV/0009. 1,50,300 Cr. 9,71,482
15 058 By PON & Co. 2 units of B vide PE/INV/0010 on
a week’s credit. 5,170 Cr. 9,76,652
25 059 By NOM & Co 65 units of B vide PE/INV/0011
on 15 days’ credit. 1,66,400 Cr. 11,43,052
Total… … 11,43,052 Cr. 11,43,052

Account … Sales Return

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
May
14 035 To TUS & Co. 5 units of B vide return memo no. 12,300 Dr. 12,300
TUS/RM/0007.
12,300 … Dr. 12,300
Total…

Account … Security Deposit

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April 1
003 To PNB C/A- Cheque 223401 to Ram Prakash 15,000 Dr. 15,000
209 for office.
15,000 … Dr. 15,000
Total…
Account … Staff Welfare

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April 1,075 Dr. 1,075
16 020 To Cash Fortnightly bill of snacks.
1,075 … Dr. 1,075
Total…

41
May 1,150 Dr. 2,225
1 029 To Cash Fortnightly bill of snacks.
2,225 … Dr. 2,225
Total…
June 2,250 Dr. 4,475
1 046 To Cash Monthly bill of snacks.
4,475 … Dr. 4,475
Total…

Account … Telephone Expenses

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April 1
005 To Cash Booked a pre-paid one-year cell 3,900 Dr. 3,900
connection with Airtel.
3,900 … Dr. 3,900
Total…

Account … TUS & Co.

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April 21
023 To Sales 35 units of B vide PE/INV/0004
on a week’s credit 85,225 Dr. 85,225
28 85,225 …
025 To PNB C/A – Cheque no. 667801
209
85,225 85,225 …
Total
May 10 034 To Sales 1,23,000 Dr. 1,23,000
50 units of B vide PE/INV/0006
on a month’s credit
12,300 Dr. 1,10,700
14 035 By Sales 5 units of B vide return memo no.
Return TUS/RM/0007.
25 037 To PNB C/A - Dr. 700
209 Cheque no. 667809, 15 days 1,10,000
before the due date. Cash
discount Rs. 700.

42
 25 037 To Cash 700 …
Discount Cheque no. 667809, 15 days
allowed before the due date. Cash
discount Rs. 700.
Total 2,08,225 2,08,225 …

June 5 050 To Sales 35 units of B vide PE/INV/0008 87,675 87,675

on a month’s credit.
2,95,900 2,08,225 Dr. 87,675
Total…
Account … Vehicles

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
April 2
007 To PNB C/A- Cheque 223403 to Sawhney
209 Motor Co. for 1 Motor Cycle. 57,600 Dr. 57,600

2 1,650 Dr. 59,250

008 To Cash 1 Cycle from Sharma Store.
59,250 … Dr. 59,250
Total…
June 15 057 To PNB Term 1,75,000 Dr. 2,34,250
Loan 1 Maruti Van from Competent
Motors. Cheque 224319 for Rs.
30,000. Balance term loan from
PNB.
15
057 To PNB C/A- 1 Maruti Van from Competent
209 Motors. Cheque 224319 for Rs.
30,000. Balance term loan from 30,000 Dr. 2,64,250
PNB.
2,64,250 … Dr. 2,64,250
Total…

Account … Vehicle Expenses

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
May
1 031 To Cash Paid to Vikas Petrol Pump for 750 Dr. 750
April.
750 … Dr. 750
Total…

43
June
1 048 To Cash Paid to Vikas Petrol Pump for 650 Dr. 1,400
May.
1,400 … Dr. 1,400
Total…

Account … WXY & Co.

Date Vr. Particulars Amount (Rs.) Balance

2006 No. Debit Credit Dr. / Amount
Account Description Cr. (Rs.)
June 27 063 By PNB C/A - Cheque 778901and 902, for
209 Rs.30,000 each, as advance
towards 30 units of B to be
supplied to the customer. 60,000 Cr. 60,000
30 068 30,000
To PNB C/A - Cheque 778902 returned Cr. 30,000
209 dishonoured.
30,000 60,000 Cr. 30,000
Total…

Ex.10.4
Pulkit Enterprises
Trial Balance as on 30-06-2006
Amount (Rs.)
Sl. No. Account Heads Debit Credit
1 Advertising and Sales Promotion Expenses 5,465
2 Bank Charges 250
3 BCA Ltd. 1,40,075
4 Cash 43,060
5 Cash Discount Allowed 700
6 Cash Discount Earned 600
7 Computers 42,500
8 Electricity Expenses 925
9 Freight Inwards 11,980
10 Freight Outwards 1,125
11 Furniture 37,500
12 Insurance 6,500
13 NOM & Co. 1,66,400
14 Office Equipments 9,500

44
15 Office Rent 10,000
16 Owner’s Drawings 8,155
17 Owner’s Equity 7,50,000
18 PNB C/A-209 1,01,664
19 PNB C/C A/C-128 31,275
20 PNB Term Loan 1,75,000
21 PON & Co. 5,170
22 Printing and Stationery 2,675
23 Purchases 15,12,683
24 Purchase Return 21,550
25 RNM Ltd. 45,000
26 RPQ Ltd. 1,28,100
27 Salaries 19,400
28 Sales 11,43,052
29 Sales Return 12,300
30 Security Deposit 15,000
31 Staff Welfare 4,475
32 Telephone Expenses 3,900
33 TUS & Co. 87,675
34 Vehicles 2,64,250
35 Vehicle Expenses 1,400
36 WXY & Co. 30,000
Total… 24,19,652 24,19,652
……….

45