Double Entry Book Keeping Ts Grewal 2018 for Class 11 Commerce Accountancy Chapter 3 - Accounting Procedures Rules Of Debit And Credit

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Page No 6.15:

Question 1:

Following accounts are being maintained in the books of Shri Ashok. Classify them into Personal, Real and Nominal Accounts:

(i) Land and Building	(vii) Investments	(xiv) Ramesh, a debtor
(ii) Excise Duty	(viii) Salary	(xv) Interest Received
(iii) Creditors	(ix) Debtors	(xvi) Bank Overdraft
(iv) Capital	(x) Bad Debts	(xvii) Purchase Returns
(v) Motor Vehicles	(xi) Depreciation	(xviii) Drawings
(vi) Goodwill	(xii) Wages	(xix) Freight
	(xiii) Repairs	(xx) Return Inwards.

Answer:

Item	Nature of Account
Land & Building	Real A/c
Excise Duty	Nominal A/c
Creditors	Personal A/c
Capital	Personal A/c
Motor Vehicles	Real A/c
Goodwill	Real A/c
Investments	Real A/c
Salary	Nominal A/c
Debtors	Personal A/c
Bad Debts	Nominal A/c
Depreciation	Nominal A/c
Wages	Nominal A/c
Repair	Nominal A/c
Ramesh, a debtor	Personal A/c
Interest Received	Nominal A/c
Bank Overdraft	Personal A/c
Purchase Returns	Nominal A/c
Drawings	Personal A/c
Freight	Nominal A/c
Return Inwards	Nominal A/c

Page No 6.16:

Question 2:

Classify the following into Assets, Liabilities, Capital, Expenses and Revenue:

(i) Land;	(ii) Investments;	(iii) Building;	(iv) Interest Received;
(v) Salary;	(vi) Bank Overdraft;	(vii) Debtors;	(viii) Creditors;
(ix) Bad Debts;	(x) Capital;	(xi) Depreciation;	(xii) Motor Vehicles;
(xiii) Freight;	(xiv) Wages;	(xv) Goodwill;	(xvi) Repairs.

Answer:

Assets	Liabilities	Capital	Expenses	Revenue
(i) Land	(vi) Bank Overdraft	(x) Capital	(v) Salary	(iv) Interest Received
(ii) Investments	(viii) Creditors		(ix) Bad Debts
(iii) Building			(xi) Depreciation
(vii) Debtors			(xiii) Freight
(xii) Motor Vehicles			(xiv) Wages
(xv) Goodwill			(xvi) Repairs

Page No 6.16:

Question 3:

Classify the following into Assets, Liabilities, Capital, Revenue, and Expenses:

(i) Plant and Machinery;	(ii) Bank Loan;	(iii) Sales;	(iv) Rent;
(v) Discount Received;	(vi) Carriage Inwards;	(vii) Carriage outwards;	(viii) Purchases;
(ix) Bills Payable;	(x) Wages;	(xi) Advance Income;	(xii) Accrued Income;
(xiii) Goodwill;	(xiv) Furniture and Fixtures;	(xv) Outstanding Expenses;	(xvi) Capital.

Answer:

Assets		Liabilities		Capital		Revenue		Expenses
(i)	Plant and Machinery	(ii)	Bank Loan	(xvi)	Capital	(iii)	Sales	(iv)	Rent
(xii)	Accrued Income	(ix)	Bills Payable			(v)	Discount Received	(vi)	Carriage Inwards
(xiii)	Goodwill	(xi)	Advance Income					(vii)	Carriage Outwards
(xiv)	Furniture and Fixtures	(xv)	Outstanding Expenses					(viii)	Purchases
								(x)	Wages

Page No 6.16:

Question 4:

On which side will the increase in the following accounts be recorded? Also, state the nature of the account:

(i) Furniture A/c	(ii) Mohan (proprietor)
(iii) Salary A/c	(iv) Purchases A/c
(v) Sales A/c	(vi) Interest Paid A/c
(vii) Sohan (Creditor)	(viii) Ram (Debtor)

Answer:

Name of Accounts		Consequence of increase	Modern Approach	Traditional Approach
(i)	Furniture	Debit	Assets	Real Account
(ii)	Mohan (Proprietor)	Credit	Capital	Personal Account
(iii)	Salary	Debit	Expense	Nominal Account
(iv)	Purchases	Debit	Expense	Nominal Account
(v)	Sales	Credit	Revenue	Nominal Account
(vi)	Interest Paid	Debit	Expense	Nominal Account
(vii)	Sohan (Creditor)	Credit	Liabilities	Personal Account
(viii)	Ram (Debtor)	Debit	Assets	Personal Account

Page No 6.16:

Question 5:

On which side will the decrease in the following accounts be recorded? Also, state the nature of the account:

(i) Cash	(ii) Bank Overdraft
(iii) Outstanding Salary paid	(iv) Outstanding Rent
(v) Prepaid Insurance	(vi) Mohan, Proprietor of the business

Answer:

Name of Accounts		Consequence of decrease	Modern Approach	Traditional Approach
(i)	Cash	Credit	Assets	Real Account
(ii)	Bank Overdraft	Debit	Liability	Personal Account
(iii)	Outstanding Salary Paid	Debit	Liability	Personal Account
(iv)	Outstanding Rent	Debit	Liability	Personal Account
(v)	Prepaid Insurance	Credit	Asset	Personal Account
(vi)	Mohan, proprietor of the business	Debit	Capital	Real Account

Page No 6.16:

Question 6:

From the following transactions, state the nature of account and state which account will be debited and which account credited:

		₹
(i)	Manu started business with cash	1,00,000
(ii)	He purchased furniture for business	20,000
(iii)	Purchase goods on credit from Anshul	6,000
(iv)	Paid to his creditor, Anshul	2,000
(v)	Paid salary to his clerk	1,000
(vi)	Paid rent	500
(vii)	Received interest	200

Answer:

Transactions	Nature of Account
Manu started business with cash	Cash A/c- Debit Capital A/c- Credit
He purchased furniture for business	Furniture A/c- Debit Cash A/c- Credit
Purchased goods on credit from Anshul	Purchases A/c- Debit Creditor A/c- Credit
Paid to his creditor, Anshul	Creditor A/c- Debit Cash A/c- Credit
Paid salary to his clerk	Salary A/c- Debit Cash A/c- Credit
Paid rent	Rent A/c- Debit Cash A/c- Credit
Received interest	Cash A/c- Debit Interest A/c- Credit

Page No 6.17:

Question 7:

Analyse the following transactions , state the nature of accounts and state which account will be debited and which account credited:

S.No	Particulars	₹
(i)	Lal started business with cash	3,00,000
(ii)	Purchased furniture for cash from Shanti Furniture House	75,000
(iii)	Purchase goods for cash	55,000
(iv)	Sold goods for cash to Pal	35,000
(v)	Sold goods to Om on credit	60,000
(vi)	Deposited cash in bank for opening an account	70,000
(vii)	Received a cheque from Om	20,000
(viii)	Deposited Om's cheque the next day
(ix)	Borrowed from Sohan	1,00,000
(x)	Purchased furniture from Haryana safe	50,000
(xi)	Paid interest on loan	10,000
(xii)	Paid rent by cheque	4,000
(xiii)	Paid salary to staff	14,000
(xiv)	Witrhdrew cash for personal use	5,000

Answer:

Transactions	Nature of Account
Lal started business with cash	Cash A/c- Debit Capital A/c- Credit
Purchased furniture for cash from Shanti Furniture House	Furniture A/c- Debit Cash A/c- Credit
Purchased goods for cash	Purchases A/c- Debit Cash A/c- Credit
Sold goods for cash to Pal	Cash A/c- Debit Sales A/c- Credit
Sold goods to Om on credit	Om A/c- Debit Sales A/c- Credit
Deposited cash in bank for opening an account	Bank A/c- Debit Cash A/c- Credit
Received a cheque from Om	Cheques in Hand A/c- Debit Om A/c- Credit
Deposited Om’s cheque the next day	Bank A/c- Debit Cheques in Hand A/c- Credit
Borrowed from Sohan	Cash A/c- Debit Loan from Sohan A/c- Credit
Purchased furniture from Haryana Safe	Furniture A/c- Debit Haryana Safe A/c- Credit
Paid interest on loan	Interest on Loan A/c- Debit Cash A/c- Credit
Paid rent by cheque	Rent A/c- Debit Bank A/c- Credit
Paid salary to staff	Salary A/c- Debit Cash A/c- Credit
Withdrew cash for personal use	Drawings A/c- Debit Cash A/c- Credit

Page No 6.17:

Question 8:

Open a 'T' shape account for machinery and put the following transactions on the proper side:

		₹
(i)	Machinery purchased	40,000
(ii)	Machinery sold	10,000
(iii)	Machinery purchased	8,000
(iv)	Machinery discarded	14,000
(v)	Depreciation on machinery	1,000

Answer:

Machinery(Asset) Account
Dr.					Cr.
Date	Particulars	Amount (Rs)	Particulars	Amount (Rs)
	Bank (Purchased)	40,000	Bank (Sale)	10,000
	Bank (Purchased)	8,000	Bank (Discarded)	14,000
			Depreciation	1,000
			Balance c/d	23,000
		48,000		48,000

Page No 6.17:

Question 9:

Open a 'T' shape Cash Account with the following transactions:

		₹
(i)	Mohan started business with cash	40,000
(ii)	Purchased Goods	20,000
(iii)	Sold Goods	24,000
(iv)	Paid Rent	400
(v)	Paid salaries	600
(vi)	Drew for personal use	1,000

Answer:

Cash Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
(i)	Capital		40,000	(ii)	Purchases		20,000
(iii)	Sales		24,000	(iv)	Rent		400
				(v)	Salaries		600
				(vi)	Drawings		1,000
					Balance c/d		42,000
			64,000				64,000

Page No 6.17:

Question 10:

Open a 'T' shape account of creditor, 'Rakesh', and write the following transactions on the proper side:

		₹
(i)	Goods purchased from Rakesh on credit	50,000
(ii)	Goods returned to Rakesh for	5,000
(iii)	Paid to Rakesh	20,000
(iv)	Purchase goods from Rakesh on credit	10,000

Answer:

Rakesh
Dr.							Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
(ii)	Purchases Return		5,000	(i)	Purchases		50,000
(iii)	Cash		20,000	(iv)	Purchases		10,000
	Balance c/d		35,000
			60,000				60,000

Page No 6.18:

Question 11:

Open a 'T' shape account of debtor 'Brij' and write the following transactions on the proper side:

(i)	Sold goods to Brij on credit	₹ 25,000
(ii)	Cash received from Brij Discount allowed to him	₹ 10,000 ₹ 500
(iii)	Goods returned by Brij	₹ 5,000

Answer:

Brij (Debtors)
Dr.							Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
(i)	Sales		25,000	(ii)	Cash		10,000
					Discount Received		500
				(iii)	Sales Return		5,000
					Balance c/d		9,500
			25,000				25,000

Page No 6.18:

Question 12:

Put the following on the proper side of a Cash Account, a Debtor's Account and a Creditor's Account:

		₹
(i)	Sold goods to Sanjay on credit	50,000
(ii)	Sold goods to Mohan for cash	20,000
(iii)	Purchased goods from Ram on credit	25,000
(iv)	Cash received from Sanjay	19,000
(v)	Goods returned by Sanjay	2,000
(vi)	Paid rent	500
(vii)	Cash paid to Ram	15,000

Answer:

Cash Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
(ii)	Sales		20,000	(vi)	Rent		500
(iv)	Sanjay		19,000	(vii)	Ram		15,000
					Balance c/d		23,500
			39,000				39,000

Sanjay (Debtors)
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
(i)	Sales		50,000	(iv)	Cash		19,000
				(v)	Sales Return		2,000
					Balance c/d		29,000
			50,000				50,000

Ram (Creditors)
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
(vii)	Cash		15,000	(iii)	Purchase		25,000
	Balance c/d		10,000
			25,000				25,000

Page No 6.18:

Question 13:

From the following particulars, prepare the proprietor's Capital Account:

	₹
1st April, 2017 $—$ Commenced business with cash	2,00,000
31st March, 2018 $—$ Net Loss as per Profit and Loss Account	18,000
31st March, 2018 $—$ Drawings during the period	15,000

Balance the same and explain what the closing balance indicates.

Answer:

Capital Account
Dr.							Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2018				2017
March 31	Profit and Loss A/c (Net Loss)		18,000	April 01	Cash		2,00,000
March 31	Drawings		15,000
March 31	Balance c/d		1,67,000
			2,00,000				2,00,000

Note: As per the calculation Capital Balance as on 31st March, 2018 should be Rs.1,67,000 but the answer given in the text book is Rs.16,700.

Page No 6.18:

Question 14:

From the following particulars, prepare the proprietor's Capital Account:

2013		₹
April 1	Started business with	45,000
May 10	Withdrew from business for personal use	10,000
July 15	Further Capital introduced	55,000
Nov. 30	Income tax paid	5,000
2014
Mar. 31	Profit for the year	30,000

Answer:

Proprietor’s Capital Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2013			2013
Mar.10	Drawings A/c	10,000	Apr.01		Cash A/c	45,000
Nov.30	Drawings A/c ( Income Tax)	5,000	July 15		Cash A/c	55,000
2014			2014
Mar.31	Balance c/d	1,15,000	Mar.31		Profit and Loss A/c	30,000

		1,30,000				1,30,000

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