MAGNET COMPUTER CLASSES

I. Record the following transactions in the books of “M/s Albert & Brothers”.

1.      Albert starts business with Rs. 50,000.

2.      He opens a SBI saving bank account and deposits Rs. 20,000.

3.      Bought furniture for Rs. 5,000, machinery for Rs. 10,000.

4.      Purchased goods for Rs. 14,000.

5.      Sold goods for Rs.8, 000.

6.      Purchased goods from Malhotra & Company for Rs. 11,000.

7.      Paid telephone rent for the year by Cheque Rs. 500

8.      Bought one typewriter for Rs. 2,100 from ‘Universal Typewriter Co’. on credit.

9.      Sold goods to Keshav Ram for Rs. 12,000.

10.  Sold goods to Rajesh Kumar for Rs. 2000 cash.

11.  Amount withdrawn from bank for personal use Rs. 1,500.

12.  Received cash from Keshav Ram Rs. 11,900 and discount allowed Rs. 100.

13.  Paid into bank Rs. 5,800.

14.  Bought 50 shares in X Y & Co. Ltd. At Rs.60 per share, brokerage paid Rs. 20.

15.  Goods worth Rs. 1,000 found defective were returned to Malhotra & Co. and balance of the amount due to them settled by issuing a cheque in their favour.

16.  Sold 20 shares of X Y & Co. Ltd. at Rs. 65 per share, brokerage paid Rs. 20.

17.  Bought goods worth Rs. 2,100 from Ramesh and supplied them to Suresh at Rs. 3,000.

18.  Suresh returned goods worth Rs. 100, which in turn were sent to Ramesh.

19.  Issued a cheque for Rs. 1,000 in favour of landlord for rent for April.

20.  Paid salaries to staff Rs. 1,500.

21.  Received from travelling salesman Rs. 2000 for goods sold by him, travelling expenses Rs. 100.

Journal entries

1.      Cash a/c ……… Dr.

To Capital a/c

2.      SBI saving bank a/c ………… Dr.

To cash A/c

3.      Machinery a/c ……… Dr.

Furniture a/c ……… Dr.

              To cash a/c

4.      Purchase a/c ……… Dr.

To cash a/c

5.      Cash a/c ……… Dr.

To Sales a/c

6.      Purchase a/c ……… Dr.

To Malhotra & Co. a/c

7.      Telephone rent a/c ……… Dr.

To SBI bank a/c

8.      Typewriter a/c ……… Dr.

Universal Typewriter Co. a/c

9.      Kashav Ram ……… Dr.

To Sales a/c

10.  Cash a/c ……… Dr.

To sales a/c

11.  Drawings a/c ……… Dr.

SBI bank a/c

12.  Cash a/c ……… Dr.

Discount allowed a/c

              To Keshav Ram a/c

13.  SBI bank a/c ……… Dr.

To cash a/c

14.  Investment in shares A/c ……… Dr.

Brokerage a/c ……… Dr.

              To Cash a/c

15.  Malhotra’s a/c ……… Dr.

Return Outward a/c ……… Dr.

              To Bank a/c

16.  Cash a/c ……… Dr.

To Investment in shares a/c

Investment in shares a/c ……… Dr.

              To Profit & Loss a/c

[ selling share is not the core business so whatever profit realized will be entered in profit & loss a/c]

Brokerage a/c ……… Dr.

To cash a/c

17.  Purchase a/c ……… Dr.

To Ramesh a/c

Suresh a/c ……… Dr.

              To Sales a/c

18.  Return Inward A/c ……… Dr.

Suresh a/c

Ramesh a/c ……… Dr.

              To Return outward a/c

19.  Rent a/c ……… Dr.

To Bank a/c

20.  Salary a/c ……… Dr.

Cash a/c

21.  Cash a/c ……… Dr.

Travelling expenses a/c

To sales a/c

Company Name               :               MAGNET COMPANY

Address:                              :               No. 31, S.S.K. Chawl, Dharavi Cross Road, Dharavi, Mumbai – 17.

LEDGER NAME	UNDER GROUP	OPENING BALANCE
SHARE CAPITAL	CAPITAL ACCOUNT	10,00,000
LOAN FROM SBI BANK	SECURED LOAN	4,00,000
PROVISION FOR DEPRECIATION	PROVISION	32,500
O/S RENT	CURRENT LIABILITY	3,600
O/S SALARIES	CURRENT LIABILITY	19,000
DEPOSIT FOR PREMISES	DEPOSITS (ASSETS)	1,55,000
INVESTMENT IN SHARES	INVESTMENT	18,550
FURNITURE	FIXED ASSETS	15,000
COMPUTERS	FIXED ASSETS	80,000
CASH IN BANK	BANK ACCOUNT	1,93,000
CASH IN HAND	CASH IN HAND	25,000
CLOSING STOCK	STOCK IN HAND	67,000

To maintain Stock Statement

Group	Categories	Stock item	Purchase price	Quantity	Godown
ECONOMICS	MARSHAL	V.1	300	60	DHARAVI
		V.2	325	80
	GLOBAL	C.1	450	120
		C.2	500	160
MANAGEMENT	HENRY	BASIC	125	300	SION
		INTERMEDIATE	225	325
		FINAL	600	350
	INDIAN	SIMPLE	75	400
		ADVANCE	325	600

Goods are purchased from these parties. (VAT @12.5%)

Date	Bill no.	Party name	Stock item	Godown	Qty
1ST MAY	OM 001	BABAJI STORE	V.2	DHARAVI	45
5TH  MAY	OM 002	AMUL STORE	C.1	SION	50
6TH  MAY	OM 003	ANAND STORE	V.2	SION	60
8TH  MAY	OM 004	ABINAYA STORE	BASIC	DHARAVI	31
10TH  MAY	OM 005	AZIM’S STORE	FINAL	DHARAVI	90
17TH JUNE	OM 006	SARASWATI STORE	INTERMEDIATE	SION	15
19TH JULY	OM 006	ANAND STORE	ADVANCE	SION	45
23RD JULY	OM 007	ABINAYA STORE	SIMPLE	DHARAVI	75
29TH AUGUST	OM 008	BABAJI STORE	C.2	SION	52

Goods are sold to these parties. (VAT @12.5%)

Date	Bill no.	Party name	Stock item	Godown	Qty	Selling price
1ST MAY	OM P001	Reliance store	V.2	DHARAVI	15	650
5TH  MAY	OM P002	TATA store	C.1	SION	40	675
6TH  MAY	OM P003	Omtex store	V.2	SION	53	685
8TH  MAY	OM P004	Vishwas store	BASIC	DHARAVI	31	695
10TH  MAY	OM P005	Philips store	FINAL	DHARAVI	100	902
17TH JUNE	OM P006	Omtex store	INTERMEDIATE	SION	20	625
19TH JULY	OM P006	IPL store	ADVANCE	SION	36	635
23RD JULY	OM P007	Reliance	SIMPLE	DHARAVI	90	644
29TH AUGUST	OM P008	Philips store	C.2	SION	42	702

When amount received from parties use Receipt voucher (F6)
Date	Party name	MODE OF PAYMENT	CHEQUE NUMBER	AMOUNT
2nd  MAY	Reliance store	CASH	---------------------	70000
2nd  MAY	TATA store	CASH	---------------------	25000
2nd  MAY	Omtex store	CHEQUE	0229892	42000
2nd  MAY	Vishwas store	CHEQUE	C/B 654258	18000
2nd  MAY	Philips store	CHEQUE	S/B 7139852	120000
2nd  MAY	IPL store	CASH	---------------------	15500

When amount paid to parties use payment voucher (F6)
Date	Party name	MODE OF PAYMENT	CHEQUE NUMBER	AMOUNT
2nd  MAY	BABAJI STORE	CASH	---------------------	30000
2nd  MAY	AMUL STORE	CASH	---------------------	20000
2nd  MAY	ANAND STORE	CHEQUE	8459625	18000
2nd  MAY	ABINAYA STORE	CHEQUE	6548721	6000
2nd  MAY	AZIM’S STORE	CHEQUE	9685721	22000
2nd  MAY	SARASWATI STORE	CASH	---------------------	3000

Purchase and Sales Return

On 1^st June, goods purchased from Babaji store has been returned. Details are

Stock item	Godown	Quantity	Bill no.
V.2	Dharavi	2	OM 001

On 1^st August, goods purchased from Saraswati store has been returned. Details are

Bill no.	Godown	Quantity	Stock item
Om 006	Sion	1	Intermediate

On 1^st October, goods purchased from Anand store has been returned. Details are

Bill no.	Godown	Quantity	Stock item
Om 003	Sion	5	V.2

On 1^st July, goods sold to Philips Store were returned. Details are

Bill no.	Godown	Quantity	Stock item
Om p005	Dharavi	5	Final

On 31^st December, goods sold to Reliance company were returned. Details are

Bill no.	Godown	Quantity	Stock item
Om p007	Sion	2	Simple

On 31^st January, 2011 goods sold to IPL store were returned. Details are

Bill no.	Godown	Quantity	Stock item
Om p006	Dharavi	2	Advance

Contra Entries

1.       On 1^st September, Withdraw Rs. 50000 from Abhyudaya bank for business purpose.

2.       On 30^th November, With drawn Rs. 25000 from Cash in bank for business purpose.

3.       On 28^th February, Deposit Rs. 25000 in Abhyudaya bank.

Charging Depreciation

On 31 – 3 – 2011 Charge depreciation @ 10% on furniture, 20% on computer, 12.5% on Machinery, 7.5% on Building