Telangana TSBIE TS Inter 1st Year Accountancy Study Material 4th Lesson Preparation of Subsidiary Books Textbook Questions and Answers.
TS Inter 1st Year Accountancy Study Materia 4th Lesson Preparation of Subsidiary Books
Short Answer Questions:
Question 1.
Record the following transactions in the purchases book.
2019 March
March 1st Purchased goods from Anil – ₹ 2,000
March 3rd Bought goods from Raju – ₹ 4,000
March 7th Purchased goods from Srikanth – ₹ 5,000 (Trade discount 10%)
March 13th Goods purchased from Venkat – ₹ 1,600
March 18th Purchased goods from Mahesh – ₹ 1,400
March 24th Purchases – ₹ 3,000
March 26th Purchased goods from Ashok – ₹ 2,500
Solution:
Purchases Book
Working Notes :
1. On March 7th Trade discount = Amount × \(\frac{\text { Rate }}{100}\)
= 5,000 × \(\frac{10}{100}\) = 500
2. On 24th March it is cash transaction so, it should not be recorded in purchases book.
Question 2.
Prepare purchases book from the following :
2018 April
1st Purchased goods from Shekar – ₹ 4,000
4th Cash purchases – ₹ 2,000
8th Bought goods from Shyam – ₹ 8,000 (Trade discount 5%)
12th Goods purchased from Karthik – ₹ 2,400
18th Purchased goods from Naresh – ₹ 3,000
25th Purchased furniture from Aakash – ₹ 6,000
Solution:
Purchases Book
Working Notes :
1. On 4th April it is cash purchases so, it should not be recorded in purchases book.
2. On 8th April Trade discount = 8,000 × \(\frac{5}{100}\) = 400.
3. On 25th April Asset purchased so, it is not to be recorded.
Question 3.
Prepare purchases Book.
2018 December
December 1st Purchased goods from Pallavi – ₹ 4,200
December 5th Goods purchased from Teja – ₹ 8,000
December 10th Bought goods from Vedhagni – ₹ 3,800
December 14th Purchased goods from Sudha – ₹ 6,000 (Trade discount ₹ 600)
December 18th Purchased goods from Ramya – ₹ 2,000
Solution:
Purchases Book
Question 4.
Enter the following transactions in the purchases book.
2018 November
November 1st Goods purchased from Chaitanya ₹ 5,000 as per Invoice No. 250.
November 12th Goods purchased from Ravi ₹ 1,000 on Credit Invoice No. 300.
November 18th Purchased goods from Sathish for ₹ 3,000 as per Invoice No. 105.
November 23rd Purchased goods from Pavan for cash ₹ 2,500 as per Invoice No. 410,
Solution:
Purchases Book
Working Notes :
On 23rd November it is cash transactions so, it should not be recorded in purchases book.
Question 5.
Enter the following transactions in purchases book and purchase returns book.
2018 Aug.
Aug. 1st Purchased goods from Krishna – ₹ 6,000
Aug. 4th Goods purchased from Mallesh – ₹ 3,500
Aug. 8th Returned goods to Krishna – ₹ 600
Aug. 13th Bought goods from Naveen – ₹ 2,000
Aug. 16th Goods returned to Mallesh – ₹ 400
Aug. 22nd Purchased goods from Ravi – ₹ 4,400
Solution:
Purchases Book
Question 6.
Enter the following transactions in the proper subsidiary books.
2018 June
June 1st Purchased goods from Arun – ₹ 2,500
June 3rd Purchased goods from Prakash – ₹ 7,000
June 6th Return outwards to Arun – ₹ 800
June 14th Purchased goods from Nagaraj – ₹ 10,000 (Trade discount 10%)
June 19th Goods purchased from Nikhil for Cash – ₹ 4,000
June 25th Goods returned to Nagaraj – ₹ 1,200
June 28th Bought goods from Vishal – ₹ 1,500
Solution:
Working Notes :
1. On 14th June Trade discount = Amount × \(\frac{\text { Rate }}{100}\)
= 10,000 × \(\frac{10}{100}\) = 1,000
2. On 19th June it is cash purchases so, it should not ne recorded in purchases book.
Question 7.
Enter the following transactions in the Sales book.
2019 Feb
Feb 1st Sales goods to Sampath – ₹ 2,250
Feb 6th Sold goods to Manohar – ₹ 2,000
Feb 10th Cash sales – ₹ 1,800
Feb 16th Sold goods to Murali – ₹ 5,000 (Trade discount 5%)
Feb 20th Goods sold to Shankar on Credit – ₹ 2,500
Solution:
Purchases Book
Working Notes :
1. On 10th February cash sales so, it should not to be taken
2. On 16th Feb : Trade discount = 5,000 × \(\frac{5}{100}\) = 250.
Question 8.
Prepare Sales book from the following particulars.
2018 May
May 1st Sold goods to Kiran – ₹ 10,000
May 8th Sold goods to Kalyan – ₹ 6,000 (Trade discount 10%)
May 12th Goods sold to Sanjeev for Cash – ₹ 3,000
May 18 Sold goods to Jeevan – ₹ 4,600
May 24th Sold old Machinery to Sandeep – ₹ 2,500
May 26th Goods sold to Vasu – ₹ 8,000
Solution:
Working Notes :
1. On 12th May it’s cash sales so, it not to recorded.
2. On 8th May : Trade discount = 6,000 × \(\frac{10}{100}\) = 600
3. On 24th May: Machinery sold to Sandeep. We are not record the sale of Assets in Sales book.
Question 9.
Prepare the sales book.
2018 July
July 1st Sold goods to Nikhil ₹ 7,500 as per Invoce No. 410
July 3rd Sold goods to Ruthwik on credit ₹ 5,500 as per Invoice No. 101
July 12th Goods sold to Jairam ₹ 4,000 as per Invoice No. 370 (Trade discount 10%)
July 18th Sold goods to Sharma for Cash ₹ 8,000
July 24th Goods sold to Arun ₹ 6,400, Invoice No. 220
Solution:
Working Notes :
1. On 12 July : Trade discount = Amount × \(\frac{\text { Rate }}{100}\)
= 4,000 × \(\frac{10}{100}\) = 400
2. On 18th July : Cash items should not be taken.
Question 10.
Record the following transactions in Sales Book and Sales Returns Book.
2018 Sept.
Sept. 1st Sold goods to Satyam – ₹ 2,500
Sept. 5th Sold goods to Ajay – ₹ 7,200
Sept. 7th Goods sold to Varun – ₹ 2,800
Sept. 10th Satya returned goods – ₹ 300
Sept. 14th Sold goods to Akhila – ₹ 4,000
Sept. 16th Returns inwards from Varun – ₹ 200
Sept. 25th Goods sold to Karthik for Cash – ₹ 3,000
Solution:
Working Note :
On 25th September it is cash sales so, it should not be taken in sales book.
Question 11.
Prepare Sales Book and Sales Returns Book from the following Information. [Mar. 2018]
2017 May
May 1st Sold goods to Rahul – ₹ 6,500
May 3rd Sold goods to Manish – ₹ 6,000
May 8th Returned goods by Rahul – ₹ 700
May 11th Sold goods to Raj Kumar – ₹ 12,000
May 14th Sold goods to Bharath – ₹ 11,000
May 17th Returned goods from Raj Kumar – ₹ 2,000
May 21st Sold goods to Anand – ₹ 9,000
Solution:
Question 12.
Record the following transactions in proper subsidiary books.
2017 Oct.
Oct. 1st Sold goods to Archana – ₹ 10,000
Oct. 4th Goods purchased from Divya – ₹ 6,000
Oct. 8th Purchased goods from Manasvi – ₹ 8,000
Oct. 10th Goods returned by Archana – ₹ 500
Oct. 14th Goods sold to Shivani – ₹ 3,000
Oct. 16th Returned goods to Divya – ₹ 300
Oct. 18th Purchased goods from Madhuri – ₹ 4,000
Oct. 20th Shivani returned goods – ₹ 200
Oct. 21st Return outwards to Manasvi – ₹ 400
Oct. 25th Goods sold to Sharanya on Credit – ₹ 7,000
Solution:
Question 13.
Prepare proper subsidiary books from the following particulars.
2018 Oct.
Oct. 1st Purchased goods from Amar – ₹ 2,000
Oct. 4th Goods sold to Payan – ₹ 3,500
Oct. 8th Goods returned to Amar – ₹ 200
Oct. 12th Sold goods to Srujan – ₹ 8,000 (Trade discount 5%)
Oct. 15th Goods returned from Payan – ₹ 100
Oct. 17th Purchased Machinery from Raju – ₹ 5,000
Oct. 19th Goods purchased from Vaibhav – ₹ 2,500
Oct. 21st Returned goods from Srujan – ₹ 150
Oct. 24th Sold goods to Ramesh for cash – ₹ 4,000
Oct. 26th Purchased goods from Vmeeth – ₹ 8,500
Oct. 28th Sold goods to Vamshi on credit – ₹ 6,500
Oct. 29th Goods returned to Vaibhav – ₹ 250
Oct. 30th Vanishi returned goods – ₹ 500
Solution:
Working Notes :
1. On 17th Oct Assets purchases are not taken in purchases book.
2. On 24th Oct Cash sales should not be taken in sales book.
Question 14.
Prepare purchase book and post them in Ledger.
2019 Mar.
Mar. 1st Goods purchased from Praveen – ₹ 7,500
Mar. 4th Purchased goods from Jagan – ₹ 6,000
Mar. 8th Purchased goods from Raju – ₹ 4,000
Mar. 12th Goods purchased from Ravi – ₹ 5,500
Mar. 16th Purchased furniture from Aslsh – ₹ 2,000
Mar. 20th Goods purchased from Shravan – ₹ 7,000
Solution:
Working Notes :
On 16th March Assets purchases are not taken in Purchases book.
Ledger Posting:
Question 15.
Prepare Sales Book from the following transactions and prepare Ledger.
2019 April
April 1st Goods sold to Damodhar – ₹ 8,000
April 3rd Sold goods to Murthy – ₹ 6,300
April 8th Sold goods to Balaji – ₹ 5,000
April 12th Goods sold to Gambhir – ₹ 2,000
April 16th Sold goods to Ashok – ₹ 7,000
April 18th Sold old furniture to Kishore – ₹ 5,000
April 20th Goods sold to Rao – ₹ 8,000 (Trade discount 10%)
Solution:
Sales Book
Working Notes :
1. On 18th April sale of Assets are not taken in Sales Book.
2. On 20th April: Trade discount = Amount × \(\frac{\text { Rate }}{100}\)
= 8,000 × \(\frac{10}{100}\) = 800
Ledger Posting:
Very Short Answer Questions:
Question 1.
Write the opening entry as on 1st Jan. 2018 from the following. Total Assets of the firm is ₹ 1,00,000 and total of Liabilities of the firm is ₹ 20,000.
Solution:
Opening Entry as on 1 Jan. 2018
Question 2.
Write the opening entry as on 1st Jan. 2019 in the books of Karthik from the following.
Cash in hand – ₹ 4,000
Furniture – ₹ 15,000
Bank overdraft – ₹ 6,000
Sundry Debtors – ₹ 21,000
Stock – ₹ 10,000
Bills payable – ₹ 4,000
Solution:
In the books of Karthik Opening Entry as on 1 Jan. 2019
Question 3.
Record the opening entry from the following Assets and Liabilities on 1st May 2019.
Machinery – ₹ 16,000
Bank – ₹ 12,000
Bills receivable – ₹ 14,000
Sundry Creditors – ₹ 10,000
Trade Marks – ₹ 8,000
Cash – ₹ 10,000
Solution:
Opening Entity as on 1 May 2019
Question 4.
Record the opening entry as on 1st April 2019 from the following particulars.
Buildings – ₹ 24,000
Patents – ₹ 18,000
Fixtures & Fittings – ₹ 6,000
Bills payable – ₹ 4,000
Machinery – ₹ 10,000
Creditors – ₹ 4,000
Solution:
Opening Entry as on 1 April 2019
Question 5.
Write opening Journal entry as on 1st Jan. 2019 from the following.
Debtors – ₹ 18,000
Furniture – ₹ 10,000
Bank balance – ₹ 20,000
Loan from Pavan – ₹ 10,000
Bills payable – ₹ 5,000
Land and Buildings – ₹ 12,000
Solution:
Opening Entry as on 1st Jan. 2019
Question 6.
Write the opening Journal entry as on 1st April 2019 from the following.
Debtors – ₹ 16,000
Creditors – ₹ 12,000
Bills receivable – ₹ 8,500
Furniture – ₹ 4,500
Bank overdraft – ₹ 5,000
Business premises – ₹ 30,000
Solution:
Opening Entry as on 1st April 2019
Question 7.
Write closing entries from the following Ledger balances of Balaji.
Opening stock – ₹ 60,000
Purchases – ₹ 15,000
Carriage outwards – ₹ 1,000
Wages – ₹ 4,000
Solution:
Closing Entries in the books of Balaji
Question 8.
Record the closing entries from the Ledger balances of “Suhas” books.
Salaries – ₹ 5,000
Discount allowed – ₹ 2,000
Rent – ₹ 1,000
Discount received – ₹ 2,000
Interest received – ₹ 2,000
Solution:
Closing Entries in the books of Suhas
Question 9.
Rectify the following entries dated on 31st Mar. 2019.
1. Wages paid to accountant Mallesh ₹ 10,000, debited to his personal a/c.
2. Furniture sold ₹ 20,000, wrongly credited to Sales a/c.
Solution:
Rectification Entries
Question 10.
Rectify the following entries dated on 31st Mar. 2019.
1. Commission paid ₹ 4,000 wrongly debited to Interest paid a/c.
2. Rent paid to Reddy ₹ 5,000, wrongly debited to wages a/c.
Solution:
Rectification Entries
Question 11.
Pass adjustment Journal entries for the following.
1. Accrued Interest ₹ 200.
2. Provide depreciation @ 5% on Furniture, value of Furniture is ₹ 8,000.
Solution:
Adjustment Journal Entries
Question 12.
Pass adjustment Journal entries for the following.
1. Provide reserve for bad debts @ 10% on Debtors. Debtors value is ₹ 10,000.
2. Closing stock ₹ 30,000.
Solution:
Adjustment Journal Entries
Textual Examples:
Question 1.
Prepare purchases book from the following transactions.
2019 Jan.
Jan. 1 Purchased goods from Nithya ₹ 6,000
Jan. 5 Purchased goods from Anuhya ₹ 4,000 (Trading discount ₹ 200)
Jan. 10 Goods purchased from Lathika ₹ 10,000 (Trading discount 10%)
Jan. 15 Varsha sold goods to us ₹ 5,000
Jan. 20 Purchased goods from Srinidhi for cash ₹ 5,000
Solution:
Purchases Book
Note :
The transaction dated on January 20, 2019 is not recorded in Purchases Journal because, it is cash transaction of purchases.
Question 2.
Prepare purchases book from the following transactions and prepare purchase account. –
2018 Dec.
Dec. 2 Purchased goods from Manoj – ₹ 5,000
Dec. 6 Goods bought from Arun – ₹ 10,000 (Trade discount 10%)
Dec. 7 Bought 10 boxes of goods ₹ 600 each from Deva raju – ₹ 6,000
Dec. 10 Purchased office table from Rajender furnitures – ₹ 10,000
Dec. 20 Cash purchases – ₹ 5,000
Solution:
Note :
Transactions dated on December 10 and December 20 are not recorded as they are purchase of assets and cash purchases of goods respectively.
Question 3.
Prepare purchases book from the following transactions and post them in ledger.
2019 Jan.
Jan. 1 Purchased goods from Naveen ₹ 25,000
Jan. 5 Purchased goods from Praveen ₹ 15,000
Jan. 6 Goods purchased from Rajesh ₹ 15,000
Jan. 10 Srinu sold goods to us ₹ 5,000
Solution:
Purchases Book
Ledger Posting :
Question 4.
Prepare Sales book from the following in the books of Balaji Rao.
2019 Feb.
Feb. 1 Sold goods to Rajani ₹ 10,000
Feb. 5 Goods sold to Mahalaxmi ₹ 20,000
Feb. 10 Sales to Balalaxmi ₹ 15,000
Feb. 15 Sold goods to Dhanalaxmi ₹ 5,000 on credit
Feb. 20 Sales to Varalaxmi ₹ 5,000 (Trade discount ₹ 100)
Solution:
Question 5.
Enter the following transactions in the sales book and prepare sales account
2019 Jan.
Jan. 1 Sold goods to Murthy on credit ₹ 6,000
Jan. 5 Cash sales ₹ 10,000
Jan. 10 Goods sold to Sravan ₹ 3,000
Jan. 15 Sold old furniture to Karthik ₹ 20,000
Jan. 20 Sold 100 cases of goods @ ₹ 50/- each to Naveen
Jan. 25 Sold goods to Shyam (Trade discount 10%) ₹ 5,000
Solution:
Sales Book
Notes :
1. Transaction dated January 5 cash sales ₹ 10,000 is not recorded in sales book. It is entered in Cash book.
2. Transaction dated on January 15 sold old furniture to karthik ₹ 20,000 is not recorded in the sales book as it is recorded in Journal proper.
Question 6.
From the following transactions, prepare sales book of Sandeep Saree stores and post them to relevant accounts.
2019 Feb.
Feb. 1 Sold on credit to Raju and Co. Kamareddy 20 sarees at ₹ 300/- each, trade discount 10%
Feb. 11 Sold for cash to Rani and Co. Nizamabad 10 sarees at ₹ 3,000 each.
Feb. 16 Sold on credit to Madhu and Co. Karimnagar 10 sarees at ₹ 1,500 each, trade discount 10%
Feb. 28 Sold on credit to Prasad Hardware 2 old computers at ₹ 5,000 each.
Solution:
Sales Book
Note :
Transactions dated Feb. 11 and 28 should not be recorded in sales book.
Because Feb. 11 transactions is cash sales and Feb 28 transaction is not related to goods.
Ledger Posting :
Question 7.
Enter the following transactions in purchase returns book and prepare purchases returns account.
2019 Jan.
Jan. 5 Returned goods to Ramesh, Hyderabad ₹ 2,000
Jan. 10 Returned goods to Soujanya, Bangalore ₹ 1,000
Jan. 15 Returned goods to Suresh, Bombay ₹ 2,000
Jan. 20 Returned goods to Raghu, Vizag ₹ 1,000
Solution:
Purchase Returns Book
Ledger Posting :
Question 8.
Prepare purchase returns book from the following transactions and post them to ledger.
2019 Jan.
Jan. 5 Returned goods to Sai ₹ 2,500, trade discount at 10%, debit note no. 25, ledger folio – 10
Jan. 10 Returned goods to Sampath ₹ 3,000, trade discount at 10%, debit note no. 26, ledger folio – 20
Jan. 25 Returned goods to Suman ₹ 4,000, trade discount at 10%, debit note no. 27, ledger folio – 30
Solution:
Purchases Returns Book
Ledger Posting :
Question 9.
Enter the following transactions in the sales returns book and prepare Sales returns account.
2019 Jan.
Jan. 1 Shyam returned goods to us ₹ 2,000
Jan. 5 Murthy returned goods to us ₹ 3,000
Jan. 10 Vasu returned goods to us ₹ 4,000
Jan. 15 Goods returned by Ravi ₹ 1,000
Solution:
Question 10.
Prepare sales returns book from the following and post them into ledger.
2019 Jan.
Jan. 1 Returned goods by Nagaraju ₹ 2,475
Jan. 5 Returned goods by Krishna ₹ 3,120
Jan. 15 Returned goods by Satyam ₹ 675
Solution:
Sales Returns Book
Ledger Posting :
Question 11.
Enter the following transactions into respective subsidiary book.
2019 Jan.
Jan. 1 Purchased goods from Pranay, Palamuru – ₹ 900
Jan. 2 Sold goods to Sanjana, Sathupally – ₹ 1,000
Jan. 4 Sold goods to Vinoda, Vikarabad – ₹ 2,000
Jan. 10 Bought goods from Ravi, Rani gunj – ₹ 1,500
Jan. 14 Bought goods from Mohan, Mehidipatnam – ₹ 3,000
Jan. 19 Sanjana returned goods to us – ₹ 200
Jan. 21 Returned goods to Pranay – ₹ 200
Jan. 25 Returned goods to Mohan – ₹ 500
Jan. 28 Sold goods to Nagesh, Nizamabad worth subjected to a trade discount of 10% – ₹ 5000
Jan. 29 Vinoda recorded goods to us – ₹ 300
Solution:
Question 12.
Prepare sales book and Sales Returns book from the following :
2019 Mar.
Mar. 1 Sold goods to Ramesh – ₹ 6,000
Mar. 3 Sold goods to Mahesh – ₹ 6,000
Mar. 8 Returned goods by Mahesh – ₹ 700
Mar. 11 Sold goods to Ram Murthy – ₹ 12,000
Mar. 14 Sold goods to Sampath Kumar – ₹ 11,000
Mar. 17 Returned goods from Ramesh – ₹ 1,300
Solution:
Question 13.
Enter the following transactions in the proper subsidiary books.
2019 Jan.
Jan. 1 Purchased goods from Anuhya – ₹ 10,000
Jan. 2 Purchased goods from Nithya – ₹ 4,000
Jan. 5 Returned goods to Anuhya – ₹ 300
Jan. 8 Purchased goods from Varsha – ₹ 2,000
Jan. 10 Returned goods to Nithya – ₹ 500
Solution:
Question 14.
Maruthi commenced business on April 1, 2019 with cash ₹ 5,000, stock ₹ 10,000, furniture ₹ 10,000 and buildings ₹ 50,000. Pass opening entry.
Solution:
In the books of Maruthi Journal Proper
Question 15.
The following balances stated in the books of Supreeth as on 31-12-2018.
Cash in hand – ₹ 10,000
Cash at Bank – ₹ 14,000
Stock of goods – ₹ 16,000
Plant – ₹ 20,000
Creditors – ₹ 10,000
Record above balances in the books of Supreeth on Jan 1, 2019.
Solution:
In the books of Supreeth Journal Proper
Question 16.
Write opening entry on Jan 1st 2019 from the following Balance Sheet of Rajeswar Rao.
Balance sheet of Rajeswar Rao as on 31/12/2018
Solution:
In the books of Rajeshwar Rao Journal Proper
Question 17.
Pass necessary closing entries for the following balances in the books of Rajender.
Purchases – ₹ 14,000
Sales – ₹ 46,000
Purchase returns – ₹ 2,000
Sales returns – ₹ 1,000
Opening stock – ₹ 10,000
Wages – ₹ 3,000
Salaries – ₹ 5,000
Rent received – ₹ 4,000
Commission – ₹ 1,500
Discount allowed – ₹ 800
Discount received – ₹ 1,200
Carriage on purchases – ₹ 1,000
Closing stock – ₹ 12,000
Office expenses – ₹ 2,500
Solution:
In the books of Rajender Journal Proper
Question 18.
Value of Machinery ₹ 1,00,000. Depreciation to be provided on Machinery @ 10% on 31/12/2018. Pass entry.
Solution:
Journal Proper
Question 19.
Pass the rectification entries for the following errors.
1. ₹ 500 paid for new furniture was charged to offices expenses account.
2. Salary paid to Mr. Raj ₹ 500 wrongly debited to his personal account.
Solution:
Journal Proper
Question 20.
1. The net profit of the business for the year is ₹ 1,10,000. It is decided to transfer ₹ 10,000 to General Reserve.
2. Goods taken by the proprietor for his personal use ₹ 2,000.
Solution:
Journal Proper
