IMPERIAL ACADEMY OF STUDIES

CA PARAS PURI’S ACCOUNTS CLASSES

BRANCH 1: SHRI NAGAR & BRANCH 2: RANI BAGH
9999-090-767, 80100-900-10

MM 80 MARKS SOLUTION-3 TIME: 03 HRS

General instructions:
This question paper contains 34 Questions. All questions are compulsory.
Question 1 to 20 carries 1 marks each, Question 21-24 carries 3 marks,
Question 25 to 30 carries 4 marks & Question 31-34 carries 6 marks.

PART-A
QUESTION 1
Which of the following is not a sub-field of accounting?
(a) Book Keeping (b) Management Accounting
(c) Financial Accounting (d) Cost Accounting
Ans. (a)

QUESTION 2
Anil purchased 1,000 Add Gel Roller Pens @ ₹ 50 each less Trade Discount of 20%.
Purchases Account will be debited by
(a) ₹ 50,000. (b) ₹ 40,000. (c) ₹ 45,000. (d) ₹ 60,000.
Ans. (b)

QUESTION 3
During the life-time of an entity, accounting produces financial statements in accordance
with which of the following accounting concept?
(a) Matching (b) Conservatism (c) Accounting period (d) Cost
Ans. (C)

QUESTION 4
Accrual Basis of Accounting
(a) does not give a true and fair view of profit and financial position.
(b) gives a true and fair view of profit and financial position.
(c) may or may not give a true and fair view of profit and financial position.
(d) None of the above.
Ans. (b)

QUESTION 5
If total assets of a business are ₹1,30,000 and capital is ₹80,000, calculate the outside
liabilities.
(a) ₹ 50,000. (b) ₹ 40,000. (c) ₹ 45,000. (d) ₹ 60,000.

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10

Ans. (a)

QUESTION 6
Under the Accrual Basis of Accounting, expenses are recorded
(a) on payment. (b) on being incurred.
(c) either (a) or (b). (d) None of these.
Ans. (b)

QUESTION 7
Cash Memo is
(a) a source voucher. (b) an accounting voucher,
(c) neither (a) nor (b). (d) both (a) and (b).
Ans. (a)

QUESTION 8
Journal is called
(a) a book of primary entry. (b) a book of secondary entry.
(c) a book of final entry. (d) both secondary entry and final entry.
Ans. (a)

QUESTION 9
Trial Balance shows
(a) both debit and credit balances, (b) only debit balance.
(c) only credit balance. (d) either of debit or credit balance.
Ans. (a)

QUESTION 10
How many accounts are affected in a transaction?
(a) Only one (b) Only Two (c) At least two (d) Two or Three
Ans. (c)

QUESTION 11
The Sales Book
(a) is a part of the Journal. (b) is a part of the Ledger.
(c) is a part of the Balance Sheet. (d) is a part of the Trial Balance.
Ans. (A)

QUESTION 12
Fill in the blanks:
Purchase A/c Dr. ___________
Input IGST A/c Dr. 9,000
To Bank A/c __________
(Being IGST is charged @12%)

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10

QUESTION 13
A business receives its bank statement showing the closing balance as ₹8,500 overdrawn.
It is found that there were unpresented cheques of ₹2,000 and uncredited deposits of
₹1,500. Overdraft as per Cash Book is
(a) ₹5,000. (b) ₹8,000 (c) ₹9,000. (d) ₹12,000.
Ans. (c)

QUESTION 14
The preparation of Trial Balance helps in
(a) Assessing the Financial Position. (b) Locating Errors of All Types.
(c) Preparation of Final Accounts. (d) None of these.
Ans. (c)

QUESTION 15
Valuation of stock at lower of cost or net realisable value is an example of
(a) Consistency Convention. (b) Conservatism Convention.
(c) Realisation Concept. (d) Matching Concept.
Ans. (B)

QUESTION 16
A person to whom a money owed by the business is termed as:
(a) Creditor (b) Debtor (c) Investor (d) None of these
Ans. (A)

QUESTION 17
According to Going Concern Concept, a business is viewed as having
(a) a limited life. (b) a very long life.
(c) an indefinite life. (d) None of these.
Ans. (c)

QUESTION 18
Salary due for the month of March will appear in side of cash book
(a) Receipt (b)Payment (c)Contra (d)None of the above
Ans. (D)

QUESTION 19
A is sent to a supplier when we return goods.
(A)Debit Note (B)Credit Note (C) Proforma Invoice (D) None of these
Ans. (A)

QUESTION 20
Overdraft as per Cash Book is ₹ 10,000. Cheques deposited but not credited ₹2,500.
Cheques issued but not encashed ₹3,500. What is the balance as per Pass Book?
(a) Balance ₹9,000 (b) Overdraft ₹9,000
(c) Overdraft ₹ 11,000 (d) Balance ₹ 11,000
Ans. (B)

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10

 PART-B
QUESTION 21(A)
Gurpreet purchased 1,000 sq. yards land to build a factory and paid ₹15 lakhs towards
its cost including registration charges. At the end of the financial year, the value of the
land came down to ₹13 lakhs. Gurpreet recorded the land at ₹13 lakhs and booked a loss
of ₹2 lakhs. Is he correct in treating the fall in value as a loss?
Ans. No, Gurpreet is not correct because he has purchased a fixed asset by paying ₹15
lakhs. The Cost Concept of Accounting holds that an asset should be recorded in the
books at the price paid.

QUESTION 21(B)
An enterprise prepares its accounts under the accrual basis. Salaries amounting to
₹10,000 for the month of March, 2019 were not paid. The owner did not want to account
it in the books of account on the ground that the amount was not paid. The enterprise
closes its books of account on 31st March every year. Is he correct?
Ans. No, the owner is not correct because under the Accrual Concept, expense should be
accounted at the time when it is incurred and not when it is paid. Salaries for March
2019 have become due on 31st March, 2019 and therefore, should be accounted in
the books of account for the year ended 31st March, 2019.

QUESTION 22
What will be the effect of the following on the Accounting Equation?
(i) Harish started business with cash ₹ 18,000
(iii) Purchased goods for cash ₹ 5,000 and on credit ₹ 2,000
(iii) Sold goods for cash ₹ 4,000 (costing ₹ 2,400)
(iv) Rent paid ₹ 1,000 and rent outstanding ₹ 200
Ans. [Assets: Cash ₹16,000 + Stock ₹4,600 = Liabilities: Outstanding Rent ₹200
+ Creditors ₹2,000 + Capital: ₹18,400.]

QUESTION 23
Write the following transactions in Debtor’s Account, Creditor’s Account and Cash
Account:
₹ ₹
1. Cash sales 50,000 2. Sold goods to X on credit 80,000
3. Cash received from X 56,000 4. Purchased goods from Y on credit 44,000
5. Paid to Y 30,000 6. Cash purchases from Y 16,000
Solution:
Dr. CASH ACCOUNT Cr.
Particulars ₹ Particulars ₹
1. Sales 50,000 5. Y (Creditor) 30,000
3. X (Debtor) 56,000 6. Purchases 16,000
Balance 60,000
1,06,000 1,06,000
Dr. X'S (DEBTOR) ACCOUNT Cr.
Particulars ₹ Particulars ₹
2. Sales 80,000 3. Cash Received 56,000

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10

 Balance 24,000
80,000 80,000
Dr. Y’S (CREDITOR) ACCOUNT Cr.
Particulars ₹ Particulars ₹
5. Cash Paid 30,000 4. Purchases 44,000
Balance 14,000
44,000 44,000

QUESTION 24
Write a 'T' shape account of Karan, a debtor and enter the following:
Particulars Amt. (₹)
1. Goods sold to Karan 70,000
2. Cash received from Karan 15,000
3. Discount allowed to Karan 3,000
4. Goods sold for cash to Karan 4,800
5. Cheque received from Karan 10,800
6. Sales Return by Karan 4,800
Ans. As Karan's Account (Debtor) is an Asset Account, an increase will be
recorded on the debit side, while a decrease will be recorded on the credit side.
Dr. KARAN's ACCOUNT (Debtor) Cr.
Particulars Amt.(₹) Particulars Amt.(₹)
1. Sales 70,000 2. Cash 15,000
3. Discount Allowed 3,000
5. Cheque Received 10,800
6. Sales Return 4,800
Balance 36,400
70,000 70,000
Note: 4th transaction will not be recorded in Karan's A/c as good have been sold in cash.

PART-C
QUESTION 25
Journalize the following transactions:
(i) Bought goods from Akash of ₹10,000 @ 10% trade discount and 5% cash
discount, 50% payment made by cheque.
(ii) Paid landlord ₹3,000 for rent. One-third of the premises are occupied by
the proprietor for his own residence.
(iii) Payment made to creditors in full settlement ₹27,000.
(iv) Goods stolen by employee of ₹1,000 (Sales price ₹ 1,200)

QUESTION 26
Prepare Cash Book from the following transactions of Advance Technology,
Mumbai for April, 2024 and post them in the Ledger Accounts:
Date Particulars ₹
2024
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10
April 1 Cash in Hand 14,000
Bank Overdraft 13,200
April 4 Wages paid 1,400
April 5 Cash sales 17,000
April 7 Purchased goods from Rahul, Kolkata for ₹ 15,000 less Trade
Discount 20% and Cash Discount of 2% if paid in 7 days
April 9 Purchased furniture for cash 10,000
April 10 Cash paid to Rohit₹ 5,000 in settlement of his account of ₹ 5,100
April 10 Issued cheque to Rahul in settlement
April 13 Cheque issued to Rahul was dishonoured
April 13 Cash sales 4,500
April 16 Bank charged interest on overdraft 500
April 18 Deposited in Bank 7,000
April 20 Paid telephone bill by cheque 600
April 25 Sold goods for ₹ 23,500 to Vikas and received cheque in settlement
(Deposited same day), allowed him discount ₹ 500
April 27 Paid rent 800
April 29 Drew cash for personal use 1,000
April 30 Paid salary 2,000
April 30 Interest collected by bank 2,500
Solution: In the Books of Advance Technology, Mumbai
Dr. CASH BOOK Cr.
Date Particulars L.F. Cash Bank(₹) Date Particulars L.F. Cash(₹) Bank(₹)
(₹)
2024 2024
April 1 To Balance b/d 14,000 April 1 By Balance b/d 13,200
April 5 To Sales A/c 17,000 April 4 By Wages A/c 1,400
April 13 To Rahul 11,760 April 9 By Furniture 10,000
A/c
April 13 To Sales A/c 4,500 April 10 By Rohit 5,000
April 18 To Cash A/c C 7,000 April 10 By Rahul ... 11,760
April 25 To Vikas 23,000 April 16 By Interest A/c 500
April 30 To Interest 2,500 April 18 By Bank A/c C 7,000
Received A/c
April 20 By Telephone
Expenses A/c 600
April 27 By Rent A/c 800
April 29 By Drawings 1,000
A/c
April 30 By Salary A/c 2,000
April 30 By Balance c/d 8,300 18,200
35,500 44,260 35,500 44,260
May 1 To Balance b/d 8,300 18,200
Note: Transaction of 7th April, 2022 being purchase of goods is a credit transaction.
Hence, will not be recorded in Cash Book. Journal entries for Discount Received and
Discount Allowed are:

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10

Date Particulars L.F. Dr. (₹) Cr. (₹)
2024
April 10 Rohit ...Dr. 100
To Discount Received A/c 100
(Discount received on payment)
April 10 Rahul ...Dr. 240
To Discount Received A/c (Discount received 240
on payment)
April 13 Discount Received A/c ...Dr. 240
To Rahul 240
(Discount received from Rahul reversed on cheque
being dishonoured)
April 25 Discount Allowed A/c ...Dr. 500
To Vikas 500
(Discount allowed on receipts)

QUESTION 27
The rough books of M/s Narain & Co. contains the following:
2024
Feb.1 Purchased from M/s Brown & Co. on credit:
5 gross pencils @ ₹100 per gross.
1 gross registers @ ₹200 per dozen.
Less : Trade Discount @ 10%
Feb.2 Purchased for cash from the stationery mart:
10 gross exercise book @ ₹60 per dozen.
Feb.3 Purchased typewriter for office use from
M/s Office Goods Co. on credit for ₹800
Feb.4 Purchased on credit from the Paper Co :
5 Rims of white paper @ ₹100 per rim,
10 rims of ruled paper @ ₹65 per rim.
Less : Trade Discount @ 10%
Feb.5 Purchased one dozen ink-posts @ ₹10 each
from M/s Verma Bros, on credit.
Prepare the purchases book of M/s Narian & Co.
Ans. In the Book Of M/s Narain & Co.
Purchases Book
Date Particulars L.F. Details (₹) Amount (₹)
2023 M/s Brown & Co.:
Feb. 1 5 gross pencils @ ₹100 per 500.00
gross
1 gross registers @ ₹200 per 2,400.00
dozen
2,900.00
Less : Trade Discount @ 10% 290.00 2,610.00
Feb. 4 The Paper Co.:
5 rims white paper @ ₹100 500.00

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10

 10 rims of ruled paper @ ₹65 650.00
1,150.00
Less : Trade Discount @ 10% 115.00 1,035.00
Feb. 5 M/s Verma Bros.:
1 dozen ink-pots @ ₹10 each 120.00
Feb. 28 Purchases A/c Dr. 3,765.00

QUESTION 28
Pass Journal entries for the following transactions of Akhil:
(i) Sold an old machine as scrap in cash for ₹ 5,000 (book value) charging CGST and
SGST @ 9% each.
(ii) Paid restaurant bill of refreshment for customers ₹ 5,000 plus CGST and SGST @
9% each in cash.
(iii) Paid Salaries to staff for the month ₹50,000 by cheque.
(iv) Paid fee to Lawyer ₹ 9,000. CGST and SGST @ 9% each is levied under Reverse
Charge.
Solution: JOURNAL
Date Particulars L.F. Dr. (₹) Cr. (₹)
(i) Cash A/c ...Dr. 5,900
To Machinery A/c 5,000
To Output CGST A/c 450
To Output SGST A/c 450
(Old machinery sold against CGST and SGST @ 9%
each)
(ii) Business Promotion Expenses A/c ...Dr. 5,900
To Cash A/c 5,900
(Restaurant bill for customers' refreshment paid,
Input Credit of GST not allowed)
(iii) Salaries A/c ...Dr.' 50,000
To Bank A/c 50,000
(Salaries to staff paid)
(iv) Professional Fee A/c ...Dr. 9,000
To Cash A/c 9,000
(Fee paid to lawyer)
Input CGST A/c ...Dr. 810
Input SGST A/c ...Dr. 810
To Cash A/c 1,620
(CGST and SGST paid on Lawyer's fee)

QUESTION 29
Following Trial Balance has been prepared wrongly.
You are required to prepare a correct Trial Balance
Name of Account Balance Dr. Balance Cr.
(₹) (₹)
Bank overdraft 2,800
Cash-in-hand 400

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10

Purchases Returns 800
Sundry Expenditures 2,400
Sales Returns 1,600
Salaries 1,600
Purchases 5,600
Sales 8,800
Creditors 2,400
Debtors 1,600
Opening Stock 2,000
Plant and Machinery 4,000
Capital 4,400
Solution: Trial Balance
Name of Account Balance Dr. (₹) Balance Cr. (₹)
Bank overdraft 2,800
Cash-in-hand 400
Purchases Returns 800
Sundry Expenditures 2,400
Sales Returns 1,600
Salaries 1,600
Purchases 5,600
Sales 8,800
Creditors 2,400
Debtors 1,600
Opening Stock 2,000
Plant and Machinery 4,000
Capital 4,400
Total 19,200 19,200

QUESTION 30
A Bank Reconciliation Statement is prepared as on 31st March, 2024 starting with debit
balance as per Cash Book. State whether the following transactions will be shown in the
Bank Reconciliation Statement by adding or deducting these from the given balance
giving reason:
(i) Bank had wrongly debited the account by ₹25,000 on 1st March, 2024 and reversed
on 3rd April, 2024.
(ii) Receipts Side of the Cash Book was overcast by ₹100.
(iii) Payments Side of the Cash Book was overcast by ₹1,000.
(iv) Receipts Side of the Cash Book was undercast by ₹1,000.
(v) Payments Side of the Cash Book was undercast by ₹10,000.
(vi) Cheque for ₹10,000 issued but was not recorded in the Cash Book.
(vii) Bill of Exchange of ₹5,000 was deposited for collection which was not recorded in
the Cash Book. Bank had collected the bill and had credited the account.
Solution:
[Transactions to be added: (iii), (iv), (vii);
Transactions to be deducted: (i), (ii), (v), (vi).]

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10

 PART-D
QUESTION 31
Post them in the Cash, Bank, Purchases, Sales, Krishna, Shyam Ledgers:
2022 ₹
April 1 Shivam started business with cash 1,00,000
April 2 Deposited in bank 70,000
April 3 Bought goods for cash 5,000
April 4 Drew cash from bank for office 1,000
April 13 Sold goods to Krishna 1,500
April 20 Bought goods from Shyam 2,250
April 24 Received from Krishna 1,500
April 28 Paid Cash to Shyam 2,150
Discount allowed by him 100
April 30 Cash sales for the month 8,000
April 30 Paid Rent 500
April 30 Paid Salary to Ram 3,000
Solution: In the Books of Shivam
CASH ACCOUNT Cr.
Date Particulars J.F. ₹ Date Particulars J.F. ₹
2022 2022
April 1 To Capital A/c 1,00,000 April 2 By Bank A/c 70,000
April 4 To Bank A/c 1,000 April 3 By Purchases A/c 5,000
April 24 To Krishna 1,500 April 28 By Shyam 2,150
April 30 To Sales A/c 8,000 April 30 By Rent A/c 500
April 30 By Salaries A/c 3,000
April 30 By Balance c/d 29,850
1,10,500 1,10,500
May 1 To Balance b/d 29,850
Dr.
Dr. BANK ACCOUNT Cr.
Date Particulars J.F. ₹ Date Particulars J.F. ₹
2022 2022
April 2 To Cash A/c 70,000 April 4 By Cash A/c 1,000
April 30 By Balance c/d 69,000
70,000 70,000
May 1 To Balance b/d 69,000
Dr. PURCHASES ACCOUNT* Cr.
Date Particulars J.F. ₹ Date Particulars J.F. ₹
2022
April 3 To Cash A/c 5,000
April 20 To Shyam 2,250
Dr. SALES ACCOUNT Cr.
Date Particulars J.F. ₹ Date Particulars J.F. ₹
2022
April 13 By Krishna 1,500
April 30 By Cash A/c 8,000
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10
 Dr. KRISHNA Cr.
Date Particulars J.F. ₹ Date Particulars J.F. ₹
2022 2022
April 15 To Sales A/c 1,500 April 24 By Cash A/c 1,500
1,500 1,500
Dr. SHYAM Cr.
Date Particulars J.F. ₹ Date Particulars J.F. ₹
2022 2022
April 28 To Cash A/c 2,150 April 20 By Purchases A/c 2,250
April 28 To Discount 100
Received A/c
2,250 2,250

QUESTION 32
Give the Journal entries for the following:
(i) Gross Profit of ₹ 32,000 from Trading Account to Profit & Loss Account.
(ii) Net Profit of ₹ 14,500 to Capital Account of Sri Sankar Saha.
(iii) Sri Sankar Saha draws ₹ 10,000 from his Capital Account.
(iv) Purchases Return of ₹7,000.
(v) Sales Return of ₹6,000.
(vi) Interest accrued ₹ 2,500.
(vii) Wages for March, 2022 outstanding ₹ 10,000.
(viii) Insurance prepaid ₹ 1,500.
(ix) Commission due to manager 6% on net profit after charging such commission.
The profit before charging such commission was ₹ 1,06,000.
(x) 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.
Ans:
Date Particulars L.F. Dr. (₹) Cr. (₹)
1 Trading A/c ...Dr. 32,000
To P & L A/c 32,000
2 P & L A/c ...Dr. 14,500
To Shankar Capital A/c 14,500
3 Capital A/c ...Dr. 10,000
To Drawings A/c 10,000
4 Purchase Return A/c ...Dr. 7,000
To Purchase A/c 7,000
5 Sales A/c ...Dr. 6,000
To Sales Return A/c 6,000
6 Accrued Interest A/c ...Dr. 2,500
To Interest A/c 2,500
7 Wages A/c ...Dr. 10,000
To Outstanding Wages A/c 10,000
8 Prepaid Insurance A/c ...Dr. 1,500
To Insurance A/c 1,500
9 Commission ...Dr. 6,000
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10
 To Outstanding Commission A/c 6,000
(Note: After charging such commission
6
1,06,000× =6,000)
106
10 Interest on Loan A/c ...Dr. 10,125
To Loan A/c 10,125
Or
To Outstanding Interest on Loan A/c 10,125
9 9
(1,50,000× × = 10,125)
100 12

QUESTION 33
On 31st January, 2024 Cash Book showed an overdraft balance of ₹40,000.
On comparing it with the Pass Book, the following differences were noticed:
(i) On 27th January, cheques amounting ₹6,450 were sent to bank, but out of these one
cheque of ₹840 was credited on 2nd February and one cheque of ₹220 was returned
by bank as dishonoured on 4th February.
(ii) During the month of January, cheques were issued worth ₹7,580. Out of these,
cheques worth ₹6,420 were presented for payment on 5th February.
(iii) As per standing order, the Bank had paid the following amounts during January
(a) Life Insurance Premium ₹710.
(b) Electricity Bill ₹615.
(iv) Bank collected ₹500 as dividend on share and gave wrong credit for ₹650.
(v) Interest charged on overdraft by the Bank ₹600.
Prepare a Bank Reconciliation Statement on 31st January, 2024.
Ans.
Bank Reconciliation Statement
as at 31st January, 2024
Particulars Details (₹) Amount (₹)
Overdraft as per Cash Book 40,000
Add: Cheque sent to bank for collection but not credited 840
Cheque Dishonoured 220
Life Insurance Premium 710
Electricity Bill 615
Interest charged on overdraft 600 2,985
Total 42,985
Less: Cheque issued not presented 6,420
Dividend collected by bank 500
Wrong credit given by bank 650 7,570
Overdraft as per Pass Book 35,415

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10

QUESTION 34
Fill in the missing information in the following journal entries :
JOURNAL
S. No. Particulars L. Amount Amount
F. Dr. Cr.
₹ ₹
(i) Dr. 10,000
To 10,000
(Bad debts written off last year now recovered)
(ii) Dr. 60,000
Dr. 2,000
To 62,000
(Purchased goods and paid carriage)
(iii) Dr. 8,000
To 8,000
(Returned goods to Rashmi)
(iv) Bank A/c Dr. 42,000
Dr. —
To —
(60 Paise in the rupee received from official receiver
of Gopal on his insolvency)
(v) Dr. —
Dr. —
Dr. —
To —
(Goods sold to Dushyant for ₹60,000 at 5% trade
discount and 10% cash discount and received i/3rd in
cash)
(vi) Dr. 75,000
To 75,000
(Sale of personal car and the money paid into
business)
SOLUTION . JOURNAL
S No. Particulars L. Amount Amount
F. Dr. Cr.
₹ ₹
(i) Cash A/c Dr. 10,000
To Bad Debts Recovered A/c 10,000
(Bad debts written off last year now recovered)
(ii) Purchases A/c Dr. 60,000
Carriage Inwards A/c Dr. 2,000
To Cash A/c 62,000
(Purchased goods and paid carriage)
(iii) Rashmi Dr. 8,000
To Purchase Return A/c 8,000
(Returned goods to Rashmi)
(iv) Bank A/c Dr. 42,000
CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10
 Bad Debts A/c Dr. 28,000
To Gopal 70,000
(60 Paise in the rupee received from official receiver of
Gopal on his insolvency)
(v) Dushyant Dr. 38,000
Cash A/c Dr. 17,100
Discount Allowed A/c Dr. 1,900
To Sales A/c 57,000
(Goods sold at 5% trade discount and 10% cash discount
and received 1 /3rd in cash)
(vi) Cash A/c Dr. 75,000
To Capital A/c 75,000
(Sale of personal car and the money paid into business)

CA PARAS PURI’S ACCOUNTS CLASSES 9999-090-767 & 80-100-900-10