Problem -1

1. Kiran started business with Rs. 1,00,000

2. He purchased raw materials Rs. 40,000.
3. He sold goods on cash basis Rs. 80,000.
4. He paid salaries Rs.30,000.
5. He paid carriage on purchase Rs.1,000.

Problem -2

1. Uday stared business with capital Rs. 1,00,000 by way of bank cheque.
2. He purchased materials for business Rs.20,000 in cash
3. He bought materials for business Rs. 10,000 on credit from X.
4. He sold goods to Y on credit Rs. 50,000/-
5. He Sold goods in cash Rs. 60,000.
6. He paid salaries Rs.20,000 by way of cheque.
7. Received cash from Y Rs.49,000 and discount allowed Rs.1,000.

Problem-3

Laxman started business with 1,00,000. The following are the further transactions in his
business.

1. He purchased raw materials Rs. 40,000 and 10% import duty.

2. He paid carriage on purchases Rs.2,000.
3. He sold goods to Ramu on credit Rs.50,000 plus 10% Excise duty + 10% sales
Tax ( Sales tax includes sales value +Excise duty)
4. Ramu returned goods worth Rs.5,000.
5. He purchased goods worth Rs.20,000 from Z on credit.
6. He returned goods worth Rs.1,000 to Z.
7. He paid Rent Rs.10,000.
8. He paid packing charges Rs.5,000
9. He paid Brokerage on sale Rs.2,000.
10. He sold old news paper in office for Rs.100.

Prepare the accounts of laxman in tally.

 Problem-4

Enter the following transactions in Tally.

1. On jannuary 1st Divija started business Rs.1,00,000.

2. From January to December 2004 the following transactions have been taken place.
3. Feb 1st She purchase raw materials Rs.1,70,000.
4. March 2nd She paid salaries rs.10,000.
5. May 31st She paid Fuel & power Rs.10,000.
6. Sep 21st She deposited Rs.50,000 into bank.
7. Nov. 15th She paid bank charges Rs.500.
8. Nov 30th She sold goods to Ramesh on credit Rs.70,000.
9. Dec 15th A bill of exchange received from Ramesh. The bill is discounted at bank
for Rs.39,500
10. Dec 31st The bill of exchange given by Ramesh was dishonored.

Problem-5

1. Lasya started business with Rs.2,00,000.

2. She purchased furniture Rs.1,00,000,.
3. She purchased raw materials from Z on credit Rs.40,000
4. She sold goods to V on credit Rs.80,000.
5. She paid rent Rs.1,000, and salary Rs.1,000.
6. She charged 10% depreciation on Furniture.
7. Cash paid into bank Rs. 20,000.

Prepared the accounts of Lasya for the three months and close the tally and show the
profit and loss account and balance sheet.

8. She sold goods worth Rs.50,000 to Y.

9. She purchased goods Rs.30,000 from Z.
10. She paid salaries Rs.20,000 by way of cheque.

Problem-6

Ajay started business with cash Rs.2,00,000 on 1st April 2004.

On 2nd April purchased Plant worth Rs.50,000.

On 3rd May paid rent Rs.9,000 on premises for 9 months.

On 7th August purchased goods worth Rs.15,000 by way of SBI cheque.

On 5th May paid salaries Rs.15,000.

On 6th June sold goods worth Rs.25,0000 on cash basis.

On 7th June sold goods worth Rs.35,000 on credit to PRADEEP.

On 10th July He deposited Rs.50,000 in to SBI.

On September sale of scrap realized Rs.1,000

It is informed that on 21st December, Pradeep became insolvent and only 50% of his dues
are recovered and settled his account.

Prepare the accounts of Ajay in Tally package for the year ended 31st March. After
considering the following points.

1. Provide 10% depreciation on plant for full year.

2. Rent outstanding for 3 months.

Problem – 7

On January 1st 2012, the following wer the assets and liabilities of saket.

Cash in hand 14000 Kiran(Sundry Debtors ) 2000

Stock 5000 Lata (Creditors) 7000
Furniture 6000 Capital 20,000

The following transactions took place in the year of 2013

1. Feb. 4 purchased an old computer Rs.5000 from Jhansi Laxmi on credit.

2. Sold a part of Furniture costing Rs.1000 for Rs.5000
3. Purchases Rs.10000.
4. Paid salaries Rs.1000.
5. Sales Rs.50,000
At the end of the year, saket further provided the following transactions.
A. Salaries outstanding Rs.500.
B. Goods costing Rs.1000 were taken away by saket, the proprietor, for personal use.
C. Closing stock was valued at Rs.5000 on 31st December 2013.
Problem – 8

Trial balance of B

Particulars Dr(Rs.) Particulars Cr(Rs)

Cash in hand 25000 Sales 200000
Stock 40000 Purchase returns 1000
Wages 25000 Creditors 25000
Purchase 100000 Capital 30000
Salaries 25000 4000
Provision for bad &
Debtors 42000 doubtful debts

Adjustments:

1. Stock Closing Rs.25000.

2. Salaries outstanding Rs.5000
3. Write off Rs.2000 as Bad Debts
4. Create Provision for bad & doubtful debts Rs.5000.

Problem – 9

Enter the following transactions into Tally

A.Opening Balance

Capital 45000 Furniture 24000

Due form Ramu 8000 Cash 10000
Due to Shyam 4000 Stock 7000

B.Transactions:

Sold goods to Ramu on cash basis Rs.5000

Purchased Goods from shyam on credit basis Rs.4000

Paid Salaries Rs.2000

Insurance Paid Rs.1500.

C.Adjunstments

1. Outstanding salaries Rs.1000

2. Insurance includes prepaid insurance to the extent of Rs.300

3. Provide Rs.2000 for taxation.

4. Charge 10% interest on capital

Problem -10

1. Raja started the business with Rs.100000 cash and also brought the following
assets.
Furniture Rs.20000
Buildings Rs.30000
2. The following are the expenses during the year.
Trade expenses Rs.20000
General expenses Rs.10000
Salaries Rs.5000
3. Purchase during the year
Kishan Rs.10000
Someswar Rs.20000
Cash Rs.30000
4. Sales during the year
Ram Rs.30000
Shyam Rs.40000
Cash Rs.50000
5. Paid cash to the following parties
Kishan Rs.10000
Someshwar Rs.15000
6. Received cash from the following parties
Ram Rs.20000
Shyam Rs.40000
7. Purchased an old computer from Jyothi & Co for Rs.25000 on credit
 Problem – 11

Items Rs. Items Rs.

Purchases 300000 Sales 500000
Stock 50000 Sale of Scrap 10000
Wages and Salaries 70000 Capital 200000
Fuel & Coal 20000 Bills Payable 30000
Factory expenses 50000
Bank charges 20000
Interest on capital 10000
Drawings 50000
Cash in hand 25000
Debtors 35000
Furniture 80000
Establishment 30000
charges

Adjustments:

1. Closing Stock Rs.50000

2. Outstanding wages and salaries Rs.10000
3. Provide 10% depreciation on Furniture
4. Purchases include Rs.25000 goods taken by proprietor for personal use

Problem -12

On 31st March 2012 , the following Trial Balance was extracted from the books of
Rajan:

Dr.(Rs.) Cr.(Rs.)
Capital 100000
Plant and Machinery 160000
Sales 3,54,000
Purchases 1,20000
Returns 2000 15000
Stock 60000
Discount 700 1600
Bank Charges 150
Sundry Debtors 90000
Sundry creditors 50000
 Salaries 13,600
Manufacturing wages 20000
Carriage Inwards 1500
Carriage outwards 2400
Bad Debts provision 1050
Rent, Rates and Taxes 20000
Advertisement 4000
Cash in hand 18000
Cash at bank 12000
508150 508150

Adjustments:

1. Closing stock Rs.70000

2. Depreciation on Plant and Machinery @12%
3. Bad debts Provision to be adjusted to Rs.1000
4. Interest on capital to be allowed @10% P.A
5. 5% of the profit is to be carried to reserve fund

Problem -13

Trial Balance Sheet

Dr Cr
Land and Buildings 20000
Machinery 50000
Furniture 4000
Stock 16300
Purchases 80000
Salaries 6000
Carriage on Sales 1500
Freight on purchases 2000
Customs duty on purchases 3000
Advertising 5400
Wages 20000
Rent 3000
General Exp 3200
Postage and stationery 1500
Repairs to machinery 2000
Loan to Krishna (SD) 5000
Prepaid Insurance 200
Sundry Debtors 20000
Cash at bank 3350
Capital 80000
Sundry Creditors 8000
Discount Received 400
Outstanding exp 1550
Sales 150500
Provision for Repairs 6000

Adjustments:

1. Stock on 31st March 2013 Rs. 14,900

2. Machinery worth Rs.10,000 was purchased on 1st October 2003. Wages Rs.500
were paid to work men for its Installation which have been debited to wages
account.
3. Provision for repairs is to be credited for Rs.1500 every year.

Problem -14

Trail Balance

Dr.(Rs.) Cr. (Rs.)

Capital 70000
Trade Creditors 41800
Stock 25000
Purchases 80000
General Reserve 20000
Provision for doubtful debts 1000
Carriage 1500
Discount 1200
Sales 133500
Returns 3000 4000
Furniture 10000
Buildings 60000
Book Debts 52000
Travelling Exp 900
Salaries 24000
Salaries unpaid 2000
Sundry Expenses 5500
Repairs 1300
Bad Debts Recovered 200
Cash at Bank 8000
Petty Cash 100

Adjustments:

1. Stock on 31st March 2012 Rs.30000

2. Depreciation is to be written off at 10% on Furniture and 5% on Buildings.
3. Provision for doubtful debts required is Rs.800.
4. Provide for interest on Capital at 5% P.A.
5. On 25th 2012 a fire accident broke out and destroyed stock of the value of
Rs.5000(Not covered by insurance).
6. 5% of the net profit is transferred to General Reserve.

Inventory Problems

Problem-1

Robert & co is dealing with Furniture Business. Their Stock consists of chairs, Beds
and sofas. Prepare their accounts in Tally after taking consideration of the following
transactions.

1. April 1st Started business with Rs.100000

2. May 2 Bought 200 chairs from X @500
3. May 4 Bought 300 Beds from Y @ 600
4. Bought 400 sofas on cash basis @ 300
5. June 17 Sold 150 Chairs to Z @600
6. July 20 Sold 300 beds @ 800 each on cash basis
7. Sep 21 Sold 300 sofas to Ramesh @ 400 each
8. Oct 23 Paid cash to X Rs.75000
9. Nov. 21Cash paid to Y Rs.125000
10. Dec18 Returned 50 Chairs to X @ 500 each on defective grounds.