Q.

1
Particulars Dr Cr Taken
i Cash 20,000 Cash
Capital 20,000
ii Furniture 2,000 Furniture
Cash 2,000
iii Rent 200 Benifit Taken Or Expense also reduce capital so Claim on A
Cash 200
iv Purchases 3,000 Merchandise
Account Payable 3,000
v Cash 5,000 Cash Taken Rs. 5,000
Sales 5,000

Cost of Sales 2,000

Merchandise Inventory 2,000

Q. 2
Particulars Dr Cr Taken
i Cash 60,000 Cash
Capital 60,000
ii Pre-Paid Rent 500 Claim on Person (Account Receivable)
Cash 500
iii Purchases 50,000 Merchandise
Cash 30,000
Account Payable 20,000
iv a Cash 30,000 Cash Taken Rs.30,000
Sales 30,000
b Cost of Sales 20,000
Merchandise Inventory 20,000

v Salary 600 Benifit Taken Or Expense also reduce capital so Claim on A

Cash 500
Salary Payable 100
vi Drawings 5,000 Internal Claim on Assets Taken back ( As drawing reduces c
Cash 5,000
Q. 3
Particulars Dr Cr Taken
i Cash 15,000 Cash
Capital 15,000
ii Investment 7,500 Securities (Assets)
Cash 7,500
iii Drawimg 15,000 As home is for personal use so we will consider it Drawings
Cash 5,000
Loan 10,000
iv Cash 1,500 Cash Rs.1,500
 Investment 1,000
Capital Gain 500
v Car 2,800 Car
Cash 2,800
vi Cash 3,600 Cash
Salary Received 3,600
vii Loan 500 External Claim on Assets Taken Back (Liability Reduced)
Interest 300 Benifit Taken Or Expense also reduce capital so Claim on A
Cash 800
viii Drawings 300 Drawing reduces capital So Internal claim on Assets (capita
Cash 300
ix Cash 200 Cash
Dividend Received 200
Q.4
Particulars Dr Cr Taken
i Cash 50,000 Cash
Capital 50,000
ii Purchases 50,000 Merchandise
Cash 20,000
Account Payable 30,000
iii a Cash 40,000 Cash Taken Rs.40,000
Sales 40,000
b Cost of Sales 30,000
Merchandise Inventory 30,000
iv Rent 600 Benifit Taken Or Expense also reduce capital so Claim on A
Cash 600
v Funiture 5,000 Furniture
Account Payable 5,000
vi Drawings 5,000 Drawing reduces capital So Internal claim on capital is take
Cash 5,000
vii Building 20,000 Building
Cash 20,000
Q.5
Particulars Dr Cr Taken
i Cash 10,000 Cash
Capital 10,000
ii Purchases 3,000 Merchandise
Cash 3,000
iii a Mr. Ali A/R 1,600 Claim on Mr Ali (Account Receivable) for Rs.1600
Sales 1,600
b Cost of Sales 1,250
Merchandise Inventory 1,250
iv Purchases 400 Merchandise
Mr. Ismail A/P 400
v Typewriter 1,200 Typewriter
Cash 1,200
 Given

Internal Claim on Assets (Capital)

Cash
reduce capital so Claim on Assets Taken back
Cash

External Claim on Assets (Liability)

i. Merchandise Given Rs. 2,000

ii. Internal claim on Assets given Rs.3,000 (As profit is added to capital)

Given

Internal Claim on Assets (Capital)

Cash

Cash
External claim on Assets (Liability)

i. Merchandise Rs. 20,000

ii. Internal claim on Assets given Rs.10,000 (As profit is added to capital)

reduce capital so Claim on Assets Taken back

Cash
External claim on Assets (Liability)
n back ( As drawing reduces capital)
Cash

Given

Internal Claim on Assets (Capital)

Cash
o we will consider it Drawings (Drawing reduces capital) So Internal claim on capital is taken back
Cash
External claim on Assets (Liability)
 Securities (Assets) Rs.1,000
Internal claim on Assets given Rs.5,00 (As profit is added to capital)

Cash

Internal claim on Assets given Rs.3,600 (As Other Income/ profit is added to capital)
n Back (Liability Reduced)
reduce capital so Claim on Assets taken back
Cash
ternal claim on Assets (capital) is taken back
Cash

Internal claim on Assets given Rs.200 (As other income/Profit is added to capital)

Given

Internal claim on Assets (Capital)

Cash
External claim on Assets (Liability)

i. Merchandise Given Rs. 30,000

ii. Internal claim on Assets given Rs.10,000 (As profit is added to capital)

reduce capital so Claim on Assets taken back

Cash

External claim on Assets (Liability)

ternal claim on capital is taken back
Cash

Cash

Given

Internal Claim on Assets (Capital)

Cash
eivable) for Rs.1600
i. Merchandise Given Rs. 1,250
ii. Internal claim on Assets given Rs.350 (As profit is added to capital)

External claim on Assets (Liability)

Cash