State the principles of double entry system of book keeping.

Show the accounting equation on the basis of the following transactions:
i) Ramya started business with Cash   Rs.25,000
ii) Purchases goods from Harsha   Rs.20,000
iii) Sold goods to Amala costing Rs.18,000    Rs.25,000
iv) Ramya withdrew from business   Rs.5,000

What are the limitations of trial balance?

What are the advantages of subsidiary books?

Prepare bank reconciliation statement as on 31^st December 2017 from the following information:
(a) Balance as per bank statement (pass book) is Rs.25,000.
(b) No record has been made in the cash book for a dishonour of a cheque for Rs.250.
(c) Cheques deposited into bank amounting to Rs.3,500 were not yet collected.
(d) Bank charges of Rs.300 have not been entered in the cash book.
(e) Cheques issued amounting to Rs.9,000 have not been presented for payment.

The following errors were located by the accountant after the preparation of trial balance. There exists a suspense account. Rectify them.
(a) The total of the discount column of Rs.1,180 on the debit side of the cash book was not posted.
(b) Purchase of goods from Arivuchelvan on credit for Rs.600 was posted to the debit side of his account.
(c) The total of the discount column on the credit side of the cash book was undercast by Rs.400.
(d) The total of sales returns book of Rs.570 was posted twice.
(e) Sold goods to Mukil on credit for Rs.87 was posted to her account as Rs.78.

Prepare trading account for the year ended 31^st December 2017, from the following balances:

Particulars	Rs	Particulars	RS
Opening stock	4,00,000	Purchases returns	1,20,000
Purchases	20,00,000	Carriage on purchases	2,00,000
Net sales	48,00,000	Carriage on sales	1,00,000
Freight and octroi	65,000	Advertisement	1,20,000
Selling expenses	1,10,000	Office rent	75,000
Coal, gas and water	22,000	Import duty on goods purchased	7,28,000

Closing stock is valued at Rs. 6, 00,000.

Compute cost of goods sold from the following information:

Particulars	Rs	Particulars	Rs
Opening stock	10,000	Indirect expenses	5,000
Purchases	80,000	Closing stock	15,000
Direct expenses	7,000

Sundry debtors as per trial balance as on 31^st March, 2016 is Rs. 10,000.
Adjustment: Write off bad debts amounting to Rs. 300.
Give adjusting entry and show how these appear in the final accounts as on 31^st March, 2016.

State the various types of coding methods.