Prepare accounting equation for the following transactions.
(a) Murugan commenced business with cash Rs.80,000
(b) Purchased goods for cash Rs.30,000
(c) Paid salaries by cash Rs.5,000
(d) Bought goods from Kumar for Rs.5,000 and deposited the money in CDM.
(e) Introduced additional capital of Rs.10,000

Show the direct ledger postings for the following transactions:

2017 June		Rs.
1	Raja commenced business with cash	50,000
6	Sold goods for cash	8,000
8	Sold goods to Devi on credit	9,000
15	Goods purchased for cash	4,000
20	Goods purchased from Shanthi on credit	5,000

From the following balances of Rohini, prepare the trial balance as on 31.03.2018.

	Rs		Rs
Capital	60,000	Sales	82,000
Dlscount received	3,250	Lighting	800
Purchases	58,000	Drawings	5,250
Plant and machinery	40,000	Car expenses	1,200
Advertising expenses	5,000	Motor car	35,000

Prepare Purchases book and Sales book in the books of Santhosh Textiles Ltd., from the following transactions given for April 2017.

2017 April 1	Purchased goods from Prasad, Kancheepuram on credit
	100 meters Silk @ Rs. 450 per meter
	75 meters Velvet @ Rs. 180 per meter
April 10	Sold goods to Rathinam, Chennai on credit
	60 meters Silk @ Rs. 490 per meter
	50 meters Velvet @ Rs. 210 per meter
April 18	Nathan & Sons purchased from us on credit
	100 meters Silk @ Rs. 510 per meter
April 20	Purchased goods from Hari Ram & Sons, Madurai on credit
	50 rolls kada cloth @ Rs. 730 per roll
	80 rolls cotton cloth @ Rs. 650 per roll
April 24	Purchased from Mohan, Karur for cash
	Shirting cloth @ Rs. 7,000
	Sarees @ Rs. 25,000

Enter the following transactions in a single column cash book of Ramalingam for month of July, 2017.

	Particulars	Rs
July 1	Cash in hand	32,000
5	Received from Keerthana	5,000
6	Paid packing charges in cash	300
7	Cash purchases	12,400
8	Sold goods for cash	2,600
10	Paid salary to manager in cash	7,000
11	Paid to Bala	3,000
12	Purchased goods from Bose	2,500
24	Cash deposited into bank through CDM	4,000
27	Withdraw cash from bank	2,000
31	Paid office rent in cash	6,000

From the following information, prepare bank reconciliation statement as on 31^st December, 2017 to find out the balance as per bank statement.

Particulars	Rs
(i) Bank overdraft as per cash book	20,000
(ii) Cheques deposited but not yet credited	4,000
(iii) Cheque issued but not yet presented for payment	1,000
(iv) Rent collected by the bank as per standing instruction	500
(v) Interest on overdraft debited by bank	2,000
(vi) Amount wrongly debited by bank	300
(vii) Cheque issued on 30th December 2017 dishonoured by the bank	5,000
(viii) A customer's cheque deposited in the bank dishonoured by bank not recorded in the book	2,000

The accountant of a firm located the following errors before preparing the trial balance. Rectify them.
(a) Machinery purchased for Rs.3,000 was debited to purchases account.
(b) Interest received Rs.200 was credited to commission account.
(c) An amount of Rs.1,000 paid to Tamilselvan as salary was debited to his personal account.
(d) Old furniture sold for Rs.300 was credited to sales account.
(e) Goods worth Rs.800 purchased from Soundarapandian on credit was not recorded in the books of accounts.

On 1^st January 2015, a second hand machine was purchased for Rs. 58,000 and Rs. 2,000 was spent on its repairs. On 1^st July 2017, it was sold for Rs. 28,600. Prepare the machinery account for the years 2011 to 2013 under written down value method by assuming the rate of depreciation as 10% p.a. and the accounts are closed on 31^st December every year.

Identify the following items into capital or revenue.
i) Audit fees paid  Rs.10,000.
ii) Labour welfare expenses Rs.5,000.
iii) Rs.2,000 paid for servicing the company vehicle.
iv) Repair to furniture purchased second hand Rs.3,000.
v) Rent paid for the factory Rs.12,000

From the following information, prepare profit and loss account for the year ending 31st December 2016.

Particulars	Rs	Particulars	Rs
Gross loss	60,000	Printing and stationery (office)	2,000
Promotional expenses	5,000	Legal charges	5,000
Distribution expenses	15,000	Bad debts	1,000
Commission paid	7,000	Depreciation	2,000
Interest on loan paid	5,000	Rent received	4,000
Packing charges (on sales)	4,000	Loss by fire not covered by insurance	3,000
Dividend received	3,000