Explain the Accounting cycle

What do you mean by accounting concepts? Explain any five concepts.

Pass Journal Entries in the books of Ragu from the following transactions:

2016 June
1	Ragu started business with cash Rs.80,000; goods Rs.40,000 and furniture Rs.20,000.
2	Sold goods to Nandu of the list price of Rs.20,000 at trade discount of 10%.
3	Nandu returned goods on the list price of Rs.4,000
8	Received from Nandu Rs.14,150 in full settlement in his account
10	Purchased goods from Mohan of the list price of Rs.10,000 at 15% Trade discount.
13	Returned goods to Mohan of the list price Rs.1,000
16	Settled his account of Mohan by paying cash, under discount of 4%.
18	Purchased goods from Ajay Rs.5,000; Sanjay Rs.10,000.
19	Paid Cash to Ajay Rs.1,900 and discount received Rs.100.
20	Paid 9,800 to Sanjay in full settlement of his account
20	Bought a 'Table Fan' for Rs1,200 for the domestic use of Raghu.
25	Sold goods for cash of the list price of Rs.8,000 at 10%, Trade Discount and 3% cash Discount
30	Paid Rent Rs.800; Trade expenses Rs.700 and Travelling expenses Rs. 380.

Journalise the following transactions in Tmt. Rani's Journal and post them to ledger.

2003 Sep		Rs
1	Tmt. Rani started business with	3,00,000
5	Opened a current account with Indian Overseas Bank	50,000
12	Bought goods from Tmt. Sumathi	90,000
18	Paid to Tmt. Sumathi	90,000
20	Sold goods to Tmt. Chitra	1,26,000
28	Tmt. Chitra settled her accounts

Prepare trial balance as on 31.12.2017 from the following balances of Mr Balakrishnan.

	Rs		Rs
Capital	2,00,000	Repairs	2,400
Drawings	18,000	Office lighting	2,600
Furniture	64,500	Printing and Stationery	2,700
Stock at the beginning	62,050	Bank loan	17,500
Bills receivable	7,500	Computer	30,000
Bills payable	8,750	Debtors	46,500
Purchases	88,100	Cash in hand	17,000
Sales	1,35,450	Cash at bank	27,250
Discount allowed	7,100	General expenses	7,100
Discount received	3,500	Creditors	17,600

Prepare Trial Balance as on 31.3.2014 from the books of Thiru. Sridhar.

Name of the account	Rs	Name of the account	Rs
Capital	1,49,000	Drawings	14,000
General Expenses	7,000	Building	22,000
Machinery	68,680	Stock	32,400
Power, Fuel	4,480	Insurance	2,610
Wages	14,400	Creditors	55,000
Bad debts	1,100	Loan (Cr.)	35,760
Sales	1,30,720	Purchases	94,000
Car	1,44,000	General Reserve	1,800
Commission (Cr.)	4,640	Car Expenses	3,600
Bills Payable	17,700	Cash	14,740
Bank Overdraft	28,600	Discount (Dr.)	210

Visit a stationery shop nearby. Observe its business activities for a week. After having discussed with the shop keeper, prepare a list of purchased and sold items by the shop. Record them in the appropriate books.

Enter the following transactions m cash book WIth cash and bank columns. Balance the cash book.

2013, May	Rs.
1 Cash in hand	30,000
2 Paid into bank	10,000
3 Cash purchases	2,500
4 Loan obtained from Vasan	10,000
5 Cash deposited in bank	7,500
6 Cash sales	2,500
8 Rent paid by cheque	2,000
10 Cash withdrew for office use	4,000
14 Paid Nataraj Rs.300 by M.O.
15 Akilan directly paid into our bank account	3,000
25 Cash withdrawn from bank	5,000

From the following particulars, ascertain the balance that would appear in the bank pass book of Cotton World Ltd. at 31^st December 2015.
a) The bank overdraft as per Cash book on 31^st December, Rs. 1,26,800.
b) Interest on overdraft for 6 months ending 31^st December, Rs. 3,200 is entered in the pass book.
c) Bank charges of Rs 600 for the above period are debited in the pass book.
d) Cheques issued but not cashed prior to  31^st December amounted to Rs. 23,360.
e) Cheques paid into bank but not cleared before 31^st December, were for Rs. 43,400.
f) Interest on investments collected by the bank and credited in the pass book Rs. 24,000.

Kumaran Brothers purchased a Machinery on 01-01-2016 for Rs. 5,00,000. On 01-01-2018 the Machinery was sold for Rs. 4,00,000. The firm charges depreciation at the rate of 15% per annum on Straight line Method. The books are closed on 31^st March every year. Prepare machinery account and depreciation account.