EXERCISE -1

S.NO PARTICULARS AMOUNT

1 PUIRCHASE 100,000.00
2 Deposited into SBH Bank 80,000.00
3 Purchased Plant and Machinery and paid by cheque 40,000.00
4 Furniture & Fixtures purchased by cash 10,000.00
5 Van Purchased from Bajaj & Co. on credit 25,000.00
6 Salary paid to Mr. Ram by cash 2,500.00
7 Stationery purchased by cash 1,250.00
8 Postage Expenses 125.00
9 General Expenses paid 50.00
10 Rent Paid by bank 5,000.00
11 Commission received by cheque 2,000.00
12 Interest paid to Namdev by cash 500.00
13 Cash withdrawn from Bank 8,000.00
14 Telephone charges paid by bank 1,000.00
15 Electricity charges paid 500.00
16 Loan paid to Raju by bank 10,000.00
17 Loan taken from Arjun 20,000.00
18 Same deposited in bank 20,000.00
19 Cheque paid to Bajaj & Co. 15,000.00

CASH : RS.13,075=00
BANK : RS.23,000=00
 EXERCISE -2

S.NOPARTICULARS AMOUNT
1 Govind commenced business with cash 50,000.00
2 Cash deposited in Canara Bank 42,000.00
3 Furniture purchased for cash 2,500.00
4 Plant & Machinery purchased from Shan & 30,000.00
5 Cheque paid to Shan & Co. 20,000.00
6 Cash deposited in Bank 1,000.00
7 Salary paid by cash 2,000.00
8 Bank Commission paid by bank 150.00
9 Stationery paid by cheque 500.00
10 Electricity charges 250.00
11 Telephone charges 450.00
12 General Expenses 50.00
13 Postage paid by bank 100.00
14 Cash withdrawn from bank 5,000.00
15 Govind withdrawn cash from bank 2,500.00

CASH : RS.6750=00
BANK : RS.14750=00
 EXERCISE -3
S.NO PARTICULARS AMOUNT
1Opening cash balance 35,000.00
2Purchase goods for cash 30,500.00
3Goods sold for cash 15,250.00
4Goods sold for pallavi graphics 10,500.00
5Purchase furniture for cash 4,800.00
6Stationery purchased for cash 125.00
7Conveyance expense paid for cash 100.00
8Cash received from pallavi graphics 10,500.00
9Cash deposited into bank 5,000.00
10Wages paid by cash 50.00
11Goods sold for cash 12,000.00
12Purchase goods from premier & co 20,200.00
13Sold Goods to D & Co. 14,600.00
14Cash received from D & Co. 12,600.00
15Cash deposited into bank 10,000.00
16Payment made to Premier & Co. 12,000.00
17Goods sold for cash 8,500.00
18Conveyance paid to staf 155.00
19Postage expenses paid for cash 52.00
20Stationery purchased for cash 250.00

cash : RS. 30,818=00

Bank: Rs. 15,000=00
 EXERCISE -4
S.NO PARTICULARS AMOUNT
1 Namdev started business with 50,000.00
2 Cash deposited into SBI 40,000.00
3 Goods purchased by cheque 20,000.00
4 Goods Sold by cash 28,000.00
5 Furniture purchased by bank 5,000.00
6 Goods purchased from Ram Traders 10,000.00
7 Goods sold on credit to Ketan & Co. 14,000.00
8 Payment made to Ram Traders by cheque 5,000.00
9 Cash received from Ketan & Co. 10,000.00
10 Cash deposited into SBI 15,000.00
11 Cash withdrawn from SBI 8,000.00
12 Salary paid to gopal 2,000.00
13 Rent paid by cheque 2,500.00
14 Stationery expenses made by cash 500.00
15 Postage expenses paid by cash 50.00
16 Conveyance expenses paid by cash 250.00
17 Cash paid to Namdev for personal use 2,000.00

CASH : Rs.36,200=00
BANK: Rs. 14,500=00
 EXERCISE -5
S.NO AMOUNT
1 Gopal started a business with 125,000.00
2 Cash deposited in Canara Bank 100,000.00
3 Furniture purchased for cash 15,000.00
4 Purchased goods on credit from Kamal Enterprises 30,500.00 f9 f7
5 Purchased goods for cash 12,500.00 f8
6 Goods Sold to Sun Traders on credit 28,000.00
7 Sold goods on cash 9,500.00
8 Payment made to Kamal Enterprises by Canara Bank 20,500.00
9 Payment made by Sun Traders in Cash 10,000.00
10 Payment made by Sun Traders in Cheque 9,000.00
11 Cash deposited in State Bank of Hyderabad 6,000.00
12 Cash withdrawn from Canara Bank 25,000.00
13 Interest paid to Anil by cheque 4,500.00
14 Interest received by cheque and deposited in bank 3,000.00
15 Goods sold to Kan Traders 8,000.00
16 Expenses made as follows:
Rent 2,000.00
Postage 200.00
Petrol 400.00
Stationery 580.00
17 Gopal Cash withdrawn from Canara Bank 25,000.00
18 Goods Purchased from Kamal Enterprises 22,450.00
19 Goods sold for cash 12,400.00
20 Cash deposited into the SBH 10,000.00
21 Goods sold to Amit Enterprises 15,000.00 *
22 SBH Cheque issued to Kamal Enterprises 7,000.00
23 Canara Bank cheque deposited in SBH Bank 10,000.00
24 Carriage inwards paid 3,200.00
25 Telephone Bill paid by Canara Bank 750.00
26 Gopal LIC Payment made by Canara Bank 3,200.00
27 Freight outward paid for cash 1,500.00

CASH : RS.30520=00
SBH : RS.19000=00
CANARA BANK : RS.23050=00
q
S.NO PARTICULARS AMOUNT
1 Mr. Gururaj was carrying on business as general merchant.
His Assets and Liabilities were as under
ASSETS
Furniture 8,000.00
Stock 35,000.00
Cash In Hand 500.00
Cash at Bank 14,000.00
Due from Vadiraj 2,500.00
Due from Vijay 2,000.00
LIABILITIES
Gururaj Capital 47,000.00
Due to Laxmanachar 9,000.00
Due to Vasant Kumar 6,000.00
Transaction as follows:
2 Cash sales 6,000.00
3 sales to Krishna Murthy 1,500.00
4 Purchases from Sitaram 1,600.00
5 paid fire insurance premium 200.00
6 issue cheque to Laxmanachar in full settlement of the amount 8,900.00
7 Received cheque from Vadiraj on account 1,500.00
8 Issued cheque to Vasant Kumar on account 2,000.00
9 cash purchases 2,000.00
10 Cash deposited in Bank 2,500.00
11 Cash paid for advertising 500.00
12 Borrowed from Mrs. Gururaj and deposited in Bank. 10,000.00
13 Amount withdrawn from bank for personal use. 5,000.00
14 paid rent to land lord by cheque 600.00

CASH : RS. 1,300

BANK :RS. 11,500
 Dr Cr mode

cash sales recipit f6

krishna murthy sales journal f7
purchases sitramu journal f7
insurance premium cash payment f5
laxmanachar bank payment f5
bank vadiraj recipit f6
vasant kumar bank payment f5
purchases cash payment f5
bank cash contra f4
advertisigng cash payment f5
bank mrs,gururaj recipit f6
cash bank contra f4
rent bank payment f5
S.NO PARTICULARS AMOUNT Dr
1 Cash in hand 5,374.00
2 Balance at Bank 15,490.00
3 Cash Sales 6,400.00
4 paid into the bank 7,000.00
5 Received a cheque from Satyam 700.00
6 paid to Anurag by cheque & discount received 20/- 980.00
7 Cash purchases 2,500.00
8 Drawings from Bank 5,000.00
9 Received cheque from Laxman after 50/- discount 950.00
10 Cash Sales 7,500.00
11 Cash deposited in Bank 4,000.00
12 paid stationery 120.00
13 commission paid 500.00
14 Received cheque from Mohan 1,000.00
15 Laxman cheque dishounered 950.00
16 Drew a cheque for personal use 800.00
17 Salary paid by cheque 1,500.00
18 Salary paid 500.00
19 Bank charges debited in bank 20.00
20 insurance premium paid by cheque 520.00
21 sold goods for cash 5,000.00

Cash Book: 13,854

Bank Book: 20,170
Cr mode
S.NO PARTICULARS AMOUNT
1 Started business with bank 200,000.00
and cash 40,000.00
2 Bought shop fittings paid by cheque 40,000.00
3 Bought van paid by cheque 60,000.00
4 Bought goods for resale on credit from Zakir & Co 50,000.00
5 cash sales 5,000.00
6 paid wages of assistant in cash 1,000.00
7 paid insurance by cheque 500.00
8 cash sales 8,000.00
9 paid wages of assistant in cash 1,000.00
10 Goods returned to zakir & co 6,000.00
11 paid zakir & co by cheque 30,000.00
12 Bought goods for resale on credit from Rao & Co. 25,000.00
13 cash sales 7,000.00
14 paid wages of assistant in cash 1,000.00
15 Bought stationery paid in cash 500.00
16 cash sales 15,000.00
17 paid Rao & Co by cheque 14,000.00
18 paid wages of assistant in cash 1,000.00
19 paid into bank 20,000.00

CASH : RS. 50,500

BANK : RS. 75,500
S.NO PARTICULARS AMOUNT
1 Deepak started business with 200,000.00 z
2 Deposited in bank of Baroda 100,000.00 a
3 Furniture purchased for office paid by cheque 16,000.00 e
4 purchased goods form Chandan & co 80,000.00 c1
5 Goods sold for cash 25,000.00 a1
6 Goods sold to Babu & Co. 20,500.00 d1
7 Amount paid to chandan & co and discount of 5% 20,000.00 e1
8 wages paid 350.00 f
9 conveyance paid 580.00 g
10 stationery expenditure by bank 956.00 h
11 cheque received from Babu & co by discounted 5% 14,250.00 f1
12 purchased for cash 13,580.00 i
13 Goods sold to Anil & Co. 28,500.00 g1
14 Amount paid by cheque to Chandan & Co. 18,000.00 j
15 Goods sold for cash 9,850.00 k
16 cash deposited in the bank 30,000.00 b
17 cash paid to Deepak for personal use 2,500.00 l
18 wages paid by cheque 1,250.00 m
19 Travelling paid for cash 2,000.00 n
20 Conveyance expenses paid by cheque 500.00 o
21 cheque to chandan & Co and discount of 5% by cheque 30,000.00 h1
22 Goods sold to Dinesh & Co 17,680.00 i1
23 Received cheque from Dinesh & Co 8,000.00 b1
24 purchased goods from Khan & co 58,500.00 j1
25 payment to khan & co by cheque 35,000.00 p
26 payment made by Anil & co and discount by 10% 20,000.00 k1
27 Deposited In Bank Of Baroda 7,800.00 c
28 paid to Mr. Deepak for personal use 1,000.00 q
29 stationery expenditure by cash 650.00 r
30 conveyance paid by cash 450.00 s
31 wages paid by cheque 1,000.00 t
32 payment made to Khan & Co by cheque 15,000.00 l1
33 Discount allowed by Khan & co 750.00
34 Insurance payment made by bank 1,500.00 u
35 Cash withdrew from bank 15,000.00 d
36 conveyance paid 200.00 v
37 wages paid 150.00 w
38 salary paid 5,000.00 x
39 stationery paid by cheque 1,250.00 y

CASH : RS. 84,590.00

BANK : RS. 26,131.50
 Dr Cr
Cash Deepak Capital Receipt F6
Baroda Bank Cash Contra F4
Furniture Bank Payment F5
Purchase Chandan & Co Credit F7
Cash Sales Receipt F6
Babu & Co Salaes Credit F7
Chandan & Co Cash/ Discount received Payment F5
Wages Cash Payment F5
Conveyabce Cash Payment F5
Stationery Bank Payment F5
Bank / Discount Iss Babu & Co Receipt F6 712.5
Purchase Cash Payment F5 14250
Anil & Co Sales Credit F7 13537.5
Chandan & Co Bank Payment F5
Cash Sales Receipt F6
Bank Cash Contra F4
Deepak Drawings Cash Payment F5
Wages Bank Payment F5
Travel Cash Payment F5
Conveyance Bank Payment F5
Chandan & Co Bank/ Discount Received Payment F5 30000 1500 28500
Dinesh & Co Sales Credit F7
Dinesh & Co Bank Receipt F6
Purchase Khan & Co Credit F7
Khan & Co Bank Payment F5
Anil & Co Cash/ Discount Issued Receipt F6
Bank Cash Contra F4
Deepak Drawings Cash Payment F5
Stationery Cash Payment F5
Conveyance Cash Payment F5
Wages Bank Payment F5
Khan & Co Bank/ Discount Received Payment F5

Insurance Bank Payment F5

Cash Bank Contra F4
Conveyance Cash Payment F5
Wages Cash Payment F5
Salary Cash Payment F5
Stationery Bank Payment F5
14250 712.5 13537.5

30000
1500
28500

2000
 DATE PARTICULARS AMOUNT
1/4/2001 Opening Balances
Murthy Capital 300,000.00
Andhra Bank 52,000.00
Furniture & Fittings 30,000.00
Plant & Machinery 213,000.00
Cash in hand 5,000.00
2/4/2001 purchase goods from Raju 5,000.00
3/4/2001 Sold goods to visu 4,500.00
4/4/2001 Bought ststionery for cash 150.00
5/4/2001 Received cash from visu 4,400.00
Allowed discount 100.00
7/4/2001 paid Raju by cheque (Ch. No. 12345) 4,900.00
and discount allowed by him 100.00
9/4/2001 Deposit in bank 3,000.00
13/4/2001 Purchase goods from srinath 4,850.00
16/4/2001 sold goods to Mallik 6,000.00
20/4/2001 Received Rs.5,850/- from Mallik in full settlement 5,850.00
22/4/2001 cash Sales 8,000.00
24/4/2001 Paid Rs. 4,800/- to Srinath in full settlement 4,800.00
27/4/2001 Purchased from Godrej Ltd., Office Chairs on credit 1,600.00
29/4/2001 Took Loan from Krushi 10,000.00
30/4/2001 Paid Salaries in Cash 2,000.00
30/4/2001 paid rent to House owner by cheque 1,200.00
Prepare Petty Cash Book with the following petty Cash transactions:
1/4/2001 Cash transfer to petty cash 1,000.00
9/4/2001 paid bus charges 10.00
13/4/2001 Tiffin & Lunch expenses 20.00
13/4/2001 Paid Postage for stamps 12.00
17/4/2001 Cost of ball pens & refills 38.00
21/4/2001 Paid xerox charges 32.00
27/4/2001 Paid for Cool drinks to guests 118.00

CASH : 22,300
PETTY CASH : 770
ANDHRA BANK : 48,900
PURCHASES : 11,450
SALES : 18,500
Enter the following transactions in the Purchase & Sales Books of Vijay Electronics, Hyderabad

PURCHASES

3-Apr Purchase Dyan TV Model 99 from Dyanora Ltd

Qty. 5 Sets @ Rs.4,000.00

5-Apr Purchase from Bajaj & Co.

Electric Irons Qty. 20No's @ Rs.60.00
Table Lamps Qty. 6No's @ Rs.35.00

8-Apr Purchase from Sumeet Ltd. STEP.NO.1

Electric Irons Qty. 10No's @ Rs.55.00

12-Apr Purchase from Chandrika Furnishers

Show Case Qty. 1No @ Rs.1,500.00
Office Table Qty. 1No @ Rs. 800.00 STEP.NO.2
Office Chair Qty. 6 No's @ Rs.50.00

20-Apr Purchase Dinning Table from Vikram Domestic Traders.

Qty. 2 No's @ Rs.3,600.00
STEP.NO.3
22-Apr Purchase Tube Lights from Crompton Greaves Limited .
Qty. 32 No's @ Rs.300.00

SALES

Opening Stocks : Computer P III Qty. 25 No's Rt. 18,000/-

Onida TV Qty. 15 No's Rt. 13,000/-

13-Apr Sold Computer P III to Wipro Ltd. Qty. 12 No's Rt. Rs. 18,500/-

18-Apr Sold Onida TV to Hyderabad Traders Qty. 12 No's Rt. Rs. 13,500/-

19-Apr Sold Computer P III to Satyam Ltd. Qty. 12 No's Rt. Rs. 18,900/-

GROSS PROFIT : RS. 22,800=00

20
ronics, Hyderabad 98360
41360
57000

STOCK ITEMS

LEDGER ACCOUNTS 800

1500
INVENTORY INFO→ 300
→ CREATION OF 7200
STOCK GROUPS 9600
→ ELECTRONIC ITEMS 1200
→ ELECTRICAL ITEMS 210
→ FURNITURE ITEMS 550
21360
UNITS OF MEASURE 20000
SYMBOL → NO'S KGS. LTS. STS 41360
FORMAL NAME → NUMBERS KILOGRAMS LITRES SETS
NO. OF DECIMAL PLACES→ 0 3 3 0

STOCK ITEMS
STOCK ITEMS Dyan TV Model 99
STOCK GROUP ELECTRONIC ITEM
UNITS OF MEASURE STS

450000
195000
645000 18000
39000
222000 57000
162000
226800
610800
INVENTORY
With the following transactions , Sales Order Book,
& Purchase Order Book, Purchase/Sales Register

(I) For manufacturing 100 Nos Sulochana Fans

the following transaction made with Crompton Greaves Ltd

1) Given Purchase Order and Recd the same:

Item Name Qty Rt/No

Wings 100 No's 125.00
Bearings 500 No's 75.00
Hadware 500 No's 15.00
Motor 100 No's 100.00
Regulator 100 No's 85.00
Capacitor 100 No's 100.00

2) Manufactured 50 No's Fans

3) Received Sales Order from Usha Agencies for 25 No's @ 950/-

(II) For manufacturing 150 Nos Manmadha TV's

the following transaction made with BPL India Ltd for manufacture of micro TVs
1) Given Purchase Order and Recd the same:

Item Name Qty Rt/No

Cabinet 200 No's 725.00
Picture Tube 200 No's 4275.00
Speakers 200 No's 615.00
Electronic Kit 200 No's 300.00
Tuner 200 No's 85.00
Antenna 200 No's 100.00

2) Manufactured 75 No's TVs

3) Received Sales Order from Kiran Traders for TVs 50 No's @ 12,900/-
Purchase, Sales, Purchase Returns, Sales Returns, Debit Note & Credit Note
QTY RATE VALUE DISC
1. Purchase SONY CTV from Sony India Appliances, Goa Bill No. E 1112, 12 14000 168000 4200
Qty ; 12 No's Rate @ 14,000/- each Discount 2.5%, CST ; 4%

2. Purchase VOLTAS AIR COOLERS from Vivek Home Traders, Sec-bad Bill No. E 0020, 6 4000 24000 600
Qty ; 6 No's Rate @ 4,000/- each Discount 2.5%, APGST ; 8%

3. Sold COMPUTER P III to TVS Electronics Ltd., Chennai, Inv.No. C 2112, 12 27000 324000 6480
Qty ; 12No's Rate @ 27,000/- each Discount 2%, CST ; 4%

4. Sold CEILING FAN to Shiva Traders, Sec-bad, Inv.No. C 0120,

Qty ; 16 No's Rate @ 7,500/- each Discount 1%, APGST ; 2%

5. Purchase Returns to Sony India Appliances Qty ; 2 No's Against B.No. E 1112

6. Purchase Returns to Vivek Home Traders Qty ; 1 No Against B.No. E 0020

7. Debit Note issued to Sony India Appliances for RS. 5,500/-

8. Debit Note issued to Vivek Home Traders RS. 2,000/-

9. Sales Returns from TVS Electronics Qty ; 3 No's Against Inv. No. C2112

10 Sales Returns from Shiva Traders Qty ; 5 No's Against Inv. No. C 0120

11. Credit Note Received from TVS Electronics Ltd. For Rs. 2,900/-

12. Credit Note Received from Shiva Traders For Rs. 3,000/-

13. Purchase VCR from Tanmaiyee Agencies

14. Purchase VCP from Trinethra Marketing Qty ; 15 No's @ Rs. 6,300/- each

15. Purchase SONY DECK From Vishal Super Market Qty ; 9 No's @ Rs. 6,500/- each

16. Sold VCP & VCR to Kiran Traders Qty; 12 & 10 No's Rs. 6,900/- & Rs. 9,500/- each

17. Sold SONY DECK to Ortem Industries Qty; 8 No's @ Rs. 6,900/- each

18. Purchase Computer P III from Ramnath & Co. 20 No's @ Rs. 24000/- each
Disc ; 2.5% CST ; 4%

19. Purchase Ceiling Fan from Murthy & Co. 25 No's @ Rs. 6,000/- each
Disc ; 2.0% APGST ; 8%
Defualt Credit Period 60 days
PURCHASES SUNDRY CREDITORS AUG'14 OCT'14
BILLS PAYMENT
SALES SUNDRY DEBTORS AUG'14 OCT'14
INVOICES RECEIPTS

MIS REPORTS → MANAGEMENT INFORMATION STATEMENT REPORT

ACCOUNT RECEIVABLES
ACCOUNT PAYABLES
BANK RECONCILIATION STATEMENT
BUDGET FORECASTING
CASH FLOW STATEMENT
FUNDS FLOW STATEMENT

BUDGET FORECASTING
OCTOBER,2014 ACCOUNT RECEIVABLES ( AUG'14 SALES INVOICES)
LESS:- ACCOUNT PAYABLES ( AUG'14 PURCHASE BILLS)
GROSS MARGIN
 LESS: DIRECT EXPENSES 1700000
LESS: INDIRECT EXPENSES 800000
LESS: FINANCE CHARGES ( BANK INTEREST) 200000

SURPLUS/DEFICIT

BILLS RECEIVABLE STOCK-IN HAND

CASH CREDIT LOAN ↓ ↓
MARGIN 40% 25%
DRAWING POWER 60% 75%
300.00 LAKHS
RS. IN LACS
STOCK STATEMENT FOR THE MONTH OF SEPTEMBER'2014
TOTAL MARGIN DP
ACCOUNT RECEIVABLE 300 120 180
STOCK IN HAND 200 50 150
TOTAL 330
2500000

2500000

2500000
 dagngages./
CST
6552 170352

1872 25272

12700.8 330220.8
 BUDGET
ANALYSIS
10000000
7000000
3000000
2700000

300000
BANK RECONCILIATION STATEMENT

Pass Book:- Every Businessman who opens an account in the bank is usually given a
pass Book which makes a record of the businessmen transactions with the Bank. The
bank writes this pass Book.

Bank Book : The Businessman who opens a Bank Book in the company ledger accounts
and writes his transactions.

Reasons for the difference in two balances ( Pass Book and Bank Book )
1. Cheques issued but not presented for payment
2. Cheques paid/ deposited into bank but not collected by the Bank
3. The bank usually makes charges for the collection of outstation cheques.
4. Cheques ommitted to be deposited in the bank.
5. Cheques or Bills of Exchange dishounered.

PROCEDURE FOR PREPARATION OF BANK RECONCILIATION STATEMENT

(a) Tick of all the items in the pass book with the pass book with the entries in the companies Bank
Book and make a list of the entries as are found not ticked either in the Bank Book or the Pass Book.
The unticked items are responsible for the diference in the balances.
(b) Take balance as per Bank Book or Pass Book as the starting point.
( c ) Adjust the starting point with the other blance by adding or substracting the unticked items as located in
(d) If balance as per Cash Book has been taken as the starting point, then balance as per Bank Book is to be
adjusted according to entries passed in the Pass Book or vice versa

Ex 1. STATE BANK OF HYDERABAD OP.BAL RS.25,000/- As per Co. Books & Bank Books.

1. Cheque issued to venkat & co. for 12,500=00 Ch.No. 34554321

2. Cheque issued to Srinivas and Associates 4,000=00 Ch.No. 34554320
3. Cheque received from Vishnu & Co. 10,000=00
4. Cash withdrawn from SBH 5,000=00 Ch.No. 34554319
5. Rent paid by cheque to House Owner 2,500=00 Ch.No. 34554318

→S.B.H Closing Balance as per Company Bank Book Rs. 10,950/-

→S.B.H Closing Balance as per Bank Pass Book Rs. 950/-
** Vishnu & Co. cheque deposited but not credited into the bank.
** Bank charges debited by bank but not recorded in Co. Bank Book Rs. 50/-
BANK RECONCILIATION
EX-2 STATE BANK OF INDIA Op.Bal RS.1,00,000/-
S.NO PARTICULARS AMOUNT CH.NO
1 Paid Salaries 15,000.00 1123
2 Paid Printing Charges 750.00 1124
3 Paid Stationery Charges 750.00 1125
4 Paid Commission 2,000.00 1122
5 Cash withdrawn from SBI 10,000.00 1126
6 Issued cheque to Satyam Computers 5,000.00 1127
7 Issued cheque to Krishna & Co. 3,000.00 1128
8 Cheque issued to Microsoft Ltd. 2,000.00 1129
9 Cheque issued for Consultancy Charges 3,000.00 1130
10 Cheque issued to Vishnu & Co. 3,000.00 1131
11 Cash deposited into SBI 5,000.00
12 Paid Travelling expenses 6,000.00 1132
13 Paid Conveyance 1,800.00 1133
14 Paid to Advertisement Charges 2,500.00 1134
15 Paid to Audit Fee 3,000.00 1135
16 Paid to Books & Periodicals 2,000.00 1136

SBI Bank Book Cl.Bal Rs. 45,200/-

SBI Pass Book Cl.Bal Rs. 50,200/-

Note: Ch.NO. 1128, 1129 issued but not presented for payment.
BANK RECONCILIATION
EX-3 ANDHRA BANK Op.Bal RS.55,000/-
S.NO PARTICULARS AMOUNT CH.NO
1 Paid staf Salaries 15,000.00 2233
2 Paid Printing & Stationery 1,500.00 2234
3 Paid to Commission 2,000.00 2235
4 Cash withdrawn form AB 10,000.00 2236
5 Cheque issued to Intel Softtech 5,000.00 2237
6 Issued Cheque to Infosys Computers 5,000.00 2238
7 Issued Cheque to Microsoft Systems & Co. 2,000.00 2239
8 Paid Consultancy Charges 3,000.00 2240
9 Cheque Received from Satyam Ltd 3,000.00
10 Cash withdrawn form AB 3,000.00 2241
11 Cheque issued to Vishnu & Co. 9,000.00 2242
12 Cash deposited into to AB 5,000.00
13 Paid Travelling Bills 1,800.00 2243
14 Paid to advertisement charges 4,500.00 2244
15 Paid to Audit Fee 3,000.00 2245
16 Cash deposited into AB 5,000.00

AB Bank Book Cl.Bal Rs. 3,200/-

AB Pass Book Cl.Bal Rs. 200/-

Note: Cheque received from satyam Ltd. Deposited but not credited in the bank.
VAT EXERCISE -1

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
 1

Gopal Commenced business with Rs. 2,00,000/-

Deposited into the Bank Rs. 1,00,000/-
Purchased 4% goods from Mallik Traders for Rs. 1,00,000/- paid input Vat @ 4%
Purchased 12.5% goods from Suresh Enterprises for Rs. 80,000/- paid input vat @ 12.5%
Purchased Exempted goods from Mahesh & Co. for Rs. 60,000/-
Sold 12.5% goods to Ramana Agencies for Rs. 50,000/- Collected output Vat @ 12.5%
Sold 4% goods to Sony Traders for Rs. 40,000/- collected output vat @ 4%
cash sales ( Exempt ) made for Rs. 20,000/-
Cash Purchases 4% goods for Rs. 25,000/- paid input Vat @ 4%
Sold 12.5% goods to Vishal Agencies for Rs. 15,000/- collected output vat @12.5%
Purchased 12.5% goods from Venkat Enterprises for Rs. 95,000/- paid input vat @ 12.5%
Purchased 4% goods from Mallik Traders for Rs. 1,25,000/- paid input Vat @ 4%
Purchased Exempted goods from Mahesh & Co. for Rs. 80,000/-
Sold 12.5% goods to Ramana Agencies for Rs. 50,000/- Collected output Vat @ 12.5%
Sold 4% goods to Sony Traders for Rs. 10,000/- collected output vat @ 4%

OUTPUT VAT COLLECTED : Rs. 16,375/-

Less: INPUT VAT PAID : Rs. 31,875/-
Balance Carry forward/Payable : Rs. 15,500/-
PURCHASES
↓
INPUT VAT

VAT FORMULA
INPUTVAT (-) OUTPUTVAT =(+) VAT CARRY FORWARD
INPUTVAT (-) OUTPUTVAT =(-) VAT PAYABLE
VAT
 SALES
↓
OUTPUT VAT
SALES POINT
↓
RM SUPPLIER
↓
MANUFACTURER
↓
WHOLESELLER
↓
DISTRIBUTOR
↓
RETAILER
 VAT

100+5%

130+5%

140+5%

145+5%

150+5%
PURCHASE POINT
↓
MANUFACTURER
↓
WHOLESELLER
↓
DISTRIBUTOR
↓
RETAILER
↓
CONSUMER
30

10

5
VAT PROBL
1
2
3
4
5
6
7
8

9
10
Narayana started Business with Rs. 3,00,000/-
Deposited into the Canara Bank Rs. 2,00,000/-
Purchased from M/S. S.K.Electronics 20 No's Refrigerators @ Rs. 7,500/- Disc. 2% input vat paid 4% ( 5880=00)
Purchased from M/S. Venkat Agencies 14 No's BPL Colour TV's @ Rs. 14,500/- Disc. 1% input vat paid 4% ( 8,038=80)
Sold to M/S. Ramnath Electronics 8 No's Refrigerators @ Rs. 8,200/- Disc. 1.5% output vat collected 4% ( 2,584=64)
Sold to M/S. Mukesh Electronics 5 No's BPL Colour TV's @ Rs. 16,000/- Disc. 1 % output vat collected 4% ( 3,168=00)
Sold to M/S. Mallikarjuna Traders 3 No's Refrigerators @ Rs. 8,300/- Disc. 2 % output vat collected 4% ( 976=08)
Sold to M/S. Sree Ramana Agencies 4 No's BPL Colour TV's @ Rs. 16,500/- Disc. 1.5 % output vat collected 4% (2,600=40)

---------------------------------------------------------------------------------------------------------------------------------------------------
VAT COMPUTATION
INPUT VAT PAID RS. 13,918=80
OUTPUT VAT COLLECTED RS. 9,329=12
VAT CARRY FORWARD RS. 4,589=68
=======================================================================================================

Sold to M/S. Mallik Traders 9 No's Refrigerators @ Rs. 8,500/-Disc. 2.5% output vat collected 4% ( 2,983=50)
Sold to M/S. Karan Traders 5 No's BPL Colour TV's @ Rs. 17,000/-Disc. 2 % output vat collected 4% ( 3,332=00)

---------------------------------------------------------------------------------------------------------------------------------------------------
VAT COMPUTATION
INPUT VAT PAID RS. 13,918=80
OUTPUT VAT COLLECTED RS. 15,644=62
VAT PAYABLE RS. 1,725=82
=======================================================================================================
 VAT PROBLEM EXE-1
Gopal commenced bussiness with Rs 2,00,000/-

Sl.No Particular Amount input vat@5% input vat@14.5%

1 Deposited into the bank 100,000.00
2 Purchased goods from malik trader 100,000.00 5,000
3 Purchased goods from suresh enterprises 80,000.00 11,600
4 Purchased exmepted goods from mahesh&co 60,000.00
5 Sold goods to Ramana agencies 50,000.00
6 sold goods to sony traders 40,000.00
7 cash sales (exempt) made 20,000.00
8 cash purchased goods 25,000.00 1,250
9 Sold goods to Vishal Agencies 15,000.00
10 Purchased goods from Venkat Enterprises 95,000.00 13,775
11 Purchased goods from Malik Traders 125,000.00 6,250
12 Purchased goods from Mahesh & co 80,000.00
13 Sold goods to Ramana Agencies 50,000.00
14 Sold goods to Sony Traders 10,000.00
12,500.00 25,375.00
OUTPUT VAT COLLECTED 19,175.00
Less:INPUT VAT PAID 37,875.00
Balance Carry forward/Payable:Rs15,500/- 18,700.00
total inputvat output vat@5% output vat@14.5% totaloutputvat
- -
5,000 -
11,600 -
- -
- 7,250 7,250
- 2,000 2,000
- -
1,250 -
- 2,175 2,175
13,775 -
6,250 -
- -
- 7,250 7,250
- 500 500
37,875.00 2,500.00 16,675.00 19,175.00
1 OPENING STOCK OF GOLD 30GMS @ 2800/GM 84,000.00

2 PURCHASED FROM MUKESH & CO. 40GMS @ 3050/GM 122,000.00

3 SOLD TO RAMNATH & CO. 25GMS @ 3200/GM 80,000.00

4 CLOSING STOCK OF 45GMS TO BE TAKEN IN P & L 132,428.57 → NET PROFIT RS. 6,428.57

MARKET VALUE IS RS. 2700*45GMS= 121,500.00 → NET LOSS RS. 4,500.00

ROFIT RS. 6,428.57

OSS RS. 4,500.00