Enter the following transactions in the proper subsidiary books of Mr. Navin, post them in the ledger accounts and balance the accounts.
April 4 Bought goods from Vijay worth Rs. 2000/- at 5% trade discount
5 Ram sold goods to Navin Rs. 1500/-
6 Returned goods of Rs. 95/- to Vijay
9 Received goods from Vijay in exchange of those returned on 6th
10 Narayan purchased goods from Navin Rs. 500/-
18 Navin received goods returned by Narayan Rs. 50/
22 Paid cash Rs. 900/- and returned goods of Rs. 100/- to Ram
27 Ram informed Navin to transfer Rs. 100/- from his account to Narayan’s a/c.
27 Paid cash Rs. 200/- to Madhav on behalf of Ram according to his instructions
30 Narayan paid office rent of Rs. 150/- and balance due from him in cash.
Answers
Answer:
Mr. Manishis the General Manager of a transport
company drawing a basic salary of Rs. 15,000 per
month. He is also receiving D.A. (60% forming part
of salary) Rs. 10,000 per month and entertainment
allowance of Rs.1,500 per month. He is provided
by the company with a car having engine cubic
capacity of 1.8 litres for is personal and official
use, but running and maintenance expenses for the
same are borne by the assessee himself. He is in
receipt of bonus equivalent to 2 month's basic salary.
He also owns two house properties in Meerut,
the details of which are given below:
House 1 House 2
Nature
Self occupied Let out
Municipal value (Rs.) 45,000 65,000
Annual rent (Rs.)
Nil 78,000
Municipal tax paid (Rs.) 3,000 6,000
Interest on taken for
construction of house (Rs.) 12,500 21,300
During the previous year he contributed Rs.
36,000 to Recognised Provided Fund, Rs. 25,000
as Life Insurance premium and Rs. 4,000 as medi-
claim insurance premium.
Compute the total income of Mr. Manish.
Answer:
First we have to make Journal Entries of the Transactions and then make the Ledger Account and the Subsidiary Book. As given in the picture
