Accounting Concept For Non Accounting Person By Dr. P. K. Jain

A Company PK & Co. Started his business with Cash introduce in Business Rs.5,00,000 on PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital5,00,000Cash5,00,000 Total 5,00,000

Purchase Goods from Ram Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital5,00,000Cash5,00,000 Ram50,000Stock (Purchase)50,000 5,50,000

Cash deposited into Bank PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital5,00,000 Cash( )4,80,000 Ram50,000Stock50,000 Bank20,000 5,50,000

Goods Costing Rs sale to Rs in cash PK & Co. Balance Sheet (As on ) LiabilitiesAmount (in Rs.)AssetsAmount (inRs.) Capital5,00,000Bank20,000 Ram50,000Cash( )5,10,000 Profit & Loss10,000Stock30,000 5,60,000 Trading & Profit & Loss A/C ParticularAmountParticularAmount To Opening Stock0.000By Sale30,000 To Direct Exp. Nil To Purchase (From Ram Rs.50000)50,000By Stock ( )30,000 To Gross Profit10,000 60,000 To Indirect Exp.NILBy Gross Profit10,000 To Net Profit10,000

Goods Costing Rs Sold to Shyam Rs Date PK & Co. Balance Sheet (As on ) LiabilitiesAmount (in Rs.)AssetsAmount (in Rs.) Capital5,00,000Bank20,000 Ram50,000Cash5,10,000 Profit & Loss8,000Stock20,000 ( ) Shyam8,000 5,58,000 Profit & Loss A/C ParticularAmount (in Rs.)ParticularAmount (in Rs.) To Opening Stock30,000Sale8,000 Net Profit (Loss)-2,000Stock ( )20,000 28,000

Furniture Purchase in Cash Rs. 20,000 Date PK & Co Balance Sheet (As on ) LiabilitiesAmount (in Rs.)Assets Amount (in Rs.) Capital5,00,000Bank20,000 Creditor50,000Cash( )4,90,000 Profit & Loss8,000Stock20,000 Debtor8,000 Furniture20,000 5,58,000

Paid Telephone Bill Rs.5000 and Electricity Bill Rs.2000 Date PK & Co. Balance Sheet (As on Date ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital5,00,000Bank20,000 Ram50,000Cash( )4,83,000 Profit & Loss1,000Stock20,000 Shyam8,000 Furniture20,000 5,51,000 Profit & Loss A/C Particular Amount (in Rs.) Particular Amount (in Rs.) Telephone5,000By Balance B/D8,000 Electricity2,000 Net Profit1,000 8,000

Building Purchase Rs Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital5,00,000Bank20,000 Ram50,000 Cash( )3,83,000 Profit & Loss1,000Stock20,000 Shyam8,000 Furniture20,000 Building1,00,000 5,51,000

Dividend Received Rs.50,000 from Reliance Co. Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital5,00,000Bank20,000 Ram50,000Cash( )4,33,000 Profit & Loss51,000Stock20,000 Shyam8,000 Furniture20,000 Building1,00,000 6,01,000 Profit & Loss A/C Particular Amount (in Rs.) Particular Amount (in Rs.) By Balance B/D1,000 Dividend Received50,000 To Balance C/D51,000

Cash withdraw for personal use Rs.5,000Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital 5,00,0004,95,000Bank20,000 Less: Drawing 5,000 Cash ( )4,28,000 Net : 4,95,000 Stock20,000 Ram50,000Shyam8,000 Profit & Loss51,000Furniture20,000 Building1,00,000 5,96,000

Deposited as a Fixed Deposit Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (In Rs.) Capital 5,00,0004,95,000Bank20,000 Less: Drawing 5,000 Cash ( )3,28,000 Net : 4,95,000 Stock20,000 Ram50,000Shyam8,000 Profit & Loss51,000Furniture20,000 Building1,00,000 Fixed Deposit1,00,000 5,96, ,000

Bike A/c Particular Amount (in Rs.) Particular Amount (in Rs.) To Cash20,000By Balance C/D30,000 To Rajpal Honda10,000 Total30,000 Rajpal Honda Particular Amount (in Rs.) Particular Amount (in Rs.) To Balance C/D10,000By Bike10,000 Total10,000 Bike Purchase Amounting Rs.30000, paid in cash, & remaining after 30 days from Rajpal Honda Date In the Book of PK & Co.

Cont. PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital ,95,000Bank20,000 Less: Drawing 5000 Cash ( )3,08,000 Net Stock20,000 Profit & Loss51,000Shyam8,000 Rajpal Honda10,000Furniture20,000 Ram50,000Building1,00,000 Fixed Deposit1,00,000 Bike30,000 6,06,000

Cheque Received from Shyam Rs.8000 deposited into Bank Date PK & Co. Balance Sheet (As on ) LiabilitiesAmountAssetsAmount Capital ,95,000Bank ( )28,000 Less: Drawing 5000 Cash3,08,000 Net: Stock20,000 Profit & Loss51,000Furniture20,000 Rajpal Honda10,000Building1,00,000 Ram50,000Shyam ( )NIL Fixed Deposit1,00,000 Bike30,000 6,06,000

Paid to Ram Rs in Cash Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital 5,00,0004,95,000Bank28,000 Less: Drawing 5,000 Cash ( )2,58,000 Net 4,95,000 Stock20,000 Profit & Loss51,000Furniture20,000 Rajpal Honda10,000Building1,00,000 Ram( ) NILFixed Deposit1,00,000 Bike30,000 5,56,000

Sale Furniture Amt.Rs Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.)Assets Amount (in Rs.) Capital 5,00,0004,95,000Bank28,000 Less: Drawing 5,000 Cash ( )2,83,000 Net 4,95,000 Stock20,000 Profit & Loss56,000Building1,00,000 Rajpal Honda10,000Fixed Deposit1,00,000 Bike30,000 FurnitureNIL 5,61,000 Profit & Loss A/C Particular Amount (in Rs.)Particular Amount (in Rs.) By Balance B/D51,000 Profit on sale of furniture5,000 To Balance C/D56,,000 ( ) 56,000

Interest Credited by Bank on Fixed Deposit Rs.5000 Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs) Assets Amount (in Rs.) Capital 5,00,0004,95,000Bank28,000 Less: Drawing 5,000 Cash2,83,000 Net 4,95,000 Stock20,000 Profit & Loss61,000Building1,00,000 Rajpal Honda10,000Fixed Deposit( )1,05,000 Bike30,000 5,66,000 Profit & Loss A/C Particular Amount (in Rs.) Particular Amount (in Rs.) By Balance B/D56,000 Interest Received5,000 To Balance C/D61,000

Paid to Rajpal Honda Rs Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital 5,00,0004,95,000Bank28,000 Less: Drawing 5,000 Cash ( )2,73,000 Net: 4,95,000 Stock20,000 Profit & Loss61,000Building1,00,000 Rajpal Honda( )NILFixed Deposit1,05,000 Bike30,000 5,56,000

Paid Income Tax Rs Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital 5,00,0004,95,000Bank28,000 Less: Drawing 5,000 Cash ( )2,53,000 Net 4,95,000 Stock20,000 Profit & Loss41,000Building1,00,000 Fixed Deposit1,05,000 Bike30,000 5,36,000 Profit & Loss A/C Particular Amount (in Rs.) Particular Amount (in Rs.) Income Tax20,000By Balance B/D61,000 To Balance C/D41,000 61,000

Net Salary Received and TDS deducted Rs.5000 Date PK & Co. Balance Sheet (As on ) Liabilities Amount (in Rs.) Assets Amount (in Rs.) Capital 5,00,0004,95,000Bank ( )78,000 Less: Drawing 5,000 Cash ( )2,53,000 Net 4,95,000 Stock20,000 Profit & Loss96,000Building1,00,000 Fixed Deposit1,05,000 Bike30,000 TDS (Salary)5,000 5,91,000 Profit & Loss A/C Particular Amount (in Rs.) Particular Amount (in Rs.) By Balance B/D41,000 To Balance C/D96,000 By Salary (Including TDS)55,000 96,000

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