___________________ is not a business transaction.

Bought furniture of

R s . 10, 000

to used in business

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Paid for salaries of employees

R s . 5, 000

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Paid sons fees from his personal bank account

R s . 20, 000

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Paid sons fees from the business

R s . 2, 000

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Solution

The correct option is C Paid sons fees from his personal bank account $R s . 20, 000$
When son's fees is paid from his personal bank account, this transaction will not be a business transaction because it does not affect any of the business account. On the other hand,when a fee is paid from business, it will be recorded as drawing of the proprietor.

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Journalise the following transactions.

2011 Aug.	1	Shri Akshay started his business with Cash Rs 90,000, Building Rs 1,50,000 borrowed from friend Jayesh Rs 40,000.
	3	Paid cash into Bank of Maharashtra Rs 80,000.
	6	Purchased furniture from Mohan and issued him a cheque Rs 10,000.
	9	Credit purchase from Sohan Rs 20,000 less 5% Trade Discount.
	10	Returned goods to Sohan Rs 200.
	13	Credit sales to Amit Rs 6,000 less 2% Trade Discount.
	15	Amit returned goods of Rs 588.
	17	Goods taken by Akshay for his personal use Rs 500.
	18	Paid postage Rs 200 and Electricity bill Rs 900.
	20	Sent a Telegram of Rs 30 to Sohan to supply goods of Rs 9,000 immediately.
	21	Purchased Laptop & Printer of Rs 41,000 from Keshav & Co. and paid him cash Rs 21,000
	27	Paid insurance premium on life of Akshay of Rs 4,000.
	29	Paid Telephone Deposit for new telephone connection by cheque Rs 4,000.
	31	Audit fees paid by cheque Rs 4,500.

Journalise the following transactions in the books of Miss. Nivedita.

2010 May	1	Commenced business with Cash Rs 2,10,000.
	4	Purchased goods for cash Rs 60,000.
	5	Sold good for cash Rs 70,000.
	9	Deposited into Bank of India Rs 1,00,000.
	13	Paid for stationery Rs 10,000.
	17	Purchased Computer with printer Rs 40,000.
	21	Purchased goods from Ravi for Rs 50,000 on credit.
	25	Paid for Office Rent Rs 2,000.
	26	Received Commission Rs 1,000.
	30	Withdrew from bank for office use Rs 50,000.
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Q. Show the accounting equation on the basis of the following transactions

1. Mr. Kumar commenced business with cash Rs 50,000.
2. Paid salary Rs 1,200.
3. Purchased furniture Rs 5,000.
4. Purchased goods from Rakesh for cash Rs 7,500.
5. Sold goods to Shyam costing Rs 13,000.
6. Paid Rent Rs 500.

From the following transactions prepare necessary ledger accounts and balance them.

2011 Jan.	1	Sachin started Business with Cash Rs 10,000 and Machinery Rs 15,000
	1	Purchased goods for cash Rs 3,000.
	3	Sold goods for cash Rs 4,000.
	5	Purchased furniture on credit from Poona Traders Rs 7,000.
	8	Purchased goods on credit from Mr. Dilip Rs 2,000 at 10% T.D.
	10	Sold goods on credit to Mr. Mahendra Rs 8,000 at 12.5% T.D.
	15	Paid Rent Rs 600.
	28	Withdraw cash for personal use Rs 1,000.
	20	Paid cash to Mr. Dilip Rs 1,800.
	25	Received cash from Mr. Mahendra Rs 6,800.
	31	Paid to Miss Sunita Rs 400 for salaries

Panwar commenced business on 1st January 2016 with a capital of Rs. 10,000, which he paid into a bank account opened for the purpose.
On the same date, he brought furniture which cost Rs. 2,000 and made purchases of goods worth Rs. 6,500.
He kept his books on single entry system.
On 31st December 2016 stock was valued at Rs. 8,300. There were book debts amounting to Rs. 3,400 of which Rs. 200 represented debts which were irrecoverable.
Creditors amounted to Rs. 3,600 and bank passbook showed a balance of Rs. 1,450.
Panwar withdrew three times from business for his private expenses, each time he withdrew Rs. 600 and in addition, he used Rs. 500 worth of goods from his shop.
He took Rs. 1,000 as a loan from his wife during the year.
He gave Rs. 200 to his son from business, which he omitted to enter.

You are required to prepare a statement showing profit or loss in the business for the year ending 31st December 2016 from the above information.

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