Activity Book Afm

MANIPAL ACADEMY OF BANKING

WORK BOOK FOR FMSB

UNIT -1

Activity 1:

In your words write the meaning of accountancy and its importance in Banking sector:

Activity 2: Write the meaning of these Basic Accountancy Terms

Event: ____________________________________________________________

Transactions: ______________________________________________________

Proprietor: _________________________________________________________

Asset: ______________________________________________________________

Liability: ____________________________________________________________

Capital: ____________________________________________________________

Debtor: ____________________________________________________________

Creditor: ___________________________________________________________

Profit: _____________________________________________________________

Expenses: __________________________________________________________

Drawings: _________________________________________________________

Bad debts: __________________________________________________________

Drawings: ____________________________________________________________

Fixed asset: ____________________________________________________________

Current liability: _________________________________________________________

Activity 3: Match the following:

1

Building A Nominal Account

2 Interest Paid B Real Account3 Goodwill C Nominal Account4 Commision received D Real Account5 Outstanding Salaries account E Personal Account

Activity 4: List of examples of accounts and the category of accounts:

Examples Category of accountsCapitalLandPatentsCreditorsDrawingsCashSalesPurchasesMachineryDiscount allowedInvestmentsInterest paidOutstanding expensesPrepaid RentOutstanding incomeCarriage InwardCarriage OutwardInterest received in advance

Activity 5: write the golden rules of accounting

Personal account:

Real account:

Nominal account:

Activity 6

Debit and Credit concepts

Identification of accounts: Identify the account(s) to be debited and credited for the following transactions:

Transaction Debit Credit

1 Paid creditors2 Paid insurance premium

3 Bought office supplies on credit

4 Paid rent

5 Paid rent for proprietor’s home

6 Bought equipment on part payment

7 Collected cash from customers for services provided

8 paid dividend9 Paid telephone rent

10 Paid interest charges

11 Paid creditors for office suppliers bought earlier

12 Paid assistant’s salary

UNIT-2Journalizing:

1. Journalize the following transactions in the books of Tmt.Amutha as on Jaunary 2012

Jan 1 Tmt.Amutha commenced business with cash50000

Jan 2 Purchased goods for cash 10000

Jan5 Purchased goods from Mohan on credit 6000

Jan 7 Paid into Bank 5000

Jan 10 Purchased furniture 2000

Jan 20 Sold goods to Suresh on credit 5000

2. Journalize the following transactions of Mr.Moorthi

June (08) 3 Received cash from Ramkumar 60000

4 Purchased goods for cash 1500011 Sold goods to Damodaran 2200013 Paid to Ramkumar 4000017 Received from Damodaran 2000020 Bought furniture from Jagadeesan 500027 Paid rent 1000

30 aid salary 2500

3. Enter the following transactions in the Journal of Bhagwat and sons..

2006 Amount in Rs

January 1 Tarun started business with cash 1,00,000

January 2 Goods purchased for cash 20,000

January 4 Machinery Purchased from Vishnu 30,000

January 6 Rent paid in cash 10,000

January 8 Goods purchased on credit from Anil 25,000

January 10 Goods sold for cash 40,000

January 15 Goods sold on credit to Gurmeet 30,000

January 18 Salaries paid. 12,000

January 20 Cash withdrawn for personal use 5,000

4. Journalize the following transactions in the books of John for the month of October 2013.

June 2014

Particulars Rs.

1st John started business with cash 70,000

2nd Purchased furniture for cash 10,000

4th Purchased goods for cash 20,000

5th Bought goods from Rahim 25,000

7th Sold goods for cash 44,000

9th Sold goods to Mahesh 30,000

10th Paid cash to Ramesh 15,000

11th Received cash from Ramanath 10,000

18th Purchased goods from nil Kumar 12,000

20th Purchased computers on credit from Shivshankar 28,000

29th Paid salaries 7,000

30th Withdrew cash for personal use from the office 10,000

30th Paid wages 5,500

5. Pass journal entries in the books of Ms Lily

Jan 1. Commenced business with Cash 26000, Stock 2800 and Furniture 90000Jan. 2 Goods purchased for cash 1 4,000Jan. 3 Paid freight 500Jan. 7 Goods sold to Manoj on credit 5,000Jan. 8 Paid for stationery 2,000Jan. 10 Paid for Rent 1,000Jan. 13 Cash received from RaghuDas 16,400 Allowed him discount 600Jan. 15 Paid Premium 4,200Jan. 20 Paid to postage 1,000Jan. 25 Paid for salaries 500Jan. 30 Commission received 1,000

6. Mr Kumar has the following transactions in the month of April .Write journal entries for the transactions

10th April : commenced business with Cash 25000 and Furniture 3000

11th April purchased goods from Veeru for Rs 20000

13thApril purchased goods for Cash Rs 15000

14th April Purchased goods from Abhiram for cash Rs 9000

15th April bought goods from Shyam on credit Rs 12000

16th April sold goods worth Rs 15000 to Tarun

20th April Sold goods to Utsav for cash 6000

22nd April Returned goods to Veeru 3000

23rd April goods returned from Tarun Rs 1000

New concepts: Purchase Return and Sales Return

7. Pass journal entries in the books of Mr Ram for the month of January

11th Paid wages Rs 7000

15th Paid rent by cheque Rs 6000

17th Purchased stationary and paid by cheque Rs 8900

20th Received interest Rs 640

21st Withdrew from bank Rs 5600

22nd Received by cheque Rs 450

23rd Bought additional capital Rs 30000

24th Withdrew from bank for personal use Rs 4000

25th Received Rs. 9500 from Mahesh and allowed him a discount of Rs 500

26th Paid Laxman Rs 2300 in cash and received a discount of Rs 200

LEDGER1. Journalise the following transactions of Mr.Ravi and post them in the ledger and balance the same.

June 1 Ravi invested Rs.5,00,000 cash in the business

3 Paid into Bank Rs.80,000

5 Purchased building for Rs.3,00,000

7 Purchased goods for Rs.70,000

10 Sold goods for Rs.80,000

15 With drew cash from bank Rs.10,000

25 Paid electric charges Rs.3,000

30 Paid Salary Rs. 15,000

2. Journalise the following transactions and post them in the ledger January 1 Commenced business with cash 50000

January 3 Paid into bank 25000

January 5 Purchased furniture for cash 5000

January 8 Purchased goods and paid by cheque 15000

January 14 Purchased Goods from K. Murthy 35000

January 18 Cash Sales 32000

January 20 Sold Goods to Ashok on credit 28000

January 25 Paid cash to K. Murthy in full settlement 34200

January 28 Cash received from Ashok 20000

January 31 Paid Rent for the month 2000

January 31 Withdrew from bank for private use 2500

CASH BOOK1. Prepare A Single Column Cash Based On The Transactions Below

• Jan 1 Started business with cash ... Rs. 1,000

• 3 Purchased goods for cash ... Rs. 500

• 4 Sold goods ... Rs. 1,700

• 5 Cash received from Siva ... Rs. 200

• 12 Paid Balan ... Rs. 150

• 14 Bought furniture ... Rs. 200

• 15 Purchased goods from Kala on credit ... Rs. 2,000

• 20 Paid electric charges ... Rs. 225

• 24 Paid salaries ... Rs. 250

• 28 Received commission ... Rs. 75

2. Compile three column cash book of Mr.Sundar from the following transactions for the August

1.Sundar started business with cash Rs.2,00,000

2 Deposited into Bank Rs.50,000.

4 Cash purchases Rs.5,000.

5 Purchases by cheque Rs.6,000.

6 Goods sold to Nathan on credit Rs. 5,000.

8 Received cheque from Mano Rs.490, Discount allowed Rs.10.

10 Paid carriage Rs.1,000.

12 Withdrew from Bank for office use Rs.10,000.

15 Paid to Sundari Rs.4,960, Discount allowed by her Rs.40.

20 Received a cheque for Rs.4950 from Nathan in full settlement of his account, which is deposited into Bank.

3. Prepare a cash book with cash, bank and discount columns from the transactions given below: Jan 1 Cash Balance Rs.75,000.

Bank Balance Rs. 45,000.

3 Deposited into bank Rs.60,000.

4 Bought furniture and paid by cheque Rs.7,500

5 Paid for repair Rs.650.

6 Goods purchased and paid by cheque Rs.12,500.

10 Received a cheque for Rs.21,000 from Chandran and allowed him discount Rs.200.

13 Gave Muthu a cheque for Rs.11,500 and received a discount of Rs.150.

20 Withdrew from bank for office use Rs.2,500.

28 Withdrew from bank for personal use Rs.500.

4. Enter the following transactions in Mural's cash book with column for discount, cash & bank for the year 2012

April1 Cash balance Rs.60000.

o Bank balance Rs.10,500.

4 Received Rs.2,000 from Manoj in cash. Allowed him discount of Rs.100.

7 Cash sales Rs.2,000.

10 Furniture purchased Rs.800 by cheque.

12 Paid rent by cheque Rs.1,500.

15 Paid Rs1250 to Karthikeyan by cheque.

18 Cash sales Rs.15,000.

20 Paid packing charges Rs.500.

24 Paid Murugan Rs.4,000. Discount allow by him Rs.50.

26 Paid into bank Rs.5,000.

TRIAL BALANCE1. Prepare a trial balance as at March 31, 2012 based on the following balances:

ACCOUNT TITLE AMOUNT(Rs)

Capital 1,00,000Drawings 16000Machinery 20,000Sales 2,00,000Purchases 2,10,000Sales return 20,000

Purchase return 30,000Wages 40,000Goodwill 60,000

Interest received 15,000Discount allowed 6,000Bank overdraft 22,000Bank loan 90,000Debtors 75000Creditors 60,000Cash 54000Stock on 1st April 2011 16000

2. The following balances are extracted from the books of Mr.Raj .Prepare Trial Balance as on 30.6.2013. Capital 4,70,200

Machinery 1,58,800

Cash in hand 6,000

Sundry Debtors 48,000

Building 3,20,000

Repairs 5,400

Stock 33,000

Insurance premium 3,300

Sundry creditors 26,000

Sales 2,90,000

Commission paid 750

Telephone charges 6,450

Rent & Taxes 6,300

Furniture 11,000

Purchases 1,65,000

Discount earned 1,100

Salaries 70,600

Loan from Mohammed 51,000

Discount allowed 650

Bank overdraft 5,900

Drawings 5,000

Bills receivable 8,600

Bad debts 1,350

Bills payable 6,000

3.Prepare Trial Balance as on 31.12.2000 from the following balances of Mr. Vasu

Capital Rs. 3,40,000

Purchases Rs. 94,000

Creditors Rs. 13,000

Sales Returns Rs. 3,400

Drawings Rs. 4,000

Purchases Return Rs. 2,400

Salaries Rs. 38,200

Carriage inwards Rs. 1,400

Bill Receivable Rs. 5,800

Printing & Stationery Rs. 5,000

Bills Payable Rs. 7,000

Stock Rs. 29,900

Debtors Rs.16,000

Machinery Rs. 50,000

Sales Rs. 1,44,000

Wages Rs. 5,000

Insurance Rs. 2,200

Rent Rs. 1,600

Land Rs. 2,50,000

Interest received Rs. 1,700

Commission received Rs. 800

Electricity charges Rs. 2,400

4. The following balances extracted from the books of a trader, prepareTrial Balance as on 31st March, 2011

Cash in hand 4200

Cash at Bank 16800

Bills Receivable 18000

Bills payable 16000

Sundry debtors 24600

Sundry creditors 32400

Capital 50000

Drawings 18000

Sales 105000

Purchases 75000

Carriage Inward 2700

Salaries 12000

Advertisement 2400

Insurance 1600

Furniture 7500

Stock 18600

Office Rent 2000

UNIT-3 BANK RECONCILIATION STATEMENT

1. XYZ Ltd. maintains a current account with the federal bank. As on 31st March 2006, the bank column of its cashbook showed a debit balance of Rs, 20,000. However, the bank statement showed a different balance as on that date. The following are the reasons for such a difference:

Cheque deposited but not yet credited by the bank- 4,000 Cheque issued but not yet presented -9,000 Bank charges -1,000 Cheques received by the bank directly -6,000 Insurance premium paid by the bank as per standing instructions not yet intimated -3,000

2. Make a bank reconciliation statement for Mr Mars ltd on December 31, 2013 to find out the balance as

per pass book

Balance as per cash book Rs.15000 Cheques deposited but not yet collected by the bank Rs.10000. Bank charges debited in the pass book Rs. 500 Cheque issued to Mr. Mahesh has not yet been presented for payment Rs. 25,000. Interest allowed by the bank Rs. 1000. Insurance premium directly paid by the bank as per standing instructions Rs. 5000. Interest allowed by the bank Rs 2500

3. X Ltd. maintains a current account with the Federal bank . As on 31 st March 2012, the bank column of its cashbook showed a debit balance of Rs, 25000. However, the bank statement showed a different balance as on that date. The following are the reasons for such a difference:

Cheque deposited but not yet credited by the bank 3,000 Cheque issued but not yet presented 2,000 Bank charges debited 3,000 Cheques received by the bank directly 7,000 Insurance premium paid by the bank as per standing instructions not yet intimated 2,000

Prepare bank reconciliation statement and find out the balance as per the bank statement

UNIT -4 DEPERICATION ACCOUNTING

1. Jessica & Co purchased a fixed asset on 01.04.2002 for `5,00,000. Depreciation is to be provided at the rate of 15% annually, according to Straight Line Method. The books are closed on 31st March every year. Prepare Fixed Asset account for the first three years.

2. Bedi Brothers purchased a machine on 01.04.2000 for `5,00,000. On The firm charges depreciation at the rate of 15% per annum on Straight Line Method. The books are closed on 31st March every year. Prepare Machinery account for three years

3. M/s. Shankar & Co. purchased a Machinery on 1.1.2002 for Rs.10,00,000. The firm writes off depreciation at 10% on the original cost every year. The books

are closed on 31st March every year, Prepare Machinery account and Depreciation account for the first three years

4. A firm acquired a machine on 1st January 2006 at a cost of Rs 30000. the firm writes off depreciation at 10% per annum on the diminishing balance . Show the machinery account and depreciation account for 3 years.

5. A manufacturing concern whose books are closed on 31st December purchased machinery for Rs 40000 on 1.1.2006. additional machinery was purchased for Rs 20000 on 1.7.2007 and from Rs 10000 on 1.4.2008. prepare a machinery account for 3 yrs writing off depreciation at 10%p.a on written down value method

6. Rajesh bought a machine for Rs 25000 on which he spent Rs 5000 transport, 1000 as brokerage and Rs 4000 for installation, the machine was depreciated at 10% p.a every year on written down value basis. After 3 yrs the machine was sold to Mr. Y for Rs 30500 and Rs 500 was paid as commission to the broker .Prepare machinery account for 3 years

7. Ram Manufacturing Company purchased on 1st April, 2009, machinery for Rs1,00,000. After having used it for three years, the owners sold the machinery for Rs85,000. Depreciation is to be provided every year at the rate of 10% per annum on the Fixed Instalment Method. Books are closed on 31st March every year. Find out the profit or loss on sale of machinery

INVENTORY VALUATION

1. The following is the record of receipts and sales of certain goods during the first week of JUNE 2010

Stock verification on 3rd June , revealed a loss of 50 unitsShow valuation of stock on 7th June 2010

FIFO WAC

2. The following is the record of receipts and sales of certain goods during the first week of August 2010

Date Receipts Units Rate (Rs)

1/8/10 Opening stock 500 8.00 per unit

2/8/10 Purchases 600 10.00 per unit

3/8/10 Issue 300


5/8/10 Issue 400


7/8/10 Issue 400

Date Receipts Units Rate (Rs)

1/6/10 Opening stock 1500 16 per unit

2/6/10 Purchases 600 20 per unit

3/6/10 Issue 600 -

4/6/10 Purchases 500 19 per unit

5/6/10 issue 500


7/6/10 Issue 400

Stock verification on 3rd April , revealed a loss of 10 unitsShow the valuation of stock on 7th August 2010 using

FIFO WAC

3. Meena and Company Pvt Ltd provides you with the following information in respect of their purchases

from 1st to 5th of May 2013.

Opening stock 1000 units of a product @ Re1 lac;

purchased 400 units @Rs.1,50000;

issued 450 units;

purchased 500 units @Rs.160000;

issued 300 units.

Compute the value of the inventory using FIFO method on the closing of 5.5.2013.

4. Prepare cost of goods sold and value of closing stock using FIFO method and weighted average value

method from the following information in respect of certain customer of a bank branch.

March 1

Opening stock 100 units Rs.50 per unit

4 Purchases 200 Rs. 55 per unit

10 Issues 100

15 Purchases 140 Rs.60

18 Issues 100

24 Purchases 80 Rs.65

30 Issues 200

FINAL ACCOUNTS UNIT 5

1. The balances from the books of Parimal Ghosh are given below. Prepare Trading and Profit & Loss Account for the year ended 31st March, 2007.

Stock as on 1.4.2006 9480 Purchase Returns 1800

Purchases 50800 Advertising 1500 Wages 1200 Commission (Cr.) 3200 Salaries 3400 Rent f received 2800 Direct expenses 1320 Sales 72000 Rent & Taxes 850 Stock (31.3.2007) 10700 Bad Debts 250 Discount (Dr.) 360 Interest received 760

2. The balances from the books of are given below. Prepare Trading and Profit & Loss Account for the year ended 31st March, 2007.

Stock as on 1.4.2006 90000 Purchase Returns 3000 Purchases 54000 Advertising 3400 Wages 7000 Commission (Cr.) 4300 Salaries 7500 Rent received 5000 Direct expenses 220 Sales 72000 Rent & Taxes 6000 Stock (31.3.2007) 45000 Bad Debts 400 Discount (Dr.) 300 Interest received 560

3. The following is the trial balance of Z Co Ltd as at 31st December 2012.

Particulars Amount Dr. Amount Cr.

Stock as on 1st Jan. 2012 90000

Sales 55000

Purchases 25000

Wages 23000

Discount 9000

Furniture & Fixtures 65000

Salaries 23000

Rent 10000

Sundry expenses 8000

Patent & Trade Mark 40000

Interest paid 20000

Share capital 500000

Debtors & Creditors 100000 110000

Plant and Machinery 230000

Cash & bank balance 95000

Bills Payable 55000

TOTAL 729000 729000

Prepare trading & Profit and loss a/c and balance sheet after taking into consideration the following adjustments:I) Stock on 31st December 2012 was valued at Rs.40000II) Depreciation on Furniture and Fixtures and Patents & Trade Mark is @ 5% each.

4. The following is the trial balance of Anand and Bros. Pvt. Ltd as at 31st December 2012.



Sales 83000

Purchases 75000

Wages 24000

Discount 6700


Salaries 60000

Rent 29000



Interest paid 6000





Bills Payable 61000

TOTAL 1173700 1173700

Prepare trading & Profit and loss a/c and balance sheet after taking into consideration the following adjustments:I) Stock on 31st December 2012 was valued at Rs.40000II) Outstanding salaries amounted to Rs. 800III) Prepaid wages Rs. 900

Problem -5

6. The following is the trial balance of X Ltd as at 31st December 2012.



Sales 214000

Purchases 65000

Wages 12000

Discount 22000


Salaries 22000

Rent 10000



Interest paid 30000





Bills Payable 200000

TOTAL 988000 988000

Prepare trading & Profit and loss a/c and balance sheet after taking into consideration the following adjustments:

I) Stock on 31st December 2012 was valued at Rs.50000II) Depreciation on Plant and Machinery, Patents & Trade Mark is @ 10% each

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Documents

Activity Book Afm