MANAGERIAL ACCOUNTING

Submitted by : TARUNKUMAR KAIRAMKONDA

Enrollment No: A13559013004

ASSIGNMENT NO 1.
On January 1,2013, Sohan started Photo Development Company. The Following
transactions took place during the first month:
2013
Jan. 1
Sohan invested Rs 30,000 cash in the company share capital.
2
Bought supplies of photographic materials on credit, Rs 9,000.
5
Bought photographic equipment for cash, Rs 12,000.
7
Received fees for photographic services, Rs 15,000.
8
Paid Salary to staff Rs 5,000
9
Received rent of Rs 2,000
10
Paid Rs 1,000 commission
13
Paid creditor for supplies, Rs 5,000.
18
Took a loan, Rs 12,000
22
Billed customers for services, Rs 19,000
27
Paid office rent, Rs 2,500, and electricity charges, Rs 1,200
31
Paid dividends, Rs 4,000
REQUIRED:
1.The effect each transaction on the accounting equations IN PROPER fORMAT
2. MAKE JOURNAL ENTRIES
3. BALANCE EACH ACCOUNT
4. PREPARE BALANCE SHEET AND PROFIT & LOSS ACCOUNT

ASSIGNMENT 1
EFFECT OF TRANSACTION ON THE ACCOUNTING
EQUATION (THE AMOUNT IN RUPEES)

DEBIT
Date

Current Assets
Cash

Assets
Fixed assets

Inventory Debtors

Land

Buildng

Plant/
Equipment

Jan-01
Jan-02
Jan-05
Jan-07
Jan-08
Jan-09
Jan-10
Jan-13
Jan-18
Jan-22
Jan-27
Jan-31

-12,000.00
15,000.00
-5,000.00
2,000.00
-1,000.00
-5,000.00
12,000.00
19,000.00
-3,700.00
-4,000.00

12,000.00

Balance

47,300.00 9,000.00

12,000.00

Liabilities

Equity

Creditors Payables

Capital

30,000.00

CREDIT

Income

Expenditure

30,000.00
9,000.00

9,000.00
15,000.00
-5,000.00

2,000.00
-1,000.00
-5,000.00
12,000.00
19,000.00
-3,700.00
-4,000.00
16,000.00

30,000.00 36,000.00

13,700.00

JOURNAL ENTRY
Cash
Jan-01

Jan-02

to Capital
Purchase

Jan-08
Jan-09
Jan-10
Jan-13

Salary

Jan-27

12,000.00
12,000.00
15,000.00
15,000.00
5,000.00

to Cash
Cash

5,000.00
2,000.00

to Rent
Commission

2,000.00
1,000.00

to Cash
Creditors

1,000.00
5,000.00
5,000.00

to Cash
12,000.00

12,000.00

to Loan
Cash

Jan-22

9,000.00

to Income

Cash
Jan-18

9,000.00

to Cash
Cash

Jan-07

30,000.00

to Creditors
Photographic equipment

Jan-05

30,000.00

19,000.00
19,000.00

to Sales
Office rent

2,500.00

Electricity charges

1,200.00
3,700.00

to Cash
Jan-31

Dividend
to Cash

4,000.00
4,000.00

Profit and loss account for the month ended Jan 31, 2013

Credit

Debit
Particulars
To Purchase
To Salary

To Commission Paid
To Office Rent
ToElectricity Charges
ToDividend
To Profit

Amount

Particulars

Amount

9,000.00
5,000.00

By Sales
19,000.00
By Income from phot.
Service
15,000.00

1,000.00

By Rent

2,000.00

2,500.00 Date
1,200.00
4,000.00
13,300.00

36,000.00

36,000.00

BALANCE SHEET OF M/S SOHAN AS ON 30 JAN 2013

Liabilities

Amount

Assets

Amount

Capital A/c

30,000.00

Photographic equipment

12,000.00

Profit

13,300.00

cash

47,300.00

LoanA/c

12,000.00

Creditor

4,000.00

59,300.00

Liabilities

Amount

59,300.00

Assets

Amount

Capital A/c

92,800.00

Equipment

55,000.00

Creditor

30,000.00

Account Rec.

28,000.00

cash

29,000.00

Supplies

10,800.00

122,800.00

122,800.00

ASSIGNMENT NO 2.
Identification of Transactions. The following table summarizes six transactions of ABC company. The effect each transaction on the
accounting equations is shown.
Required
Write a brief explanation for each of the transactions. If several explanations are possible, Write all of them. MAKE BALANCE SHEET
Assets

Liabilities

Equity

Cash

Accounts
Receivable

Supplies

Equipment

Creditors

Hrishikesh
Capital

Balance
(a)

20,000
-3,000

52,000

6,800

50,000

43,000

85,800
- 3,000

Balance
(b)

17,000

52,000

6,800

55,000
+5,000

48,000
+5,000

82,800

Balance
(c)

17,000
+24,000

52,000
-24,000

6,800

55,000

48,000

82,800

Balance
(d)

41,000
+10,000

28,000

6,800

55,000

48,000

82,800
+10,000

Balance
(e)

51,000
-4,000

28,000

6,800
+4,000

55,000

48,000

92,800

Balance
(f)

47,000
-18,000

28,000

10,800

55,000

48,000
-18,000

92,800

Balance

29,000

28,000

10,800

55,000

30,000

92,800

ASSIGNMENT 2
EFFECT OF TRANSACTION ON THE ACCOUNTING
EQUATION (THE AMOUNT IN RUPEES)

DEBIT
Date

Current Assets
Cash

A
B
C
D
E
F
G
H
I
J
K
L
M
N

Total

Assets
Fixed assets

Prepaid Debtor
Land
rent
s

50,000.0
0
-15000
25000

Liabilities

Plant/
Buildng Equipm
ent

CREDIT

Equity

Creditors Loan

Outstand
Capital Income Expenditure
ing Exp.
50,000.
00

15000
25000
3000

-12500
-5000
-1500
29000

-3000
-12500
-5000

-1500
29000
500

-500
500
-2500
50000
-5000
-3000
109,000.
00

-500

2500
50000
-5000
-5000

2000

2500

15000

1000

25000

2500

45000 79000

26000

JOURNAL ENTRY
Serial no.

Particular
Cash

Debit
50,000.00

J
15,000.00

25,000.00

Creditors
G

12,500.00

Cash
to Fees received

Salary

500.00
500.00
500.00
2,500.00
2,500.00

50,000.00
50,000.00
5,000.00

to Cash
12,500.00

Rent
to Cash
to O/s rent

5,000.00
5,000.00
1,500.00
1,500.00
29,000.00
29,000.00

Credit

500.00

to Sale of tv
M

to Cash

Debit

to Cash

Cash

3,000.00

to Cash

Salary

3,000.00

to Cash
Capital

Creditors

Prepaid rent

25,000.00

to Creditor
Rent

Particular

to O/s Salary
15,000.00

to Bank loan
Supplies

I
50,000.00

to Cash
Bank

Serial no.

to Supplies

to Capital
Equipment

Credit

5000

5,000.00
3000
2000

Profit and loss account for the month ended AUG

31, 2013
Particulars Amount
To Salary 5,500.00

To Rent
To Supplies

To Profit

Date

Particulars
By Sales

Amount
50,000.00

17,500.00

By Income

29,000.00

3000.00

By Supplies
return

500.00

53,500.00
79,500.00

79,500.00

BALANCE SHEET OF M/S RAJIV AS ON 31AUG 2013

Liabilities

Amount

Assets
Equipment

Amount

Capital A/c

45,000.00

Profit

53,500.00

cash

84,500.00

Bank Loan A/c

25,000.00

Prepaidrent

2,500.00

Creditor
O/S salary
O/S rent

Total

15,000.00

1,000.00
500.00

Bank

25000

Total

1,27,0000.0
0

2,000.00

1,27,000.00

ASSIGNMENT3.
Effect of Transactions on Accounting Equation. On August 1,2013, Rajiv established
TV showroom. The business engaged in the following transactions in the first
month:
Rajiv invested Rs 50,000 cash in the business.
Bought equipment for cash , Rs 15,000.
Took a bank loan, Rs 25,000.
Bought supplies on credit, Rs 3,000.
Paid rent, Rs 12,500.
Withdrew cash for personal use, Rs 5,000
Paid creditors, Rs 1,500.
Received fee for services provided, Rs 29,000.
Returned supplies costing Rs 500.
Rs. 500 salary is Payable.
Rs2500 rent is prepaid( paid in advance)
Rs 50,000 received on sale of TV.
Rs 5,000 salary paid.
Rs 3,000 Rent paid and remaining Rs 2,000 is Payable.

Required
Analyze the effect of the transaction on the accounting Equation. make Balance
sheet as well as Profit & loss account . please Journalize the Transactions.

Assignment 3
SOLUTIONS:(a) CASH WITHDRAWN FOR PERSONAL USE RS.3OOO/
(b) EQUIPMENT BOUGHT ON CREDIT RS15OOO/
(c) CASH RECEIVED FROM DEBTORS RS124000/.
(d) CASH BROUGHT AS CAPITAL BY HRISHIKESH RS110000/.
(e) SUPPLIES BOUGHT FOR CASH RS.4OOO/
(f) CASH PAID TO CREDITORS RS.1$000/.

Balance sheet as on31 March 20XX

Liabilities

Amount

Capital A/c

92,800.00

Creditor

30,000.00

Total

Assets

1,22,800.00

Equipment

Amount

55,000.00

Debtors

28,000.00

Cash

29,000.00

Inventories

10,800.00

Total

1,22,800.00

ASSIGNMENT 4.
Effect of Transaction on Accounting Equation. On January 1, 2013, Pramod Krishnan
set up Interior Dcor Company. The following transactions took place during the
first month:

Pramod Krishnan invested Rs 50,000 cash in the companys share capital.

Took a bank loan, Rs 25,000.
Billed customers for services, Rs 14,000.
Paid assistants salary, Rs 5,000.
Bought furniture for cash, 20,000.
Bought office supplies on credit, Rs 3,000.
Received cash for services provided. Rs 38,000.
Paid fuel expense, Rs 8,000.
Rs 2000 fuel expense payable
Paid office rent, Rs 4,000.
Rs 2000 office Rent payable
Paid creditors Rs 3,000.
Received cash from customers billed, Rs 11,000.
Required
Analyze the effect of the transactions on the accounting equation. Make
Balance sheet ,Profit & loss Account as well as Journalize the transactions

ASSIGNMENT 4
EFFECT OF TRANSACTION ON THE ACCOUNTING
EQUATION (THE AMOUNT IN RUPEES)

Credit

Debit
Assets
Date

Current Assets

Fixed assets

Cash

Furniture

Debtors

50000

25000

Liabilities

Creditors

Outstanding
Loans
exp

Capital

-5000

-20000

Income

25,000
14,000
-5,000
=

20000

3,000

38000

-8000

-3000
38,000
-8,000
-2,000

2,000.00

-4,000

-4000
2,000.00

k
l

-3000

11000
84000

Expenditure

50,000
14,000

Equity

-2,000

-3,000.00
-11000
3000

20,000

00

4000

25000

50,000 52,000

24,000

JOURNAL ENTRY
Cash
A

B
C
D
E
F

H
I
J
K

L
M

50,000.00

to Capital

50,000.00

Cash
to Bank loan
Debtors
to Sales
Salary
to Cash
Furniture
to Cash
Supplies
to Creditors

25,000.00

Cash

38,000.00

to Sales
Fuel expense
to cash
Fuel expense
to O/s expenses
Office rent
to Cash
Office rent
to O/s rent
Creditor
to Cash
Cash
to Sales

25,000.00
14,000.00
14,000.00
5,000.00
5,000.00
20,000.00
20,000.00
3,000.00
3,000.00

38,000.00
8,000.00
8,000.00

2,000.00
2,000.00
4,000.00
4,000.00
2,000.00

2,000.00
5,000.00

5,000.00
11,000.00
11,000.00

Profit and loss account for the month ended Jan

31, 2013

Particulars

Amount

Particulars
By Sales

To Salary
To Fuel exp
To Office rent

Amount
52,000.00

5,000.00
10,000.00
6,000.00

To Office supplies
3000.00
To Profit

28,000.00

52,000.00

52,000.00

BALANCE SHEET OF M/S Pramod Krishnan AS ON

31 JAN 2013

Liabilities

Amount

Assets

Amount

Furniture
Capital A/c

50,000.00

Profit

28,000.00

Cash

84,000.00

Bank LoanA/c

25,000.00

Debtors

3,000.00

O/s expenses

4,000.00

Total

1,07,000.00

20,000.00

Total

1,07,000.00