(a) Show the direct Ledger postings for the following transactions in the books of Kalaiselvi.

| 2022 October | | ₹ |
| --- | --- | --- |
| 1 | Started business with cash | 25,000 |
| 5 | Deposited into bank | 12,500 |
| 10 | Purchased furniture and payment by cheque | 2,000 |
|

Question

(a) Show the direct Ledger postings for the following transactions in the books of Kalaiselvi.

| 2022 October | | ₹ |
| --- | --- | --- |
| 1 | Started business with cash | 25,000 |
| 5 | Deposited into bank | 12,500 |
| 10 | Purchased furniture and payment by cheque | 2,000 |
| 15 | Goods purchased for cash | 5,000 |
| 19 | Sold goods to Vasu on credit | 4,000 |
| 22 | Goods worth ₹ 500 taken for personal use | |

OR

(b) Classify the following Expenditures and Receipts as Capital or Revenue.
(i) ₹ 10,000 spent as travelling expenses of the Director on trips abroad for the purchase of fixed assets.
(ii) Amount received from trade receivables during the year.
(iii) Amount spent on demolition of old building to construct a new building on the same site.
(iv) Insurance claim received on account of a machinery damaged by fire.
(v) ₹ 150 spent on repairs before using a second hand car purchased recently.

Accepted Answer

>

> [!TLDR]
> (a) Ledger accounts of Kalaiselvi with closing balances (Cash ₹7,500, Bank ₹10,500, etc.); (b) classify five items as capital/revenue.
>
> ## (a) Ledger of Kalaiselvi (direct postings, October 2022)
>
> **Cash A/c**
>
> | Dr | ₹ | Cr | ₹ |
> | --- | --- | --- | --- |
> | Oct 1 To Capital A/c | 25,000 | Oct 5 By Bank A/c | 12,500 |
> | | | Oct 15 By Purchases A/c | 5,000 |
> | | | Oct 31 By Balance c/d | 7,500 |
> | **Total** | **25,000** | **Total** | **25,000** |
>
> **Capital A/c**
>
> | Dr | ₹ | Cr | ₹ |
> | --- | --- | --- | --- |
> | Oct 31 To Balance c/d | 25,000 | Oct 1 By Cash A/c | 25,000 |
>
> **Bank A/c**
>
> | Dr | ₹ | Cr | ₹ |
> | --- | --- | --- | --- |
> | Oct 5 To Cash A/c | 12,500 | Oct 10 By Furniture A/c | 2,000 |
> | | | Oct 31 By Balance c/d | 10,500 |
> | **Total** | **12,500** | **Total** | **12,500** |
>
> **Furniture A/c**
>
> | Dr | ₹ | Cr | ₹ |
> | --- | --- | --- | --- |
> | Oct 10 To Bank A/c | 2,000 | Oct 31 By Balance c/d | 2,000 |
>
> **Purchases A/c**
>
> | Dr | ₹ | Cr | ₹ |
> | --- | --- | --- | --- |
> | Oct 15 To Cash A/c | 5,000 | Oct 22 By Drawings A/c | 500 |
> | | | Oct 31 By Balance c/d | 4,500 |
> | **Total** | **5,000** | **Total** | **5,000** |
>
> **Sales A/c**
>
> | Dr | ₹ | Cr | ₹ |
> | --- | --- | --- | --- |
> | Oct 31 To Balance c/d | 4,000 | Oct 19 By Vasu A/c | 4,000 |
>
> **Vasu A/c**
>
> | Dr | ₹ | Cr | ₹ |
> | --- | --- | --- | --- |
> | Oct 19 To Sales A/c | 4,000 | Oct 31 By Balance c/d | 4,000 |
>
> **Drawings A/c**
>
> | Dr | ₹ | Cr | ₹ |
> | --- | --- | --- | --- |
> | Oct 22 To Purchases A/c | 500 | Oct 31 By Balance c/d | 500 |
>
> ## (b) Capital or Revenue
>
> | Item | Classification | Reason |
> | --- | --- | --- |
> | (i) ₹10,000 travelling of Director to buy fixed assets | **Capital expenditure** | Cost of acquiring a fixed asset, added to its cost | …

2022 October		₹
1	Started business with cash	25,000
5	Deposited into bank	12,500
10	Purchased furniture and payment by cheque	2,000
15	Goods purchased for cash	5,000
19	Sold goods to Vasu on credit	4,000
22	Goods worth ₹ 500 taken for personal use

Dr	₹	Cr	₹
Oct 1 To Capital A/c	25,000	Oct 5 By Bank A/c	12,500
		Oct 15 By Purchases A/c	5,000
		Oct 31 By Balance c/d	7,500
Total	25,000	Total	25,000

Dr	₹	Cr	₹
Oct 5 To Cash A/c	12,500	Oct 10 By Furniture A/c	2,000
		Oct 31 By Balance c/d	10,500
Total	12,500	Total	12,500

Dr	₹	Cr	₹
Oct 15 To Cash A/c	5,000	Oct 22 By Drawings A/c	500
		Oct 31 By Balance c/d	4,500
Total	5,000	Total	5,000

(a) Ledger of Kalaiselvi (direct postings, October 2022)

(b) Capital or Revenue

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