Accountancy Dk Goel 2019 for Class 11 Commerce Accountancy Chapter 3

Question 1:

Enter the following transactions in the Journal of Manohar Lal & Sons.:-

2019		₹
March 1	Manohar Lal & Sons started business with cash	60,000
2	Purchased furniture for cash	10,000
4	Purchased goods for cash	25,000
5	Bought goods from Kamlesh	15,000
10	Paid cash to Kamlesh	15,000
16	Purchased goods from Sohan	6,000
18	Purchased goods from Sohan for cash	8,000
20	Paid rent for the office	1,000

Answer:

Journal In the Books of Manohar Lal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Mar. 01	Cash A/c	Dr.		60,000
	To Capital A/c				60,000
	( Started business with cash)

Mar. 02	Furniture A/c	Dr.		10,000
	To Cash A/c				10,000
	(Furniture purchased for cash)

Mar. 04	Purchases A/c	Dr.		25,000
	To Cash A/c				25,000
	( Goods purchased for cash)

Mar. 05	Purchases A/c	Dr.		15,000
	To Kamlesh’s A/c				15,000
	(Goods purchased from Kamlesh)

Mar. 10	Kamlesh’s A/c	Dr.		15,000
	To Cash A/c				15,000
	(Cash paid to Kamlesh)

Mar. 16	Purchases A/c	Dr.		6,000
	To Sohan’s A/c				6,000
	(Goods purchased from Sohan)

Mar. 18	Purchases A/c	Dr.		8,000
	To Cash A/c				8,000
	(Goods purchased from Sohan for cash)

Mar. 20	Rent A/c	Dr.		1,000
	To Cash A/c				1,000
	(Paid office rent)
	TOTAL			1,40,000	1,40,000

Question 2:

Enter the following transactions in the Journal of M/s Tripathi Bros. :-

2019		₹
Jan. 6	Sold goods for cash	36,000
8	Sold goods to Hari	30,000
14	Received cash from Hari	18,000
26	Received Commission	750
27	Paid Salary to Gopal	1,200
28	Received cash from Hari	12,000
29	Withdrew cash from office for personal use	4,000
30	Wages paid	7,200
30	Bought Machinery for Cash	8,000

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan 06	Cash A/c	Dr.		36,000
	To Sales A/c				36,000
	(Sold goods for cash)

Jan 08	Hari A/c	Dr.		30,000
	To Sales A/c				30,000
	(Sold goods to Hari)

Jan 14	Cash A/c	Dr.		18,000
	To Hari A/c				18,000
	(Received cash from Hari)

Jan 26	Cash A/c	Dr.		750
	To Commission A/c				750
	(Received commission)

Jan 27	Salary A/c	Dr.		1,200
	To Cash A/c				1,200
	(Paid salary to Gopal)

Jan 28	Cash A/c	Dr.		12,000
	To Hari A/c				12,000
	(Received cash from Hari)

Jan 29	Drawings A/c	Dr.		4,000
	To Cash A/c				4,000
	(Drew cash for personal use)

Jan 30	Wages A/c	Dr.		7,200
	To Cash A/c				7,200
	(Paid wages)

Jan 30	Machinery A/c	Dr.		8,000
	To Cash A/c				8,000
	(Purchased machinery)
				1,17,150	1,17,150

Question 3:

Enter the following transactions in the Journal of Sahil Bros. :

2018			₹
October	1	Purchased goods from Anil for Cash	40,000
	3	Purchased goods from Atul	75,000
	6	Returned goods to Atul	3,000
	8	Paid cash to Atul	50,000
	10	Sold goods to Charu	1,00,000
	12	Charu returned 20% of goods
	15	Paid rent	2,000
	20	Sahil withdrew for personal use	10,000

Answer:

Journal In the Books of Sahil
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Oct. 01	Purchases A/c	Dr.		40,000
	To Cash A/c				40,000
	(Goods purchased from Anil for cash)

Oct. 03	Purchases A/c	Dr.		75,000
	To Atul’s A/c				75,000
	(Goods purchased from Atul)

Oct. 06	Atul’s A/c	Dr.		3,000
	To Purchases Return A/c				3,000
	(Goods returned to Atul)

Oct. 08	Atul’s A/c	Dr.		50,000
	To Cash A/c				50,000
	(Cash paid to Atul)

Oct. 10	Charu’s A/c	Dr.		1,00,000
	To Sales A/c				1,00,000
	( Goods sold to Charu)

Oct. 12	Sales Return A/c	Dr.		20,000
	To Charu’s A/c				20,000
	(Goods returned to Charu)

Oct. 15	Rent A/c	Dr.		2,000
	To Cash A/c				2,000
	(Rent paid)

Oct. 20	Drawings A/c	Dr.		10,000
	To Cash A/c				10,000
	(Cash withdrawn for personal use)
	TOTAL			3,00,000	3,00,000

Question 4:

Enter the following transactions in the Journal of Ganesh Bros. :

2017		₹
March 3	Sold goods to Dev	1,00,000
5	Received from Dev in full settlement of his account	98,000
6	Sold goods to Manmohan	80,000
8	Manmohan returned goods	1,000
15	Received from Manmohan in full settlement of his account	78,200
16	Received cash from Ram	19,500
	and discount allowed	500
20	Paid cash to Pawan	4,700
	and discount received from him	300
25	Sold goods to Varun of the list price of ₹ 25,000 at 20% trade discount

Answer:

Journal In the Books of Ganesh
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Mar. 03	Dev’s A/c	Dr.		1,00,000
	To Sales A/c				1,00,000
	(Goods sold to Dev)

Mar. 05	Cash A/c	Dr.		98,000
	Discount Allowed A/c	Dr.		2,000
	To Dev’s A/c				1,00,000
	(Cash received from Dev in full settlement of his account)

Mar. 06	Manmohan’s A/c	Dr.		80,000
	To Sales A/c				80,000
	(Goods sold to Manmohan)

Mar. 08	Sales Return A/c	Dr.		1,000
	To Manmohan’s A/c				1,000
	(Goods returned to Manmohan)

Mar. 15	Cash A/c	Dr.		78,200
	Discount Allowed A/c	Dr.		800
	To Manmohan’s A/c				79,000
	(Cash received from Manmohan in full settlement of his account)

Mar. 16	Cash A/c	Dr.		19,500
	Discount Allowed A/c	Dr.		500
	To Ram’s A/c				20,000
	(Cash received from Ram and discount allowed)

Mar. 20	Pawan’s A/c	Dr.		5,000
	To Cash A/c				4,700
	To Discount Received A/c				300
	(Cash paid to Pawan and received discount)

Mar. 25	Varun’s A/c	Dr.		20,000
	To Sales A/c				20,000
	(Goods sold @ 20% trade discount)
	TOTAL			4,05,000	4,05,000

Question 5:

Pass Journal entries in the books of Hari Shankar & Co. from the following:

2017		₹
April 1	Commenced business with cash	50,000
2	Purchased goods from Subhash	20,000
4	Sold goods to Ramnath	15,000
6	Ramnath returned defective goods	1,000
10	Received cash from Ramnath and	13,800
	Discount allowed	200
12	Gopal sold goods to us	10,000
14	Paid to Gopal in full settlement of his account after deducting 5% discount.
15	Paid Rent	10,000
16	Paid Rent of Hari Shankar's residence	5,000
18	Purchased goods for cash from Govind for ₹ 6,000 at 20% trade discount.
20	Purchased goods from Govind for ₹ 10,000 at 20% trade discount.
24	Paid to Govind ₹ 7,850 in full settlement of his account.
25	Paid to Subhash ₹ 4,750; discount received ₹ 250.
30	Paid Wages ₹ 400; Salaries ₹ 4,000; Advertisement expenses ₹ 800 and Trade expenses ₹ 1,000.

Answer:

Journal In the Books of Hari Shankar & Co.
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2017
Apr. 01	Cash A/c	Dr.		50,000
	To Capital A/c				50,000
	(Started business with cash)

Apr. 02	Purchases A/c	Dr.		20,000
	To Subhash’s A/c				20,000
	(Goods purchased from Subhash)

Apr. 04	Ramnath’s A/c	Dr.		15,000
	To Sales A/c				15,000
	(Goods sold to Ramnath)

Apr. 06	Sales Return A/c	Dr.		1,000
	To Ramnath’s A/c				1,000
	(Goods returned to Ramnath)

Apr. 10	Cash A/c	Dr.		13,800
	Discount Allowed A/c	Dr.		200
	To Ramnath’s A/c				14,000
	(Cash received from Ramnath and allowed discount)

Apr. 12	Purchases A/c	Dr.		10,000
	To Gopal’s A/c				10,000
	(Goods purchased from Gopal)

Apr. 14	Gopal’s A/c	Dr.		10,000
	To Cash A/c				9,500
	To Discount Received A/c				500
	(Cash paid to Gopal in full settlement of his account)

Apr. 15	Rent A/c	Dr.		10,000
	To Cash A/c				10,000
	(Rent paid)

Apr. 16	Drawings A/c	Dr.		5,000
	To Cash A/c				5,000
	(Rent paid for Hari Shankar’s residence)

Apr. 18	Purchases A/c	Dr.		4,800
	To Cash A/c				4,800
	(Goods purchased for cash at 20% trade discount)

Apr. 20	Purchases A/c	Dr.		8,000
	To Govind’s A/c				8,000
	(Goods purchased from Govind at 20% trade discount)

Apr. 24	Govind’s A/c	Dr.		8,000
	To Cash A/c				7,850
	To Discount Received A/c				150
	(Cash paid to Govind in full settlement of his account)

Apr. 25	Subhash’s A/c	Dr.		5,000
	To Cash A/c				4,750
	To Discount Received A/c				250
	(Cash paid to Subhash in full settlement of his account)

Apr. 30	Wages A/c	Dr.		400
	Salaries A/c	Dr.		4,000
	Advertisement Expenses A/c	Dr.		800
	Trade Expenses A/c	Dr.		1,000
	To Cash A/c				6,200
	(Expenses paid)
	TOTAL			1,67,000	1,67,000

Question 6:

Enter the following transaction in the Journal of Marutinandan Stores:

2017
Jan. 10		Purchased goods from Ghanshyam of the list price of ₹ 50,000 at 15% trade discount.
13		Returned goods to Ghanshyam of the list price of ₹ 2,000.
15		Paid cash to Ghanshyam ₹ 40,000 in full settlement of his account.
20		Purchased goods from Raghu of the list price of ₹ 60,000 at 10% trade discount.
22		Returned goods to Raghu of the list price of ₹ 5,000.
25		Paid cash to Raghu ₹ 49,000 in full settlement of his account.

Answer:

Journal In the Books of Marutinandan Stores
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 10	Purchases A/c	Dr.		42,500
	To Ghanshyam’s A/c				42,500
	(Goods purchased at 15% trade discount)

Jan. 13	Ghanshyam’s A/c	Dr.		1,700
	To Purchases Return A/c				1,700
	(Goods returned to Ghanshyam deducting trade discount of 15%)

Jan. 15	Ghanshyam’s A/c	Dr.		40,800
	To Cash A/c				40,000
	To Discount Received A/c				800
	(Cash paid to Ghanshyam in full settlement of his account)

Jan. 20	Purchases A/c	Dr.		54,000
	To Raghu’s A/c				54,000
	(Goods purchased from Raghu at trade discount of 10%)

Jan. 22	Raghu’s A/c	Dr.		4,500
	To Purchases Return A/c				4,500
	(Goods returned to Raghu deducting trade discount of 10%)

Jan. 25	Raghu’s A/c	Dr.		49,500
	To Cash A/c				49,000
	To Discount Received A/c				500
	(Cash paid to Raghu in full settlement of his account)
				1,93,000	1,93,000

Question 7:

Pass Journal Entries for the following transactions:

2017
Jan 6		Sold goods to Muskan of the list price of ₹ 2,00,000 at trade discount of 20%.
8		Muskan returned goods of the list price of ₹ 5,000.
15		Received from Muskan the full payment under a cash discount of 4%.

Answer:

Journal In the Books of …
Date	Particulars		L. F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 06	Muskan’s A/c	Dr.		1,60,000
	To Sales A/c				1,60,000
	(Goods sold to Muskan at trade discount of 20%)

Jan. 08	Sales Return A/c			4,000
	To Muskan’s A/c				4,000
	(Goods returned by Muskan deducting trade discount of 20%)

Jan. 15	Cash A/c	Dr.		1,49,760
	Discount Allowed A/c	Dr.		6,240
	To Muskan’s A/c				1,56,000
	(Cash received from Muskan in full settlement of her account)
				3,20,000	3,20,000

Question 8:

Give Journal Entries for the following transactions in the books of Raja Ram & Co. :

2017
March 3		Bought goods for cash of the list price of ₹ 80,000 at 10% trade discount and 2 $\frac{1}{2}$ % cash discount.
5		Sold goods for cash of the list price of ₹ 1,00,000 at 15% trade discount and 3% cash discount.
6		Sold goods to Nagpal of the list price of ₹ 50,000 at 20% trade discount.
8		Nagpal returned one-fourth of the above goods.
10		Nagpal settled the account by paying cash under a discount of 5%.

Answer:

Journal In the Books of Raja Ram
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Mar. 03	Purchases A/c	Dr.		72,000
	To Cash A/c				70,200
	To Discount Received A/c				1,800
	(Goods purchased for cash and received cash discount)

Mar. 05	Cash A/c	Dr.		82,450
	Discount Allowed A/c	Dr.		2,550
	To Sales A/c				85,000
	(Goods sold for cash and allowed cash discount)

Mar. 06	Nagpal’s A/c	Dr.		40,000
	To Sales A/c				40,000
	(Goods sold to Nagpal)

Mar. 08	Sales Return A/c	Dr.		10,000
	To Nagpal’s A/c				10,000
	(Goods returned by Nagpal)

Mar. 10	Cash A/c	Dr.		28,500
	Discount Allowed A/c	Dr.		1,500
	To Sales A/c				30,000
	(Cash received in full settlement)
	TOTAL			2,37,000	2,37,000

Question 9:

Pass Journal entries in the books of Raghunath Bros. from the following transactions:-

2016
June 01	Raghunath Bros. started business with cash ₹ 80,000; Goods ₹ 40,000 and furniture ₹ 20,000.
June 02	Sold goods to Nandlal of the list price of ₹ 20,000 at trade discount of 10%.
June 04	Nandlal returned goods of the list price of ₹ 4,000.
June 08	Received from Nandlal ₹ 14,150 in full settlement of his account.
June 10	Purchased goods from Brij Mohan of the list price of ₹ 10,000 at 15% trade discount.
June 13	Returned goods to Brij Mohan of the list price of ₹ 1,000.
June 16	Settled the account of Brij Mohan by paying cash, under a discount of 4%.
June 18	Purchased goods from Anil ₹ 5,000; Sunil ₹ 10,000.
June 19	Paid cash to Anil ₹ 1,900 and discount received ₹ 100.
June 20	Paid ₹ 9,800 to Sunil in full settlement of his account.
June 20	Bought a 'Table Fan' for ₹ 8,000 for the domestic use of Raghunath.
June 25	Sold goods for cash of the list price of ₹ 8,000 at 10% trade discount and 3% cash discount.
June 30	Paid Rent ₹ 8,000; Trade Expenses ₹ 7,000 and Travelling Expenses ₹ 3,800.

Answer:

Journal In the books of Raghunath Bros.
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2016
June 01	Cash A/c	Dr.		80,000
	Stock A/c	Dr.		40,000
	Furniture A/c	Dr.		20,000
	To Capital A/c				1,40,000
	(started business with cash, goods and furniture)

June 02	Nandlal	Dr.		18,000
	To Sales A/c				18,000
	(goods sold to Nandlal @ 10% Trade discount)

June 04	Sales return A/c	Dr.		3,600
	To Nandlal				3,600
	(goods sold to Nandlal returned)

June 08	Cash A/c	Dr.		14,150
	Discount allowed A/c	Dr.		250
	To Nandlal				14,400
	(cash received from Nandlal in full settlement)

June 10	Purchases A/c	Dr.		8,500
	To Brij Mohan				8,500
	(purchased goods from Brij Mohan on credit)

June 13	Brij Mohan	Dr.		850
	To Purchase Return A/c				850
	(purchased goods returned by Brij Mohan)

June 16	Brij Mohan	Dr.		7,650
	To discount received A/c				306
	To Cash A/c				7,344
	(settled amount due to Brij Mohan)

June 18	Purchases A/c	Dr.		15,000
	To Anil				5,000
	To Sunil				10,000
	(credit purchase from Anil & Sunil)

June 19	Anil			2,000
	To discount received A/c				100
	To Cash A/c				1,900
	(cash paid to Anil and received discount)

June 20	Sunil	Dr.		10,000
	To discount received A/c				200
	To Cash A/c				9,800
	(cash paid to Sunil and received discount)

June 20	Drawings A/c	Dr.		8,000
	To Cash A/c				8,000
	(table fan purchased for personal use)

June 25	Cash A/c			6,984
	Discount allowed A/c			216
	To Sales A/c				7,200
	(cash sales @10% TD & @5% Cash Discount)

June 30	Rent A/c	Dr.		8,000
	Trade expenses A/c	Dr.		7,000
	Travelling A/c	Dr.		3,800
	To Cash A/c				18,800
	(expenses paid in cash)
	TOTAL			2,54,000	2,54,000

Question 10:

Journalise the following transactions:

2019
March 5		Sold goods to Shruti for ₹ 80,000 at 15% trade discount and 4% cash discount. Received 75% amount immediately through a cheque.
10		Purchased goods from Richa for ₹ 60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Mar.05	Shruti	Dr.		68,000
	To Sales A/c				68,000
	(Goods sold to Shruti at 15% trade discount)

Mar.05	Bank A/c	Dr.		48,960
	Discount Allowed A/c	Dr.		2,040
	To Shruti				51,000
	(Payment received and cash discount allowed)

Mar.10	Purchases A/c	Dr.		54,000
	To Richa				54,000
	(Goods purchased from Richa at 10% trade discount)

Mar.10	Richa	Dr.		32,400
	To Bank A/c				30,780
	To Discount Received A/c				1,620
	(Payment made and cash discount received)

Working Notes:

1. Amount of goods sold would be Rs 68,000 (80,000 - 15% of 80,000) and cash discount would be Rs 2,040, it would be calculated on amount received Rs 51,000 i.e., 75% of Rs 68,000.

2. Amount of goods purchased would be Rs 54,000 (60,000 - 10% of 60,000) and cash discount would be Rs 1,620, it would be calculated on amount paid Rs 32,400 i.e., 60% of Rs 54,000

Question 11:

Pass journal entries for the following:

2019
Jan. 6		Purchased goods from Henry for ₹ 50,000 on 10% trade discount and 4% cash discount and paid 60% amount by cheque.
Jan. 15		Bought goods from Amit for ₹ 2,00,000 at terms 5% cash discount and 20% trade discount. Paid 3/4th of the amount in cash at the time of purchase.
Jan. 18		Sold goods to Sherpa at the list price of ₹ 50,000 less 20% trade discount and 4% cash discount if the payment is made within 7 days. 75% payment is received by cheque on Jan. 23rd.
Jan. 25		Sold goods to Garima for ₹ 1,00,000, allowed her 20% trade discount and 5% cash discount if the payment is made within 15 days. She paid 1/4th of the amount by cheque on Feb. 5th and 60% of the remainder on Feb.15th in cash

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan. 06	Purchases A/c	Dr.		45,000
	To Bank A/c (WN1)				25,920
	To Discount Received A/c				1,080
	To Henry’s A/c				18,000
	(Goods purchased and discount received on cash payment)

Jan. 15	Purchases A/c	Dr.		1,60,000
	To Bank A/c				1,14,000
	To Discount Received A/c				6,000
	To Amit’s A/c				40,000
	(Goods purchased and discount received on cash payment)

Jan. 18	Sherpa’s A/c	Dr.		40,000
	To Sales A/c				40,000
	(Goods sold to Sherpa on credit)

Jan. 23	Bank A/c	Dr.		28,800
	Discount Allowed A/c	Dr.		1,200
	To Sherpa’s A/c				30,000
	(75% payment received by Sherpa and allowed cash discount)

Jan. 25	Garima’s A/c	Dr.		80,000
	To Sales A/c				80,000
	(Goods sold to Garima on credit)

Feb. 05	Bank A/c	Dr.		19,000
	Discount Allowed A/c	Dr.		1,000
	To Garima’s A/c				20,000
	(Cheque received from Garima and allowed cash discount)

Feb. 15	Cash A/c*	Dr.		60,000
	To Garima’s A/c				60,000
	(Cash received from Garima)
	TOTAL			4,35,000	4,35,000

Working Notes:

WN1: Calculation of Payment made to Henry

WN2: Calculation of Payment made to Amit

*Note: Cash discount can be availed only if the payment is made within 15 days. Since payment is made on Feb. 15, thus, no discount is to be allowed to her.

Question 12:

Journalise the following transactions in the books of Dixit & Sons. :

2018
March 2	Sold goods to Dilip of the list price of ₹ 62,000 for ₹ 60,000.
16	Purchased goods costing ₹ 2,00,000 from Hari & Co. Paid 75% immediately by cheque to avail 4% discount.
20	Sold goods to Vishal Traders costing ₹ 40,000 at 25% profit, allowing 10% trade discount and 10% cash discount. Received 80% payment immediately by cheque.
26	Sold goods to Brij & Co. costing ₹ 50,000 at 40% profit, allowing 10% trade discount and 5% cash discount. Brij & Co. paid the full amount by cheque and availed cash discount.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Mar 02	Dixit A/c To Sales A/c	Dr.		60,000	60,000
	(Sold to Dixit)

Mar 16	Purchases A/c	Dr.		2,00,000
	To Hari & Co.				50,000
	To Bank A/c				1,44,000
	To Discount Received A/c				6,000
	(Purchased from Hari & Co., 75% paid through cheque and partly credit)

Mar 20	Bank A/c	Dr.		9,000
	Vishal Traders A/c	Dr.		32,400
	Discount Allowed A/c	Dr.		3,600
	To Sales A/c				45,000
	(Sold to Vishal Traders, partly received through cheque and partly credit)

Mar 26	Bank A/c	Dr.		59,850
	Discount Allowed A/c	Dr.		3,150
	To Sales A/c				63,000
	(Sold to Brij & Co., received fully through cheque)
				3,68,000	3,68,000

Question 13:

Journalise the following transactions:

2017		₹
Jan. 1	Paid into bank for opening a Current Account	10,000
3	Goods sold for ₹ 50,000 and the amount was deposited into the bank
7	Amount withdrawn from bank	20,000
10	Goods sold for Cash	15,000
12	Amount deposited into bank	12,000
14	Goods purchased and payment made by cheque.	25,000

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 01	Bank A/c	Dr.		10,000
	To Cash A/c				10,000
	(Payment made to open current account)

Jan. 03	Bank A/c	Dr.		50,000
	To Sales A/c				50,000
	(Goods sold and amount deposited into bank)

Jan. 07	Cash A/c	Dr.		20,000
	To Bank A/c				20,000
	(Cash withdrawn from Bank)

Jan. 10	Cash A/c	Dr.		15,000
	To Sales A/c				15,000
	(Goods sold for cash)

Jan. 12	Bank A/c	Dr.		12,000
	To Cash A/c				12,000
	(Cash deposited into bank)

Jan. 14	Purchases A/c	Dr.		25,000
	To Bank A/c				25,000
	(Goods purchased and payment made by cheque)
	TOTAL			1,32,000	1,32,000

Question 14(A):

Following balances appeared in the books of Radhika Traders as on 1st April, 2017:−
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors : ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000.
In April, 2017, the following transaction took place:

2017		₹
April 2	Bought goods of the list price of ₹ 6,000 from Khanna Brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.
3	Received a draft from Mohan in full settlement and deposited it into Bank	9,750
5	Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque.
8	Sold goods and received a cheque	25,000
10	Deposited the above cheque into Bank
12	Sohan deposited in our Bank A/c	4,000
16	Paid Income Tax by Cheque	5,600
20	Received a cheque from Sohan and sent to Bank	7,800
	Discount allowed	200
21	Withdrew from Bank−for office	2,000
	for private use	4,000
23	Sent a cheque to X in full settlement of his A/c	4,900
27	Cheque of Sohan returned by the bank as dishonoured.
28	Dinesh was declared insolvent and a payment of 60 paise in a ₹ received from his estate by a Cheque
30	Bank allowed Interest	350
	Paid for Rent by cheque	1,500
	Paid for traveling expenses by cheque	500

Pass Journal entries for the above transactions.

Answer:

Journal In the Books of Radhika Traders
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
April 01	Cash in Hand A/c	Dr.		8,000
	Cash at Bank A/c	Dr.		7,000
	Stock A/c	Dr.		30,000
	Mohan’s A/c	Dr.		10,000
	Sohan’s A/c	Dr.		12,000
	Dinesh’s A/c	Dr.		14,000
	Furniture A/c	Dr.		5,000
	Building A/c	Dr.		25,000
	To X’s A/c				5,000
	To Y’s A/c				6,000
	To Capital A/c (Balancing figure)				1,00,000
	(Balances of previous year brought forward)

April 02	Purchases A/c	Dr.		5,100
	To Khanna Brothers				3,060
	To Cash A/c				1,999
	To Discount Received A/c				41
	(Goods purchased and received discount on cash payment)

April 03	Bank A/c	Dr.		9,750
	Discount Allowed A/c	Dr.		250
	To Mohan				10,000
	(Draft received from Mohan deposited into bank)

April 05	Purchases A/c	Dr.		6,400
	To Bank A/c				6,400
	(Goods purchased and payment made by cheque)

April 08	Cheques-in-Hand A/c	Dr.		25,000
	To Sales A/c				25,000
	(Goods sold and received a cheque)

April 10	Bank A/c	Dr.		25,000
	To Cheques-in-Hand A/c				25,000
	(Cheque deposited into bank)

April 12	Bank A/c	Dr.		4,000
	To Sohan’s A/c				4,000
	(Amount deposited by Sohan)

April 16	Drawings A/c	Dr.		5,600
	To Cash A/c				5,600
	(Income tax paid)

April 20	Bank A/c	Dr.		7,800
	Discount Allowed A/c	Dr.		200
	To Sohan’s A/c				8,000
	(Banked cash received from Sohan in full settlement)

April 21	Drawings A/c	Dr.		4,000
	Cash A/c	Dr.		2,000
	To Bank A/c				6,000
	(Amount withdrawn for office and personal use)

April 23	X	Dr.		5,000
	To Bank A/c				4,900
	To Discount Received A/c				100
	(Cheque issued to X in full settlement of his account)

April 27	Sohan’s A/c	Dr.		8,000
	To Bank A/c				7,800
	To Discount Allowed A/c				200
	(Cheque received from Sohan gets dishonoured)

April 28	Cash A/c	Dr.		8,400
	Bad Debts A/c	Dr.		5,600
	To Dinesh’s A/c				14,000
	(Cash received and bad-debts written off)

April 30	Bank A/c	Dr.		350
	To Interest A/c				350
	(Interest allowed by bank)

April 30	Rent A/c	Dr.		1,500
	Travelling Expenses A/c	Dr.		500
	To Bank A/c				2,000
	(Expenses paid through cheque)
	TOTAL			2,35,450	2,35,450

Question 14(B):

Following was the position of Harish & Co. as on 1st April, 2017 :−
Cash in Hand ₹ 10,000; Cash at Bank ₹ 16,800; Furniture ₹ 8,000; Stock ₹ 50,000; Debtors− Ram ₹ 8,000; Shyam ₹ 12,000; Creditors− Anil ₹ 4,000; Sunil ₹ 5,000.
Following transactions took place during April, 2017 :−

2017
April 2		Received a cheque from Ram in full settlement of his account after deducting 5% cash discount.
4		Deposited the above cheque into Bank.
5		Goods purchased for ₹ 20,000 at 10% trade discount and 5% cash discount. Payment made by cheque.
6		Received a cheque from Shyam for ₹ 3,860 and discount allowed to him ₹ 140. Cheque deposited into the bank on the same day.
10		Cash paid to Anil after deducting 2% cash discount.
15		Old furniture sold for ₹ 800.
16		Sold goods to Shiv Parshad of the list price of ₹ 10,000 at a trade discount of 15%.
18		Shiv Parshad returned goods of the list price of ₹ 1,000.
20		Paid for furniture repairs to Bahadur Singh ₹ 100.
25		Received a cheque from Shiv Parshad after deducting 4% cash discount. Cheque was deposited into bank.
28		Bank charged ₹ 50 for 'Bank Charges'.
30		Received Commission ₹ 200.

Answer:

Journal In the Books of Harish & Co.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
April 01	Cash in Hand A/c	Dr.		10,000
	Cash at Bank A/c	Dr.		16,800
	Furniture A/c	Dr.		8,000
	Stock A/c	Dr.		50,000
	Ram’s A/c	Dr.		8,000
	Shyam’s A/c	Dr.		12,000
	To Anil’s A/c				4,000
	To Sunil’s A/c				5,000
	To Capital A/c (Balancing figure)				95,800
	(Previous year’s balances brought forward)

April 02	Cheques-in-Hand A/c	Dr.		7,600
	Discount Allowed A/c	Dr.		400
	To Ram’s A/c				8,000
	(Cheque received from Ram in full settlement)

April 04	Bank A/c	Dr.		7,600
	To Cheques-in-Hand A/c				7,600
	(Cheques-in-hand sent to bank)

April 05	Purchases A/c	Dr.		18,000
	To Bank A/c				17,100
	To Discount Received A/c				900
	(Goods purchased for cash and received discount)

April 06	Bank A/c	Dr.		3,860
	Discount Allowed A/c	Dr.		140
	To Shyam’s A/c				4,000
	(Cheque received from Shyam)

April 10	Anil’s A/c	Dr.		4,000
	To Cash A/c				3,920
	To Discount Received A/c				80
	(Cash paid to Anil in full settlement)

April 15	Cash A/c	Dr.		800
	To Furniture A/c				800
	(Furniture sold for cash)

April 16	Shiv Parshad’s A/c	Dr.		8,500
	To Sales A/c				8,500
	(Goods sold to Shiv Parshad on credit)

April 18	Sales Return A/c	Dr.		850
	To Shiv Parshad’s A/c				850
	(Goods returned by Shiv Parshad)

April 20	Repairs A/c	Dr.		100
	To Cash A/c				100
	(Cash paid for repair of furniture)

April 25	Bank A/c	Dr.		7,344
	Discount Allowed A/c	Dr.		306
	To Shiv Parshad’s A/c				7,650
	(Cheque received in full settlement)

April 28	Bank Charges A/c	Dr.		50
	To Bank A/c				50
	(Bank charged some charges)

April 30	Cash A/c	Dr.		200
	To Commission A/c				200
	(Commission received)
	TOTAL			1,64,550	1,64,550

Question 15:

Pass Journal Entries for the following transactions:−
1. Provide depreciation on Furniture ₹ 500 and on Machinery ₹ 2,000.
2. Received cash ₹ 1,000 for bad-debts written off last year.
3. Ajay Singh was declared bankrupt. He owed ₹ 2,500 to us. Nothing could be recovered from his estate.
4. ₹ 20,000 for wages and ₹ 4,000 for salaries are outstanding.
5. Purchased furniture for ₹ 6,000 for the proprietor and paid the amount by cheque.
6. Provide 9% interest on capital amounting to ₹ 2,00,000.
7. Charge interest on drawings ₹ 1,000.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1.	Depreciation A/c	Dr.		2,500
	To Furniture A/c				500
	To Machinery A/c				2,000
	(Depreciation charged on furniture and machinery)

2.	Cash A/c	Dr.		1,000
	To Bad Debts Recovered A/c				1,000
	(Bad debts recovered)

3.	Bad Debts	Dr.		2,500
	To Ajay Singh’s A/c				2,500
	(Bad debts written-off)

4.	Wages A/c	Dr.		20,000
	Salaries A/c	Dr.		4,000
	To Outstanding Wages A/c				20,000
	To Outstanding Salaries A/c				4,000
	(Wages and Salaries were outstanding)

5.	Drawings A/c	Dr.		6,000
	To Bank A/c				6,000
	(Furniture purchased for personal use)

6.	Interest on Capital A/c	Dr.		18,000
	To Capital A/c				18,000
	(Interest on capital provided)

7.	Drawings A/c	Dr.		1,000
	To Interest on Drawings A/c				1,000
	(Interest on drawings charged)
	TOTAL			55,000	55,000

Question 16:

Pass journal entries for the following:

Jan. 5		Purchased goods for Cash ₹ 10,000 and spent ₹ 200 for their carriage.
Jan. 10		Purchased machinery for Cash ₹ 50,000 and spent ₹ 500 for its carriage.
Jan. 15		Paid ₹ 20,000 for cement, ₹ 10,000 for timber and ₹ 5,000 as wages for the construction of building.
Jan. 17		Purchased an old machinery for ₹ 20,000 and spent ₹ 2,500 on its immediate repairs.
Jan. 20		Paid ₹ 500 for repairing some other machinery.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
Jan. 05	Purchases A/c	Dr.		10,000
	Carriage A/c	Dr.		200
	To Cash A/c				10,200
	(Goods purchased for cash and paid carriage)

Jan. 10	Machinery A/c	Dr.		50,500
	To Cash A/c				50,500
	(Machinery purchased for cash and carriage paid)

Jan. 15	Building A/c	Dr.		35,000
	To Cash A/c				35,000
	(Payment made for construction of building)

Jan. 17	Machinery A/c	Dr.		22,500
	To Cash A/c				22,500
	(Machinery purchased and expenses paid)

Jan. 20	Repairs A/c	Dr.		500
	To Cash A/c				500
	(Payment made for repairs)
	TOTAL			1,18,700	1,18,700

Question 17:

Enter the following transactions in the Journal of Arun Govil & Co. :

2018
June 1	Arun Govil & Co. paid into bank as capital ₹ 6,00,000.
June 3	Purchased goods from Mukesh of the list price of ₹ 2,00,000 at 10% trade discount.
June 4	One-fourth of the above goods returned to Mukesh for not being upto specifications.
June 6	Issued a cheque to Mukesh for the amount due to him after deducting 2% as cash discount.
June 7	Withdrew from bank ₹ 2,50,000 for office use and ₹ 10,000 for personal use.
June 10	Purchased a machinery for ₹ 1,00,000 and spent ₹ 5,000 on its installation. Payment for machinery was made by cheque and installation expenses were paid in cash.
June 12	Sold goods for ₹ 1,00,000 to Amar.
June 13	Amar clears his account by giving a cheque of ₹ 98,500. Cheque is immediately sent to bank.
June 15	Purchased stationery for personal use ₹ 3,000 and for office use ₹ 5,000.
June 20	Purchased land for ₹ 2,00,000 and paid 1% as brokerage and ₹ 15,000 as registration charges on it. Entire payment is made by Cheque.
June 30	Wages due to labourers ₹ 20,000 and salary due to the clerk ₹ 30,000.

Answer:

Journal In the Books of Sh. Arun Govil & Co.
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
June 01	Bank A/c	Dr.		6,00,000
	To Capital A/c				6,00,000
	(Business started with cash)

June 03	Purchases A/c	Dr.		1,80,000
	To Mukesh’s A/c				1,80,000
	(Goods purchased from Mukesh @ 10% trade discount)

June 04	Mukesh’s A/c	Dr.		45,000
	To Purchases Return A/c				45,000
	(1/4^th goods returned to Mukesh)

June 06	Mukesh	Dr.		1,35,000
	To Bank A/c				1,32,300
	To Discount Received A/c				2,700
	(Cheque issued to Mukesh in full settlement)

June 07	Drawings A/c	Dr.		10,000
	Cash A/c	Dr.		2,50,000
	To Bank A/c				2,60,000
	(Cash withdrawn for office and personal use)

June 10	Machinery A/c	Dr.		1,05,000
	To Bank A/c				1,00,000
	To Cash A/c				5,000
	(Machinery purchased and paid installation charges)

June 12	Amar’s A/c	Dr.		1,00,000
	To Sales A/c				1,00,000
	(Goods sold to Amar on credit)

June 13	Bank A/c	Dr.		98,500
	Discount Allowed A/c	Dr.		1,500
	To Amar’s A/c				1,00,000
	(Cheque received from Amar in full settlement)

June 15	Drawings A/c	Dr.		3,000
	Stationery A/c	Dr.		5,000
	To Cash A/c				8,000
	(Stationery purchased for office and personal use)

June 20	Land A/c	Dr.		2,17,000
	To Bank A/c				2,17,000
	(Land purchased and brokerage paid)

June 30	Salaries A/c	Dr.		30,000
	Wages A/c	Dr.		20,000
	To Outstanding Wages A/c				20,000
	To Outstanding Salaries A/c				30,000
	(Outstanding expenses provided)
	TOTAL			18,00,000	18,00,000

Question 18:

Journalise the following transactions of Raj Kumar Traders, timber merchants:-
1. Purchased timber from Kuldeep Kumar, for cash ₹ 2,000 and credit ₹ 10,000.
2. Paid to Kuldeep Kumar in full settlement of his account ₹ 9,950.
3. Paid rent in advance ₹ 10,000.
4. Purchased machinery for ₹ 1,00,000 by cheque and carriage ₹ 2,000 and installation charges ₹ 1,000 paid in Cash.
5. Purchased goods for ₹ 50,000 from Govind and sold it to Manohar for ₹ 65,000.

Answer:

Journal In the Books of Raj Kumar
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
1)	Purchases A/c	Dr.		12,000
	To Cash A/c				2,000
	To Kuldeep Kumar’s A/c				10,000
	(Goods purchased for cash and credit)

2)	Kuldeep Kumar’s A/c	Dr.		10,000
	To Cash A/c				9,950
	To Discount Received A/c				50
	(Cash paid to Kuldeep Kumar in full settlement)

3)	Prepaid Rent A/c	Dr.		10,000
	To Cash A/c				10,000
	(Rent paid in advance)

4)	Machinery A/c	Dr.		1,03,000
	To Bank A/c				1,00,000
	To Cash A/c				3,000
	(Machinery purchased and expenses paid)

5)	Purchases A/c	Dr.		50,000
	To Govind’s A/c				50,000
	(Goods purchased from Govind)

	Manohar Lal’s A/c	Dr.		65,000
	To Sales A/c				65,000
	(Goods sold to Manohar Lal)
	TOTAL			2,50,000	2,50,000

Question 19:

Pass Journal entries for the following transactions:−
1. Purchased Machinery for ₹ 20,000 and paid ₹ 200 for its carriage.
2. Received a cheque fo ₹ 4,850 from X in full settlement of his account of ₹ 5,000. Cheque was immediately deposited into bank.
3. Received by cheque a first and final payment of 60 paise in a ₹ from Y who owed us ₹ 10,000.
4. Sold goods to Z for ₹ 10,000 at a trade discount of 20%. Next day a cheque was received from him after deducting 5% cash discount. Cheque was immediately deposited into Bank.
5. Goods costing ₹ 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Machinery A/c	Dr.		20,200
	To Cash A/c				20,200
	(Machinery purchased and paid for carriage)

2)	Bank A/c	Dr.		4,850
	Discount Allowed A/c	Dr.		150
	To X’s A/c				5,000
	(Cheque received from X in full settlement)

3)	Cash A/c	Dr.		6,000
	Bad Debts A/c	Dr.		4,000
	To Y’s A/c				10,000
	(Cash received and bad debts written-off)

4)	Z’s A/c	Dr.		8,000
	To Sales A/c				8,000
	(Goods sold to Z on credit)

	Bank A/c	Dr.		7,600
	Discount Allowed A/c	Dr.		400
	To Z’s A/c				8,000
	(Cheque received in full settlement)

5)	Manoj’s A/c (WN)	Dr.		21,600
	To Sales A/c				21,600
	(Goods sold to Manoj)
	TOTAL			72,800	72,800

Working Notes: Calculation of amount of goods sold to Manoj

Question 20:

Journalise the following transactions:−
1. Goods for ₹ 50,000 were destroyed by fire.
2. Goods worth ₹ 18,000 were distributed as free samples and ₹ 20,000 were given away as charity in cash.
3. Goods worth ₹ 25,000 and cash ₹ 40,000 were taken away by the proprietor for his personal use.
4. Goods worth ₹ 20,000 and cash ₹ 5,000 were given away as charity.
5. Cash ₹ 1,00,000 were stolen from the Iron Safe of the trader.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Loss by Fire A/c	Dr.		50,000
	To Purchases A/c				50,000
	(Goods destroyed by fire)

2)	Advertisement Expenses A/c	Dr.		18,000
	To Purchases A/c				18,000
	(Goods distributed as free samples)

	Charity A/c	Dr.		20,000	20,000
	To Cash A/c
	(Cash given away as charity)

3)	Drawings A/c	Dr.		65,000
	To Cash A/c				40,000
	To Purchases A/c				25,000
	(Goods and cash withdrawn for personal use)

4)	Charity A/c	Dr.		25,000
	To Cash A/c				5,000
	To Purchases A/c				20,000
	(Goods and cash given away as charity)

5)	Loss by Theft A/c	Dr.		1,00,000
	To Cash A/c				1,00,000
	(Cash stolen)
	TOTAL			2,78,000	2,78,000

Question 21:

Journalise the following transactions:−
(i) Sold goods to Brijesh of the list price of ₹ 10,000 at trade discount of 5%. Received full payment in cash.
(ii) Goods given away as charity ₹ 1,000.
(iii) Charge interest on capital of ₹ 5,00,000 @ 7% p.a.
(iv) Outstanding wages ₹ 3,000.
(v) ₹ 5,000 due from Sunny are now bad debts.
(vi) ₹ 50,000 cash sales (of goods costing ₹ 40,000).

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Cash A/c	Dr.		9,500
	To Sales A/c				9,500
	(Goods sold for cash to Brijesh)

2)	Charity A/c	Dr.		1,000
	To Purchases A/c				1,000
	(Goods given away as charity)

3)	Interest on Capital A/c	Dr.		35,000
	To Capital A/c				35,000
	(Interest on capital provided)

4)	Wages A/c	Dr.		3,000
	To Outstanding Wages A/c				3,000
	(Outstanding wages provided)

5)	Bad Debts A/c	Dr.		5,000
	To Sunny’s A/c				5,000
	(Bad debts written-off)

6)	Cash A/c	Dr.		50,000
	To Sales A/c				50,000
	(Goods sold for cash)
	TOTAL			1,03,500	1,03,500

Question 22:

Prepare journal from the transactions given below:−
(a) Proprietor withdrew for private use ₹ 10,000 from bank.
(b) Goods costing ₹ 50,000 were burnt by fire.
(c) Purchased machinery for cash ₹ 1,50,000 and paid ₹ 2,000 on its installation.
(d) Charge 5% depreciation on building costing ₹ 2,00,000 and 8% depreciation on furniture costing ₹ 5,000.
(e) Prepaid salary ₹ 2,000.
(f) Kapil who owed us ₹ 20,000 becomes insolvent and nothing is received from his estate.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Drawings A/c	Dr.		10,000
	To Bank A/c				10,000
	(Cash withdrawn from bank for personal use)

b)	Loss by Fire A/c	Dr.		50,000
	To Purchases A/c				50,000
	(Goods destroyed by fire)

c)	Machinery A/c	Dr.		1,52,000
	To Cash A/c				1,52,000
	(Purchased machinery for cash and installation charges were paid)

d)	Depreciation A/c	Dr.		10,400
	To Building A/c				10,000
	To Furniture A/c				400
	(Depreciation charged on building and furniture)

e)	Prepaid Salary A/c	Dr.		2,000
	To Salary A/c				2,000
	(Prepaid salary recorded)

f)	Bad Debts A/c	Dr.		20,000
	To Kapil’s A/c				20,000
	(Bad debts written-off)
	TOTAL			2,44,400	2,44,400

Question 23:

Journalise the following transactions in the Journal of Navin Gupta & Sons.:-
1. Out of Insurance premium paid this year, ₹ 15,000 is related to next year.
2. Credit purchases from Ram & Co. for ₹ 50,000. Cash discount will be received at 5% on payment of bill within 10 days.
3. Cash paid to Ram & Co. and discount availed of.
4. Paid Income Tax ₹ 20,000 by cheque.
5. Goods costing ₹ 2,00,000 sold for cash at a profit of 10%.
6. Purchased iron safe for ₹ 2,00,000 filing cabinet for ₹ 50,000 and Computer for ₹ 1,00,000.

Answer:

Journal In the Books of Sh. Navin Gupta
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
1)	Prepaid Insurance A/c	Dr.		15,000
	To Insurance A/c				15,000
	(Prepaid insurance recorded)

2)	Purchases A/c	Dr.		50,000
	To Ram & Co.				50,000
	(Goods purchased on credit from Ram & Co.)

3)	Ram & Co.	Dr.		50,000
	To Cash A/c				47,500
	To Discount Received A/c				2,500
	(Cash paid to Ram & Co. in full settlement)

4)	Drawings A/c	Dr.		20,000
	To Cash A/c				20,000
	(Paid income tax)

5)	Cash A/c	Dr.		2,20,000
	To Sales A/c				2,20,000
	(Goods sold for cash including profit of 10%)

6)	Office Equipment A/c	Dr.		3,50,000
	To Cash A/c				3,50,000
	(Office equipment purchased)
	TOTAL			7,05,000	7,05,000

Question 24:

Journalise the following transactions in the books of Kanishk Traders:

(i)	Sold goods costing ₹ 1,20,000 to Charu at a profit of $33 \frac{1}{3}$ % on cost less 15% Trade Discount.
(ii)	Sold goods costing ₹ 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount.
(iii)	Paid by cheque ₹ 8,400 as insurance premium for a period of 12 months starting 1st August 2016. Financial year closes on 31st March every year.

Answer:

Journal In the Books of Kanishk
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
i)	Charu’s A/c (WN1)	Dr.		1,36,000
	To Sales A/c				1,36,000
	(Goods sold to Charu)

ii)	Bank A/c (WN2)	Dr.		85,000
	To Sales A/c				85,000
	(Goods sold to Arun)

iii)	Insurance A/c	Dr.		8,400
	To Bank A/c				8,400
	(Insurance premium paid through cheque)

	Prepaid Insurance A/c	Dr.		2,800
	To Insurance A/c				2,800
	(Insurance premium paid in advance for four months)
	TOTAL			2,32,200	2,32,200

Working Notes:

WN1: Calculation of amount of goods sold to Charu

$C o s t = 1, 20, 000 A d d : P r o f i t @ 33 \frac{1}{3} % o n 1, 20, 000 = \frac{40, 000}{1, 60, 000} L e s s : T r a d e D i s c o u n t @ 15 % o n 1, 60, 000 = \frac{24, 000}{1, 36, 000}$

WN2: Calculation of amount of goods sold to Arun

$C o s t = 80, 000 A d d : P r o f i t @ 25 % o n 80, 000 = \frac{20, 000}{1, 00, 000} L e s s : T r a d e D i s c o u n t @ 15 % = \frac{15, 000}{85, 000}$

Question 25:

Journalise the following:−

2017
March 4		Purchased building for ₹ 1,50,000 and incurred expenses of ₹ 10,000 on its purchase.
March 10		Satish who owed us ₹ 20,000 is declared insolvent and 60 paise per ₹ is received from his estate.
March 15		Paid ₹ 500 for repairing the office furniture.
March 18		Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 2,000.
March 20		Purchased the following items for business:
		Iron Safe ₹ 15,000; Filing Cabinet ₹ 5,000; Computer ₹ 12,000; Postage ₹ 200 and Stationery ₹ 150.
March 28		Paid electricity charges ₹ 1,600.
March 31		Charge depreciation on Machinery @ 10% for one year (Machinery ₹ 75,000).
March 31		Outstanding wages at the end of the year ₹ 6,000.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Mar. 04	Building A/c	Dr.		1,60,000
	To Bank A/c				1,60,000
	(Building purchased and expenses paid)

Mar. 10	Cash A/c	Dr.		12,000
	Bad Debts A/c			8,000
	To Satish’s A/c				20,000
	(Cash received from Satish and bad debts written-off)

Mar. 15	Repairs A/c	Dr.		500
	To Cash A/c				500
	(Payment made for repair of office furniture)

Mar. 18	Drawings A/c	Dr.		7,000
	To Cash A/c				5,000
	To Purchases A/c				2,000
	(Cash and goods withdrawn for personal use)

Mar. 20	Office Equipment A/c	Dr.		32,000
	To Cash A/c				32,000
	(Purchased iron safe, filling cabinet and typewriter)

Mar. 20	Postage & Stationery A/c	Dr.		350
	To Cash A/c				350
	(Expenses paid for postage and stationery)

Mar. 28	Electricity Charges A/c	Dr.		1,600
	To Cash A/c				1,600
	(Paid electricity charges)

Mar. 31	Depreciation A/c	Dr.		7,500
	To Machinery A/c				7,500
	(Depreciation charged on machinery)

Mar. 31	Wages A/c	Dr.		6,000
	To Outstanding Wages A/c				6,000
	(Outstanding wages recorded)
	TOTAL			2,34,950	2,34,950

Question 26:

Journalise the following:
1. Purchased goods for ₹ 25,000 for Cash and paid ₹ 200 for carriage on these goods.
2. Purchased goods for ₹ 40,000 on Credit from Sudhir and paid ₹ 500 for carriage on these goods.
3. Purchased machinery for ₹ 20,000 and spent ₹ 500 on its carriage and ₹ 300 on its installation.
4. Purchased goods from Anil for ₹ 15,000.
5. Sold $\frac{1}{3}$ rd of the above goods at a profit of 20% on cost.
6. Goods costing ₹ 12,000 sold to Mr. X, issued invoice at 25% above cost less 10% trade discount.
7. Provide 20% depreciation on furniture costing ₹ 10,000.
8. Gave as charity − Cash ₹ 500 and Goods ₹ 2,000.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Purchases A/c	Dr.		25,000
	Carriage A/c	Dr.		200
	To Cash A/c				25,200
	(Purchased goods for cash and carriage paid)

2)	Purchases A/c	Dr.		40,000
	To Sudhir’s A/c				40,000
	(Goods purchased on credit from Sudhir)

	Carriage A/c	Dr.		500
	To Cash A/c				500
	(Carriage paid on goods purchased from Sudhir)

3)	Machinery A/c	Dr.		20,800
	To Bank A/c				20,800
	(Machinery purchased and expenses paid)

4)	Purchases A/c	Dr.		15,000
	To Anil’s A/c				15,000
	(Purchased goods on credit from Anil)

5)	Cash A/c	Dr.		6,000
	To Sales A/c				6,000
	(Goods purchased from Anil sold for cash at a profit of 20% on cost)

6)	X’s A/c (WN)	Dr.		13,500
	To Sales A/c				13,500
	(Goods sold to X)

7)	Depreciation A/c	Dr.		2,000
	To Furniture A/c				2,000
	(Depreciation charged on furniture)

8)	Charity A/c	Dr.		2,500
	To Cash A/c				500
	To Purchases A/c				2,000
	(Cash and goods given in charity)
	TOTAL			1,25,500	1,25,500

Working Notes: Calculation of amount of goods sold to X

Question 27:

Journalise the following:

(i)	Received a V.P.P. from Mohan Lal for ₹ 25,000. Sent a peon to collect it who paid ₹ 200 as cartage.
(ii)	Received ₹ 1,000 from sales of old newspapers and ₹ 5,000 from sales of old chairs.
(iii)	Goods given away as charity goods costing ₹ 7,000.
(iv)	Received Cash from a debtor written off as bad-debt last year ₹ 20,000.
(v)	Sold goods costing ₹ 50,000 to Ashok on credit at a profit of 20% on cost.
(vi)	Sold goods costing ₹ 1,00,000 for ₹ 1,40,000.
(vii)	Provide ₹ 50,000 as interest on Capital.
(viii)	Paid rent of building ₹ 60,000 by cheque. Half the building is used by the proprietor for residential purpose.
(ix)	Outstanding salary at the end of the year ₹ 30,000.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
i)	Purchases A/c	Dr.		25,000
	Cartage A/c	Dr.		200
	To Cash A/c				25,200
	(VPP received and cartage paid)

ii)	Cash A/c	Dr.		1,000
	To Sundry Income A/c				1,000
	(Income received from sale of old newspapers)

	Cash A/c	Dr.		5,000
	To Furniture A/c				5,000
	(Cash received from sale of old chairs)

iii)	Charity A/c	Dr.		7,000
	To Purchases A/c				7,000
	(Goods given away as charity)

iv)	Cash A/c	Dr.		20,000
	To Bad Debts Recovered A/c				20,000
	(Bad debts recovered)

v)	Ashok’s A/c	Dr.		60,000
	To Sales A/c				60,000
	(Goods sold on credit to Ashok at a profit of 20%)

vi)	Cash A/c	Dr.		1,40,000
	To Sales A/c				1,40,000
	(Goods sold for cash)

vii)	Interest on Capital A/c	Dr.		50,000
	To Capital A/c				50,000
	(Provided interest on capital)

viii)	Rent A/c	Dr.		30,000
	Drawings A/c			30,000
	To Bank A/c				60,000
	(Rent paid for the building)

ix)	Salary A/c	Dr.		30,000
	To Outstanding Salary A/c				30,000
	(Outstanding salary provided)
	TOTAL			3,98,200	3,98,200

Question 28:

Journalise the following transactions:

2018
April 1	Purchased goods for ₹ 1,00,000 from Manoj and availed discount of ₹ 10,000.
2	Paid amount due to Manoj by cheque and availed discount of ₹ 4,500.
5	Cash ₹ 5,000 paid to Desai and discount allowed by him ₹ 200.
10	Cash ₹ 10,000 received from Govardhan and allowed him discount ₹ 500.
12	Sold personal Car of the proprietor for ₹ 80,00 against cheque, which was deposited into the firm's bank account.
16	Sold personal Car of the proprietor for ₹ 1,50,000 against cheque, which was deposited into the proprietor's personal bank account.
20	Sold goods to Gaurav costing ₹ 1,00,000 at a profit of 40% and allowed him 10% trade discount and paid for cartage ₹ 3,000 not to be charged from him.
24	Placed an order with Rudra & Co. for supply of goods of ₹ 80,000 and a cheque for 40% amount is sent to them as an advance.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Apr 01	Purchases A/c	Dr.		90,000
	To Manoj				90,000
	(Purchased from Manoj)

Apr 02	Manoj A/c	Dr.		90,000
	To Bank A/c				85,500
	To Discount Received A/c				4,500
	(Paid to Manoj)

Apr 05	Desai A/c	Dr.		5,200
	To Cash A/c				5,000
	To Discount Received A/c				200
	(Paid to Desai)

Apr 10	Cash A/c	Dr.		10,000
	Discount Allowed A/c			500
	To Govardhan A/c				10,500
	(Cash received from Govardhan)

Apr 12	Bank A/c	Dr.		80,000
	To Capital A/c				80,000
	(Sold personal car and invested in business)

Apr 16	*No entry*

Apr 20	Gaurav A/c	Dr.		1,26,000
	To Sales A/c				1,26,000
	(Sold to Gaurav)

	Carriage Outwards A/c	Dr.		3,000
	To Cash A/c				3,000
	(Cartage paid on sales)

Apr 24	Advance for Purchases A/c	Dr.		32,000
	To Bank A/c				32,000
	(Advance cheque sent to Rudra and Co. against a purchase order)
				4,36,700	4,36,700

Question 29:

Give the journal entries corresponding to the narration given below:-


S. No.	Particulars		L.F.	Amount Dr. (₹)	Amount Cr. (₹)
(i)		Dr.
		Dr.
	To
	(Goods of the list price of ₹ 5,000 sold at 10% trade discount and 2% cash discount)

(ii)
	(The purchase of Motor Car for ₹ 80,000 and the payment of ₹ 5,000 as repairs charges on it. Entire payment is made by cheque)

(iii)	Chaturvedi’s	Dr.		5,000
	To Cash A/c
	To
	(Chaturvedi’s account settled, cash discount three percent)

(iv)	Bank A/c	Dr.
		Dr.
	To				8,400
	(70 paise per rupee received from the estate of Ashok on his insolvency)

(v)		Dr.		3,000
	To				3,000
	(For goods used by proprietor for personal use)

(vi)		Dr.		2,000
	To				2,000
	(For Rent due to landlord)

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Cash A/c	Dr.		4,410
	Discount Allowed A/c	Dr.		90
	To Sales A/c				4,500
	(Goods of the list price of Rs 5,000 sold at 10% trade discount and 2% cash discount)

ii)	Motor Car A/c	Dr.		85,000
	To Cash A/c				85,000
	(The purchase of Motor Car for Rs 80,000 and the payment of Rs 5,000 as repairs charges on it)

iii)	Chaturvedi’s A/c	Dr.		5,000
	To Cash A/c				4,850
	To Discount Received A/c				150
	(Chaturvedi’s account settled, cash discount three percent)

iv)	Cash A/c	Dr.		5,880
	Bad Debts A/c	Dr.		2,520
	To Ashok’s A/c				8,400
	(70 paise per rupee received from the estate of Ashok on his insolvency)

v)	Drawings A/c	Dr.		3,000
	To Purchases A/c				3,000
	(For goods used by proprietor for personal use)

vi)	Rent A/c	Dr.		2,000
	To Outstanding Rent A/c				2,000
	(For Rent due to landlord)
	TOTAL			1,07,900	1,07,900

Question 30:

Rectify the following entries assuming that the narration in each case is correct:


Date	Particulars		L.F.	Amount Dr. (Rs)	Amount Cr. (Rs)
2017
May 04	Building A/c	Dr.		5,00,000
	Brokerage A/c	Dr.		10,000
	To Bank A/c				5,10,000
	(Purchase of building and payment of brokerage on its purchase)

May 10	Drawings A/c	Dr.		12,000
	To Sales A/c				12,000
	(Goods taken away by the proprietor for personal use)

May 16	Filing Cabinet A/c	Dr.		4,000
	Electric Fan A/c	Dr.		2,500
	To Cash A/c				6,500
	(Purchase of filing cabinet and an electric fan)

May 18	Cash A/c	Dr.		8,730
	To Sales A/c				8,730
	(Goods worth ₹ 10,000 sold at 10% trade discount and 3% cash discount)

May 20	Bank A/c	Dr.		10,000
	To Naresh				10,000
	(Receipt of 25 paise per rupee from the estate of Naresh who is declared insolvent)

May 31	Bank Charges A/c	Dr.		150
	To Cash A/c				150
	(Charges made by bank for its services)

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
May 04	Building A/c*	Dr.		5,10,000
	To Cash A/c				5,10,000
	(Purchase of building and payment of brokerage on its purchase)

May 10	Drawings A/c	Dr.		12,000
	To Purchases A/c				12,000
	(Goods taken away by the proprietor for personal use)

May 16	Office Equipment A/c	Dr.		6,500
	To Cash A/c				6,500
	(Purchase of filling cabinet and an electric fan)

May 18	Cash A/c (WN1)	Dr.		8,730
	Discount Allowed A/c			270
	To Sales A/c				9,000
	(Goods worth Rs 10,000 sold at 10% trade discount and 3% cash discount)

May 20	Cash A/c (WN2)	Dr.		10,000
	Bad Debts A/c			30,000
	To Naresh				40,000
	(Receipt of 25 paise per rupee from the estate of Naresh who is declared insolvent)

May 31	Bank Charges A/c	Dr.		150
	To Bank A/c				150
	(Charges made by bank for its services)
	TOTAL			5,77,650	5,77,650

* Payment of brokerage will be included in cost of the building as it is incurred at time of purchase of building.

Working Notes:

WN1: Calculation of amount of goods sold

WN2: Calculation of amount of bad debts

Question 31:

Journalise the following transactions:
(a) Goods destroyed by Fire for ₹ 5,000.
(b) Paid by cheque ₹ 25,000 as wages on installation of a Machinery.
(c) Issued a cheque in favour of M/s Parmatma Saran & Sons on account of purchase of goods ₹ 75,000.
(d) Goods sold costing ₹ 60,000 to M/s Kalu Sons at an invoice price 10% above cost less 5% Trade discount.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(a)	Loss by Fire A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Goods destroyed by fire)

(b)	Machinery A/c	Dr.		25,000
	To Cash A/c				25,000
	(Wages paid for installation of machinery)

(c)	Purchases A/c	Dr.		75,000
	To Bank A/c				75,000
	(Cheque issued for purchase of goods)

(d)	M/s Kalu & Sons (WN)	Dr.		62,700
	To Sales A/c				62,700
	(Goods sold to M/s Kalu & Sons on credit)
	TOTAL			1,67,700	1,67,700

Working Notes: Calculation of goods sold to M/s Kalu & Sons

Question 32:

Journalise the following trasactions:−

		(₹)
1.	Charge depreciation on Machinery	20,000
2.	Salary due to Office Clerks	1,00,000
3.	Received cash for Bad-Debts written off last year	5,000
4.	Purchased goods from Ashok & Co. for ₹ 50,000 at 20% Trade Discount. Half the payment was made in cash.
5.	Issued cheque to Ashok & Co. in full settlement	19,500
6.	Paid Life Insurance Premium by cheque	6,000
7.	Proprietor used goods for household purposes	20,000
8.	Goods given free to a hospital out of business	10,000

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
1)	Depreciation A/c	Dr.		20,000
	To Machinery A/c				20,000
	(Depreciation charged on machinery)

2)	Salary A/c	Dr.		1,00,000
	To Outstanding Salary A/c				1,00,000
	(Salary due to office clerks)

3)	Cash A/c	Dr.		5,000
	To Bad Debts Recovered A/c				5,000
	(Bad debts recovered)

4)	Purchases A/c	Dr.		40,000
	To Ashok & Co.				20,000
	To Cash A/c				20,000
	(Goods purchased)

5)	Ashok & Co.	Dr.		20,000
	To Bank A/c				19,500
	To Discount Received A/c				500
	(Payment made to Ashok & Co. in full settlement)

6)	Drawings A/c	Dr.		6,000
	To Cash A/c				6,000
	(Payment made for life insurance premium)

7)	Drawings A/c	Dr.		20,000
	To Purchases A/c				20,000
	(Goods used for household purposes)

8)	Charity A/c	Dr.		10,000
	To Purchases A/c				10,000
	(Goods given away as charity)
	TOTAL			2,21,000	2,21,000

Question 33:

Journalise the following transactions:-

2019		₹
March 1	Started business with cash	50,000
2	Purchased Machinery for cash	20,000
	Paid installation charges on machinery	2,000
5	Purchased goods from X of the list price of ₹ 25,000, Trade Discount 20% and cash discount 5%. Payment was made in cash immediately.
10	Sold goods to Y costing ₹ 10,000 at 30% profit on cost less 10% trade discount.
15	Paid Rent	1,000
20	Goods stolen from business	2,000
22	Gave as charity :
	Cash	100
	Goods	200
31	Purchased Post Cards and Envelopes	50
31	Purchased a Computer for business	25,000

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Mar. 01	Cash A/c	Dr.		50,000
	To Capital A/c				50,000
	(Started business with cash)

Mar. 02	Machinery A/c	Dr.		22,000
	To Cash A/c				22,000
	(Machinery purchased for cash and installation charges paid)

Mar. 05	Purchases A/c	Dr.		20,000
	To Cash A/c				19,000
	To Discount Received A/c				1,000
	(Goods purchased for cash and received discount)

Mar. 10	Y’s A/c	Dr.		11,700
	To Sales A/c				11,700
	(Goods sold on credit to Y at 30% profit on cost)

Mar. 15	Rent A/c	Dr.		1,000
	To Cash A/c				1,000
	(Rent paid)

Mar. 20	Loss by Theft A/c	Dr.		2,000
	To Purchases A/c				2,000
	(Goods stolen from business)

Mar. 22	Charity A/c	Dr.		300
	To Cash A/c				100
	To Purchases A/c				200
	(Charity given)

Mar. 31	Postage A/c	Dr.		50
	To Cash A/c				50
	(Paid for postage)

Mar. 31	Computer A/c	Dr.		25,000
	To Cash A/c				25,000
	(Computer purchased)
	TOTAL			1,32,050	1,32,050

Question 34:

Journalise the following transactions:
1. Purchased a Motor Car for ₹ 3,00,000 and paid ₹ 25,000 for its repair and renewal. Entire payment is made by cheque.
2. Received Rent ₹ 5,000.
3. Goods worth ₹ 20,000 were distributed as free samples.
4. Charge depreciation on Motor Car ₹ 32,500.
5. Rent due to Landlord ₹ 10,000 and Salary due to Clerks ₹ 80,000.
6. Charge interest on Capital ₹ 20,000.
7. ₹ 5,000 due from Sanjay Gupta are bad-debts.
8. Goods worth ₹ 50,000 were destroyed by fire.
9. Cash ₹ 5,000 and goods worth ₹ 20,000 were stolen by an employee.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
1)	Motor Car A/c	Dr.		3,25,000
	To Bank A/c				3,25,000
	(Purchased motorcar and payment made for repair and renewal)

2)	Cash A/c	Dr.		5,000
	To Rent A/c				5,000
	(Rent received)

3)	Advertisement Expenses A/c	Dr.		20,000
	To Purchases A/c				20,000
	(Goods distributed as free samples)

4)	Depreciation A/c	Dr.		32,500
	To Motor Car A/c				32,500
	(Depreciation charged on motor car)

5)	Rent A/c	Dr.		10,000
	Salaries A/c	Dr.		80,000
	To Outstanding Expenses A/c				90,000
	(Outstanding expenses provided)

6)	Interest on Capital A/c	Dr.		20,000
	To Capital A/c				20,000
	(Interest on capital provided)

7)	Bad Debts A/c	Dr.		5,000
	To Sanjay Gupta’s A/c				5,000
	(Bad debts written-off)

8)	Loss by Fire A/c	Dr.		50,000
	To Purchases A/c				50,000
	(Goods destroyed by fire)

9)	Loss by Theft A/c	Dr.		25,000
	To Cash A/c				5,000
	To Purchases A/c				20,000
	(Cash and goods stolen by an employee)
	TOTAL			5,72,500	5,72,500

Question 35:

Journalise the following transactions:
(i) Bought goods from Arun for ₹ 2,00,000 at a trade discount of 15% and cash discount of 2%. Paid 80% amount immediately.
(ii) Purchased foods for ₹ 20,000 from X and supplied it to Y for ₹ 26,000.
(iii) Cash withdrawn from bank ₹ 5,000 for personal use and ₹ 25,000 for office use.
(iv) Goods destroyed by fire : Cost Price ₹ 40,000.
(v) Provide 20% depreciation on machinery costing ₹ 50,000.
(vi) Out of insurance paid this year, ₹ 3,000 is related to next year.
(vii) Allow ₹ 5,000 as interest on capital and charge ₹ 1,000 as interest on drawings.
(viii) Sohan who owed us ₹ 25,000 was declared insolvent and a cheque of 40 paise in a ₹ is received from him in full settlement.
(ix) Paid Income Tax ₹ 10,000 by cheque.
(x) Salary paid ₹ 80,000 and Salary Outstanding ₹ 20,000.

Answer:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
(i)	Purchases A/c (WN)	Dr.		1,70,000
	To Arun’s A/c				34,000
	To Cash A/c				1,33,280
	To Discount Received A/c				2,720
	(Goods purchased and 80% payment made in cash)

(ii)	Purchases A/c	Dr.		20,000
	To X’s A/c				20,000
	(Goods purchased on credit from X)

	Y’s A/c	Dr.		26,000
	To Sales A/c				26,000
	(Goods sold on credit to Y)

(iii)	Cash A/c	Dr.		25,000
	Drawings A/c	Dr.		5,000
	To Bank A/c				30,000
	(Cash withdrawn from bank for personal and office use)

(iv)	Loss by Fire A/c	Dr.		40,000
	To Purchases A/c				40,000
	(Goods destroyed by fire)

(v)	Depreciation A/c	Dr.		10,000
	To Machinery A/c				10,000
	(Depreciation charged on machinery)

(vi)	Prepaid Insurance A/c	Dr.		3,000
	To Insurance A/c				3,000
	(Insurance paid in advance)

(vii)	Interest on Capital A/c	Dr.		5,000
	To Capital A/c				5,000
	(Allowed interest on capital)

	Drawings A/c	Dr.		1,000
	To Interest on Drawings A/c				1,000
	(Charged interest on drawings)

(viii)	Cash A/c	Dr.		10,000
	Bad Debts A/c	Dr.		15,000
	To Sohan’s A/c				25,000
	(Cash received from Sohan and bad debts written-off)

(ix)	Drawings A/c	Dr.		10,000
	To Bank A/c				10,000
	(Income tax paid)

(x)	Salaries A/c	Dr.		1,00,000
	To Cash A/c				80,000
	To Outstanding Salaries A/c				20,000
	(Salary paid and outstanding)
	TOTAL			4,40,000	4,40,000

Working Notes: Calculation of payment made and outstanding amount to Arun

Question 36:

Journalise the following in the books of Som Nath & Sons:

2019
May 1	Purchased a Machinery for ₹ 1,00,000 and the payment was made by issuing a cheque from Proprietor's saving bank account.
4	Received an order from Chakravarti for goods of ₹ 4,00,000 alongwith a cheque of 10% of the order as advance.
8	Paid cash ₹ 8,000 to Dushyant and discount allowed by him ₹ 800.
10	Goods stolen by an employee (Sale Price ₹ 20,000; Cost ₹ 15,000).
15	Purchased stationery worth ₹ 8,000 for office use and ₹ 2,000 for personal use.
20	Manoj pays us ₹ 5,400 after deducting 10% for prompt payment.
28	Sold goods to Kuber costing ₹ 2,00,000 at 25% above cost less trade discount of 10% and cash discount of 5%. Kuber did not avail the cash discount.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
May 01	Machinery A/c	Dr.		1,00,000
	To Capital A/c				1,00,000
	(Purchased Machinery and payment made through personal bank account)

May 04	Bank A/c	Dr.		40,000
	To Advance against Sales A/c				40,000
	(Advance cheque received from Chakravarti against a sales order)

May 08	Dushyant A/c	Dr.		8,800
	To Cash A/c				8,000
	To Discount Received A/c				800
	(Paid to Dushyant)

May 10	Loss by Theft A/c	Dr.		15,000
	To Purchases A/c				15,000
	(Goods stolen by employee)

May 15	Stationery A/c	Dr.		8,000
	Drawings A/c			2,000
	To Cash A/c				10,000
	(Purchased stationery for office and personal use)

May 20	Cash A/c	Dr.		5,400
	Discount Allowed A/c			600
	To Manoj A/c				6,000
	(Received from Manoj)

May 28	Kuber A/c	Dr.		2,25,000
	To Sales A/c				2,25000
	(Sold goods to Kuber)
				4,04,800	4,04,800

Question 37:

Journalise the following transactions in the books of Prakash:

(i) Opened a current account with Punjab National Bank ₹ 1,00,000.
(ii) Received a cheque of ₹ 12,900 from Chandradev and allowed discount ₹ 300 to him. The cheque was deposited into Bank on the same day.
(iii) Purchased machinery for ₹ 1,00,000, payment made by cheque. Installation charge of machinery ₹ 6,000 paid in cash.
(iv) Purchased a horse for business for ₹ 20,000.
(v) Sold goods to Gokul at a list price of ₹ 4,000. Trade discount 10% and cash discount 5%. He paid the amount on the same day and availed the cash discount.
(vi) Purchased goods for ₹ 10,000 and paid ₹ 400 for carriage on these goods.
(vii) Additional cash introduced by the proprietor ₹ 40,000.
(viii) Purchased stationery ₹ 800 and postal stamps ₹ 100.
(ix) Withdrawn from bank ₹ 20,000.
(x) Received an order to supply goods of ₹ 40,000 from Manu and received ₹ 10,000 as an advance together with the order.
(xi) Cash ₹ 10,000 and goods worth ₹ 4,000 were stolen.
(xii) Purchased goods from Devendra for ₹ 40,000 and the payment was made by cheque.
(xiii) Sold 1/4th of the above goods at a profit of 25% on cash.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
(i)	Bank A/c	Dr.		1,00,000
	To Cash A/c				1,00,000
	(opened a bank account in PNB)

(ii)	Bank A/c	Dr.		12,900
	Discount Allowed A/c	Dr.		300
	To Chandradev				13,200
	(received cheque from Chandradev and allowed discount)

(iii)	Machinery A/c	Dr.		1,06,000
	To Bank A/c				1,00,000
	To Cash A/c				6,000
	(machinery purchased and installation charges paid)

(iv)	Livestock A/c	Dr.		20,000
	To Cash A/c				20,000
	(purchased horse for business)

(v)	Cash A/c	Dr.		3,420
	Discount Allowed A/c	Dr.		180
	To Sales A/c				3,600
	(sold goods to Gokul and received payment)

(vi)	Purchases A/c	Dr.		10,000
	Carriage inwards A/c	Dr.		400
	To Cash A/c				10,400
	(purchases made and carriage paid)

(vii)	Cash A/c	Dr		40,000
	To Capital A/c				40,000
	(capital introduced)

(viii)	Stationery A/c	Dr.		800
	Postage A/c	Dr.		100
	To Cash A/c				900
	(stationery & postal stamps bought)

(ix)	Cash A/c	Dr.		20,000
	To Bank A/c				20,000
	(withdrawn from bank)

(x)	Cash A/c	Dr.		10,000
	To Manu(Advance)				10,000
	(Advance received from Manu)

(xi)	Loss by theft A/c	Dr.		14,000
	To Purchases A/c				4,000
	To Cash A/c				10,000
	(cash & goods stolen)

(xii)	Purchases A/c	Dr.		40,000
	To Bank A/c				40,000
	(purchases paid via cheque)

(xiii)	Cash A/c	Dr.		12,500
	To Sales A/c				12,500
	(1/4 th of the goods sold @25% profit)
	TOTAL			3,90,600	3,90,600

Accountancy Dk Goel 2019 for Class 11 Commerce Accountancy Chapter 3 - Books Of Original Entry Journal

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