NCERT Solutions for Class 11 Accountancy Chapter 3 - Recording of Business Transactions-I
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1. State the three fundamental steps in the acounting process.
Ans. The three fundamental steps in the accounting process:
(i) Identification of financial transactions events: Accounting records only those transaction and events which can be measured in terms of money.
(ii) Measuring the identified transactions: Financial transactions and events measured in terms of money are recorded in the books of account.
(iii) Recording: Accounting is an art of recording business transaction in the book of account.
2. Why is the evidence provided by source documents important to accounting?
Ans. Source document is an evidence of transaction or event having taken place. It is of prime importance in accounting because accounting is based on financial information i.e., evidence.
3. Should a transaction be first recorded in a journal or ledger ?
Ans. A transaction should be recorded in journal because journal is a book of primary entry in which transaction are recorded in a chronological order.
4. Are debits or credits listed first in journal entries? Are debits or credits indented ?
Ans. Debit listed first in journal entries, credits indented in the journal entries, it means the account title to be credited is written on the second line leaving sufficient margin on the left side with a word “To”.
5. Why are some accounting systems called double accounting system ?
Ans. Double accounting system refers to a system of accounting which recognize and records both aspects of a transaction.
It is based on the principle of “Duel Aspect” which states that every transaction has two aspects: a Debit and a Credit of equal amount.
6. Give a specimen of an account.
Ans. Account contains the following items as under:
Date -Particular - Journal folio
Amount on Debit side - Amount on Credit side
7. Why are the rules of debit and credit same for both liability and capital?
Ans. Every business acquires funds from internal as well as from external sources. According to the business entity concept, the amount borrowed from the external sources together with the internal sources like, capital invested by the proprietor, is termed as liability to the business. Business entity concept treats
business and business owner separately. Capital of the owner is treated as liability to the business because the business has to repay the amount of capital to the owner, in case of closure of the business. As liability incurred is credited, in the same way, fresh capital introduced and net profit increase the owner's capital, and so, capital is credited. On the other hand, if liability is paid, it reduces liability and so, it is debited.
Similarly, drawings from capital and net loss reduce the capital, and so, capital is debited. Thus the rules of debit and credit are same for both liability and capital.
8. What is the purpose of posting J.F numbers that are entered in the journal at the time entries are posted to the accounts.
Ans. Journal folio column records the page number of journal on Subsidiary book from which that particular entry is transferred is entered.
9. What entry (debit or credit) would you make to:
(a) Increase in revenue
Ans. Credit
(b) Decrease in expense
Ans. Credit
(c) Record Drawings
Ans. Debit
(d) Record the fresh capital introduced by the owner
Ans. Credit
10. If a transaction has the effect of decreasing an assets is the decrease recorded as a debit or as a credit?
If the transaction has the effect of decreasing a liability the decrease recorded as a debit or as a credit ?
Ans. When a transaction has the effects of decreasing an assets the decrease is recorded in the credit side by following the rule: Increase in assets are debit; decrease are credit. Similarly if the transaction has the effects of decreasing a liability then the decrease is recorded in the debit side by following the rule; increase in liability are credit, decrease are debit.
Long Answer Type Question
11. Describe the events recorded in accounting system and the importance of source documents in those system?
Ans. Every business requires an accounting system to record all its monetary transactions in a company’s accounting system. For example, the purchase of goods, salaries paid to employees, payments deposited and borrowed from the bank or other financial institution.
A company needs an accounting system to record all its monetary transactions. The events that are recorded in a company’s accounting system are the purchase of goods, salaries paid to employees, payments deposited and borrowed from the bank or other financial institutions, invoice bills, etc. All such events are recorded systematically in the accounting systems of a company. Source documents are very important and have the following advantages:
It is evidence of transaction that has taken place.It ensures that the transaction is in accordance with the legal regulations. The company uses source documents during the auditing process.
12. Describe how debits and credits are used to analyse transaction.
Ans. Debit originated from the Italian word debito, which in turn is derived from the Latin word debeo, which means ‘owed to proprietor’ and Credit comes from the Italian word credito, which is derived from the Latin word credo, which means belief, i.e., ‘owed by proprietor’.
According to the dual aspect concept, all the business transactions that are recorded in the books of accounts, have two aspects- debit and credit. The dual aspect can be better understood with the help of an example; bought goods worth `500 for cash. This transaction affects two accounts with the same amount simultaneously. As goods are brought in exchange of cash, so the cash balances in the business reduce by ₹500, i.e. why the Cash account is credited. Simultaneously, the amount of goods increases by ₹500, so Purchases account will be debited. Debit and credit depend on the nature of accounts involved; such as assets, expenses, income, liabilities and capital. There are five types of accounts.
Assets: These include all properties or legal rights owned by a firm for its operations, such as cash in hand, plant and machinery, bank, land, building, etc. All assets have debit balance. If assets increase, they are debited and if assets decrease, they are credited. For example, furniture purchased and payment made by cheque. The journal entry is:
| Furniture A/c | Dr. |
| To Bank A/c |
Here, furniture and bank balance, both are assets to the firm. As furniture is purchased, so Furniture account will increase, and will be debited. On the other hand, payment of furniture is being made by cheque that reduces the bank balance of the business, so Bank account will be credited.
Expense: It is made to run business smoothly and to carry day to day business activities. All expenses have debit balance. If an expense is incurred, it must be debited. For example, rent paid. The journal entry is :
| Rent A/c | Dr. |
| To Cash A/c |
Here, rent is an income; hence, Rent account has been credited and Cash account has been debited, as rent received increases the cash balances.
Capital: Capital is the amount invested by the proprietor in the business. Capital has credit balance. Increase in capital is credited and decrease in capital is debited.
13. Describe how accou ts are used to record information about the effects of transactions ?
Ans. Every transaction is recorded in the original book of entry (journal) in order of their occurrence however, if we want to know that how must we receives from our debtors or how much to pay to the creditors, if is not possible to determine at a single movement. Hence, we prepare accounts to know the position of business activities in the mean time.
There are some steps to record transactions in accounts, it can be easily be understood, with the help of an example.
Sold goods to Mr. Ashish worth ₹50,000 on 12th April and received payment ₹30,000 on 30th April. The following journal entries will be recorded:
| Date | Particulars | L. F. |
Amount Dr. (₹) | Amount Cr.(₹) | |
| April 12 | Ashish A/c | Dr. | 50,000 | ||
| To Sales A/c | 50,000 | ||||
| (Being goods sold on credit to Mr. Ashish) | |||||
| April 30 | Cash A/c | Dr. | 30,000 | ||
| To Ashish A/c | 30,000 | ||||
| (Being cash received from Mr. Ashish) |
Step 1 : Locate the account in ledger i.e., Mr. Ashish Account.
Step 2 : Enter the date of transaction in the date column of the debit side of Mr. Ashish Account.
Step 3 : In the ‘particular column of the debit side of Mr. Ashish Account the name of corresponding account is to be written i.e., ‘sales’.
Step 4 : Enter the page number of the ledger in the journal folio column of Mr. Ashish Account.
Step 5 : Entry the amount in the Amount column.
Step 6 : Some steps are to be followed to part entries in the credit side of Mr. Ashish Account.
Step 7: After entering all the transactions for a particular period balance the account by totalling both sides and write the difference in shorter side as ‘Balance c/d’.
Step 8 : Total of account is to be writted on either sides.
14. What is a Journal? Give a specimen of Journal showing at least five entries.
Ans. Journal is book of original or primary entries in which the business transactions are recorded in chronological order i.e. as and when they take place. A transaction is recorded in the Journal in the form of an entry and process of recording a transactions in a Journal is known as journalising.
Format of a Journal
| Date | Particulars | L. F. |
Amount Dr. (₹) |
Amount Cr. (₹) |
(i) Date: Date of transaction is recorded in the order of their occurence.
(ii) Particular: Details of business transactions like, name of the parties involved and the name of related accounts, are recorded.
(iii) L.F.: Page number of ledger account when entry is posted.
(iv) Debit Amount: Amount of debit account is written.
(v) Credit Amount: Amount of credit account is written.
Recording of a Journal Entry
| Date | Particulars |
| 01.04.2022 | Started business with cash ₹1,00,000 |
| 03.04.2022 | Opened a bank account ₹20,000 |
| 04.04.2022 | Purchased goods for cash ₹25,000 |
| 05.04.2022 | Goods sold for cash ₹30,000 |
| 06.05.2022 | Goods sold to Mr. X ₹2,000 |
Book of Mr. A
| Date | Particulars | L. F. |
Amount Dr. (₹) |
Amount Cr. (₹) |
|
| 2022 | |||||
| April 1 | Cash A/c | Dr. | 1,00,000 | ||
| To Capital A/c | 1,00,000 | ||||
| April 3 | Bank A/c | Dr. | 20,000 | ||
| To Cash A/c | 20,000 | ||||
| (Being bank account opened with cash) | |||||
| April 4 | Purchase A/c | Dr. | 25,000 | ||
| To Cash A/c | 25,000 | ||||
| (Being goods purchased for cash) | |||||
| April 5 | Cash A/c | Dr. | 30,000 | ||
| To Sales A/c | 30,000 | ||||
| (Being goods sold for cash) | |||||
| April 6 | Mr. X's A/c | Dr. | 2,000 | ||
| To Sales A/c | 2,000 | ||||
| (Being good sold to Mr. X an credit) | |||||
| Total | 1,77,000 | 1,77,000 |
15. Differentiate between source documents and vouchers.
Ans.
| Source document | Voucher |
| 1. Source document is an evidence of transactions or event having taken place. | 1. Accounting voucher is a written document containing an analysis of business transaction. |
| 2. It contains complete details of the transactions. | 2. It is prepared on the basis of evidence of the transaction i.e. Source document. |
| 3. It is a proof of transactions having taken place. | 3. It is an analysis of transaction |
| 4. It is signed by the maker. | 4. It is prepared and signed usually by an accountant and countersigned by the authorised signatory. |
16. Accounting equation remains intact under all circumstances. Justify the statement with the help of an example.
Ans. According to the dual-aspect concept, every transaction simultaneously, has two effects of equal amount, i.e. debit and credit. However, in any case, the equality of total assets with the total claims of business (sum of capital and liabilities) is not distributed. This equality is algebraically represented as :
Assets = Total Claims
Or
Assets = Liabilities + Capital
or, Liabilities = Assets – Capital
or, Capital = Assets – Liabilities
In any circumstance the above equation cannot be changed. For example,
(i) Business started with cash ₹1,00,000
Cash A/c
To Capital A/c
Dr.
| Assets | = | Liabilities | + | Capital |
| Cash | 1,00,000 | |||
| 1,00,000 |
Assets decrease, as cash is invested into the business and capital increases. Thus the equality between LHS and RHS remains intact.
(ii) Goods purchased on credit ₹20,000
| Assets | = | Liabilities | + | Capital | |
| Cash | Stock | Creditors | |||
| 1,00,000 | 20,000 | = | 20,000 | + | 100,000 |
Assets increase as well as liability increases, without disturbing the equality.
(iii) Goods purchased with cash ₹25,000
| Assets | = | Liabilities | + | Capital | |
| Cash | Stock | ||||
| 1,00,000 | 20,000 | = | 20,000 | + | 1,00,000 |
| (25,000) | 25,000 |
As goods are purchased for cash, so cash balance reduces by ₹25,000, but on the other hand, stock balance increases by ₹25,000. Thus the total balance of LHS remains equal to the total claims.
17. Explain the double entry mechanism with an illustrative.
Ans. Double Entry System refers to a system of accounting which recognizes and records both aspects of a transaction.
Double Entry System is based on the Principle of "Dual Aspect", which states that every transaction has two aspects: a Debit and a Credit of equal amount.
In simple words, every debit must have a corresponding credit of equal amount in one or more accounts and vice-versa.
For example, if a firm has purchased machinery for cash, then in this transaction, two accounts will be affected: Machinery and Cash. Under the Double Entry System, both these aspects are recorded: Machinery will be debited and Cash will be credited for the same amount.
If a transaction affects more than two accounts, then the total amount debited must be equal to the total amount credited.
Features of the Double Entry System:
(i) It is a systematic and scientific method of recording financial transactions.
(ii) Every transaction has two-fold effect: the aspect of receiving and the aspect of giving.
(iii) With the help of rules of debit and credit, one aspect is debited and other aspect is credited.
(iv) The total of all debits and all credits must be equal. The arithmetical accuracy can be checked by preparing Trial Balance.
Numerical Questions
18. Prepare accounting equation on the basis of the following:
(a) Harsha started business with cash ₹2,00,000
(b) Purchased goods from Naman for cash ₹40,000
(c) Sold goods to Bhanu costing ₹10,000 for ₹12,000
(d) Bought furniture on credit ₹7,000
Ans.
| Assets | = | Liabilities + Capital | |||||
| S. No. |
Transactions | Cash (₹) |
Stock (₹) |
Debtor (₹) |
Furniture (₹) |
Creditors (₹) |
Capital |
| (a) | Harsha started business with cash | 2,00,000 | 0 | 0 | 0 | 0 | 2,00,000 |
| (b) | Purchased goods from Naman for Cash | (40,000) | 40,000 | 0 | 0 | 0 | 0 |
| New Equation | 1,60,000 | 40,000 | 0 | 0 | 0 | 2,00,000 | |
| (c) | Sold goods to Bhanu for ₹12,000 (costing ₹ 10,000) | 0 | (10,000) | 12,000 | 0 | 0 | 2,000 |
| New Equation | 1,60,000 | 30,000 | 12,000 | 0 | 0 | 2,02,000 | |
| (d) | Bought furniture on credit for ₹7,000 | 0 | 0 | 0 | 7,000 | 7,000 | 0 |
| New Equation | 1,60,000 | 30,000 | 1,200 | 7,000 | 7,000 | 2,02,000 | |
| Total | 2,09,000 | 2,09,000 |
| 19. Prepare accounting equation from the following: | ₹ |
| (a) Kunal started business with cash | 2,50,000 |
| (b) He purchased furniture for cash | 35,000 |
| (c) He paid commission | 2,000 |
| (d) He purchases goods on credit | 40,000 |
| (e) He sold goods (Costing ₹ 20,000) for cash | 26,000 |
Ans.
| Assets | = | Liabilities + Capital | ||||
| S. No. | Transactions | Cash (₹) |
Furniture (₹) |
Stock (₹) |
Creditors (₹) |
Capital (₹) |
| (a) | Kunal started business with cash ₹2,50,000 | 2,50,000 | 0 | 0 | 0 | 2,50,000 |
| (b) | He purchased furniture for cash ₹35,000 | (35,000) | 35,000 | 0 | 0 | 0 |
| New Equation | 2,15,000 | 35,000 | 0 | 0 | 2,50,000 | |
| (c) | He paid commission of ₹2,000 | (2,000) | 0 | 0 | 0 | (2,000) |
| New Equation | 2,13,000 | 35,000 | 0 | 0 | 2,48,000 | |
| (d) | He purchased goods on credit for ₹40,000 | 0 | 0 | 40,000 | 40,000 | 0 |
| New Equation | 2,13,000 | 35,000 | 40,000 | 40,000 | 2,48,000 | |
| (e) | He sold goods (costing ₹20,000 for cash ₹26,000) | 26,000 | 0 | (20,000) | 0 | 6,000 |
| New Equation | 2,39,000 | 35,000 | 20,000 | 40,000 | 2,54,000 | |
| Total | 2,94,000 | 2,94,000 | ||||
| 20. Mohit has the following transactions, prepare accounting equation: | ₹ |
| (a) Business started with cash | 1,75,000 |
| (b) Purchased goods from Rohit | 50,000 |
| (c) Sales goods on credit to Manish (costing ₹17,500) | 20,000 |
| (d) Purchased furniture for office use | 10,000 |
| (e) Cash paid to Rohit in full settlement | 48,500 |
| (f) Cash received from Manish | 20,000 |
| (g) Rent paid | 1,000 |
| (h) Cash withdrew for personal use | 3,000 |
Ans.
| 21. Rohit has the following transactions: | ₹ |
| (a) Commenced business with cash | 1,50,000 |
| (b) Purchased machinery on credit | 40,000 |
| (c) Purchased goods for cash | 20,000 |
| (d) Purchased car for personal use | 80,000 |
| (e) Paid to creditors in full settlement | 38,000 |
| (f) Sold goods for cash costing ₹5,000 | 4,500 |
| (g) Paid rent | 1,000 |
| (h) Commission received in advance | 2,000 |
Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital.
Ans.
| 22. Use accounting equation to show the effect of the following transactions of M/s Royal Traders: | ₹ |
| (a) Started business with cash | 1,20,000 |
| (b) Purchased goods for cash | 10,000 |
| (c) Rent received | 5,000 |
| (d) Salary outstanding | 2,000 |
| (e) Prepaid Insurance | 1,000 |
| (f) Received interest | 700 |
| (g) Sold goods for cash (costing ₹5,000) | 7,000 |
| (h) Goods destroyed by fire | 500 |
| Liabilities + Capital | |||||||
| S. No. | Transactions | Cash ₹ |
Stock ₹ |
Debtors ₹ |
Furniture ₹ |
Creditors ₹ |
Capital |
| (a) | Business started with cash ₹1,75,000 | 1,75,000 | 0 | 0 | 0 | 0 | 1,75,000 |
| (b) | Purchased goods from Rohit ₹50,000 | 0 | 50,000 | 0 | 0 | 50,000 | 0 |
| New Equation | 1,75,000 | 50,000 | 0 | 0 | 50,000 | 1,75,000 | |
| (c) | Sold goods on credit to Manish for ₹20,000 (costing ₹17,500) | 0 | (17,500) | 20,000 | 0 | 0 | 2,500 |
| New Equation | 1,75,000 | 32,500 | 0 | 0 | 50,000 | 1,77,500 | |
| (d) | Purchased furniture for office use for ₹10,000 | (10,000) | 0 | 0 | 10,000 | 0 | 0 |
| New Equation | 1,65,000 | 32,500 | 20,000 | 10,000 | 50,000 | 1,77,500 | |
| (e) | Cash paid to Rohit in full settlement ₹48,500 | (48,500) | 0 | 0 | 0 | (50,000) | 1,500 |
| New Equation | 1,16,500 | 32,500 | 20,000 | 10,000 | 0 | 1,79,000 | |
| (f) | Cash received from Manish ₹20,000 | 20,000 | 0 | (20,000) | 0 | 0 | 0 |
| New Equation | 1,36,500 | 0 | 10,000 | 0 | 1,79,000 | 0 | |
| (g) | Rent paid of ₹1,000 | (1000) | 0 | 0 | 0 | 0 | (1,000) |
| New equation | 1,36,500 | 32,500 | 0 | 10,000 | 0 | 1,79,000 | |
| (g) | Rent paid of ₹1,000 | (1000) | 0 | 0 | 0 | 0 | (1,000) |
| New equation | 1,35,500 | 32,500 | 0 | 1,000 | 0 | 1,78,000 | |
| (h) | Cash withdraw for personal use of ₹3,000 | (3,000) | 0 | 0 | 0 | 0 | (3,000) |
| New Equation | 1,32,500 | 32,500 | 0 | 10,000 | 0 | 1,75,000 | |
| Total | 1,75,000 | 1,75,000 | |||||
Ans.
| Liabilities + Capital | ||||||
| S. No. | Transactions | Cash (₹) |
Stock (₹) |
Prepaid Expenses (₹) |
Outstanding Expenses (₹) |
Capital (₹) |
| (a) | Business started with cash for ₹1,20,000 | 1,20,000 | 0 | 0 | 0 | 1,20,000 |
| (b) | Purchased goods for cash | (10,000) | 10,000 | 0 | 0 | 0 |
| New Equation | 1,10,000 | 10,000 | 0 | 0 | 1,20,000 | |
| (c) | Rent received | 5,000 | 0 | 0 | 0 | 5,000 |
| New Equation | 1,15,000 | 10,000 | 0 | 0 | 1,25,000 | |
| (d) | Salary Outstanding for ₹2,000 | 0 | 0 | 0 | 2,000 | (2,000) |
| New Equation | 1,15,000 | 10,000 | 0 | 2,000 | 1,23,000 | |
| (e) | Prepaid Insurance for ₹1,000 | (1,000) | 0 | 1,000 | 0 | 0 |
| New Equation | 1,14,000 | 10,000 | 1,000 | 2,000 | 1,23,700 | |
| (f) | Received interest for ₹700 | 700 | 0 | 0 | 0 | 700 |
| New Equation | 1,14,700 | 10,000 | 1,000 | 2,000 | 1,23,700 | |
| (g) | Sold goods for cash (costing ₹5,000) | 7,000 | (5,000) | 0 | 0 | 2,000 |
| New equation | 1,21,700 | 5,000 | 1,000 | 2,000 | 1,25,700 | |
| (h) | Goods destroyed by fire for ₹500 | 0 | (500) | 0 | 0 | (500) |
| New Equation | 1,21,700 | 4,500 | 1,000 | 2,000 | 1,25,200 | |
| Total | ||||||
| Liabilities + Capital | ||||||
| S. No. | Transactions | Cash (₹) |
Machinery (₹) |
Stock (₹) |
Creditors (₹) |
Capital (₹) |
| (a) | Business started with cash for ₹1,50,000 | 1,50,000 | 0 | 0 | 0 | 1,50,000 |
| (b) | Purchased machinery on credit for ₹40,000 | 0 | 40,000 | 0 | 40,000 | 0 |
| New Equation | 1,50,000 | 40,000 | 0 | 40,000 | 1,50,000 | |
| (d) | Purchased car for personal use of ₹80,000 | (80,000) | 0 | 0 | 0 | (80,000) |
| New Equation | 50,000 | 40,000 | 20,000 | 40,000 | 70,000 | |
| (e) | Amount paid to creditors in full settlement for ₹38,000 | (38,000) | 0 | 0 | (40,000) | 2,000 |
| New Equation | 12,000 | 40,000 | 20,000 | 0 | 72,000 | |
| (f) | Sold goods for cash ₹4,500 (costing ₹5,000) | 4,500 | 0 | (5,000) | 0 | (500) |
| New Equation | 16,500 | 40,000 | 15000 | 0 | 71,500 | |
| (g) | Rent paid of ₹1,000 | (1,000) | 0 | 0 | 0 | (1,000) |
| New Equation | 15,500 | 40,000 | 15,000 | 0 | 70,500 | |
| (h) | Commission received in advance for ₹2,000 | 2,000 | 0 | 0 | 0 | 0 |
| New Equation | 17,500 | 40,000 | 15,000 | 0 | 72,500 | |
| Total | 72,500 | |||||
| 23. Show the accounting equation on the basis of the following transactions: | |
| (a) Udit started business with: | ₹ |
| (i) Cash | 5,00,000 |
| (ii) Goods | 1,00,000 |
| (b) Purchased building for cash | 2,00,000 |
| (c) Purchased goods from Himani | 50,000 |
| (d) Sold goods to Ashu (Cost ₹25,000) | 36,000 |
| (e) Paid insurance premium | 3,000 |
| (f) Rent outstanding | 5,000 |
| (g) Depreciation on building | 8,000 |
| (h) Cash withdrawn for personal use | 20,000 |
| (i) Rent received in advance | 5,000 |
| (j) Cash paid to Himani on account | 20,000 |
| (k) Cash received from Ashu | 30,000 |
Ans.
| S. No. | Transactions | Cash (₹) |
Stock (₹) |
Building (₹) |
Debtors (₹) |
Creditors (₹) |
Outstanding Expenses (₹) |
Unaccrued Income (₹) |
Capital (₹) |
| (a) | Started Business with cash and goods | 5,00,000 | 1,00,000 | 0 | 0 | 0 | 0 | 0 | 6,00,000 |
| (b) | Purchased building for cash | (2,00,000) | 0 | 2,00,000 | 0 | 0 | 0 | 0 | 0 |
| New Equation | 3,00,000 | 1,50,000 | 2,00,000 | 0 | 50,000 | 0 | 0 | 6,00,000 | |
| (c) | Purchased goods from Himani | 0 | 50,000 | 0 | 0 | 50,000 | 0 | 0 | 0 |
| New Equation | 3,00,000 | 1,50,000 | 2,00,000 | 0 | 50,000 | 0 | 0 | 6,00,000 | |
| (d) | Sold goods to Ashu (costing ₹25,000) | 0 | (25,000) | 0 | 36,000 | 0 | 0 | 0 | 11,000 |
| New Equation | 3,00,000 | 1,25,000 | 2,00,000 | 36,000 | 50,000 | 0 | 0 | 6,11,000 | |
| (e) | Paid insurance premium | (3,000) | 0 | 0 | 0 | 0 | 0 | 0 | (3,000) |
| New Equation | 2,97,000 | 1,25,000 | 2,00,000 | 36,000 | 50,000 | 0 | 0 | 6,08,000 | |
| (f) | Rent outstanding | 0 | 0 | 0 | 0 | 0 | 5,000 | 0 | (5,000) |
| New Equation | 2,97,000 | 1,25,000 | 2,00,000 | 36,000 | 50,000 | 5,000 | 0 | 6,03,000 | |
| (g) | Depreciation on building | 0 | 0 | (8,000) | 0 | 0 | 0 | 0 | (8,000) |
| New equation | 2,97,000 | 1,25,000 | 1,92,000 | 36,000 | 50,000 | 5,000 | 0 | 5,95,000 | |
| (h) | Cash withdrawn for personal use | (20,000) | 0 | 0 | 0 | 0 | 0 | 0 | (20,000) |
| New Equation | 2,77,000 | 1,25,000 | 1,92,000 | 36,000 | 50,000 | 5,000 | 0 | 5,75,000 | |
| (i) | Rent receive in advance | 5,000 | 0 | 0 | 0 | 0 | 0 | 5,000 | 0 |
| New Equation | 2,82,000 | 1,25,000 | 1,25,000 | 36,000 | 50,000 | 50,000 | 5,000 | 5,75,000 | |
| (j) | Cash paid to Himani on account | (20,000) | 0 | 0 | 0 | (20,000) | 0 | 0 | 0 |
| New Equation | 2,62,000 | 1,25,000 | 1,92,000 | 36,000 | 30,000 | 5,000 | 5,000 | 5,75,000 | |
| (k) | Cash received from Ashu | 30,000 | 0 | 0 | (30,000) | 0 | 0 | 0 | 0 |
| New Equation | 2,92,000 | 1,25,000 | 1,92,000 | 6,000 | 30,000 | 5,000 | 5,000 | 5,75,000 | |
| Total | |||||||||
24. Show the effect of the following transactions on Assets, Liabilities and Capital through accounting
equation:
| ₹ | |
| (a) Started business with cash | 1,20,000 |
| (b) Rent received | 10,000 |
| (c) Invested in shares | 50,000 |
| (d) Received dividend | 5,000 |
| (e) Purchase goods on credit from Ragani | 35,000 |
| (f) Paid cash for household expenses | 7,000 |
| (g) Sold goods for cash (costing ₹10,000) | 14,000 |
| (h) Cash paid to Ragani | 35,000 |
| (i) Deposited into bank | 20,000 |
Ans.
| Liabilities + Capital | |||||||
| S. No. | Transactions | Cash (₹) |
Investment (₹) |
Stock (₹) |
Bank (₹) |
Creditors (₹) |
Capital |
| (a) | Started business with cash | 1,20,000 | 0 | 0 | 0 | 0 | 1,20,000 |
| (b) | Rent received | 10,000 | 0 | 0 | 0 | 0 | 10,000 |
| New Equation | 1,30,000 | 0 | 0 | 0 | 0 | 1,30,000 | |
| (c) | Amount Invested in shares | (50,000) | 50,000 | 0 | 0 | 0 | 0 |
| New Equation | 80,000 | 50,000 | 0 | 0 | 0 | 1,30,000 | |
| (d) | Received dividend | 5,000 | 0 | 0 | 0 | 0 | 5,000 |
| New Equation | 85,000 | 50,000 | 0 | 0 | 0 | 1,35,000 | |
| (e) | Purchased goods on credit from Ragani | 0 | 0 | 35,000 | 0 | 35,000 | 0 |
| New Equation | 85,000 | 50,000 | 35,000 | 0 | 35,000 | 1,35,000 | |
| (f) | Paid cash for household expenses | (7,000) | 0 | 0 | 0 | 0 | (7,000) |
| New Equation | 78,000 | 50,000 | 35,000 | 0 | 35,000 | 1,28,000 | |
| (g) | Sold goods for cash (costing ₹10,000) | 14,000 | 0 | (10,000) | 0 | 0 | 4,000 |
| New equation | 92,000 | 50,000 | 25,000 | 0 | 35,000 | 1,32,000 | |
| (h) | Cash paid to Ragani | (35,000) | 0 | 0 | 0 | (35,000) | 0 |
| New equation | 57,000 | 50,000 | 25,000 | 0 | 0 | 1,32,000 | |
| (i) | Deposited into bank | (20,000) | 0 | 0 | 20,000 | 0 | 0 |
| New Equation | 37,000 | 50,000 | 25,000 | 20,000 | 0 | 1,32,000 | |
| Total | |||||||
| 25. Show the effect of following transactions on the accounting equation: | ₹ |
| (a) Manoj started business with | |
| (i) Cash | 2,30,000 |
| (ii) Goods | 1,00,000 |
| (iii) Building | 2,00,000 |
| (b) He purchased goods for cash | 50,000 |
| (c) He sold goods (costing ₹20,000) | 35,000 |
| (d) He purchased goods from Rahul | 55,000 |
| (e) He sold goods to Varun (costing ₹ 52,000) | 60,000 |
| (f) He paid cash to Rahul in full settlement | 53,000 |
| (g) Salary paid by him | 20,000 |
| (h) Received cash from Varun in full settlement | 59,000 |
| (i) Rent outstanding | 3,000 |
| (j) Prepaid Insurance | 2,000 |
| (k) Commission received by him | 13,000 |
| (l) Amount withdrawn by him for personal use | 20,000 |
| (m) Depreciation charge on building | 10,000 |
| (n) Fresh capital invested | 50,000 |
| (o) Purchased goods from Rakhi | 10,000 |
Ans.
| S. No. |
Transactions | Cash (₹) |
Stock (₹) |
Building (₹) |
Debtors (₹) |
Prepaid Expenses |
Creditors (₹) |
Outstanding Expenses (₹) | Capital (₹) |
| (a) | Manoj started the business with cash, goods, building | 2,30,000 | 1,00,000 | 2,00,000 | 0 | 0 | 0 | 0 | 5,30,000 |
| (b) | He purchased goods for cash | (50,000) | 50,000 | 0 | 0 | 0 | 0 | 0 | 0 |
| New Equation | 1,80,000 | 1,50,000 | 2,00,000 | 0 | 0 | 0 | 0 | 0 | 5,30,000 |
| (c) | He sold goods (costing ₹20,000) | 35,000 | (20,000) | 0 | 0 | 0 | 0 | 0 | 15,000 |
| New Equation | 2,15,000 | 1,30,000 | 2,00,000 | 0 | 0 | 0 | 0 | 5,45,000 | |
| (d) | He purchased goods from Rahul ₹55,000 | 0 | 55,000 | 0 | 0 | 0 | 55,000 | 0 | 0 |
| New Equation | 2,15,000 | 1,85,000 | 2,00,000 | 0 | 0 | 55,000 | 0 | 5,45,000 | |
| (e) | He sold goods to Varun (costing ₹52,000) | 0 | (52,000) | 0 | 60,000 | 0 | 0 | 0 | 8,000 |
| New Equation | 2,15,000 | 1,33,000 | 2,00,000 | 60,000 | 0 | 55,000 | 0 | 5,53,000 | |
| (f) | He paid cash to Rahul in full settlement | (53,000) | 0 | 0 | 0 | 0 | (55,000) | 0 | 2,000 |
| New Equation | 1,62,000 | 1,33,000 | 2,00,000 | 60,000 | 0 | 0 | 0 | 5,55,000 | |
| (g) | Salary paid by him ₹20,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (20,000) |
| New equation | 1,42,000 | 1,33,000 | 2,00,000 | 60,000 | 0 | 0 | 0 | 5,35,000 | |
| (h) | Received cash from Varun in full settlement ₹59,000 | 59,000 | 0 | 0 | 60,000 | 0 | 0 | 0 | (1,000) |
| New Equation | 2,01,000 | 1,33,000 | 2,00,000 | 0 | 0 | 0 | 0 | 5,34,000 | |
| (i) | Rent outstanding for ₹ 3,000 | 0 | 0 | 0 | 0 | 0 | 0 | 3,000 | (3,000) |
| New Equation | 2,01,000 | 1,33,000 | 2,00,000 | 0 | 0 | 0 | 3,000 | 5,31,000 | |
| (j) | Prepaid Insurance for ₹2,000 | (2,000) | 0 | 0 | 0 | 2,000 | 0 | 0 | 0 |
| New Equation | 1,99,000 | 1,33,000 | 2,00,000 | 0 | 2,000 | 0 | 3,000 | 5,31,000 | |
| (k) | Commission received by him for ₹13,000 | 13,000 | 0 | 0 | 0 | 0 | 0 | 0 | 13,000 |
| New Equation | 2,12,000 | 1,33,000 | 2,00,000 | 0 | 2,000 | 0 | 3,000 | 5,44,000 | |
| (l) | Amount withdrawn by him for personal use ₹20,000 | (20,000) | 0 | 0 | 0 | 0 | 0 | 0 | (20,000) |
| New Equation | 1,92,000 | 1,33,000 | 2,00,000 | 0 | 2,000 | 0 | 3,000 | 5,24,000 | |
| (m) | Depreciation charge on building for ₹10,000 | 0 | 0 | (10,000) | 0 | 0 | 0 | 0 | (10,000) |
| New equation | 1,92,000 | 1,33,000 | 1,90,000 | 0 | 2,000 | 0 | 3,000 | 5,14,000 | |
| (n) | Fresh capital invested for ₹50,000 | 50,000 | 0 | 0 | 0 | 0 | 0 | 0 | 50,000 |
| New Equation | 2,42,000 | 1,33,000 | 1,90,000 | 0 | 2,000 | 0 | 3,000 | 5,64,000 | |
| (o) | Purchased goods from Rakhi | 0 | 10,000 | 0 | 0 | 0 | 10,000 | 0 | 0 |
| New Equation | 2,42,000 | 1,43,000 | 1,90,000 | 0 | 2,000 | 10,000 | 3,000 | 5,64,000 | |
| Total | |||||||||
26. Transactions of M/s. Vipin Traders are given below.
Show the effects on Assets, Liabilities and Capital with the help of accounting equation.
| ₹ | |
| (a) Business started with cash | 1,25,000 |
| (b) Purchased goods for cash | 50,000 |
| (c) Purchase furniture from R.K. Furniture | 10,000 |
| (d) Sold goods to Parul Traders (Costing ₹7,000 vide Bill no. 5674) | 9,000 |
| (e) Paid cartage | 100 |
| (f) Cash Paid to R.K. furniture in full settlement | 9,700 |
| (g) Cash sales (costing ₹10,000) | 12,000 |
| (h) Rent received | 4,000 |
| (i) Cash withdrew for personal use | 3,000 |
Ans.
| Liabilities + Capital | |||||||
| S. No. | Transactions | Cash (₹) |
Stock (₹) |
Furniture (₹) |
Debtors (₹) |
Creditors (₹) |
Capital (₹) |
| (a) | Business started with cash for ₹1,25,000 | 1,25,000 | 0 | 0 | 0 | 0 | 1,25,000 |
| (b) | Purchased goods for cash ₹50,000 | (50,000) | 50,000 | 0 | 0 | 0 | 0 |
| New Equation | 75,000 | 50,000 | 0 | 0 | 0 | 1,25,000 | |
| (c) | Purchase furniture from R.K Furniture | 0 | 0 | 10,000 | 0 | 10,000 | 0 |
| New Equation | 75,000 | 50,000 | 10,000 | 0 | 10,000 | 1,25,000 | |
| (d) | Sold goods to Parul Traders (costing ₹7,000) | 0 | (7,000) | 0 | 9,000 | 0 | 2,000 |
| New Equation | 75,000 | 43,000 | 10,000 | 9,000 | 10,000 | 1,27,000 | |
| (e) | Paid cartage for ₹100 | (100) | 0 | 0 | 0 | 0 | (100) |
| New Equation | 74,900 | 43,000 | 10,000 | 9,000 | 10,000 | 1,26,900 | |
| (f) | Cash paid to R.K. Furniture in full settlement | (9,700) | 0 | 0 | 0 | (10,000) | 300 |
| New Equation | 65,200 | 43,000 | 10,000 | 9,000 | 0 | 1,27,200 | |
| (g) | Cash sales (costing ₹10,000) | 12,000 | (10,000) | 0 | 0 | 0 | 2,000 |
| New Equation | 77,200 | 33,000 | 10,000 | 9,000 | 0 | 1,29,200 | |
| (h) | Rent received for ₹4,000 | 4,000 | 0 | 0 | 0 | 0 | 4,000 |
| New Equation | 81,200 | 33,000 | 10,000 | 9,000 | 0 | 1,33,200 | |
| (i) | Cash withdrawn for personal use for ₹3,000 | (3,000) | 0 | 0 | 0 | 0 | (3,000) |
| New Equation | 78,200 | 33,000 | 10,000 | 9,000 | 0 | 1,30,200 | |
| Total | |||||||
27. Bobby opened a consulting firm and completed these transactions during November, 2005:
(a) Invested ₹4,00,000 cash and office equipment with ₹1,50,000 in a business called Bobbie Consulting.
(b) Purchased land and a small office building. The land was worth ₹1,50,000 and the building worth
₹3,50,000. The purchase price was paid with ₹2,00,000 cash and a long term note payable for ₹ 8,00,000.
(c) Purchased office supplies on credit for ₹12,000.
(d) Bobbie transferred title of motor car to the business. The motor car was worth ₹90,000.
(e) Purchased for ₹30,000 additional office equipment on credit.
(f) Paid ₹7,500 salary to the office manager.
(g) Provided services to a client and collected ₹30,000.
(h) Paid ₹4,000 for the month’s utilities.
(i) Paid supplier created in transaction (c).
(j) Purchased new office equipment by paying ₹93,000 cash and trading in old equipment with a
recorded cost of ₹7,000.
(k) Completed services of a client for ₹26,000. This amount is to be paid within 30 days.
(l) Received ₹19,000 payment from the client created in transaction (k).
(m) Bobby withdrew ₹20,000 from the business.
Analyse the above stated transactions and open the following T-accounts:
Cash, client, office supplies, motor car, building, land, long term payables, capital, withdrawals, salary, expense and utilities expense.
Ans. (a) The transaction (a) increases assets by ₹5,50,000 (cash ₹4,00,000 and office equipment ₹1,50,000), it will be debited and on the other hand it will increase the capital by ₹5,50,000 so it will be credited in capital account.
(b) Purchase of land and small office building are assets. On one hand, the purchase of these items will increase their individual accounts and this will increase the total amount of the assets in the business, so, both the accounts will be debited. On the other hand, payment in cash on the purchase of these assets will decrease the cash balance, so cash account will be credited to the extent of amount paid.
After payment for building in cash, the balance of Building account will be transfered to creditors account. This will increase the amount of the creditors, which in turn will increase the total liabilities of the business. Long term payable are regarded as loan to the business that will increase both cash balance (due to intake of loan) as well as liabilities of the business.
(c) Here, office supplies is an expense, so according to the golden rule, ‘All expenses are debited’, it will be debited on one hand while on the other hand `office supplies' has been purchased on credit, so it will increase the liability on account of which supplier’s account will be credited.
(d) Amount invested (motor car) by the proprietor in the business would increase both the capital and assets.
(e) Purchase of additional equipment increases the assets, hence, office equipment account will be debited. Further as the office equipment was purchased on credit, it increase the amount of the creditors for office equipment and the creditors account will be credited.
(f) Salary is an expense and as all the expenses are debited, so the payment of salary to the manager will be debited to the Salary account. And on the other hand the payment of the salary in cash decreases the cash balance (Assets) so the cash account would be credited (as decrease in assets is credited).
(g) Amount received or receivable from services rendered to the client is revenue for the business. All revenues are to be credited so Client services account will be credited. On the other hand, cash received in exchange of service would increase the cash balance. It would be debited to the Cash
account.
(h) The `utilities' has been treated as a revenue expenses. All expenses are to be debited. Amount paid for utilities would be debited to utilities Account. They have been paid in cash so the cash-account will be credited (as this decreases assets).
(i) Payment to the supplier (creditors) will be debited. It results in the decrease in liabilities. Further as the payment has been made in cash, so it results in decrease in the cash balance (assets) and hence the Cash account will be credited.
(j) Purchase of the equipments will be debited in the Equipment Account (as there is increase in the assets). Also as the equipments of worth ₹1,00,000 and ₹93,000 have been purchased for cash and old equipments of worth ₹7,000 have been enchanged so the purchase of the equipments will be debited in the Office Equipment Account and equipment of ₹7,000 will be credited in the same account.
(k) Receipt from `Client Service' is revenue. All revenues are credited. The Client services account will be credited and client is considered as debtors, so the client account will be debited.
(l) The client has been considered as Debtors. The amount received from the client will lead to the
decreases in the debtors balance and the client account will be credited. Receipts from the client will increase the cash balance (assets), and hence the cash account will be debited.
(m) The amount withdrawn by the proprietor is considered as `drawings'. According to the Business Entity Concept, drawings decreases the owner's capital. Thus, the Drawings account will be debited.
On the other hand as drawings have been made in cash, decrease in cash means cash account will be credited with the amount of drawings.
T-Accounts
| Dr. | Cr. | ||||||
| S. No. | Particulars | J. F. |
Amount (₹) |
S. No. | Particulars | J. F. |
Amount (₹) |
| (a) | By Cash A/c | 4,00,000 | |||||
| (a) | By Office Equipment A/c | 1,50,000 | |||||
| (d) | By Motor Car A/c | 90,000 |
| Dr. | Cr. | ||||||
| S. No. | Particulars | J. F. |
Amount (₹) |
S. No. | Particulars | J. F. |
Amount (₹) |
| (a) | By Cash A/c | 4,00,000 | |||||
| (a) | By Office Equipment A/c | 1,50,000 | |||||
| (d) | By Motor Car A/c | 90,000 |
| S. No. | Particulars | J. F. |
Amount (₹) |
S. No. | Particulars | J. F. |
Amount (₹) |
| (a) | To Capital A/c | 1,50,000 | |||||
| (e) | To Creditors for office equipment A/c | 30,000 | |||||
| (j) | To Cash A/c | 93,000 |
| Dr. | Cr. | ||||||
| S. No. |
Particulars | J. F. |
Amount (₹) |
S. No. |
Particulars | J. F. |
Amount (₹) |
| (a) | To Capital A/c | 4,00,000 | (b) | By Land A/c | 4,000 | ||
| (b) | To Long term payable A/c | 3,00,000 | (b) | By Building A/c | 50,000 | ||
| (g) | To Client Services A/c | 30,000 | (f) | By Salaries A/c | 7,500 | ||
| (i) | To Client A/c | 19,000 | (h) | By Utilities A/c | 4,000 | ||
| (i) | By Suppliers A/c | 12,000 | |||||
| (j) | By Office Equipment A/c | 93,000 | |||||
| (m) | By Drawings A/c | 20,000 |
| Dr. | Cr. | ||||||
| S. No. |
Particulars | J. F. |
Amount (₹) |
S. No. |
Particulars | J. F. |
Amount (₹) |
| (b) | To Cash A/c | 1,50,000 |
| Dr. | Cr. | ||||||
| S. No. |
Particulars | J. F. |
Amount (₹) |
S. No. |
Particulars | J. F. |
Amount (₹) |
| (b) | To Cash A/c | 50,000 | |||||
| (b) | To Creditors for Building A/c | 3,00,000 |
| Dr. | Cr. | ||||||
| S. No. |
Particulars | J. F. |
Amount (₹) |
S. No. |
Particulars | J. F. |
Amount (₹) |
| (c) | To Supplier A/c | 12,000 |
| Dr. | Cr. | ||||||
| S. No. |
Particulars | J. F. |
Amount (₹) |
S. No. |
Particulars | J. F. |
Amount (₹) |
| (d) | To Capital A/c | 90,000 |
| Dr. | Cr. | ||||||
| S. No. |
Particulars | J. F. |
Amount (₹) |
S. No. |
Particulars | J. F. |
Amount (₹) |
| (i) | To Cash A/c | 12,000 | (c) | By Office Suppliers A/c | 12,000 |
| Dr. | Cr. | ||||||
| S. No. |
Particulars | J. F. |
Amount (₹) |
S. No. |
Particulars | J. F. |
Amount (₹) |
| (e) | By Officer equipment A/c | 30,000 |
| Dr. | Cr. | ||||||
| S. No. |
Particulars | J. F. |
Amount (₹) |
S. No. |
Particulars | J. F. |
Amount (₹) |
| (f) | To Cash A/c | 7,500 |
| Dr. | Cr. | ||||||
| S. No. |
Particulars | J. F. |
Amount (₹) |
S. No. |
Particulars | J. F. |
Amount (₹) |
| (g) | By Cash A/c | 30,000 | |||||
| (k) | By Client A/c | 26,000 |
| Dr. | Cr. | ||||||
| S. No. | Particulars | J. F. |
Amount (₹) |
S. No. | Particulars | J. F. | Amount (₹) |
| (h) | To Cash A/c | 4,000 |
| Dr. | Cr. | ||||||
| S. No. | Particulars | J. F. |
Amount (₹) |
S. No. | Particulars | J. F. | Amount (₹) |
| (k) | To Client Services A/c | 26,000 | (l) | By Cash A/c | 19,000 |
| Dr. | Cr. | ||||||
| S. No. | Particulars | J. F. |
Amount (₹) |
S. No. | Particulars | J. F. | Amount (₹) |
| (m) | To Cash A/c | 20,000 |
| Dr. | Cr. | ||||||
| S. No. | Particulars | J. F. |
Amount (₹) |
S. No. | Particulars | J. F. |
Amount (₹) |
| (b) | By Cash A/c | 3,00,000 |
| Dr. | Cr. | ||||||
| S. No. | Particulars | J. F. |
Amount (₹) |
S. No. | Particulars | J. F. |
Amount (₹) |
| (b) | By Building A/c | 3,00,000 |
28. Journalise the following transactions in the books of Himanshu:
| 2017 | ₹ | |
| Dec. 01 | Business started with cash | 75,000 |
| Dec. 07 | Purchased goods for cash | 10,000 |
| Dec. 09 | Sold goods to Swati | 5,000 |
| Dec. 12 | Purchased furniture | 3,000 |
| Dec. 18 | Cash received from Swati in full settlement | 4,000 |
| Dec. 25 | Paid rent | 1,000 |
| Dec. 30 | Paid salary | 1,500 |
Ans.
In the Books of Himanshu
Journal Entries
| Date | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| 2017 | |||||
| Dec. 01 | Cash A/c | Dr. | 75,000 | ||
| To Capital A/c | 75,000 | ||||
| (Being started business with cash) | |||||
| Dec.07 | Purchases A/c | Dr. | 10,000 | ||
| To Cash A/c | 10,000 | ||||
| (Being goods purchased for cash) | |||||
| Dec.12 | Furniture A/c | Dr. | 3,000 | ||
| To Cash A/c | 3,000 | ||||
| (Being furniture purchased for cash) | |||||
| Dec.18 | Cash A/c | Dr. | 4,000 | ||
| Discount Allowed A/c | Dr. | 1,000 | |||
| To Swati’s A/c | 5,000 | ||||
| (Being cash received from Swati and discount allowed) | |||||
| Dec.25 | Rent A/c | Dr. | 1,000 | ||
| To Cash A/c | 1,000 | ||||
| (Being rent paid in cash) | |||||
| Dec.30 | Salary A/c | Dr. | 1,500 | ||
| To Cash A/c | 1,500 | ||||
| (Being salary paid in cash) | |||||
| Total | 1,00,500 | 1,00,500 | |||
29. Enter the following transactions in the Journal of Mudit :
| 2017 | ₹ | |
| Jan.01 | Commenced business with cash | 1,75,000 |
| Jan.01 | Building | 1,00,000 |
| Jan.02 | Goods purchased for cash | 75,000 |
| Jan.03 | Sold goods to Ramesh | 30,000 |
| Jan.04 | Paid wages | 500 |
| Jan.06 | Sold goods for cash | 10,000 |
| Jan.10 | Paid for trade expenses | 700 |
| Jan.12 | Cash received from Ramesh | 29,500 |
| Discount allowed | 500 | |
| Jan.14 | Goods purchased for Sudhir | 27,000 |
| Jan.18 | Cartage paid | 1,000 |
| Jan.20 | Drew cash for personal use | 5,000 |
| Jan.22 | Goods use for house hold | 2,000 |
| Jan.25 | Cash paid to Sudhir | 26,700 |
| Discount allowed | 300 |
Ans.
In the Books of Mudit
Journal Entries
| Date | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| 2017 | |||||
| Jan. 01 | Cash A/c | Dr. | 1,75,000 | ||
| To Capital A/c | 1,75,000 | ||||
| (Being commenced business with cash) | |||||
| Jan. 01 | Building A/c | Dr. | 1,00,000 | ||
| To Cash A/c | 1,00,000 | ||||
| (Being commenced business with building) | |||||
| Jan. 02 | Purchases A/c | Dr. | 75,000 | ||
| To Cash A/c | 75,000 | ||||
| (Being goods purchased for cash) | |||||
| Jan. 03 | Ramesh A/c | Dr. | 30,000 | ||
| To Sales A/c | 30,000 | ||||
| (Being goods sold to Ramesh) | |||||
| Jan. 04 | Wages A/c | Dr. | 500 | ||
| To Cash A/c | 500 | ||||
| (Being wages paid in cash) | |||||
| Jan. 06 | Cash A/c | Dr. | 10,000 | ||
| To Sales A/c | 10,000 | ||||
| (Being goods sold for cash) | |||||
| Jan. 10 | Trade Expenses A/c | Dr. | 700 | ||
| To Cash A/c | 700 | ||||
| (Being trade expenses paid in cash) | |||||
| Jan. 12 | Cash A/c | Dr. | 29,500 | ||
| Discount Allowed A/c | Dr. | 500 | |||
| To Ramesh | 30,000 | ||||
| (Being cash received from Ramesh and discount allowed to him) | |||||
| Jan. 14 | Purchases A/c | Dr. | 27,000 | ||
| To Sudhir's A/c | 27,000 | ||||
| (Being goods purchased from Sudhir on credit) | |||||
| Jan. 18 | Cartage A/c | Dr. | 1,000 | ||
| To Cash A/c | 1,000 | ||||
| (Being cartage paid in cash) | |||||
| Jan. 20 | Drawings A/c | Dr. | 5,000 | ||
| To Cash A/c | 5,000 | ||||
| (Being Cash withdrawn for personal use) | |||||
| Jan. 22 | Drawings A/c | Dr. | 2,000 | ||
| To Purchases A/c | 2,000 | ||||
| (Goods drawn from business for households use) | |||||
| Jan. 25 | Sudhir's A/c | Dr. | 27,000 | ||
| To Cash A/c | 26,700 | ||||
| To Discount Received A/c | 300 | ||||
| (Being cash paid to Sudhir and discount received) | 300 | ||||
| Total | 4,83,200 | 4,83,200 |
30. Journalise the following transactions:
| 2017 | ₹ | |
| Dec. 01 | Hema started business with cash | 1,00,000 |
| Dec. 02 | Open a bank account with SBI | 30,000 |
| Dec. 04 | Purchased goods from Ashu | 20,000 |
| Dec. 06 | Sold goods to Rahul for cash | 15,000 |
| Dec.10 | Bought goods from Tara for cash | 40,000 |
| Dec.13 | Sold goods to Suman | 20,000 |
| Dec.16 | Received cheque from Suman | 19,500 |
| Discount allowed | 500 | |
| Dec. 20 | Cheque given to Ashu on account | 10,000 |
| Dec.22 | Rent paid by cheque | 2,000 |
| Dec.23 | Deposited into bank | 16,000 |
| Dec.25 | Machine purchased from Parigya | 10,000 |
| Dec.26 | Trade expenses | 2,000 |
| Dec.28 | Cheque issued to Parigya | 10,000 |
| Dec.29 | Paid telephone expenses by cheque | 1,200 |
| Dec.31 | Paid salary | 4,500 |
Ans.
In the Books of Hema
Journal Entries
| Date | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| 2017 | |||||
| Dec. 01 | Cash A/c | Dr. | 1,00,000 | ||
| To Capital A/c | 1,00,000 | ||||
| (Being business started with cash) | |||||
| Dec. 02 | Bank A/c | Dr. | 30,000 | ||
| To Cash A/c | 30,000 | ||||
| (Being bank account opened wiht SBI) | |||||
| Dec. 04 | Purchases A/c | Dr. | 20,000 | ||
| To Ashu's A/c | 20,000 | ||||
| (Being goods purchased from Ashu) | |||||
| Dec. 06 | Cash A/c | Dr. | 15,000 | ||
| To Sales A/c | 15,000 | ||||
| (Being goods sold for cash) | |||||
| Dec. 10 | Purchases A/c | Dr. | 40,000 | ||
| To Cash A/c | 40,000 | ||||
| (Being goods purchased for cash) | |||||
| Dec.13 | Suman's A/c | Dr. | 20,000 | ||
| To Sales A/c | 20,000 | ||||
| (Being goods sold to Suman) | |||||
| De. 16 | Bank A/c | Dr. | 19,500 | ||
| Discount Allowed A/c | Dr. | 500 | |||
| To Suman's A/c | 20,000 | ||||
| (Being cheque received from Suman and discount allowed) | |||||
| Dec. 20 | Ashu's A/c | Dr. | 10,000 | ||
| To Bank A/c | 10,000 | ||||
| (Being cheque forwarded to Ashu) | |||||
| Dec. 22 | Rent A/c | Dr. | 2,000 | ||
| To Bank A/c | 2,000 | ||||
| (Being rent paid by cheque) | |||||
| Dec. 23 | Bank A/c | Dr. | 16,000 | ||
| To Cash A/c | 16,000 | ||||
| (Being cash deposited into bank) | |||||
| Dec. 25 | Machinery A/c | Dr. | 10,000 | ||
| To Parigya's A/c | Dr. | 10,000 | |||
| (Being machinery purchased from Parigya) | |||||
| Dec. 26 | Trade Expenses A/c | Dr. | 2,000 | ||
| To Cash A/c | 2,000 | ||||
| (Being trade expenses paid) | |||||
| Dec. 28 | Parigya's A/c | Dr. | 10,000 | ||
| To Bank A/c | 10,000 | ||||
| (Being cheque issued to Parigya) | |||||
| Dec. 29 | Telephone Expenses A/c | Dr. | 1,200 | ||
| To Bank A/c | 1,200 | ||||
| (Being telephone expenses paid through cheque) | |||||
| Dec. 30 | Salary A/c | Dr. | 4,500 | ||
| To Cash A/c | 4,500 | ||||
| (Being salary paid) | |||||
| Total | 3,00,700 | 3,00,700 |
31. Journalise the following transactions in the books of Harpreet Bros.:
(a) ₹1,000 due from Rohit are now bad debts.
(b) Goods worth ₹ 2,000 were used by the proprietor.
(c) Charge depreciation @ 10% p.a for two month on machine costing ₹ 30,000.
(d) Provide interest on capital of ₹ 1,50,000 at 6% p.a. for 9 months.
(e) Rahul become insolvent, who owed ₹ 2,000, a final dividend of 60 paise in a rupee is received from his estate.
Ans.
In the Books of Harpreet Bros.
Journal Entries
| S. No. | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| (a) | Bad Debt A/c | Dr. | 1,000 | ||
| To Rohit (Debtors) A/c | 1,000 | ||||
| (Being amount from Rohit became bad debt) | |||||
| (b) | Drawings A/c | Dr. | 2,000 | ||
| To Purchase A/c | 2,000 | ||||
| (Being goods withdrawn by proprietor for personal use) | |||||
| (c) | Depreciation A/c | Dr. | 500 | ||
| To Machinery A/c | 500 | ||||
| (Being depreciation charged on machinery @ 10% p.a. for two months) | 500 | ||||
| $$\bigg[30,000×\frac{10}{100}×\frac{2}{12} =500\bigg]$$ | |||||
| S. No. | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| (a) | Bad Debt A/c | Dr. | 1,000 | ||
| To Rohit (Debtors) A/c | 1,000 | ||||
| (Being amount from Rohit became bad debt) | |||||
| (b) | Drawings A/c | Dr. | 2,000 | ||
| To Purchase A/c | 2,000 | ||||
| (Being goods withdrawn by proprietor for personal use) | |||||
| (c) | Depreciation A/c | Dr. | 500 | ||
| To Machinery A/c | 500 | ||||
| (Being depreciation charged on machinery @ 10% p.a. for two months) | 500 | ||||
| $$\bigg[30,000×\frac{10}{100}×\frac{2}{12} =500\bigg]$$ | |||||
| (d) | Interest on Capital A/c | Dr. | 6,750 | ||
| To Capital A/c | 6,750 | ||||
| (Being interest on capital at 6% p.a. due for 9 months) | |||||
| $$\bigg[=1,50,000×\frac{6}{100}×\frac{9}{12}\\= 6,750\bigg]$$ | |||||
| (e) | Cash A/c | Dr. | 1,200 | ||
| Bad Debt A/c | Dr. | 800 | |||
| To Rahul (Debtor) A/c | 2,000 | ||||
| (Being received from Rahul 60 paise in a rupee and rest amount considered as bad debt) | |||||
| Total | 12,250 | 12,250 | |||
32. Prepare Journal from the transactions given below:
| ₹ | |
| (a) Cash paid for installation of machine | 500 |
| (b) Goods given as charity | 2,000 |
| (c) Interest charge on capital @ 7% p.a. when total capital were | 70,000 |
| (d) Received ₹1,200 of a bad debts written-off last year. | 70,000 |
| (e) Goods destroyed by fire | 2,000 |
| (f) Rent outstanding | 1,000 |
| (g) Interest on drawings | 900 |
| (h) Sudhir Kumar who owed me ₹ 3,000 has failed to pay the amount. | |
| He pays me a compensation of 45 paise in a rupee. | |
| (i) Commission received in advance | 7,000 |
Ans.
Journal Entries
| S. No. | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| (a) | Machinery A/c | Dr. | 500 | ||
| To Cash A/c | 500 | ||||
| (Being cash paid for installation of machinery) | |||||
| (b) | Charity A/c | Dr. | 2,000 | ||
| To Purchases A/c | 2,000 | ||||
| (Being goods given as charity) | |||||
| (c) | Interest on Capital A/c $$\bigg[70,000×\frac{7}{100} = 4,900\bigg]$$ |
Dr. | 4,900 | ||
| (Being interest on capital charged @ 7% p.a.) | |||||
| (d) | Cash A/c | Dr. | 1,200 | ||
| To Bad Debt Recovered A/c | 1,200 | ||||
| (Being cash received from debtors which was previously written off as bad) | |||||
| (e) | Goods Destroyed by Fire A/c | Dr. | 2,000 | ||
| To Purchases A/c | 2,000 | ||||
| (Being goods destroyed by fire) | |||||
| (f) | Rent A/c | Dr. | 1,000 | ||
| To Rent Outstanding A/c | 1,000 | ||||
| (Being rent due but not paid) | |||||
| (g) | Drawings A/c | Dr. | 900 | ||
| To Interest on Drawings A/c | 900 | ||||
| (Being interest allowed on drawings) | |||||
| (h) | Cash A/c$$\bigg[3,000×\frac{45}{100} =1,350\bigg]$$ | Dr. | |||
| Bad Debt A/c [3,000 – 1,350 = 1,650] | Dr. | 1,650 | |||
| To Sudhir Kumar's A/c | 3,000 | ||||
| To Sudhir Kumar's A/c | |||||
| (Being Sudhir Kumar declared insolvent and cash received from him 45 paise in a rupee in full settlement) | |||||
| (i) | Commission A/c | Dr. | 7,000 | ||
| To Commission Received in Advance A/c | 7,000 | ||||
| (Being commission received in advance) | |||||
| (Note: If it is assumed, commission in adavance already credited as commission) | |||||
| OR | |||||
| Cash A/c | Dr. | 7,000 | |||
| To Commission Received in Advance A/c | 7,000 | ||||
| (Being commission received in advance) | |||||
| (Note: If it is assumed, commission in advance not already credited as commission) | |||||
| Total | 22,500 | 22,500 | |||
33. Journalise the following transactions, post to the ledger:
| 2017 | ₹ | |
| Nov. 01 | Business started with (i) Cash |
1,50,000 |
| (ii) Goods | 50,000 | |
| Nov. 03 | Purchased goods from Harish | 50,000 |
| Nov. 05 | Sold goods for cash | 12,000 |
| Nov. 08 | Purchase furniture for cash | 5,000 |
| Nov. 10 | Cash paid to Harish on account | 15,000 |
| Nov. 13 | Paid sundry expenses | 200 |
| Nov. 15 | Cash sales | 15,000 |
| Nov. 18 | Deposited into bank | 5,000 |
| Nov. 20 | Drew cash for personal use | 1,000 |
| Nov. 22 | Cash paid to Harish in full settlement of account | 14,700 |
| Nov. 25 | Good sold to Nitesh | 7,000 |
| Nov. 26 | Cartage paid | 200 |
| Nov. 27 | Rent paid | 1,500 |
| Nov. 29 | Received Cash from Nitesh | 6,800 |
| Discount allowed | 200 | |
| Nov. 30 | Salary paid | 3,000 |
Ans.
Journal Entries
| Date | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| 2017 | |||||
| Nov. 01 | Cash A/c | Dr. | 1,50,000 | ||
| Stock A/c | Dr. | 50,000 | |||
| To Capital A/c | 2,00,000 | ||||
| (Being started business with cash) | |||||
| Nov. 03 | Purchases A/c | Dr. | 30,000 | ||
| To Harish A/c | 30,000 | ||||
| (Being goods purchased from Harish) | |||||
| Nov.05 | Cash A/c | Dr. | 12,000 | ||
| To Sales A/c | 12,000 | ||||
| (Being goods sold for cash) | |||||
| Nov. 08 | Furniture A/c | Dr. | 5,000 | ||
| To Cash A/c | 5,000 | ||||
| (Being furniture purchased for cash) | |||||
| Nov. 10 | Harish's A/c | Dr. | 15,000 | ||
| To Cash A/c | 15,000 | ||||
| (Being cash paid to Harish) | |||||
| Nov. 13 | Sundry Expenses A/c | Dr. | 200 | ||
| To Cash A/c | 200 | ||||
| (Being sundry expenses paid) | |||||
| Nov. 15 | Cash A/c | Dr. | 15,000 | ||
| To Sales A/c | 15,000 | ||||
| (Being goods sold for cash) | |||||
| Nov. 18 | Bank A/c | Dr. | 5,000 | ||
| To Cash A/c | 5,000 | ||||
| (Being cash deposited into bank) | |||||
| Nov. 20 | Drawing A/c | Dr. | 1,000 | ||
| To Cash A/c | 1,000 | ||||
| (Being cash withdrawn for personal use) | |||||
| Nov. 22 | Harish's A/c | Dr. | 15,000 | ||
| To Cash A/c | 14,700 | ||||
| To Discount Received A/c | 300 | ||||
| (Being payment made to Harish and discount received) | |||||
| Nov. 25 | Nitesh's A/c | Dr. | 7,000 | ||
| To Sales A/c | 7,000 | ||||
| (Being goods sold to Nitesh) | |||||
| Nov. 26 | Cartage A/c | Dr. | 200 | ||
| To Cash A/c | 200 | ||||
| (Being cartage paid) | |||||
| Nov. 27 | Rent A/c | Dr. | 1,500 | ||
| To Cash A/c | 1,500 | ||||
| (Being rent paid) | |||||
| Nov. 29 | Cash A/c | Dr. | 6,800 | ||
| Discount Allowed A/c | 200 | ||||
| To Nitesh's A/c | 7,000 | ||||
| (Cash received from Nitesh and discount allowed) | |||||
| Nov. 30 | Salary A/c | Dr. | 3,000 | ||
| To Cash A/c | 3,000 | ||||
| (Being salary paid) | |||||
| Total | 3,16,900 | 3,16,900 | |||
Ledger
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov. 01 | To Capital A/c | 1,50,000 | Nov. 08 | By Furniture A/c | 5,000 | ||
| Nov. 05 | To Sales A/c | 12,000 | Nov. 10 | By Harish A/c | 15,000 | ||
| Nov. 15 | To Sales A/c | 15,000 | Nov. 13 | By Sundry Expenses A/c | 200 | ||
| Nov. 29 | To Nitesh A/c | 6,800 | Nov. 18 | By Bank A/c | 5,000 | ||
| Nov. 20 | By Drawings A/c | 1,000 | |||||
| Nov. 22 | By Harish A/c | 14,700 | |||||
| Nov. 26 | By Cartage A/c | 200 | |||||
| Nov. 27 | By Rent A/c | 1,500 | |||||
| Nov. 30 | By Salaries A/c | 3,000 | |||||
| Nov. 30 | By Balance c/d | 1,38,200 | |||||
| 1,83,800 | 1,83,800 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov. 03 | To Balance c/d | 2,00,000 | Nov. 01 | By Cash A/c | 1,50,000 | ||
| Nov. 01 | By Stock A/c | 50,000 | |||||
| 2,00,000 | 2,00,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov. 01 | To Capital A/c | 50,000 | Nov. 30 | By Balance c/d | 50,000 | ||
| 50,000 | 50,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov. 26 | To Cash A/c | 200 | Nov. 30 | By Balance c/d | 200 | ||
| Nov. 26 | To Cash A/c | 200 | Nov. 30 | By Balance c/d | 200 | ||
| 200 | 200 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov. 27 | To Cash A/c | 1,500 | Nov. 30 | By Balance c/d | 1,500 | ||
| 1,500 | 1,500 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov. 30 | To Cash A/c | 3,000 | Nov. 30 | By Balance c/d | 3,000 | ||
| 3,000 | 3,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov.08 | To Cash A/c | 5,000 | Nov. 30 | By Balance c/d | 5,000 | ||
| 5,000 | 5,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov.25 | To Sales A/c | 7,000 | Nov.29 | By Cash A/c | 6,800 | ||
| Nov.29 | By Discount Allowed A/c | 200 | |||||
| 7,000 | 7,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov.30 | To Balance c/d | 34,000 | Nov.05 | By Cash A/c | 12,000 | ||
| Nov.15 | By Cash A/c | 15,000 | |||||
| Nov.25 | By Nitesh A/c | 7,000 | |||||
| 34,000 | 34,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov.03 | To Harish A/c | 30,000 | Nov.30 | By Balance c/d | 12,000 | ||
| 30,000 | 30,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov.03 | To Harish A/c | 30,000 | Nov.30 | By Balance c/d | 12,000 | ||
| 30,000 | 30,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov.13 | To Cash A/c | 200 | Nov.30 | By Balance c/d | 200 | ||
| 200 | 200 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov.18 | To Cash A/c | 5,000 | Nov.30 | By Balance c/d | 5,000 | ||
| 5,000 | 5,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov.20 | To Cash A/c | 1,000 | Nov.30 | By Balance c/d | 1,000 | ||
| 1,000 | 1,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov.30 | To Balance c/d | 300 | Nov.30 | By Harish’s A/c | 300 | ||
| 300 | 300 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Nov.30 | To Nitesh’s A/c | 200 | Nov.30 | By Balance c/d | 200 | ||
| 200 | 200 |
34. Journalise the following transactions in the Journal of M/s. Goel Brothers and post them to the ledger.
| 2017 | ₹ | |
| Jan. 01 | Started business with cash | 1,65,000 |
| Jan. 02 | Opened bank account in PNB | 80,000 |
| Jan. 04 | Goods purchased from Tara | 22,000 |
| Jan.05 | Goods purchased for cash | 30,000 |
| Jan.08 | Goods sold to Naman | 12,000 |
| Jan.10 | Cash paid to Tara | 22,000 |
| Jan.15 | Cash received from Naman | 11,700 |
| Discount allowed | 300 | |
| Jan. 16 | Paid wages | 200 |
| Jan. 18 | Furniture purchased for office use | 5,000 |
| Jan. 20 | Withdrawn from bank for personal use | 4,000 |
| Jan. 22 | Issued cheque for rent | 3,000 |
| Jan. 23 | Goods issued for household purpose | 2,000 |
| Jan. 24 | Drawn cash from bank for office use | 6,000 |
| Jan. 26 | Commission received | 1,000 |
| Jan. 27 | Bank charges | 200 |
| Jan. 28 | Cheque given for insurance premium | 3,000 |
| Jan. 29 | Paid salary | 7,000 |
| Jan. 30 | Cash sales | 10,000 |
Ans.
In the Books of M/s Goel Brothers
Journal Entries
| Date | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| 2017 | |||||
| Jan.01 | Cash A/c | Dr. | 1,65,000 | ||
| To Capital A/c | 1,65,000 | ||||
| (Being started business with cash) | |||||
| Jan.02 | Bank A/c | Dr. | 80,000 | ||
| To Cash A/c | 80,000 | ||||
| (Being bank account opened in PNB) | |||||
| Jan.04 | Purchases A/c | Dr. | 22,000 | ||
| To Tara's A/c | 22,000 | ||||
| (Being goods purchased from Tara) | |||||
| Jan.05 | Purchases A/c | Dr. | 30,000 | ||
| To Cash A/c | 30,000 | ||||
| (Being goods purchased for cash) | |||||
| Jan.08 | Naman's A/c | Dr. | 12,000 | ||
| To Sales A/c | 12,000 | ||||
| (Being sale of goods to Naman) | |||||
| Jan.10 | Tara's A/c | Dr. | 22,000 | ||
| To Cash A/c | 22,000 | ||||
| (Being cash paid to Tara) | |||||
| Jan.15 | Cash A/c | Dr. | 11,700 | ||
| Discount Allowed A/c | Dr. | 300 | |||
| To Naman's A/c | 12,000 | ||||
| (Being cash received from Naman and discount allowed ) | |||||
| Jan.16 | Wages A/c | Dr. | 200 | ||
| To Cash A/c | 200 | ||||
| (Being wages paid) | |||||
| Jan.18 | Furniture A/c | Dr. | 5,000 | ||
| To Cash A/c | 5,000 | ||||
| (Being furniture purchased for cash) | |||||
| Jan.20 | Drawings A/c | Dr. | 4,000 | ||
| To Bank A/c | 4,000 | ||||
| (Being cash withdrawn for personal use) | |||||
| Jan.22 | Rent A/c | Dr. | 3,000 | ||
| To Bank A/c | 3,000 | ||||
| (Being rent paid through cheque) | |||||
| Jan.23 | Drawings A/c | Dr. | 2,000 | ||
| To Purchases A/c | 2,000 | ||||
| (Being goods drawn for household purpose) | |||||
| Jan.24 | Cash A/c | Dr. | 6,000 | ||
| To Bank A/c | 6,000 | ||||
| (Being cash drawn from bank) | |||||
| Jan.26 | Cash A/c | Dr. | 1,000 | ||
| To Commission A/c | 1,000 | ||||
| (Being commission received) | |||||
| Jan.27 | Bank Charges A/c | Dr. | 200 | ||
| To Bank A/c | 200 | ||||
| (Being bank charged charges) | |||||
| Jan.28 | Insurance A/c | Dr. | 3,000 | ||
| To Bank A/c | 3,000 | ||||
| (Being insurance paid through cheque) | |||||
| Jan.29 | Salary A/c | Dr. | 7,000 | ||
| To Cash A/c | 7,000 | ||||
| (Being salary paid) | |||||
| Jan.30 | Cash A/c | Dr. | 10,000 | ||
| To Sales A/c | 10,000 | ||||
| (Being cash received for sale of goods) | 10,000 | ||||
| Total | 3,84,400 | 3,84,400 |
Ledger
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan. 01 | To Capital A/c | 1,65,000 | Jan. 02 | By Bank A/c | 80,000 | ||
| Jan. 15 | To Naman A/c | 11,700 | Jan. 05 | By Purchase A/c | 30,000 | ||
| Jan. 24 | To Bank A/c | 6,000 | Jan. 10 | By Tara A/c | 22,000 | ||
| Jan. 26 | To Commission A/c | 1,000 | Jan. 16 | By Wages A/c | 200 | ||
| Jan. 30 | To Sales A/c | 10,000 | Jan. 18 | By Furniture A/c | 5,000 | ||
| Jan. 29 | By Salaries A/c | 7,000 | |||||
| Jan. 31 | By Balance c/d | 49,500 | |||||
| 1,93,700 | 1,93,700 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.31 | To Balance c/d | 1,65,000 | Jan.01 | By Cash A/c | 1,65,000 | ||
| 1,65,000 | 1,65,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.02 | To Cash A/c | 80,000 | Jan.20 | By Drawings A/c | 4,000 | ||
| Jan.22 | By Rent A/c | 3,000 | |||||
| Jan.24 | By Cash A/c | 6,000 | |||||
| Jan.27 | By Bank charges A/c | 200 | |||||
| Jan.28 | By Insurance A/c | 3,000 | |||||
| Jan.31 | By Balance c/d | 63,800 | |||||
| 80,000 | 80,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.10 | To Cash A/c | 22,000 | Jan.04 | By Purchases A/c | 22,000 | ||
| 22,000 | 22,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.04 | To Tara’s A/c | 22,000 | Jan.23 | By Drawings A/c | 2,000 | ||
| Jan.05 | To Cash A/c | 30,000 | Jan.31 | By Balance c/d | 50,000 | ||
| 52,000 | 52,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.31 | To Balance c/d | 22,000 | Jan.08 | By Naman A/c | 12,000 | ||
| Jan.30 | By Cash A/c | 10,000 | |||||
| 22,000 | 22,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.08 | To Sales A/c | 12,000 | Jan.15 | By Cash A/c | 11,700 | ||
| Jan.15 | By Discount Allowed A/c | 300 | |||||
| 12,000 | 12,000 |
| Dr. | Cr. | ||||||
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.15 | To Naman A/c | 300 | Jan.31 | By Balance c/d | 300 | ||
| 300 | 300 |
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.16 | To Cash A/c | 200 | Jan.31 | By Balance c/d | 200 | ||
| 200 | 200 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.18 | To Cash A/c | 5,000 | Jan.31 | By Balance c/d | 5,000 | ||
| 5,000 | 5,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.20 | To Bank A/c | 4,000 | Jan.31 | By Balance c/d | 6,000 | ||
| Jan.23 | To Purchases A/c | 2,000 | |||||
| 6,000 | 6,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.22 | To Bank A/c | 3,000 | Jan.31 | By Balance c/d | 3,000 | ||
| 3,000 | 3,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.31 | To Balance c/d | 1,000 | Jan.26 | By Cash A/c | 1,000 | ||
| 1,000 | 1,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.27 | To Bank A/c | 200 | Jan.31 | By Balance c/d | 200 | ||
| 200 | 200 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.18 | To Bank A/c | 3,000 | Jan.31 | By Balance c/d | 3,000 | ||
| 3,000 | 3,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.29 | To Cash A/c | 7,000 | Jan.31 | By Balance c/d | 7,000 | ||
| 7,000 | 7,000 |
35. Give journal entries of M/s. Mohit traders; post them to the Ledger from the following transactions:
| August, 2017 | ₹ |
| 1 Commenced business with cash | 1,10,000 |
| 2 Opened bank account with H.D.F.C. | 50,000 |
| 3 Purchased furniture | 20,000 |
| 7 Bought goods for cash from M/s. Rupa Traders | 30,000 |
| 8 Purchased good from M/s. Hema Traders | 42,000 |
| 10 Sold goods for cash | 30,000 |
| 14 Sold goods on credit to M/s. Gupta Traders | 12,000 |
| 16 Rent paid | 4,000 |
| 18 Paid trade expenses | 1,000 |
| 20 Received cash from Gupta Traders | 12,000 |
| 22 Goods return to Hema Traders | 2,000 |
| 23 Cash paid to Hema Traders | 40,000 |
| 25 Bought postage stamps | 100 |
| 30 Paid salary to Rishabh | 4,000 |
Ans.
In the Book of M/s. Mohit Traders
Journal Entries
| Date | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| 2017 | |||||
| Aug.01 | Cash A/c | Dr. | 1,10,000 | ||
| To Capital A/c | 1,10,000 | ||||
| (Being business commenced with cash) | |||||
| Aug.02 | Bank A/c | Dr. | 50,000 | ||
| To Cash A/c | 50,000 | ||||
| (Being bank account opened with H.D.F.C.) | |||||
| Aug.03 | Furniture A/c | Dr. | 20,000 | ||
| To Cash A/c | 20,000 | ||||
| (Being furniture purchased) | |||||
| Aug.07 | Purchases A/c | Dr. | 30,000 | ||
| To Cash A/c | 30,000 | ||||
| (Being goods purchased for cash) | |||||
| Aug.08 | Purchases A/c | Dr. | 42,000 | ||
| To M/s. Hema Trader's A/c | 42,000 | ||||
| (Being goods purchased from M/s. Hema Traders) | |||||
| Aug.10 | Cash A/c | Dr. | 30,000 | ||
| To Sales A/c | 30,000 | ||||
| (Being goods sold for cash) | |||||
| Aug.14 | M/s. Gupta Trader's A/c | Dr. | 12,000 | ||
| To Sales A/c | 12,000 | ||||
| (Being goods sold to M/s Gupta Traders) | |||||
| Aug.16 | Rent A/c | Dr. | 4,000 | ||
| To Cash A/c | 4,000 | ||||
| (Being rent paid in cash) | |||||
| Aug.18 | Trade Expenses A/c | Dr. | 1,000 | ||
| To Cash A/c | 1,000 | ||||
| (Being trade expenses paid in cash) | |||||
| Aug. 20 | Cash A/c | Dr. | 12,000 | ||
| To M/s. Gupta Trader's A/c | 12,000 | ||||
| (Being cash received from M/s. Gupta Traders) | |||||
| Aug. 22 | M/s. Hema Trader's A/c | Dr. | 2,000 | ||
| To Purchases Return A/c | 2,000 | ||||
| (Being goods returned to Hema Traders) | |||||
| Aug. 23 | M/s. Hema Traders's A/c | Dr. | 40,000 | ||
| To Cash A/c | 40,000 | ||||
| (Being cash paid to Hema Traders) | |||||
| Aug. 25 | Postage Stamps A/c | Dr. | 100 | ||
| To Cash A/c | 100 | ||||
| (Being postage stamps purchased) | |||||
| Aug. 30 | Salaries A/c | Dr. | 4,000 | ||
| To Cash A/c | 4,000 | ||||
| (Being salaries paid in cash) | |||||
| Total | 3,57,100 | 3,57,100 |
Ledger
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.01 | To Capital A/c | 1,10,000 | Aug.02 | By Bank A/c | 50,000 | ||
| Aug.10 | To Sales A/c | 30,000 | Aug.03 | By Furniture A/c | 20,000 | ||
| Aug.20 | To M/s. Gupta Traders A/c | 12,000 | Aug.07 | By Purchases A/c | 30,000 | ||
| Aug.16 | By Rent A/c | 4,000 | |||||
| Aug.18 | By Trade Expenses A/c | 1,000 | |||||
| Aug.23 | By M/s. Hema Traders A/c | 40,000 | |||||
| Aug.25 | By Postage Stamps A/c | 100 | |||||
| Aug.30 | By Salaries A/c | 4,000 | |||||
| Aug.31 | By Balance c/d | 2,900 | |||||
| 1,52,000 | 1,52,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.31 | To Balance c/d | 1,10,000 | Aug.01 | By Cash A/c | 1,10,000 | ||
| 1,10,000 | 1,10,000 |
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.02 | To Cash A/c | 50,000 | Aug.31 | By Balance c/d | 50,000 | ||
| 50,000 | 50,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.03 | To Cash A/c | 20,000 | Aug.31 | By Balance c/d | 20,000 | ||
| 20,000 | 20,000 |
| Dr. | Cr. | ||||||
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.03 | To Cash A/c | 30,000 | Aug.31 | By Balance c/d | 72,000 | ||
| Aug.08 | To M/s. Hema Traders A/c | 42,000 | |||||
| 72,000 | 72,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.22 | To Purchase Return A/c | 2,000 | Aug.08 | By Purchases A/c | 42,000 | ||
| Aug.23 | To Cash A/c | 40,000 | |||||
| 42,000 | 42,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.31 | To Balance c/d | 42,000 | Aug.10 | By Cash A/c | 30,000 | ||
| Aug.14 | By M/s. Gupta Traders A/c | 12,000 | |||||
| 42,000 | 42,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.14 | To Sales A/c | 12,000 | Aug.20 | By Cash A/c | 12,000 | ||
| 12,000 | 12,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.16 | To Cash A/c | 4,000 | Aug.31 | By Balance c/d | 4,000 | ||
| 4,000 | 4,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.18 | To Cash A/c | 1,000 | Aug.31 | By Balance c/d | 1,000 | ||
| 1,000 | 1,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.31 | To Balance c/d | 2,000 | Aug.22 | By M/s. Hema Traders A/c | 2,000 | ||
| 2,000 | 2,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.25 | To Cash A/c | 100 | Aug.31 | By Balance c/d | 100 | ||
| 100 | 100 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Aug.30 | To Cash A/c | 4,000 | Aug.31 | By Balance c/d | 4,000 | ||
| 4,000 | 4,000 |
36. Journalise the following transactions in the Books of the M/s. Bhanu Traders and Post them into the Ledger.
| December, 2017 | ₹ |
| 1 Started business with cash | 92,000 |
| 2 Deposited into bank | 60,000 |
| 4 Bought goods on credit from Himani | 40,000 |
| 6 Purchased goods from cash | 20,000 |
| 8 Returned goods to Himani | 4,000 |
| 10 Sold goods for cash | 20,000 |
| 14 Cheque given to Himani | 36,000 |
| 17 Goods sold to M/s. Goyal Traders(*) | 3,50,000 |
| 19 Drew cash from bank for personal use | 2,000 |
| 21 Goyal Traders returned goods | 3,500 |
| 22 Cash deposited into bank | 20,000 |
| 26 Cheque received from Goyal Traders | 31,500 |
| 28 Goods given as charity | 2,000 |
| 29 Rent paid | 3,000 |
| 30 Salary paid | 7,000 |
| 31 Office machine purchased for cash | 3,000 |
(*) There is an error in NCERT. The amount of goods sold to M/s. Goyal Traders is 35,000.
Ans.
In the Books of M/s. Bhanu Traders
Journal Entries
| Date | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| 2017 | |||||
| Dec.01 | Cash A/c | Dr. | 92,000 | ||
| To Capital A/c | 92,000 | ||||
| (Being business started with cash) | |||||
| Dec.02 | Bank A/c | Dr. | 60,000 | ||
| To Cash A/c | 60,000 | ||||
| (Being cash deposited into bank) | |||||
| Dec.04 | Purchases A/c | Dr. | 40,000 | ||
| To Himani A/c | 40,000 | ||||
| (Being goods purchased from Himani) | |||||
| Dec.06 | Purchases A/c | Dr. | 20,000 | ||
| To Cash A/c | 20,000 | ||||
| (Being goods puchased fom cash) | |||||
| Dec.08 | Himani A/c | Dr. | 4,000 | ||
| To Purchases Return A/c | 4,000 | ||||
| (Being goods returned to Himani) | |||||
| Dec.10 | Cash A/c | Dr. | 20,000 | ||
| To Sales A/c | 20,000 | ||||
| (Being goods sold for cash) | |||||
| De.14 | Himani's A/c | Dr. | 36,000 | ||
| To Bank A/c | 36,000 | ||||
| (Being cheque given to Himani) | |||||
| Dec.17 | M/s. Goyal Traders A/c | Dr. | 35,000 | ||
| To Sales A/c | 35,000 | ||||
| (Being goods sold to M/s. Goyal Traders | |||||
| Dec.19 | Drawings A/c | Dr. | 2,000 | ||
| To Bank A/c | 2,000 | ||||
| (Being cash withdrawn from bank for personal use) | |||||
| Dec.21 | Sales Return A/c | Dr. | 3,500 | ||
| To M/s. Goyal Trader's A/c | 3,500 | ||||
| (Being goods returned by Goyal Traders) | |||||
| Dec.22 | Bank A/c | Dr. | 20,000 | ||
| To Cash A/c | 20,000 | ||||
| (Being cash deposited into bank) | |||||
| Dec.26 | Bank A/c | Dr. | 31,500 | ||
| To M/s. Goyal Trader's A/c | 31,500 | ||||
| (Being cheque received from M/s. Goyal Traders) | |||||
| Dec.28 | Charity A/c | Dr. | 2,000 | ||
| To Purchase A/c | 2,000 | ||||
| (Being goods given as charity) | |||||
| Dec.29 | Rent A/c | Dr. | 3,000 | ||
| To Bank A/c | 3,000 | ||||
| (Being rent paid) | |||||
| Dec.30 | Salaries A/c | Dr. | 7,000 | ||
| To Cash A/c | 7,000 | ||||
| (Being salaries paid) | |||||
| Dec.31 | Office Machine A/c | Dr. | 3,000 | ||
| To Cash A/c | 3,000 | ||||
| (Being office machinery purchased) | |||||
| Total | 3,79,000 | 3,79,000 |
Ledger
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.01 | To Capital A/c | 92,000 | Dec.02 | By Bank A/c | 60,000 | ||
| Dec.10 | To Sales A/c | 20,000 | Dec.06 | By Purchases A/c | 20,000 | ||
| Dec.22 | By Bank A/c | 20,000 | |||||
| Dec.30 | By Salaries A/c | 7,000 | |||||
| Dec.31 | By Office Machine A/c | 3,000 | |||||
| Dec.31 | By Balance c/d | 2,000 | |||||
| 1,12,000 | 1,12,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.31 | To Balance c/d | 92,000 | Dec.01 | By Cash A/c | 92,000 | ||
| 92,000 | 92,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.02 | To Cash A/c | 60,000 | Dec.14 | By Drawings A/c | 2,000 | ||
| Dec.22 | To Cash A/c | 20,000 | Dec.06 | By Himani A/c | 36,000 | ||
| Dec.26 | To Goyal Traders A/c | 31,500 | Dec.29 | By Rent (see note) A/c | 3,000 | ||
| Dec.31 | By Balance c/d | 70,500 | |||||
| 1,11,500 | 1,11,500 |
Note: For transaction on December 29, 2017, it has been assumed that the rent of ₹3,000 is paid through cheque. If instead the rent would have been paid in cash, the cash account would have shown a credit (negative) balance and that is logically not correct.
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.04 | To Himani A/c | 40,000 | Dec.28 | By Charity A/c | 2,000 | ||
| Dec.06 | To Cash A/c | 20,000 | Dec.31 | By Balance c/d | 58,000 | ||
| 60,000 | 60,000 |
| Dr. | Cr. | ||||||
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.08 | To Purchase Return A/c | 4,000 | Dec.04 | By Purchases A/c | 40,000 | ||
| Dec.14 | To Bank A/c | 36,000 | |||||
| 40,000 | 40,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.31 | To Balance c/d | 55,000 | Dec.10 | By Cash A/c | 20,000 | ||
| Dec.26 | By M/s. Goyal Traders A/c | 35,000 | |||||
| 55,000 | 55,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.17 | To Sales A/c | 35,000 | Dec.21 | By Sales Return A/c | 3,500 | ||
| Dec.26 | By Bank A/c | 31,500 | |||||
| 35,000 | 35,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.31 | To Balance c/d | 4,000 | Dec.08 | By Himani A/c | 4,000 | ||
| 4,000 | 4,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.19 | To Bank A/c | 2,000 | Dec.31 | By Balance c/d | 2,000 | ||
| 2,000 | 2,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.21 | To M/s. Goyal Traders A/c | 3,500 | Dec.31 | By Balance c/d | 3,500 | ||
| 3,500 | 3,500 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.28 | To Purchases A/c | 2,000 | Dec.31 | By Balance c/d | 2,000 | ||
| 2,000 | 2,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.21 | To Cash A/c | 3,000 | Dec.31 | By Balance c/d | 3,000 | ||
| 3,000 | 3,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.21 | To Cash A/c | 7,000 | Dec.31 | By Balance c/d | 7,000 | ||
| 7,000 | 7,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.21 | To Cash A/c | 3,000 | Dec.31 | By Balance c/d | 3,000 | ||
| 3,000 | 3,000 |
37. Journalise the following transactions in the Books of M/s. Beauti Traders. Also post them in the ledger.
| Dec. 2017 | ₹ |
| 1 Started business with cash | 2,00,000 |
| 2 Bought office furniture | 30,000 |
| 3 Paid into bank to open an current account | 1,00,000 |
| 5 Purchased a computer and paid by cheque | 2,50,000 |
| 6 Bought goods on credit from Ritika | 60,000 |
| 8 Cash sales | 30,000 |
| 9 Sold goods to Krishna on credit | 25,000 |
| 12 Cash paid to Mansi on account | 30,000 |
| 14 Goods returned to Ritika | 2,000 |
| 15 Stationery purchased for cash | 3,000 |
| 16 Paid wages | 1,000 |
| 18 Goods returned by Krishna | 2,000 |
| 20 Cheque given to Ritika | 28,000 |
| 22 Cash received from Krishna on account | 15,000 |
| 24 Insurance premium paid by cheque | 4,000 |
| 26 Cheque received from Krishna | 8,000 |
| 28 Rent paid by cheque | 3,000 |
| 29 Purchased goods on credit from Meena Traders | 20,000 |
| 30 Cash sales | 14,000 |
In the Books of Beauti Traders
Journal Entries
| Date | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| 2017 | |||||
| Dec.01 | Cash A/c | Dr. | 2,00,000 | ||
| To Capital A/c | 2,00,000 | ||||
| (Being business started with cash) | |||||
| Dec.02 | Office Furniture A/c | Dr. | 30,000 | ||
| To Cash A/c | 30,000 | ||||
| (Being office furniture purchased | |||||
| Dec.03 | Bank A/c | Dr. | 1,00,000 | ||
| To Cash A/c | 1,00,000 | ||||
| (Being opened a current account) | |||||
| Dec.05 | Computer A/c | Dr. | 2,50,000 | ||
| To Bank A/c | 2,50,000 | ||||
| (Being computer purchased and payment made through cheque) | |||||
| Dec.06 | Purchases A/c | Dr. | 60,000 | ||
| To Ritika's A/c | 60,000 | ||||
| (Being goods purchased from Ritika on credit) | |||||
| Dec.08 | Cash A/c | Dr. | 30,000 | ||
| To Sales A/c | 30,000 | ||||
| (Being goods sold for cash) | |||||
| De.09 | Krishna's A/c | Dr. | 25,000 | ||
| To Sales A/c | 25,000 | ||||
| (Being goods sold to Krishna) | |||||
| Dec.12 | Mansi’s A/c | Dr. | 30,000 | ||
| To Cash A/c | 30,000 | ||||
| (Being cash paid to Mansi on accounts) | |||||
| To Purchases Return A/c | 2,000 | ||||
| Dec.14 | Ritika's A/c | Dr. | 2,000 | ||
| To Purchases Return A/c | 2,000 | ||||
| (Being goods returned to Ritika) | |||||
| Dec.15 | Stationery A/c | Dr. | 3,000 | ||
| To Cash A/c | 3,000 | ||||
| (Being stationery purchased for cash) | |||||
| Dec.16 | Wages A/c | Dr. | 1,000 | ||
| To Cash A/c | 1,000 | ||||
| (Being wages paid) | |||||
| Dec.18 | Sales Return A/c | Dr. | 2,000 | ||
| To Krishna A/c | 2,000 | ||||
| (Being goods returned by Krishna) | |||||
| Dec.20 | Ritika's A/c | Dr. | 28,000 | ||
| To Bank A/c | 28,000 | ||||
| (Being cheque issued to Ritika) | |||||
| Dec.22 | Cash A/c | Dr. | 15,000 | ||
| To Krishna's A/c | 15,000 | ||||
| (Being cash received from Krishna on account) | |||||
| Dec.24 | Insurance A/c | Dr. | 4,000 | ||
| To Bank A/c | 4,000 | ||||
| (Being insurance premium paid through cheque) | |||||
| Dec.26 | Bank A/c | Dr. | 8,000 | ||
| To Krishna's A/c | 8,000 | ||||
| (Being cheque received from Krishna) | |||||
| Dec.28 | Rent A/c | Dr. | 3,000 | ||
| To Bank A/c | 3,000 | ||||
| (Being rent paid through cheque) | |||||
| Dec.29 | Purchases A/c | Dr. | 20,000 | ||
| To Meena Trader's A/c | 20,000 | ||||
| (Being goods purchased on credit from Meena Traders) | |||||
| Dec.30 | Cash A/c | Dr. | 14,000 | ||
| To Sales A/c | 14,000 | ||||
| (Being goods sold for cash) | |||||
| Total | 8,25,000 | 8,25,000 | |||
Ledger
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.01 | To Capital A/c | 2,00,000 | Dec.02 | By Office Furniture A/c | 30,000 | ||
| Dec.08 | To Sales A/c | 30,000 | Dec.03 | By Bank A/c | 1,00,000 | ||
| Dec.22 | To Krishna A/c | 15,000 | Dec.12 | By Mansi A/c | 30,000 | ||
| Dec.30 | To Sales A/c | 14,000 | Dec.15 | By Stationary A/c | 3,000 | ||
| Dec.16 | By Wages A/c | 1,000 | |||||
| Dec.31 | By Balance c/d | 95,000 | |||||
| 2,59,000 | 2,59,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.31 | To Balance c/d | 2,00,000 | Dec.1 | By Cash A/c | 2,00,000 | ||
| 2,00,000 | 2,00,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.02 | To Cash A/c | 30,000 | Dec.31 | By Balance c/d | 30,000 | ||
| 30,000 | 30,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| Dec.03 | To Cash A/c | 1,00,000 | Dec.05 | By Computer A/c | 2,50,000 | ||
| Dec.26 | To Krishna A/c | 8,000 | Dec.20 | By Ritika A/c | 28,000 | ||
| Dec.31 | To Balance c/d (overdraft) | 1,77,000 | Dec.24 | By Insurance A/c | 4,000 | ||
| Dec.28 | By Rent A/c | 3,000 | |||||
| 2,85,000 | 2,85,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.05 | To Bank A/c | 2,50,000 | Dec.31 | By Balance c/d | 2,50.000 | ||
| 2,50,000 | 2,50.000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.29 | To Menna Traders A/c | 20,000 | |||||
| 80,000 | 80,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.14 | To Purchases Return A/c | 2,000 | Dec.06 | By Purchases A/c | 60,000 | ||
| Dec.20 | To Bank A/c | 28,000 | |||||
| Dec.31 | To Balance c/d | 30,000 | |||||
| 60,000 | 60,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.31 | To Balance c/d | 20,000 | Dec.29 | By Purchases A/c | 20,000 | ||
| 20,000 | 20,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.31 | To Balance c/d | 69,000 | Dec.08 | By Cash A/c | 30,000 | ||
| Dec.09 | By Krishna A/c | 25,000 | |||||
| Dec.30 | By Cash A/c | 14,000 | |||||
| 69,000 | 69,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.09 | To Sales A/c | 25,000 | Dec.18 | By Sales Return A/c | 2,000 | ||
| Dec.22 | By Cash A/c | 15,000 | |||||
| Dec.26 | By Bank A/c | 8,000 | |||||
| 25,000 | 25,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.12 | To Cash A/c | 30,000 | Dec.31 | By Balance c/d | 30,000 | ||
| 30,000 | 30,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.31 | To Balance c/d | 2,000 | Dec.31 | By Ritika A/c | 2,000 | ||
| 2,000 | 2,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.15 | To Cash A/c | 3,000 | Dec.31 | By Balance c/d | 3,000 | ||
| 3,000 | 3,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.16 | To Cash A/c | 1,000 | Dec.31 | By Balance c/d | 1,000 | ||
| 1,000 | 1,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.18 | To Krishna A/c | 2,000 | Dec.31 | By Balance c/d | 2,000 | ||
| 2,000 | 2,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.24 | To Bank A/c | 4,000 | Dec.31 | By Balance c/d | 4,000 | ||
| 4,000 | 4,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Dec.28 | To Bank A/c | 3,000 | Dec.31 | By Balance c/d | 3,000 | ||
| 3,000 | 3,000 |
38. Journalise the following transactions in the books of Sanjana and post them into the ledger:
| January. 2017 | ₹ | |
| 1 | Cash in hand | 6,000 |
| Cash at bank | 55,000 | |
| Stock of goods | 40,000 | |
| Due to Rohan | 6,000 | |
| Due from Tarun | 10,000 | |
| 3 | Sold goods to Karuna | 15,000 |
| 4 | Cash sales | 10,000 |
| 6 | Goods sold to Heena | 5,000 |
| 8 | Purchased goods from Rupali | 30,000 |
| 10 | Goods returned from Karuna | 2,000 |
| 14 | Cash received from Karuna | 13,000 |
| 15 | Cheque given to Rohan | 6,000 |
| 16 | Cash received from Heena | 3,000 |
| 20 | Cheque received from Tarun | 10,000 |
| 22 | Cheque received from Tarun | 2,000 |
| 25 | Cash given to Rupali | 18,000 |
| 26 | Paid cartage | 1,000 |
| 27 | Paid salary | 8,000 |
| 28 | Cash sale | 7,000 |
| 29 | Cheque given to Rupali | 12,000 |
| 30 | Sanjana took goods for personal use | 4,000 |
| 31 | Paid General expense | 500 |
Ans.
In the Books of Beauti Traders
Journal Entries
| Date | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| 2017 | |||||
| Jan.01 | Cash A/c | Dr. | 6,000 | ||
| Bank A/c | Dr. | 55,000 | |||
| Stock A/c | Dr. | 40,000 | |||
| Tarun's A/c | Dr. | 10,000 | |||
| To Rohan's A/c | 6,000 | ||||
| To Capital A/c | 1,05,000 | ||||
| (Being balance brought from the last month) | |||||
| Jan.03 | Karuna's A/c | Dr. | 15,000 | ||
| To Sales A/c | 15,000 | ||||
| (Being goods sold to Karuna) | |||||
| Jan.04 | Cash A/c | Dr. | 10,000 | ||
| To Sales A/c | 10,000 | ||||
| (Being goods sold for cash) | |||||
| Jan.06 | Heena's A/c | Dr. | 5,000 | ||
| To Sales A/c | 5,000 | ||||
| (Being goods sold to Heena) | |||||
| Jan.08 | Purchases A/c | Dr. | 30,000 | ||
| To Rupali's A/c | 30,000 | ||||
| (Being goods purchased from Rupali) | |||||
| Jan.10 | Sales Return A/c | Dr. | 2,000 | ||
| To Karuna's A/c | 2,000 | ||||
| (Being goods returned by Karuna) | |||||
| Jan.14 | Cash A/c | Dr. | 13,000 | ||
| To Karuna's A/c | 13,000 | ||||
| (Being cash received from Karuna) | |||||
| Jan.15 | Rohan's A/c | Dr. | 6,000 | ||
| To Bank A/c | 6,000 | ||||
| (Being cheque issued to Rohan) | |||||
| Jan.16 | Cash A/c | Dr. | 3,000 | ||
| To Heena's A/c | 3,000 | ||||
| (Being cash received from Heena) | |||||
| Jan.20 | Bank A/c | Dr. | 10,000 | ||
| To Tarun's A/c | 10,000 | ||||
| (Being Cheque received from Tarun) | |||||
| Jan.22 | Bank A/c | Dr. | 2,000 | ||
| To Heena's A/c | 2,000 | ||||
| (Being cheque received from Heena) | |||||
| Jan.25 | Rupali's A/c | Dr. | 18,000 | ||
| To Cash A/c | 18,000 | ||||
| (Being goods returned by Rupali) | |||||
| Jan.26 | Cartage A/c | Dr. | 1,000 | ||
| To Cash A/c | 1,000 | ||||
| (Being cartage paid) | |||||
| Jan.27 | Salaries A/c | Dr. | 8,000 | ||
| To Cash A/c | 8,000 | ||||
| (Being salaries paid) | |||||
| Jan.28 | Cash A/c | Dr. | 7,000 | ||
| To Sales A/c | 7,000 | ||||
| (Being goods sold for cash) | |||||
| Jan.29 | Rupali's A/c | Dr. | 12,000 | ||
| To Bank A/c | Dr. | 12,000 | |||
| (Being cheque issued to Rupali) | |||||
| Jan.30 | Drawings A/c | Dr. | 4,000 | ||
| To Purchase A/c | 4,000 | ||||
| (Being goods withdrawn for personal use) | |||||
| Jan.31 | General Expenses A/c | Dr. | 500 | ||
| To Cash A/c | 500 | ||||
| (Being expenses paid by cash) | |||||
| Total | 2,57,500 | 2,57,500 |
Ledger
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.01 | To Balance b/d | 6,000 | Jan.25 | By Rupali A/c | 18,000 | ||
| Jan.04 | To Sales A/c | 10,000 | Jan.26 | By Cartage A/c | 1,000 | ||
| Jan.14 | To Karuna A/c | 13,000 | Jan.27 | By Salaries A/c | 8,000 | ||
| Jan.16 | To Heena A/c | 3,000 | Jan.31 | By General Expenses A/c | 500 | ||
| Jan.28 | To Sales A/c | 7,000 | Jan.31 | By Balance c/d | 11,500 | ||
| 39,000 | 39,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.31 | To Balance c/d | 1,05,000 | Jan.01 | By Balance b/d | 1,05,000 | ||
| 1,05,000 | 1,05,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.01 | To Balance b/d | 55,000 | Jan.15 | By Rohan A/c | 6,000 | ||
| Jan.20 | To Tarun A/c | 10,000 | Jan.29 | By Rupali A/c | 12,000 | ||
| Jan.22 | To Heena A/c | 2,000 | Jan.31 | By Balance c/d | 49,000 | ||
| 67,000 | 67,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.01 | To Balance b/d | 40,000 | Jan.31 | By Balance c/d | 40,000 | ||
| 40,000 | 40,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.15 | To Bank A/c | 6,000 | Jan.01 | By Balance c/d | 6,000 | ||
| 6,000 | 6,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.01 | To Balance b/d | 10,000 | Jan.20 | By Bank A/c | 10,000 | ||
| 10,000 | 10,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.31 | To Balance c/d | 37,000 | Jan.03 | By Karuna A/c | 15,000 | ||
| Jan.04 | By Cash A/c | 10,000 | |||||
| Jan.06 | By Heena A/c | 5,000 | |||||
| Jan.28 | By Cash A/c | 7,000 | |||||
| 37,000 | 37,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.03 | To Sales A/c | 15,000 | Jan.10 | By Sales Return A/c | 2,000 | ||
| Jan.14 | By Cash A/c | 13,000 | |||||
| 15,000 | 15,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.06 | To Sales A/c | 5,000 | Jan.16 | By Cash A/c | 3,000 | ||
| Jan.22 | By Bank A/c | 2,000 | |||||
| 5,000 | 5,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.08 | To Rupali A/c | 30,000 | Jan.30 | By Drawings A/c | 4,000 | ||
| Jan.31 | By Balance c/d | 26,000 | |||||
| 30,000 | 30,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.25 | To Cash A/c | 18,000 | Jan.08 | By Purchases A/c | 30,000 | ||
| Jan.29 | To Bank A/c | 12,000 | |||||
| 30,000 | 30,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.10 | To Karuna A/c | 2,000 | Jan.31 | By Balance c/d | 2,000 | ||
| 2,000 | 2,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.26 | To Cash A/c | 1,000 | Jan.31 | By Balance c/d | 1,000 | ||
| 1,000 | 1,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.27 | To Cash A/c | 8,000 | Jan.31 | By Balance c/d | 8,000 | ||
| 8,000 | 8,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.30 | To Purchases A/c | 4,000 | Jan.31 | By Balance c/d | 4,000 | ||
| 4,000 | 4,000 |
| Dr. | Cr. | ||||||
| Date | Particulars | J. F. |
Amount (₹) |
Date | Particulars | J. F. |
Amount (₹) |
| 2017 | 2017 | ||||||
| Jan.31 | To Cash A/c | 500 | Jan.31 | By Balance c/d | 500 | ||
| 500 | 500 |
39. Record journal entries for the following transactions in the books of Anudeep of Delhi:
(a) Bought goods ₹2,00,000 from Kanta of Delhi (CGST@ 9%, SGST @ 9%)
(b) Bought goods ₹1,00,000 for cash from Rajasthan (IGST @ 12%)
(c) Sold goods ₹1,50,000 to Sudhir of Punjab (IGST @ 18%)
(d) Paid for Railway Transport ₹10,000 (CGST @ 5% SGST @ 5%)
(e) Sold goods ₹1,20,000 to Sidhu of Delhi (CGST @ 9% SGST @ 9%)
(f) Bought Air-Conditioner for office use ₹60,000 (CGST@ 9%, SGST @ 9%)
(g) Sold goods ₹1,50,000 for cash to Sunil of Uttar Pradesh (IGST @ 18%)
(h) Bought Motor Cycle for business use ₹50,000 (CGST 14%, SGST @ 14%)
(i) Paid for Broadband services ₹4,000 (CGST @ 9%, SGST @ 9%)
(j) Bought goods ₹50,000 from Rajesh, Delhi (CGST @ 9%, SGST @ 9%)
Ans.
In the Books of Anudeep
Journal Entries
| Date | Particulars | L. F. |
Amount (Dr.) (₹) |
Amount (Cr.) (₹) |
|
| 2017 | |||||
| (a) | Purchases A/c | Dr. | 2,00,000 | ||
| Input CGST A/c | Dr. | 18,000 | |||
| Input SGST A/c | Dr. | 18,000 | |||
| To Kanta's A/c | 2,36,000 | ||||
| (Being goods purchased on credit locally) | |||||
| (b) | Purchases A/c | Dr. | 1,00,000 | ||
| Input IGST A/c | Dr. | 12,000 | |||
| To Cash A/c | 1,12,000 | ||||
| (Being goods purchased in cash from Rajasthan) | |||||
| (c) | Sudhir A/c | Dr. | 1,77,000 | ||
| To Sales A/c | 1,50,000 | ||||
| To Output IGST A/c | 27,000 | ||||
| (Being goods supplied on credit to Punjab) | |||||
| (d) | Transport Charges A/c | Dr. | 10,000 | ||
| Input CGST A/c | Dr. | 500 | |||
| Input SGST A/c | Dr. | 500 | |||
| To Bank A/c | 11,000 | ||||
| (Being transport charges paid) | |||||
| (e) | Sidhu A/c | Dr. | 1,41,600 | ||
| To Sales A/c | 1,20,000 | ||||
| To Output CGST A/c | 10,800 | ||||
| To Output SGST A/c | 10,800 | ||||
| (Being goods sold on credit locally) | |||||
| (f) | Air Conditioner A/c | Dr. | 60,000 | ||
| Input CGST A/c | Dr. | 5,400 | |||
| Input SGST A/c | Dr. | 5,400 | |||
| To Bank A/c | 70,800 | ||||
| (Being goods purchased locally) | |||||
| (g) | Cash A/c | Dr. | 1,77,000 | ||
| To Sales A/c | 1,50,000 | ||||
| To Output IGST A/c | 27,000 | ||||
| (Being goods supplied on credit to Uttar Pradesh) | |||||
| (h) | Motor Cycle A/c | Dr. | 50,000 | ||
| Input CGST A/c | Dr. | 7,000 | |||
| Input SGST A/c | Dr. | 7,000 | |||
| To Bank A/c | 64,000 | ||||
| (Being motorcycle purchased locally for office use) | |||||
| (i) | Internet Charges A/c | Dr. | 4,000 | ||
| Input CGST A/c | Dr. | 360 | |||
| Input SGST A/c | Dr. | 360 | |||
| To Bank A/c | 4,770 | ||||
| (Being broadband charges paid) | |||||
| (j) | Purchases A/c | Dr. | 50,000 | ||
| Input CGST A/c | Dr. | 4,500 | |||
| Input SGST A/c | Dr. | 4,500 | |||
| To Rajesh’s A/c | 59,500 | ||||
| (Being goods purchased on credit locally) | |||||
| (k) | Purchases A/c | Dr. | 50,000 | ||
| Input CGST A/c | Dr. | 4,500 | |||
| Input SGST A/c | Dr. | 4,500 | |||
| To Rajesh A/c | 49,000 | ||||
| (Being goods purchased on credit locally) | |||||
| (l) | Output IGST A/c | Dr. | 54,000 | ||
| Output CGST A/c | Dr. | 12,000 | |||
| Output SGST A/c | Dr. | 12,000 | |||
| To Input IGST A/c | 12,000 | ||||
| To Input CGST A/c | 33,000 | ||||
| To Input SGST A/c | 33,000 | ||||
| (Being GST set off and excess of CGST and SGST to be claimed as a refund) |
Working Note 1
| Particulars | IGST | CGST | SGST |
| Output | 54,000 | 12,000 | 12,000 |
| Input | 12,000 | 35,760 | 35,760 |
| Excess | 42,000 | –23,760 | –23,760 |
| Set off | –42,000 | 21,000 | 21,000 |
| Payable | Nil | –2,760(Refund) | –2,760(Refund) |
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