JOURNAL
Illustration -1
Journalise the following transactions in the books of Shri .Herambh
2011 April 1 Herambh started business with cash Rs. 71,000.
2 Purchased goods from Mahesh Rs. 20,000 on credit.
5 Deposited cash into Bank of India Rs. 30,000.
9 Sold goods to Dhanraj Rs. 25,000 on credit.
11 Purchased Furniture of Rs. 10,000 for cash.
14 Paid to Mahesh by Cheque of Bank of India Rs. 10,000.
18 Received a bearer Cheque for Rs. 15,000 from Dhanraj.
30 Paid salary by Cheque Rs. 4,000.
Also prepare Ledgers, TB & Final Accounts of Sole Trader
Solution:
Journal of Shri Hermbh
Date Particulars L.F. Debit Amount Credit Amount
Rs.11 Rs.
2011
April
1 Cash A/c Dr. 71,000
To Capital A/c 71,000
(Being started business with cash )
2 Purchased A/c Dr. 20,000
To Mahesh’s A/c 20,000
(Being purchased goods from Mahesh on credit)
5 Bank of India A/c Dr. 30,000
To Cash A/c 30,000
(Being cash deposited in Bank of India)
9 Dhanraj’s A/c Dr. 25,000
To Sale A/c 25,000
(Being sold good to Dhanraj on credit)
11 Furniture A/c Dr. 10,000
To Cash A/c 10,000
(Being Purchased furniture)
14 Mahesh’s A/c Dr. 10,000
To Bank of India A/c 10,000
(Being issued Cheque to Mahesh)
18 Cash A/c Dr. 15,000
To Dhanraj’s A/c 15,000
(Being received a bearer Cheque)
30 Salary A/c Dr. 4,000
To Bank of India A/c 4,000
(Being salary paid by Cheque)
Total 1,85,000 1,85,000
JOURNAL
Illustration -2
Journalise the following transactions in the books of Mr. Bindra :
2011 June 1 Started business with cash Rs. 2,00,000 goods worth Rs. 10,000 and computer Rs. 20,000.
4 Paid into Dena Bank Rs. 1,00,000.
8 Bought goods on credit from Mona Rs. 8,000 at 6% Trade discount.
12 Sold goods to Nayana of Rs. 8,000 at 5% Trade Discount.
14 Goods worth Rs. 1,050 burnt by fire.
18 Received cash of Rs. 7,500 from Nayana in full settlement of her account.
21 Drawn from Bank Rs. 5,000 for his personal purpose.
24 Paid cash of Rs. 7,400 to Mona in full settlement of her account.
26 Paid house rent Rs. 2,000.
29 Sold goods worth Rs. 10,000 to Divakar who paid us Rs. 6,000 on account.
30 Paid for Postage and Telegrams Rs. 5,000.
Also prepare Ledgers, TB & Final Accounts of Sole Trader
Solution:
In the books of Mr. Bindra :
Journal Entries
Date Particulars L.F. Debit Credit
Amount Amount
Rs. Rs.
2011 Cash A/c Dr. 2,00,000
June 1 Stock of goods A/c Dr. 10,000
Computer A/c Dr. 20,000
To capital A/c 2,30,000
(Being started business with cash , goods & computer)
4 Dena Bank A/c Dr. 1,00,000
To Cash A/c 1,00,000
(Being amount deposited in Dena Bank)
8 Purchased A/c Dr. 7,520
To Mona’s A/c 7,520
(Being goods purchased on credit at 6% Trade Discount)
12 Nayana’s A/c Dr. 7,600
To sales A/c 7,600
(Being goods sold on credit to Nayana at 5% Trade
Discount)
14 Loss by Fire A/c Dr. 1,050
To Goods destroyed by fire A/c Purchases A/c 1,050
(Being goods burnt by fire)
18 Cash A/c Dr. 7,500
Discount allowed A/c 100
To Nayana’s A/c 7,600
(Being cash received & discount allowed)
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21 Drawings A/c Dr. 5,000
To Dena Bank A/c 5,000
(Being cash withdrawn for personal use)
24 Mona’s A/c Dr. 7,520
To Discount Received A/c 120
To Cash A/c 7,400
(Being cash paid and discount received)
26 Drawings A/c Dr. 2,000
To Cash A/c 2,000
(Being amount paid for house rent in cash)
29 Cash A/c Dr. 6,000
Divakar’s A/c Dr. 4,000
To Sales A/c 10,000
(Being goods sold in cash and credit)
30 Postage and Telegram A/c Dr. 5,000
To Cash A/c 5,000
(Being postage and telegram expenses paid)
Total 3,83,290 3,83,290
Illustration: 3
Journalise the following transactions:
2011 July 1 shri Ameya started his business with cash Rs. 81,000, Building Rs. 1,00,000 and borrowed
from friend Jitendra Rs. 25,000.
4 Paid cash in to Bank of India Rs. 90,000.
5 Purchased furniture from Manik and issued him a Cheque Rs. 6,000.
7 Credit purchases from shinde Rs. 15,000 less 4% trade discount.
8 Returned goods to shinde Rs. 150.
10 Cash sales Rs. 4,500.
11 Credit sales to Ashok Rs. 3,000 less trade discount 2%.
12 Ashok returned goods of Rs. 294.
14 Goods taken for personal use Rs. 300.
16 Paid postage Rs. 100 and electricity bill of Rs. 600.
19 Sent a Telegram of Rs. 30 to Shinde to supply goods of Rs. 7,500 immediately.
21 Purchased Computer & Printer of Rs. 25,000 from Kewal and in part payment gave him
Cash of Rs. 15,000.
28 Paid life insurance premium on life of Ameya of Rs. 3,000.
29 Paid Telephone Deposit for new telephone connection by Cheque Rs. 2,000.
31 Paid for travelling expenses Rs. 3,000.
Also prepare Ledgers, TB & Final Accounts of Sole Trader
JOURNAL
Solution:
Journal of Ameya
Date Particulars L.F. Debit Credit
Amount Amount Rs.
Rs.
2011
July Cash A/c Dr. 1,06,000
1 Building A/c Dr. 1,00,000
To Capital A/c 1,81,000
To Jitendra’s Loan A/c 25,000
(Being started business with cash, building & Friend’s loan)
4 Bank of India A/c Dr. 90,000
To Cash A/c Dr. 90,000
(Being amount deposited in Bank of India)
5 Furniture A/c Dr. 6,000
To Bank of India A/c 6,000
(Being Furniture purchased & amount paid by Cheque)
7 Purchases A/c Dr. 14,400
To Shinde’s A/c 14,400
(Being goods purchased on credit at 4% Trade discount)
8 Shinde’s A/c Dr. 150
To Return outward A/c 150
(Being goods returned)
10 Cash A/c Dr. 4,500
To Sale A/c 4,500
(Being cash sales)
11 Ashok’s A/c Dr. 2,940
To Sales A/c 2,940
(Being sold goods to Ashok on credit)
12 Returns . Inward A/c Dr. 294
To Ashok’s A/c 294
(Being goods returned by Ashok)
14 Drawings A/c Dr. 300
To Goods withdrawn by proprietor’s A/c / Purchases A/c 300
(Being goods taken for personal use)
16 Postage A/c Dr. 100
Electricity Bill A/c Dr. 600
To cash A/c 700
(Being Postage and Electricity bill paid)
19 Postages & Telegrams A/c Dr. 30
To Cash A/c 30
(Being paid for Telegram)
21 Computer & Printer A/c Dr. 25,000
JOURNAL
To Cash A/c 15,000
To kewal’s A/c 10,000
(Being computer & Printer purchased & payment made by
cash & credit)
28 Drawing A/c Dr. 3000
To cash A/c 3,000
(Being paid for life insurance premium)
29 Telephone Deposit A/c Dr. 2,000
To Bank of India A/c 2,000
(Being paid for Telephone Deposit)
31 Travelling Expenses A/c Dr. 3,000
To Cash A/c 3,000
(Travelling Expenses paid)
Total 3,58,314 3,58,314
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Illustration 4
Final Solution
JOURNAL
Illustration 5
Solution
To do by yourself
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Illustration 6
Solution
To do by Yourself
JOURNAL
Illustration 7 - Final Accounts Sole trader
Hemanshu, started his proprietary business of pens.
Particulars Dr Cr
Capital 35000
Purchase 48000
Sales 59000
Cash 12500
Bank Loan 10% 18900
Rent 2400
Electricity 1000
Salaries 5000
Furniture 20000
Debtors 20000
Creditors 5000
RDD 2000
Interest 1000
Fixed Deposit 8% 10000
Total 119900 119900
JOURNAL
Adjustments:
1. Charge Depreciation on Furniture @ 10%
2. Closing stock is Rs. 8000
3. Salaries include Rs. 1000 paid for next FY
4. Electricity above is accounted for only 10 Months
5. Debtors to the tune of 1000 turns bad
6. Provide New reserve upto 5%
Prepare Trading, Profit & Loss Account and Balance Sheet
