Types of Accounts Rules for Debit Rules for Credit

Personal Accounts Debit the receiver Credit the giver

Real Accounts Debit what comes in Credit what goes out

Nominal Accounts Debit all expenses and losses Credit all incomes and gains

Transactions Journal Entry

Cash/Bank A/C Dr
Cash brought into the business as capital
To Capital A/C

Building A/c Dr
Plant and Machinery/Furniture A/c Dr

Cash and other assets brought into business Cash A/c Dr

To Capital A/c

Purchases A/c Dr
Goods purchased on cash To Cash/Bank A/C

Purchases A/c Dr
Goods purchased on credit To Supplier’s A/c

Cash A/c Dr
Cash Sales To Sales A/c

Customer A/c Dr
Sales of goods on Credit To Sales A/c
 Bank A/c Dr
Opening a bank account To Cash A/c

Assets A/c Dr
Purchase of assets for cash To Cash/Bank A/c

Cash/Bank A/c Dr
Loss on Sale of Assets A/c
Sale or disposal of any old asset at loss
To Asset A/c

Cash/Bank A/c Dr
To Loss on Sale of Assets A/c
Sale or disposal of any old asset at profit
To Asset A/c

Drawings A/c Dr
Cash withdrawn for personal use To Cash A/c

Drawings A/c Dr
Goods withdrawn for personal use To Purchase A/c

Charity A/c Dr
Goods given as Charity To Purchase A/c

Return Inwards A/c Dr

Goods returned by the customer To Customer A/c

Supplier’s A/c Dr
Goods returned to the supplier To Return Outwards A/c

Withdrawn of cash from bank Cash A/c (Office Use) Dr

 Drawings A/c (Personal Use) Dr

To /Bank A/c

Question 1:

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

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

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

Mar. Furniture A/c Dr. 10,000

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

Mar. Purchases A/c Dr. 25,000

04
To Cash A/c 25,000
 ( Goods purchased
for cash)

Mar. Purchases A/c Dr. 15,000

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

Mar. Kamlesh’s A/c Dr. 15,000

10
To Cash A/c 15,000
(Cash paid to
Kamlesh)

Mar. Purchases A/c Dr. 6,000

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

Mar. Purchases A/c Dr. 8,000

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

Mar. Rent A/c Dr. 1,000

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

Page No 9.60:

Question 2:
Enter the following transactions in the Journal of M/s Tripathi Bros. :-

2019 ₹
Jan. Sold goods for cash 36,000
6
8 Sold goods to Hari 30,000
14 Received cash from Hari 18,000
26 Received Commission 750
27 Paid Salary to Gopal 1,200
28 Received cash from Hari 12,000
29 Withdrew cash from office for personal use 4,000
30 Wages paid 7,200
30 Bought Machinery for Cash 8,000
ANSWER:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
2019
Jan Cash A/c Dr. 36,000
06
To Sales A/c 36,000
(Sold goods for cash)

Jan Hari A/c Dr. 30,000

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

Jan Cash A/c Dr. 18,000

14
To Hari A/c 18,000
(Received cash from Hari)

Jan Cash A/c Dr. 750

26
To Commission A/c 750
(Received commission)

Jan Salary A/c Dr. 1,200

27
To Cash A/c 1,200
(Paid salary to Gopal)

Jan Cash A/c Dr. 12,000

 28
To Hari A/c 12,000
(Received cash from Hari)

Jan Drawings A/c Dr. 4,000

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

Jan Wages A/c Dr. 7,200

30
To Cash A/c 7,200
(Paid wages)

Jan Machinery A/c Dr. 8,000

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

Page No 9.60:

Question 3:

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

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

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

Oct. Purchases A/c Dr. 75,000

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

Oct. Atul’s A/c Dr. 3,000

06
To Purchases Return 3,000
A/c
(Goods returned to
Atul)

Oct. Atul’s A/c Dr. 50,000

08
To Cash A/c 50,000
(Cash paid to Atul)

Oct. Charu’s A/c Dr. 1,00,000

10
To Sales A/c 1,00,000
( Goods sold to
Charu)

Oct. Sales Return A/c Dr. 20,000

12
To Charu’s A/c 20,000
(Goods returned to
Charu)

Oct. Rent A/c Dr. 2,000

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

Oct. Drawings A/c Dr. 10,000

20
To Cash A/c 10,000
(Cash withdrawn for
personal use)
TOTAL 3,00,000 3,00,000
 Page No 9.60:

Question 4:

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

2017 ₹
March 3 Sold goods to Dev 1,00,000
Received from Dev in full settlement of his
5 98,000
account
6 Sold goods to Manmohan 80,000
8 Manmohan returned goods 1,000
Received from Manmohan in full settlement
15 78,200
of his account
16 Received cash from Ram 19,500
and discount allowed 500
20 Paid cash to Pawan 4,700
and discount received from him 300
Sold goods to Varun of the list price of ₹
25
25,000 at 20% trade discount
ANSWER:
Journal
In the Books of Ganesh
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
2017
Mar. Dev’s A/c Dr. 1,00,000
03
To Sales A/c 1,00,000
(Goods sold to
Dev)

Mar. Cash A/c Dr. 98,000

05
Discount Dr. 2,000
Allowed A/c
To Dev’s A/c 1,00,000
(Cash received from
Dev in full settlement
of his account)
Mar. Manmohan’s A/c Dr. 80,000
06
To Sales A/c 80,000
(Goods sold to
Manmohan)

Mar. Sales Return A/c Dr. 1,000

08
To Manmohan’s 1,000
A/c
(Goods returned
to Manmohan)

Mar. Cash A/c Dr. 78,200

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

Mar. Cash A/c Dr. 19,500

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

Mar. Pawan’s A/c Dr. 5,000

20
To Cash A/c 4,700
To Discount 300
Received
A/c
(Cash paid to Pawan
and received discount)

Mar. Varun’s A/c Dr. 20,000

25
To Sales A/c 20,000
 (Goods sold @ 20%
trade discount)
TOTAL 4,05,000 4,05,000

Page No 9.60:

Question 5:

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

201 ₹
7
Apri Commenced business with cash 50,00
l1 0
2 Purchased goods from Subhash 20,00
0
15,00
4 Sold goods to Ramnath
0
6 Ramnath returned defective goods 1,000
13,80
10 Received cash from Ramnath and
0
Discount allowed 200
10,00
12 Gopal sold goods to us
0
14 Paid to Gopal in full settlement of his account after deducting 5%
discount.
10,00
15 Paid Rent
0
16 Paid Rent of Hari Shankar's residence 5,000
Purchased goods for cash from Govind for ₹ 6,000 at 20% trade
18
discount.
Purchased goods from Govind for ₹ 10,000 at 20%
20
trade discount.
24 Paid to Govind ₹ 7,850 in full settlement of his account.
25 Paid to Subhash ₹ 4,750; discount received ₹ 250.
30 Paid Wages ₹ 400; Salaries ₹ 4,000; Advertisement expenses ₹
800 and Trade expenses ₹ 1,000.
ANSWER:
Journal
In the Books of Hari Shankar & Co.
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
2017
Apr. Cash A/c Dr. 50,000
01
To Capital A/c 50,000
(Started business
with cash)

Apr. Purchases A/c Dr. 20,000

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

Apr. Ramnath’s A/c Dr. 15,000

04
To Sales A/c 15,000
(Goods sold to
Ramnath)

Apr. Sales Return A/c Dr. 1,000

06
To Ramnath’s A/c 1,000
(Goods returned to
Ramnath)

Apr. Cash A/c Dr. 13,800

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

Apr. Purchases A/c Dr. 10,000

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

Apr. Gopal’s A/c Dr. 10,000

14
To Cash A/c 9,500
 To Discount 500
Received
A/c
(Cash paid to Gopal in full
settlement of his account)

Apr. Rent A/c Dr. 10,000

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

Apr. Drawings A/c Dr. 5,000

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

Apr. Purchases A/c Dr. 4,800

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

Apr. Purchases A/c Dr. 8,000

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

Apr. Govind’s A/c Dr. 8,000

24
To Cash A/c 7,850
To Discount 150
Received
A/c
(Cash paid to Govind in
full settlement of his
account)

Apr. Subhash’s A/c Dr. 5,000

25
To Cash A/c 4,750
To Discount 250
Received
A/c
 (Cash paid to Subhash in
full settlement of his
account)

Apr. Wages A/c Dr. 400

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