CA.

Naresh Aggarwal’s Traditional Rules of Journal Entries

ACADEMY of ACCOUNTS Real Accounts :
Debit what comes in (MSfcV t¨ oLrq vk,)
Credit what goes out (ØSfMV t¨ oLrq tk,)
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Debit all Losses and Expenses (MSfcV lHkh [kPksZ o gkfu;k¡ )
Nominal Accounts :
Credit all Gains and Incomes (ØSfMV lHkh vk; o ykHk)

Debit the Receiver (MSfcV ysus okyk)

Personal Accounts :
Credit the Giver (ØSfMV nsus okyk)

Modern Rules of Journal Entries

Particulars + - Particulars + -

AoA
Journal Entries
Assets Dr. Cr. Liabilities Cr. Dr.

Expenses Dr. Cr. Capital Cr. Dr.

Income Cr. Dr.

For Eenquiries
Call or whatsapp: 8800215448
(Whatsapp anytime, Calls only between 3.00 pm to 8.00 pm)
Journal Entries through Accounting Equation
Email: [email protected] Capital + Liabilities = Assets
Website: academyofaccounts.org
Credit Balance Debit Balance

(+) (-) (+) (-)

Credit Debit Debit Credit
 (1) (2)

Feb.-19 Sangeeta withdrawn Rs. 3,000 from bank for private use.
CA. Naresh Aggarwal’s Feb.-21 Returned goods to Neeru of Rs. 3,200.
ACADEMY of ACCOUNTS Feb.-25
Feb.-27
Paid wages amounted to Rs. 1,000.
Received commission Rs. 2,000.
Accounting • Costing • Taxation • Financial Management Feb.-27 Salary paid Rs. 600.
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org Feb.-27 Paid to Neeru Rs. 7,000.
Feb.-28 Paid General Expenses Rs. 1,800 and for Stationery Rs. 200.

Solved Examples Q-4: Journalise the following transactions:

1. Dinesh started business with cash Rs. 50,000; Bank deposits Rs. 10,000
Q-1: Journalise the following transactions: and Furniture Rs. 5,000.
Jan-1 Ramesh started business with cash Rs. 50,000. 2. Purchased goods of Rs. 1,500.
Jan-4 Purchased goods for cash Rs. 7,000. 3. Purchased goods of Rs. 1,500 from Suresh.
Jan-5 Sold goods for cash Rs. 5,000. 4. Purchased goods of Rs. 1,500 from Suresh for cash
Jan-7 Purchased goods from Mohan on credit worth Rs. 4,500. 5. Purchased goods of Rs. 1,500 from Suresh and paid by cheque.
Jan-12 Sold goods to Sohan on credit worth Rs. 2,000. 6. Purchased Furniture of Rs. 1,500 from Suresh.
Jan-16 Paid wages amounted to Rs. 4,000. 7. Sold goods of Rs. 2,000.

AoA
Jan-17 Paid salaries to Rs. 2,500 8. Sold goods of Rs. 2,000 to Manish
Jan-22 Received commission Rs. 2,000. 9. Sold goods of Rs. 2,000 to Manish for cash
Jan-25 Goods returned by Sohan worth Rs. 1,500. 10. Sold goods of Rs. 2,000 to Manish and received a Cheque
Jan-28 Returned goods to Mohan Rs. 1,000. 11. Sold Furniture to Manish at Rs. 2,000.
Jan-30 Cash Received from Sohan Rs. 1,200. 12. Paid Cartage Rs. 700; Printing Charges Rs. 300 and Sundry Expenses Rs.500
Jan-31 Purchased furniture from Deepak worth Rs. 5,000. by cheque.
13. Paid for insurance Rs. 1,000.
Q-2: Show the Journal Entries of the following transactions: 14. Received fees from clients Rs. 1,100 and Rent Rs. 2,000.
May-1 Sohan started business with cash Rs. 45,000.
May-1 Cash deposited into bank Rs. 15,000. Q-5: Journalise the following transactions:
May-4 Purchased goods worth Rs. 4,000 and paid by cheque. 1. Cash paid to Shelly Rs. 2,000.
May-7 Purchased Office Equipments of Rs. 2,500. 2. Paid to Amitabh by cheque Rs. 1,500.
May-8 Sold goods for cash Rs. 1,200. 3. Received cheque from Bharti Rs. 1,800.
May-10 Sold goods to Neeru Rs. 800. 4. Paid to Amit Rs. 1,150 in full settlement of Rs. 1,200.
May-15 Goods returned by Neeru worth Rs. 150. 5. Claim of Rosy Rs. 2,000 settled for Rs. 1,900.
May-18 Sohan withdrawn Rs. 8,000 for personal use in cash. 6. Received Rs. 3,800 from Sumit in full settlement of Rs. 4,000.
May-24 Paid Salaries Rs. 2,500. 7 Received cash from Pramod at 3% discount for amount due Rs. 10,000.
May-27 Paid office Rent Rs. 1,200. 8. A cheque received from Sonia at 5% discount for claim amount of Rs. 3,000.
May-30 Paid Telephone Bill Rs. 2,700 by cheque. 9. A cheque issued to Aggarwal at 5% discount for claim amount of Rs. 4,000.

Q-3: Journalise the following transactions: Q-6: Make the Journal Entries of the following transactions:
Feb.-1 Sangeeta started business with Rs. 25,000 deposited with bank. 1. Purchased goods from M/s Cheap Traders of Rs. 8,000 at 10%trade discount.
Feb.-2 Purchased goods from Neeru Rs. 13,000 2. Purchased goods from Rich Limited of Rs. 5,000 at 5% trade discount and paid in
Feb.-6 Sold goods for Rs. 14,000. cash.
Feb.-8 Sold goods worth Rs. 2,000 and received by cheque. 3. Sold goods to Kriti worth Rs. 6,000 at 10% trade discount.
Feb.-11 Purchased Machine costing Rs. 6,000 and paid in cash. 4. Sold goods to Monika of Rs. 4,000 at 5% trade discount and money received by
Feb.-15 Goods returned by customer of Rs. 1,500 and cash refunded to him.
 (3) (4)

Q-10: Make the Journal Entries of the following transactions:

CA. Naresh Aggarwal’s 1. Allow interest on capital @ 10% on Rs. 50,000.
ACADEMY of ACCOUNTS 2. Interest is due on loan of Rs. 20,000 taken from Bank @ 12% for one month.
3. Interest paid on loan of Rs. 15,000 taken from Bank @ 10% P.A. for 6 months.
Accounting • Costing • Taxation • Financial Management 4. On drawings of Rs.5,000; charge interest at the rate of 6%.
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org 5. Charge interest on drawings Rs. 150.
6. Interest is accrued Rs. 1,200 on loan given to friend .

cheque. Q-11: Make the Journal Entries of the following transactions:

5. Purchased goods from ‘Best Dealer’ of Rs. 10,000 at 20% trade discount and 1. Goods costing Rs. 4,000 distributed as samples.
2% cash discount. 2. Goods worth Rs. 1,100 given in charity.
6. Purchased goods from ‘Disha’ worth Rs. 5,000 at 10% trade discount and half 3. Grant from Government received Rs. 5,000.
paid in cash at 2% cash discount 4. Cash Rs. 2,000 and goods worth Rs. 3,100 given in charity.
5. Bill of Rs. 4,000 collected from Debtors.
Q-7: Make the Journal Entries of the following transactions: 6. Bill of Rs. 6,000 received from Sonu.
1. Depreciate at the rate of 10% on Furniture costing Rs. 10,000. 7. Bill of Rs. 4,000 discounted from bank at 2%.
2. Machine costing Rs. 20,000 is depreciated @ 20% P.A. 8. Bill of Rs. 6,000 endorsed to Monu.

AoA
3. Depreciate Building @ 5%, Machine @ 10% and Equipments @ 20%, Building 9. Cheque received from Sanjay Rs. 1,000.
was costing Rs. 50,000; Machine Rs. 20,000 and Equipments Rs. 5,000. 10. Sanjay’s cheque returned dishonored.
4. Depreciate typewriter by 2,500.
Q-12: Make the Journal Entries of the following transactions:
Q-8: Make the Journal Entries of the following transactions: 1. Salary paid in advance Rs. 600.
1. Mohan from whom amount due is Rs. 2,000 become insolvent and received only 2. Prepaid insurance Rs. 1,000.
60% of the claim. 3. Paid wages Rs. 1,800 including Rs. 300 for advance.
2. Sohan a customer with balance due Rs. 1,000 bankrupted and received only 25 4. Paid office rent Rs. 2,000 and security deposit Rs. 5,000 by cheque.
paise in Re. 5. Electricity bill due but not paid amounted to Rs. 2,200.
3. Sanjay from whom an amount of Rs. 4,000 was to be received is declared insolvent 6. Wages not paid to laborers Rs. 700.
and could receive a cheque of Rs. 1,500 in full satisfaction of the claim from the 7. Salary paid to clerks Rs. 800 and remain outstanding Rs. 400.
court. 8. Repairs charges were Rs. 1,800 but only 1,200 are paid.
4. Sangeeta disappeared and an amount due on her Rs. 800 is not expected to be 9. Commission due but not received Rs. 700.
collected. 10. Fees earned but not received Rs. 300.
5. Mohan recovered and received Rs. 300 from him. 11. Received cash for fees Rs. 1,000 and remain due Rs. 200.
6. Sohan the bad debts earlier recovered and gives a cheque for the balance 12. Received cheque for rent Rs. 2,000 and advance rent Rs. 5,000.
remained. 13. Interest income was of Rs. 1,200 but collected only Rs. 900.
7. Sangeeta came back and received half of the amount due in cash and half by 14. Received Fees in advance Rs. 600.
cheque.
Q-13: Show the Opening Journal Entries of the following transactions :
Q-9: Make the Journal Entries of the following transactions: 1. Opening Balances of Assets: Cash Rs.15,000; Machinery Rs.7,000; Stock
1. A fire occurred in the premises resulting loss of furniture worth Rs. 6,000. Rs.3,000; Dinesh Rs.2,000; Ravi Rs.1,000. Liabilities: Bank Loan Rs.6,000;
2. A computer stolen by a thief Costing Rs. 25,000. Outstnading Rent Rs.2,000; Sonu Rs.1,000; Ramesh Rs.3,000.
3. Fire destroying Machines costing Rs. 15,000; Furniture Rs. 10,000 and goods 2. Debit Balances: Cash Rs.7,000; Furniture Rs.5,000; Stock Rs.8,000; Mahesh
Rs. 5,000. Rs.4,000. Credit Balances: Loan Rs.5,000; Outstnading Expenses Rs.2,000;
4. Insurance claim received for goods lost in fire Rs. 1,500. Sunil Rs.3,000.
5. Cheque received for claim of stolen computer Rs. 18,000.
 (5) (6)

Date Particulars L.F. Debit Credit

CA. Naresh Aggarwal’s ___________________________________________________________________

ACADEMY of ACCOUNTS Jan.25 Sales Return A/c

To Sohan
Dr. 1,500
1,500
Accounting • Costing • Taxation • Financial Management (Being returned goods by Sohan)
_______________________________________________
___________________________________________
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Jan.28 Mohan Dr. 1,000
To Purchases Return A/c 1,000
Solution-1:
(Being returned goods to Mohan)
Date Particulars L.F. Debit Credit _______________________________________________
___________________________________________
____________________________________________________________________
Jan.30 Cash A/c Dr. 1,200
Jan.-1 Cash A/c Dr. 50,000 To Sohan 1,200
To Capital A/c 50,000 (Being received cash from Sohan)
(Being started business with cash) _______________________________________________
___________________________________________
_______________________________________________
Jan.31 Furniture A/c Dr. 5,000
Jan.-4 Purchases A/c Dr. 7,000 To Deepak 5,000
To Cash A/c 7,000 (Being purchased furniture from Deepak)

AoA
(Being purchased goods for cash) ____________________________________________________________________
_______________________________________________
Jan.-5 Cash A/c Dr. 5,000 Solution-2:
To Sales A/c 5,000
Date Particulars L.F. Debit Credit
(Being sold goods for cash) ____________________________________________________________________
_______________________________________________
May-1 Cash A/c Dr. 45,000
Jan.-7 Purchases A/c Dr. 4,500 To Capital A/c 45,000
To Mohan 4,500 (Being started business with cash)
(Being purchased goods from Mohan on credit) _______________________________________________
___________________________________________
_______________________________________________
May-1 Bank A/c Dr. 15,000
Jan.12 Sohan Dr. 2,000 To Cash A/c 15,000
To Sales A/c 2,000 (Being deposited cash into bank)
(Being sold goods to Sohan on credit) _______________________________________________
___________________________________________
_______________________________________________
May-4 Purchases A/c Dr. 4,000
Jan.16 Wages A/c Dr. 4,000 To Bank A/c 4,000
To Cash 4,000 Being purchased goods and paid by cheque)
(Being paid wages) _______________________________________________
___________________________________________
_______________________________________________
May-7 Office Equipments A/c Dr. 2,500
Jan.17 Salaries A/c Dr. 2,500 To Cash A/c 2,500
To Cash A/c 2,500 (Being purchased office equipments)
(Being paid salaries) _______________________________________________
___________________________________________
_______________________________________________
May-8 Cash A/c Dr. 1,200
Jan.22 Cash A/c Dr. 2,000 To Sales A/c 1,200
To Commission A/c 2,000 (Being sold goods for cash)
(Being received commission) _______________________________________________
___________________________________________
_______________________________________________
 (7) (8)

Date Particulars L.F. Debit Credit

CA. Naresh Aggarwal’s ___________________________________________________________________

ACADEMY of ACCOUNTS Feb.2 Purchases A/c

To Neeru
Dr. 13,000
13,000
Accounting • Costing • Taxation • Financial Management (Being purchased goods from Neeru)
___________________________________________
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Feb.6 Cash A/c Dr. 14,000
To Sales A/c 14,000
Date Particulars L.F. Debit Credit (Being sold goods for cash)
___________________________________________________________________ ___________________________________________
May10 Neeru Dr. 800 Feb.8 Bank A/c Dr. 2,000
To Sales A/c 800 To Sales A/c 2,000
(Being sold goods to Neeru) (Being sold goods and received cheque)
___________________________________________
May15 Sales Return A/c Dr. 150 Feb.11 Machinery A/c Dr. 6,000
To Neeru 150 To Cash A/c 6,000
(Being returened goods by Neeru) (Being purchased machinery for cash)
___________________________________________

AoA
___________________________________________
May18 Drawings A/c Dr. 8,000 Feb.15 Sales Return A/c Dr. 1,500
To Cash A/c 8,000 To Cash A/c 1,500
(Being withdrawn cash for personal use) (Being returned goods by customer and cash
___________________________________________
refunded to him)
May24 Salary A/c Dr. 2,500 ___________________________________________
To Cash A/c 2,500 Feb.19 Drawings A/c Dr. 3,000
(Being paid salary) To Bank A/c 3,000
___________________________________________
(Being withdrawn from bank for personal use)
May27 Rent A/c Dr. 1,200 ___________________________________________
To Cash A/c 1,200 Feb.21 Neeru Dr. 3,000
(Being paid rent) To Purchase Return A/c 3,000
___________________________________________
(Being returned goods to Neeru)
May30 Telephone Expenses A/c Dr. 2,700 ___________________________________________
To Bank A/c 2,700 Feb.25 Wages A/c Dr. 1,000
(Being paid telephone bill) To Cash A/c 1,000
____________________________________________________________________
(Being paid wages)
___________________________________________
Solution-3:
Feb.27 Cash A/c Dr. 2,000
Date Particulars L.F. Debit Credit To Commission A/c 2,000
____________________________________________________________________
(Being received commission)
Feb.-1 Bank A/c Dr. 25,000 ___________________________________________
To Capital A/c 25,000 Feb.27 Salary A/c Dr. 600
(Being started business with cash) To Cash A/c 600
___________________________________________
(Being paid salary)
___________________________________________
 (9) (10)

Date Particulars L.F. Debit Credit

CA. Naresh Aggarwal’s ___________________________________________________________________

ACADEMY of ACCOUNTS 6. Furniture A/c

To Suresh
Dr. 1,500
1,500
Accounting • Costing • Taxation • Financial Management (Being purchased furniture from Suresh)
_______________________________________________
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
7. Cash A/c Dr. 2,000
To Sales A/c 2,000
Feb.27 Neeru Dr. 7,000
(Being sold goods for cash)
To Cash A/c 7,000 _______________________________________________
(Being paid to Neeru)
_______________________________________________ 8. Manish Dr. 2,000
To Sales A/c 2,000
Feb.28 General Expenses A/c Dr. 1,800
(Being sold goods to Manish)
Stationery A/c Dr. 200 _______________________________________________
To Cash A/c 2,000
9. Cash A/c Dr. 2,000
(Being paid expenses in cash)
____________________________________________________________________ To Sales A/c 2,000
(Being sold goods for cash)

AoA
_______________________________________________
Solution-4:
10. Bank A/c Dr. 2,000
Date Particulars L.F. Debit Credit To Sales A/c 2,000
____________________________________________________________________
(Being sold goods and received cheque)
1. Cash A/c Dr. 50,000 _______________________________________________
Bank A/c Dr. 10,000
11. Manish Dr. 2,000
Furniture A/c Dr. 5,000
To Furniture A/c 2,000
To Capital A/c 65,000
(Being sold furniture to Manish)
(Being started business with sundry assets) _______________________________________________
_______________________________________________
12. Cartage A/c Dr. 700
2. Purchases A/c Dr. 1,500
Printing Charges A/c Dr. 300
To Cash A/c 1,500
Sundry Expenses A/c Dr. 500
(Being purchased good)
_______________________________________________ To Bank A/c 1,500
(Being paid sundry expenses)
3. Purchases A/c Dr. 1,500 _______________________________________________
To Suresh 1,500
13. Insurance A/c Dr. 1,000
(Being purchased goods from Suresh)
_______________________________________________ To Cash A/c 1,000
(Being paid for insurance)
4. Purchases A/c Dr. 1,500 _______________________________________________
To Cash A/c
14. Cash A/c Dr. 3,100
(Being purchased goods for cash)
_______________________________________________ To Fees A/c 1,100
To Rent A/c 2,000
5. Purchases A/c Dr. 1,500
(Being fees and rent received)
To Bank A/c 1,500 ____________________________________________________________________
(Being purchased goods and paid by cheque)
_______________________________________________
 (11) (12)

Date Particulars L.F. Debit Credit

CA. Naresh Aggarwal’s ____________________________________________________________________

ACADEMY of ACCOUNTS 8. Bank A/c

Discount Allowed A/c
Dr.
Dr.
2,850
150
Accounting • Costing • Taxation • Financial Management To Sonia 3,000
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org (Being received cheque from Sonia and allowed
her discount)
_______________________________________________
Solution-5:
9. Aggarwal Dr. 4,000
Date Particulars L.F. Debit Credit To Bank A/c 3,800
____________________________________________________________________
To Discount Received A/c 200
1. Shelly Dr. 2,000
(Being issued cheque to Aggarwal and received
To Cash A/c 2,000
discount)
(Being paid to shelly) ____________________________________________________________________
_______________________________________________
2. Amitabh Dr. 1,500 Solution-6:
To Bank A/c 1,500
Date Particulars L.F. Debit Credit

AoA
(Being paid to Amitabh by cheque) ____________________________________________________________________
_______________________________________________
1. Purchases A/c Dr. 7,200
3. Bank A/c Dr. 1,800
To M/s Cheap Traders 7,200
To Bharti 1,800
(Being purchased goods at 10% trade discount)
(Bing received cheque from Bharti) _______________________________________________
_______________________________________________
2. Purchases A/c Dr. 4,750
4. Amit Dr. 1,200
To Cash A/c 4,750
To Cash A/c 1,150
(Being purchased goods at 10% trade discount)
To Discount Received A/c 50 _______________________________________________
(Being paid to Amit and received discount)
_______________________________________________ 3. Kriti Dr. 5,400
To Sales A/c 5,400
5. Rosy Dr. 2000
(Being sold goods to Kriti at trade discount)
To Cash A/c 1,900 _______________________________________________
To Discount Received A/c 100
4. Bank A/c Dr. 3,800
(Being paid to Rosy and received discount)
_______________________________________________ To Sales A/c 3,800
(Being purchased goods at 5% trade discount)
6. Cash A/c Dr. 3,800 _______________________________________________
Discount Allowed A/c Dr. 200
5. Purchases A/c Dr. 8,000
To Sumit 4,000
To Cash A/c 7,840
(Being received cash from Sumit and allowed
To Discount Received A/c 160
him discount)
_______________________________________________ (Being purchased goods at 20% trade discount
and 2% cash discount)
7. Cash A/c Dr. 9,700 _______________________________________________
Discount Allowed A/c Dr. 300
6.a Purchases A/c Dr. 4,500
To Promod 10,000
To Disha 4,500
(Being received cash from Pramod and allowed
(Being purchased goods at trade discount)
him discount) _______________________________________________
_______________________________________________
 (13) (14)

CA. Naresh Aggarwal’s Solution-8:

ACADEMY of ACCOUNTS Date Particulars L.F. Debit Credit

____________________________________________________________________
Accounting • Costing • Taxation • Financial Management 1. Cash A/c Dr. 1,200
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org Bad Debts A/c Dr. 800
To Mohan 2,000
(Being Mohan become insolvant and received
Date Particulars L.F. Debit Credit
____________________________________________________________________ only 60% of amount due.)
_______________________________________________
6.b Disha Dr. 2,250
To Cash A/c 2,205 2. Cash A/c Dr. 250
To Discount Received A/c 45 Bad Debts A/c Dr. 750
(Being paid to Disha half amount at cash discount) To Sohan 1,000
____________________________________________________________________ (Being Sohan become insolvant and received
only 25% of amount due.)
_______________________________________________
Solution-7:
3. Bank A/c Dr. 1,500

AoA
Date Particulars L.F. Debit Credit
____________________________________________________________________ Bad Debts A/c Dr. 2,500
1. Depreciation A/c Dr. 1,000 To Sanjay 4,000
To Furniture A/c 1,000 (Being Sanjay become insolvant and received
(Being depreciatied furniture) only Rs.1,500 from amount due.)
_______________________________________________ _______________________________________________

2. Depreciation A/c Dr. 4,000 4. Bad Debts Dr. 800

To Machine A/c 4,000 To Sangeeta 800
(Being depreciatied Machinery) (Being Sangeeta disappeared and could not
_______________________________________________ received anything)
_______________________________________________
3. Depreciation A/c Dr. 5,500
To Building A/c 2,500 5. Cash A/c Dr. 300
To Machinery A/c 2,000 To Bad Debts Recovered A/c 300
To Equipments A/c 1,000 (Being Mohan recovered and received from him)
_______________________________________________
(Being depreciatied various assets)
_______________________________________________ 6. Bank A/c Dr. 750
4. Depreciation A/c Dr. 2,500 To Bad Debts Recovered A/c 750
To Typewriter A/c 2,500 (Being Sohan recovered and received from him)
_______________________________________________
(Being depreciatied typewriter)
____________________________________________________________________ 7. Cash A/c Dr. 400
Bank A/c Dr. 400
To Bad Debts Recovered A/c 800
(Being Sangeeta paid the amount earlier
considered as bad debts)
____________________________________________________________________
 (15) (16)

3. Interest on Loan A/c Dr. 750

CA. Naresh Aggarwal’s
To Cash A/c 750
ACADEMY of ACCOUNTS (Being paid interest on loan)
_______________________________________________
Accounting • Costing • Taxation • Financial Management 4. Drawings A/c Dr. 300
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org To Interest on Drawings 300
(Being charged interest on drawings)
Solution-9: _______________________________________________

Date Particulars L.F. Debit Credit 5. Drawings A/c Dr. 150

____________________________________________________________________
To Interest on Drawings 150
1. Loss by Fire A/c Dr. 6,000 (Being charged interest on drawings)
To Furniture A/c 6,000 _______________________________________________
(Being furniture lost in fire) 6. Accrude Interest A/c Dr. 1,200
_______________________________________________
To Interest A/c 1,200
2. Loss by theft A/c Dr. 25,000 (Being accruded interest on loan)
To Computer A/c 25,000 ____________________________________________________________________
(Being computer stolen by thief)

AoA
_______________________________________________ Solution-11:
3. Loss by fire A/c Dr. 30,000 Date Particulars L.F. Debit Credit
To Machinery A/c 15,000 ____________________________________________________________________
To Furniture A/c 10,000 1. Samples A/c Dr. 4,000
To Purchases A/c 5,000 To Purchases A/c 4,000
(Being lost various assets in fire) (Being distributed samples)
_______________________________________________ _______________________________________________
4. Cash A/c Dr. 1,500 2. Charity A/c Dr. 1,100
To Insurance Claim 1,500 To Purchases A/c 1,100
(Being claim received for lost goods) (Being distributed goods in charity)
_______________________________________________ _______________________________________________
5. Bank A/c Dr. 18,000 3. Cash A/c Dr. 5,000
To Insurance Claim 18,000 To Govt. Grant A/c 5,000
(Being claim received for stolen computer) (Being received grant from Govt.)
____________________________________________________________________ _______________________________________________
4. Charity A/c Dr. 5,100
Solution-10: To Cash A/c 2,000
Date Particulars L.F. Debit Credit To Purchases A/c 3,100
____________________________________________________________________
(Being given cash and goods in charity)
1. Interest on Capital A/c Dr. 5,000 _______________________________________________
To Capital A/c 5,000 5. Bills Receivable A/c Dr. 4,000
(Being allowed interest on capital) To Debtors A/c 4,000
_______________________________________________
(Being received bill from debtors)
2. Interest on Loan A/c Dr. 200 _______________________________________________
To Bank Loan A/c 200
(Being interest on loan is due)
_______________________________________________
 (17) (18)

CA. Naresh Aggarwal’s 3. Wages A/c Dr. 1,500

ACADEMY of ACCOUNTS Prepaid Wages A/c

To Cash A/c
Dr. 300
1,800
Accounting • Costing • Taxation • Financial Management (Being paid wages and advance wages)
_______________________________________________
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
4. Office Rent A/c Dr. 2,000
Security Deposit Dr. 5,000
6. Bills Receivable A/c Dr. 6,000 To Bank A/c 7,000
To Sonu 6,000 (Being paid rent and security deposit)
(Being received bill from Sonu) _______________________________________________
_______________________________________________
5. Electricity Expenses A/c Dr. 2,200
7. Bank A/c Dr. 3,920 To O/s Electricity Expenses A/c 2,200
Discount A/c Dr. 80 Being electricity charges are due but not paid)
To Bills Receivable A/c 4,000 _______________________________________________
(Being discounted bill from bank) 6. Wages A/c Dr. 700
_______________________________________________ To O/s Wages A/c 700

AoA
8. Monu Dr. 6,000 Being wages not paid to laborers)
To Bills Receivable A/c 6,000 _______________________________________________
(Being endorced bill to Monu) 7. Salary A/c Dr. 1,200
_______________________________________________ To Cash A/c 800
9. Bank A/c Dr. 1,000 To O/s Salary A/c or clerk’s A/c 400
To Sanjay 1,000 (Being salary paid and remain outstanding too)
_______________________________________________
(Being received cheque from Sanjay)
_______________________________________________ 8. Repairs A/c Dr. 1,800
10. Sanjay Dr. 1,000 To Cash A/c 1,200
To Bank A/c 1,000 To O/s Repairs A/c 600
(Being sanjay’s cheque returned dishonred) (Being paid repairs and remain outstanding too)
____________________________________________________________________ _______________________________________________
9. Outstanding Commission A/c Dr. 700
Solution-12: To Commission A/c 700
(Being commission became due but not received)
Date Particulars L.F. Debit Credit _______________________________________________
____________________________________________________________________
1. Prepaid Salary A/c Dr. 600 10. O/s Fees A/c Dr. 300
To Cash A/c 600 To Fees A/c 300
(Being paid salary in advance) (Being fees became due but not received)
_______________________________________________ _______________________________________________

2. Prepaid Insurance A/c Dr. 1,000 11. Cash A/c Dr. 1,000
To Cash A/c 1,000 O/s Fees A/c Dr. 200
(Being prepaid insurance) To Fees A/c 1,200
_______________________________________________ (Being received fees and remained due too)
_______________________________________________
 (19) (20)

Exercise
CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS Q-1:
Jan.-1
Journalise the following transactions:
Neha started business with cash Rs. 35,000.
Accounting • Costing • Taxation • Financial Management Jan.-4 Purchased goods for cash Rs. 5,000.
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org Jan.-7 Paid wages amounted to Rs. 3,000.
Jan.-8 Paid salaries to Rs. 5,500
Jan.-12 Received commission Rs. 2,000.
12. Bank A/c Dr. 7,000
Jan.-17 Sold goods for cash Rs. 5,000.
To Rent A/c 2,000
Jan.-18 Purchased goods from Meena on credit worth Rs. 1,500.
To Advance Rent A/c 5,000
Jan.-24 Sold goods to Sonia on credit worth Rs. 2,000.
(Being received rent with Advance)
_______________________________________________ Jan.-27 Goods returned by Sonia worth Rs. 500.
Jan.-28 Returned goods to Meena Rs. 400.
13. Cash A/c Dr. 900
Jan.-30 Cash Received from Sonia Rs. 1,200.
O/s Interest A/c Dr. 300
Jan.-31 Purchased furniture from Deepa worth Rs. 5,000.
To Interest A/c 1,200
(Being received interest and remained due too)
_______________________________________________ Q-2: Show the Journal Entries of the following transactions:

AoA
May-1 Sohan started business with cash Rs. 25,000.
14. Cash A/c Dr. 600
May-3 Cash deposited into bank Rs. 5,000.
To Advance Fees A/c 600
May-5 Purchased goods worth Rs. 4,000.
(Being received fees in advance)
____________________________________________________________________ May-8 Paid Salaries Rs. 3,500.
Solution-13: May-12 Paid Electricity Rs. 2,100 by cheque.
May-15 Purchased Office Furniture of Rs. 2,500.
Date Particulars L.F. Debit Credit
____________________________________________________________________ May-18 Sold goods for cash Rs. 1,500.
1. Cash A/c 15,000 May-22 Paid office Rent Rs. 2,200.
Machinery A/c 7,000 May-25 Sold goods to Naveen Rs. 1,800.
Stock A/c 3,000 May-28 Goods returned by Naveen worth Rs. 300.
Dinesh 2,000 May-29 Sohan withdrawn Rs. 8,000 for personal.
Ravi 1,000
To Bank Loan A/c 6,000 Q-3: Show the Journal Entries of the following transactions:
To Outstnading Rent A/c 2,000 Nov.-1 Sudha started business with Bank Balance of Rs. 25,000.
To Sonu 1,000 Nov.-4 Purchased goods worth Rs. 6,000 from Deepak.
To Ramesh 3,000 Nov.-6 Purchased Furnitures of Rs. 4,000.
To Capital A/c (Balancing Figure) 16,000
Nov.-9 Sold goods for cash Rs. 8,000.
(Being made opening journal entry)
_______________________________________________ Nov.-14 Paid for Wages Rs. 1,500.
Nov.-19 Sold goods to Nisha worth Rs. 1,800.
2. Cash A/c 7,000
Furniture A/c 5,000 Nov.-22 Received commission Rs. 4,000
Stock A/c 8,000 Nov.-25 Paid for Stationery Rs. 3,000.
Mahesh 4,000 Nov.-27 Sudha withdrawn Rs. 3,000 for personal from Bank.
To Loan A/c 5,000 Nov.-29 Paid Rent Rs. 2,000 by cheque.
To Outstnading Expenses A/c 2,000
To Sunil 3,000 Q-4: Journalise the following transactions:
To Capital A/c (Balancing Figure) 14,000 July-1 Raju started business with Rs. 30,000 deposited with bank.
____________________________________________________________________
July-2 Purchased Machine costing Rs. 3,000 and paid in cash.
 (21) (22)

10. Received from Subhash Rs. 3,000.

CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS Q-7: Journalise the following transactions:
1. Started business with cash Rs. 35,000 and Bank Balance of Rs. 10,000.
Accounting • Costing • Taxation • Financial Management 2. Purchased goods from Ramesh for cash Rs. 5,000.
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org 3. Paid for Cartage Rs. 1,500.
4. Sold goods to Rajesh worth Rs. 2,800.
5. Purchased goods from Sumit Rs. 3,000.
July-5 Purchased goods from Suresh Rs. 4,000
6. Paid Rent Rs. 2,100 by cheque.
July-7 Paid Interest amounted to Rs. 1,200.
7. Loan taken from Bank Rs. 10,000
July-10 Received Brokerage Rs. 2,000.
8. Paid to Sangeeta Rs. 4,000 for her salary.
July-14 Sold goods for Rs. 4,500.
9. Received commission Rs. 1,700
July-17 Sold goods worth Rs. 2,000 and received by cheque.
10. Returned goods to Sumit of Rs. 500.
July-20 Goods returned by customer of Rs. 1,000 and cash refunded to him.
11. Paid Rs. 3,000 for Loan and Rs. 250 for Interest on Loan.
July-22 Raju withdrawn Rs. 1,000 from bank for private use.
July-25 Returned goods to Suresh of Rs. 800.
Q-8: Journalise the following transactions:
July-27 Salary paid Rs. 1,600.
1. Radha started business with cash Rs. 14,000.

AoA
July-29 Paid to Suresh Rs. 2,000.
2. Purchased goods worth Rs. 4,000.
July-31 Paid for Stationery Rs. 400 and for General Expenses Rs. 1,000.
3. Cash deposited into bank Rs. 5,000.
4. Cash paid to Sanjay Rs. 2,000.
Q-5: Journalise the following transactions:
5. Paid for Sundry Expenses Rs. 700 and for Freight Rs. 400.
Apr.-1 Vivek started business with Rs. 18,000 deposited with bank.
6. Paid to Amit by cheque Rs. 1,200.
Apr.-2 Purchased goods from Kapil Rs. 2,500
7. Received cheque from Bheem Rs. 1,000 for commission.
Apr.-4 Paid for Insurance amounted to Rs. 2,200.
8. A cheque received from Ramesh at 1% discount for amount due Rs. 3,000.
Apr.-8 Received Fees Rs. 12,000.
9. Received Rs. 3,900 from Ravi in full settlement of Rs. 4,000.
Apr.-12 Sold goods worth Rs. 1,000 to Mona and received by cheque.
10. A cheque issued to Ajay at 5% discount for amount due Rs. 2,000.
Apr.-15 Purchased Typewriter costing Rs. 4,000 and paid in cash.
11. Paid to Rahul Rs. 950 in full settlement of Rs. 1,000.
Apr.-20 Sold goods for Rs. 2,500.
12. Received cash from Sunita at 2% discount for amount due Rs. 5,000.
Apr.-22 Salary paid Rs. 2,600.
Apr.-25 Paid to Kapil Rs. 1,000.
Q-9: Journalise the following transactions:
Apr.-28 Goods returned by a customer cash refunded to him Rs. 400.
1. Purchased goods for Rs. 6,000.
Apr.-29 Raju withdrawn Rs. 1,400 from bank for private use.
2. Paid to Rahul Rs. 750 in full settlement of Rs. 800.
Apr.-30 Returned goods to Kapil of Rs. 500.
3. Paid for Rent Rs. 700 and for Insurance Rs. 400.
4. Loan taken from Sharma Rs. 5,000
Q-6: Journalise the following transactions:
5. A cheque received from Monika at 2% discount for amount due Rs. 1,000.
1. Started business with cash Rs. 25,000 and Bank Balance of Rs. 8,000.
6. Goods returned by a customer cash refunded to him Rs. 400.
2. Purchased goods from Deepak for cash Rs. 5,000.
7. Bank allowed interest Rs.50
3. Paid wages amounted to Rs. 1,000 to Suraj.
8. A cheque issued to Mukesh at 5% discount for amount due Rs. 5,000.
4. Sold goods to Ravi for cash Rs. 4,000
9. Returned goods to supplier and received a cheque of Rs. 500.
5. Paid Fees Rs. 2,500 by cheque.
10. Received a cheque for Rent Rs. 1,800 from Ramesh.
6. Sold goods to Neha Rs. 1,800.
11. Paid full amount of Loan with Interest Rs. 500 for Interest on Loan.
7. Paid to Kabeer Rs. 1,400.
12. Bank Charges were Rs. 100.
8. Received Interest Rs. 1,000
9. Purchased Machinery costing Rs. 4,000
 (23) (24)

2. Depreciate Furniture at the rate of 10%.

CA. Naresh Aggarwal’s 3. Machine is depreciated @ 20% P.A.
ACADEMY of ACCOUNTS 4.
5.
Provide depreciation on Equipments @ 10% p.a. for 6 months only.
Depreciate typewriter by 2,500.
Accounting • Costing • Taxation • Financial Management 6. Provide depreciation on computers by 15%; costing Rs. 25,000.
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org 7. Depreciate old building of Rs. 40,000 for full year and new building of Rs. 20,000
for 3 months at the rate of 10% p.a.
Q-10: Journalise the following transactions:
Q-13: Make the Journal Entries of the following transactions:
1. Received Fees Rs. 700, Rent Rs. 300 and Commission Rs. 500.
1. Ravi from whom amount due is Rs. 1,000 become insolvent and received only
2. Bank allowed interest Rs.90
70% of the claim.
3. Cash received from a customer at 2% discount for amount due Rs. 2,000.
2. Hari a customer with balance due Rs. 2,000 bankrupted and received only 40
4. Loan given to a friend amounted to Rs. 5,000.
paise in Re.
5. Paid to Sanjeev Rs. 4,000 in full settlement of Rs. 4,100.
3. Sudhir from whom an amount of Rs. 3,000 was to be received is declared insolvent
6. Proprietor withdrawn Rs. 2,500 for private use.
and could receive a cheque of Rs. 1,800 in full satisfaction of the claim from the
7. Paid for Salaries Rs. 1,000; for Rent Rs. 500 and for Insurance Rs. 300.
court.
8. Paid to Ramesh Rs. 2,950 in full settlement of Rs. 3,100.
4. Suraj disappeared and an amount due on him Rs. 1,200 is not expected to be
9. Received Rs. 200 for Interest and Rs. 3,000 for Loan given to friend.

AoA
collected.
10. Proprietor brought Rs.5,000 as further capital in the business.
5. Ravi recovered and received Rs. 200 from him.
6. Hari the bad debts earlier recovered and gives a cheque for the balance remained.
Q-11: Make the Journal Entries of the following transactions:
7. Suraj came back and received half of the amount due in cash and half by
1. Purchased goods from Sunil Traders of Rs. 3,000 at 10% trade discount.
cheque.
2. Sold goods to Bharat worth Rs. 4,000 at 10% trade discount.
8. Sonia, a bad debts earlier came back and received Rs. 1,800 from her.
3. Sold goods for cash to Monika of Rs. 2,000 at 5% trade discount.
4. Purchased goods for cash from India Limited of Rs. 5,000 at 5% trade discount.
Q-14: Make the Journal Entries of the following transactions:
5. Purchased goods from Deepak of Rs. 5,000 at 20% trade discount and
1. A Typewriter stolen by a thief Costing Rs. 7,000.
5% cash discount.
2. A fire occurred in the premises resulting loss of goods worth Rs. 4,000.
6. Sold goods to Raju worth Rs. 2,000 at 10% trade discount and 2% cash discount.
3. Fire destroying Machines costing Rs. 5,000; Furniture Rs. 3,000 and goods Rs.
7. Sold goods to Subhash of Rs. 2,000 at 5% trade discount and received a cheque
2,000.
for the amount due.
4. Cheque received for claim of stolen Typewriter Rs. 5,500.
8. Purchased goods from Dinesh Ltd. of Rs. 6,000 at 5% trade discount and paid by
5. Insurance claim received for goods lost in fire Rs. 2,500.
cheque.
9. Purchased goods from Suresh of Rs. 4,000 at 20% trade discount and 5% cash
Q-15: Make the Journal Entries of the following transactions:
discount was allowed on payment. Only half of amount due was paid.
1. Purchased goods for cash from Bhola of Rs. 6,000 at 5% trade discount.
10. Purchased goods from Mohan of Rs. 10,000. 5% cash discount was allowed on
2. Bought Computer of Rs. 25,000; Furniture of Rs. 6,000 and Equipments of Rs.
payment. Only 40% of due amount was paid.
4,000.
11. Sold goods to Shefali of Rs. 5,000 at 1/5 trade discount and 5% cash discount
3. Sudha from whom an amount of Rs. 4,000 was to received is declared insolvent
was allowed on payment. Only 25% of amount due was paid by her.
and could receive a cheque of Rs. 2,800 in full satisfaction of the claim from the
12. Sold goods to Hema of Rs. 7,000 at 1/7 trade discount and 2% cash discount was
court.
allowed on payment. Only half of amount due was paid by her.
4. A fire occurred in the premises resulting loss of goods worth Rs. 3,500.
5. Computer is depreciated at the rate of 20%.
Q-12: Make the Journal Entries of the following transactions:
6. Provide depreciation on Equipments @ 10% for 9 months.
1. Bought Machinery of Rs. 20,000; Furniture of Rs. 5,000 and Equipments of Rs.
7. Manoj, a bad debts earlier came back and received Rs. 1,800 from him.
15,000.
8. Insurance claim received for goods lost in fire Rs. 2,500.
 (25) (26)

5. Telephone bill due but not paid amounted to Rs. 1,200.

CA. Naresh Aggarwal’s 6. Received Commission Rs. 700 and remain due Rs. 300.
ACADEMY of ACCOUNTS 7.
8.
Rent received in advance Rs. 1,200.
Wages not paid to workers Rs. 1,000.
Accounting • Costing • Taxation • Financial Management 9. Salary paid to manager Rs.5,000 and remain outstanding Rs.1,000.
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org 10. Repairs charges were Rs. 2,000 but only 1,500 are yet paid.

Q-20: Make the Journal Entries of the following transactions:

Q-16: Make the Journal Entries of the following transactions:
1. Ram started business with cash Rs. 40,000 and goods worth Rs. 10,000.
1. Anjali started business with cash Rs. 25,000.
2. Purchased goods from Mohan worth Rs. 7,000.
2. Allow interest on capital @ 10%.
3. Sold goods worth Rs. 3,000 at Rs. 4,000 for cash to Deepak.
3. Interest paid on loan amounted to Rs.1,000.
4. Purchased goods from Monika Rs. 5,000 in cash
4. Interest is due on loan of Rs. 24,000 taken from Bank @ 5% for three month.
5. Paid wages Rs. 1,100 and outstanding remained Rs. 100.
5. Charge interest on drawings Rs. 250.
6 Received commission from Rajni Rs. 800 and outstanding remained Rs. 400.
6. On drawings of Rs.10,000; charge interest at the rate of 5%.
7. Sold goods to vijay worth Rs. 5,000 at 10% trade discount.
7. Interest is accrued on Investment amounted to Rs.400 .
8. Paid to Mohan Rs. 6,900 in full settlement.
9. Sold goods to sanjay at Rs. 4,000.
Q-17: Make the Journal Entries of the following transactions:

AoA
10. Cash received from Vijay and allowed him 5% cash discount.
1. Bills Receivable of Rs. 2,500 collected from Customers.
11. Sanjay become insolvent and received only 75% in total debt.
2. Bills Receivable of Rs. 3,000 received from Mukesh.
12. Paid for salary Rs. 1,500 including 300 as advance.
3. B/R of Rs. 5,000 discounted from bank at 2%.
13. Sanjay recovered and received the remaining money.
4. B/R of Rs. 1,000 endorsed to Anil.
14. Furniture purchased for Rs. 3,000.
5. Cheque received from Dinesh Rs.1,800
15. Deposited into Bank Rs.10,000
6. Goods worth Rs. 1,100 given as donations.
16. Machinery purchased of Rs. 4,000 and paid by cheque.
7. Grant from Government received Rs. 3,000.
17. Bank allowed interest Rs.50.
8. Dinesh’s cheque returned dishonored.
18. Insurance premium of Ram (proprietor) paid by firm’s Bank A/c Rs. 250.
19. Ram introduced further capital Rs. 7,000 and deposited into Bank.
Q-18: Make the Journal Entries of the following transactions:
20. Customer directly deposited into Bank Rs. 1,000.
1. A cheque of Rs. 950 received from Arun in full settlement of Rs.1,000.
21. Depreciate Furniture by 10% and Machinery by 20%
2. Goods costing Rs. 2,000 distributed as free samples.
22. Interest allowed to capital @ 5% on opening Balance.
3. A cheque of Rs.1900 issued to Ram in full settlement of his debt of Rs.2,000.
23. Received rent Rs. 1,000 and security deposit Rs. 5,000.
4. Cash Rs. 1,000 and goods worth Rs. 1,100 given in charity.
24. Bank charged for outstation cheque Rs. 25.
5. Cheque of Arun returned dishonored.
25. Interest charged on drawings Rs. 40.
6. Salary paid in advance Rs. 2,500.
26. Discounted a Bill from bank of Rs. 3,000 at 2%.
7. Prepaid Legal Charges amounted to Rs. 1,000.
27. Fees received in advance Rs. 900.
8. Cheque issued to Ram returned dishonored.
28. Paid to Anil Rs. 980 by cheque in full settlement of his claim of Rs. 1,000.
9. Commission due but not received Rs. 900.
29. Goods of Rs. 600 and Cash Rs. 500 given in charity.
10. Fees earned but not received Rs. 200.
30. Goods lost by fire Rs. 800.
Q-19: Make the Journal Entries of the following transactions:
1. Fees of Rs. 1,000 and Advance Fees of Rs. 500 received by cheque.
2. Interest on Investment was total of Rs. 2,000 but collected only Rs. 1,500.
•••••••••••••••••••••••••
3. Paid for Salaries Rs.3,000; including Rs.1,000 as Advance Salaries.
4. Paid office rent Rs. 2,000 and security deposit Rs. 5,000 by cheque.
 (27) (28)

Q-21: Show Journal Entries, Ledger Posting and Trial Balance of the followings: Jan.27 Mohan Dr. 1,000
Jan.1 Ramesh startedCA. Naresh
business Aggarwal’s
with cash Rs.50,000. To Purchases Return A/c 1,000
ACADEMY of ACCOUNTS
Jan.4
Jan.5
Purchased goods for cash Rs.7,000.
Purchased furniture for Rs.5,000. Jan.28
_________________________________________
Cash A/c Dr. 1,200
Accounting
Jan.6 Sold goods Costing
• for • Taxation • Financial Management
cash Rs.5,000. To Sohan 1,200
Jan.8 Purchased goods from Mohan on credit worth Rs.4,500. ____________________________________________________________________
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Jan.12 Sold goods to Sohan on credit worth Rs.2,000.
Jan.15 Paid wages of Rs.4,000 and Salaries of Rs.2,500
Jan.20 Received commission Rs.1,200 and Fees Rs.800. Ledger Postings
Jan.22 Goods returned by Sohan worth Rs.800.
Jan.27 Returned goods to Mohan Rs.1,000. Dr. Cash Account Cr.
Jan.28 Cash Received from Sohan Rs.1,200. Date Particulars LF Amount Date Particulars LF Amount

Solution: Jan. 1 To Capital A/c 50,000 Jan. 4 By Purchases A/c 7,000

Journal Entries Jan. 6 To Sales A/c 5,000 Jan. 5 By Furniture A/c 5,000
Jan. 20 To Commission A/c 1,200 Jan. 15 By Wages A/c 4,000
Date Particulars L.F. Debit Credit
____________________________________________________________________ Jan. 20 To Fees A/c 800 Jan. 15 By Salaries A/c 2,500
Jan.1 Cash A/c Dr. 50,000 Jan. 28 To Sohan 1,200 Jan. 31 By Balance c/d 39,700

AoA
To Capital A/c 50,000 58,200 58,200
_________________________________________
Jan.4 Purchases A/c Dr. 7,000 Feb. 1 To Balance b/d 39,700
To Cash A/c 7,000
_________________________________________ Dr. Capital Account Cr.
Jan.5 Furniture A/c Dr. 5,000 Date Particulars LF Amount Date Particulars LF Amount
To Cash 5,000
_________________________________________ Jan. 31 To Balance c/d 50,000 Jan. 1 By Cash A/c 50,000
Jan.6 Cash A/c Dr. 5,000 50,000 50,000
To Sales A/c 5,000
(Being sold goods for cash) Feb. 1 By Balance b/d 50,000
_________________________________________
Jan.8 Purchases A/c Dr. 4,500 Dr. Purchases Account Cr.
To Mohan 4,500 Date Particulars LF Amount Date Particulars LF Amount
_________________________________________
Jan.12 Sohan Dr. 2,000 Jan. 4 To Cash A/c 7,000 Jan. 31 By Balance c/d 11,500
To Sales A/c 2,000 Jan. 8 To Mohan 4,500
_________________________________________
11,500 11,500
Jan.15 Wages A/c Dr. 4,000
Salaries A/c Dr. 2,500 Feb. 1 By Balance b/d 11,500
To Cash 6,500
_________________________________________ Dr. Sales Account Cr.
Jan.20 Cash A/c Dr. 2,000 Date Particulars LF Amount Date Particulars LF Amount
To Commission A/c 1,200
To Fees A/c 800 Jan. 31 To Balance c/d 7,000 Jan. 4 By Cash A/c 5,000
_________________________________________ Jan. 12 Sohan 2,000
Jan.22 Sales Return A/c Dr. 800 7,000 7,000
To Sohan 800
_________________________________________ Feb. 1 By Balance b/d 7,000
 (29) (30)

Dr. Wages Account Cr. Dr. Mohan’s Personal Account Cr.

Date Particulars
CA. LF
Naresh Aggarwal’s
Amount Date Particulars LF Amount Date Particulars LF Amount Date Particulars LF Amount
ACADEMY
Jan. 15To Cash A/c ofJan.ACCOUNTS
4,000 31 By Balance c/d 4,000 Jan. 27 To Purchase Returns A/c 1,000 Jan. 8 By Purchases A/c 4,500
Accounting • Costing • Taxation • Financial Management Jan. 31 To Balance c/d 3,500
4,000 4,000
Feb.West
1 Patel Nagar,b/d
To Balance New Delhi. Ph:8800215448.
4,000 Website: www.academyofaccounts.org 4,500 4,500
Feb. 1 By Balance b/d 3,500
Dr. Salaries Account Cr.
Date Particulars LF Amount Date Particulars LF Amount Dr. Purchases Returns Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
Jan. 15 To Cash A/c 2,500 Jan. 31 By Balance c/d 2,500
Jan. 31 To Balance c/d 1,000 Jan. 27 By Mohan 1,000
2,500 2,500
Feb. 1 To Balance b/d 2,500 1,000 1,000
Feb. 1 By Balance b/d 1,000
Dr. Commission Account Cr.
Date Particulars LF Amount Date Particulars LF Amount Dr. Furniture Account Cr.

AoA
Date Particulars LF Amount Date Particulars LF Amount
Jan. 31 To Balance c/d 1,200 Jan. 20 By Cash A/c 1,200
Jan. 5 To Cash 5,000 Jan. 31 By Balance c/d 5,000
1,200 1,200
Feb. 1 By Balance b/d 1,200 5,000 5,000
Feb. 1 To Balance b/d 5,000
Dr. Fees Account Cr.
Date Particulars LF Amount Date Particulars LF Amount

Jan. 31 To Balance c/d 800 Jan. 20 By Cash A/c 800 Trial Balance
(as on 31st January)
800 800
Particulars Dr. Amt. Cr. Amt.
Feb. 1 By Balance b/d 800
Cash A/c 39700
Dr. Sohan’s Personal Account Cr. Capital A/c 50,000
Date Particulars LF Amount Date Particulars LF Amount Purchases A/c 11,500
Sales A/c 7,000
Jan. 12 To Sales A/c 2,000 Jan. 22 By Sales Returns A/c 800 Wages A/c 4,000
Jan. 28 By Cash A/c 1,200 Salaries A/c 2,500
Commission A/c 1,200
2,000 2,000 Fees A/c 800
Sales Returns A/c 800
Dr. Sales Returns Account Cr. Mohan’s Personal A/c 3,500
Date Particulars LF Amount Date Particulars LF Amount Purchases Returns A/c 1,000
Furniture A/c 5,000
Jan. 22 To Sohan 800 Jan. 31 By Balance c/d 800
63,500 63,500
800 800
Feb. 1 To Balance b/d 800
 (31) (32)

CA. Naresh Aggarwal’s (25) Typewriter ........................................

ACADEMY of ACCOUNTS (26) Bank Charges ........................................

(27) Brokerage ........................................

Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org (28) Suppliers ........................................
(29) Goods ........................................

(30) Insurance ........................................

Q-22: Fill in the blanks with the nature of the Accounts (Real/Nominal/Personal):
(31) Equipments ........................................
(1) Machinery ........................................
(32) Discounts ........................................
(2) Cash ........................................
(33) P.P. Jewellers ........................................
(3) Vijay ........................................
(34) Computer ........................................
(4) Salary ........................................
(35) Depreciation ........................................
(5) Building ........................................

AoA
(36) Printing and Stationery ........................................
(6) Capital ........................................
(37) Sales ........................................
(7) Commission ........................................
(38) Loss by Fire ........................................
(8) Drawings ........................................
(39) Bad Debts Recovered ........................................
(9) Furniture ........................................
(40) Purchases ........................................
(10) Sangeeta ........................................
(41) Satyam Cineplex ........................................
(11) Bank ........................................
(42) Charity ........................................
(12) Raju Traders ........................................
(43) Freight ........................................
(13) Wages ........................................
(44) Sales Returns ........................................
(14) Fees ........................................
(45) Purchases Returns ........................................
(15) Debtors ........................................

(16) Interest ........................................

(17) Bad Debts ........................................

(18) Creditors ........................................

(19) Electricity ........................................

(20) Advertisements ........................................

(21) Lovely Studio ........................................

(22) Legal Charges ........................................

(23) Rent ........................................

(24) Customers ........................................

 (33) (34)

CA. Naresh Aggarwal’s Feb. 20 Advertisement charges of Rs.20,000 paid by cheque.

Feb. 22 Sold goods for Rs.70,000 and received a cheque for the same. Cheque is
ACADEMY of ACCOUNTS sent to bank.
Accounting • Costing • Taxation • Financial Management Feb. 25 Commission of Rs.15,000 received in cash.
Feb. 28 Payment made of balance amount of GST.
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Q-24: Pass entries in the books of Ravi Dealers of Delhi doing his business there.
GST Transactions Assuming tax rate of IGST @18%; CGST @9% and SGST @9% are applicable:
May 11 Purchased goods from Ajay of Haryana the list price of Rs.50,000 at 20%
trade discount and 5% cash discount on purchase price of goods.
Q-21: Pass entries in the books of ABC & Sons assuming that all transactions have Payment was made immediately by cheque.
been entered within the State of Delhi and assuming CGST @6% and SGST @6%: May 15 Purchased goods from Raman of Delhi the list price of Rs.30,000 at 1/6th
02 Jan. Purchased goods for Rs.2,00,000 on credit from Mohan. trade discount and 5% cash discount on purchase price of goods.
05 Jan. Sold goods for Rs.2,50,000 on credit to Sohan. Payment was made immediately by cheque.
12 Jan. Purchased Computer for office for Rs.40,000 and payment made by May 20 Sold goods to Vijay of Punjab of the list price of 80,000 at 25% trade
cheque. discount and 3% cash discount on sale price. Full payment received by

AoA
15 Jan. Legal consultation fee of Rs.25,000 paid in Cash. cheque at the time of sale itself
24 Jan. Rent of Rs.20,000 paid by Cheque. May 27 Sold to Sanjay of Delhi of the list price of 25,000 at 20% trade discount and
31 Jan. Payment made of balance amount of GST. 4% cash discount on sale price. The amount received immediately.
May 31 Payment made of balance amount of GST.
Q-22: Pass entries in the books of Bharat Traders assuming that all transactions
have been entered within the State of Haryana and assuming CGST @6% and SGST Q-25: Pass entries in the books of Anita of Rajasthan doing her business there.
@6%: Record the following transactions in her books assuming all transactions have been
entered within the State of Rajasthan and tax rate of IGST @18%; CGST @9% and
April 1 Purchased goods for Rs.50,000 from Shyam.
SGST @9% are applicable:
April 5 Sold goods for Rs.80,000 to Ajay.
April 10 Returned goods by Ajay for Rs.10,000. (a) Started business with Cash Rs.1,50,000 and Cheque of Rs.1,00,000.
April 15 Returned goods to Shyam of Rs.20,000. (b) Bought goods of the list price of Rs.50,000 from Sunita at 20% trade discount
April 19 Printing & stationery expenses of Rs.5,000 paid in cash. and 5% Cash discount on purchase price. 60% of the amount was paid
April 25 Goods withdrawn by Proprietor for personal use Rs.6,000. immediately by cheque.
April 28 Goods destroyed by fire Rs.15,000. (c) Sold goods to Kavita of the list price of Rs.60,000 less 10% trade discount and
April 30 Payment made of balance amount of GST. 4% Cash discount on sale price and received 40% by cheque.
(d) Paid to Sunita Rs.25,000 by Cheque after deducting 5% Cash discount.
Q-23: Pass entries in the books of Sanjay Textiles assuming that all transactions (e) Electricity expenses paid by Cheque for office Rs.10,000 and for her own
have been entered within the State of Punjab and assuming CGST @9% and SGST residence Rs.5,000. (GST is not applicable)
@9%: (f) Paid salaries by Cheque Rs.25,000.
(g) Dinesh, a debtor for Rs.12,000 has become bankrupt and 25% is received from
Feb. 5 Purchased goods for Rs.1,20,000 from Aman Traders, at 20% Trade
his estate by Cheque.
discount.
(h) Withdrawn from bank Rs.40,000 for office use and Rs.20,000 for personal use.
Feb. 10 Sold goods to Bheem Brothers for Rs.1,00,000.
(i) Received by Cheque for a bad debt written off last year Rs.6,000.
Feb. 15 Received from Bheem Brothers a cheque for Rs.80,000 on account.
(j) Sold goods costing Rs.20,000 to Suresh against Cheque at a profit of 25% on
Cheque is sent to bank.
cost less 10% trade discount.
Feb. 18 Purchased furniture for Rs.30,000 and payment made by cheque.
 (35) (36)

CA. Naresh Aggarwal’s

ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
GST Output / Input Adjustments

Q-26: Pass entries in the books of Vijay of Punjab doing his business there. Record Type of GST Output CGST Output SGST Output IGST Output
the following transactions in his books assuming tax rate of IGST @18%; CGST @9% 1st Adjustment CGST Input SGST Input IGST Input
and SGST @9% are applicable:
2nd Adjustment IGST Input IGST Input CGST Input
(a) Purchased goods for Rs.50,000 from outside the State and made payment by
cheque. 3rd Adjustment -NA- -NA- SGST Input
(b) Sold goods for Rs.40,000 outside the State on credit to Sunil.
(c) Sold goods for Rs.30,000 locally on credit to Anita
(d) Paid telephone bill for Rs.5,000 by cheque.
(e) He purchased an Air-Conditioner for his office for Rs.25,000 and paid the

AoA
amount by cheque.
(f) Payment made of balance amount of GST.

Q-27: Pass entries in the books of Sudhir of Delhi in the following cases :
(a) Purchased goods from Haryana for Rs.1,00,000. (IGST @18%)
(b) Sold goods to Anil of Delhi for Rs.40,000. (CGST @6% and SGST @6%)
(c) Sold goods to Manish of Bihar for Rs.60,000. (IGST @18%)
(d) Purchased Machinery for Rs.80,000 from Best Ltd. against cheque. (CGST
@9% and SGST @9%)
(e) Paid rent Rs.15,000 by cheque. (CGST @6% and SGST @6%)
(f) Purchased goods from Ram of Delhi for Rs.30,000. (CGST @6% and SGST
@6%)
(g) Paid insurance premium Rs.10,000 by cheque. (CGST @9% and SGST @9%)
(f) Received commission Rs.20,000 by cheque. (CGST @9% and SGST @9%)
(g) Payment made of balance amount of GST.

Theoretical Questions

1. What is Double-Entry System ?

2. What do you mean by Journal Entry ?
3. Name the three type of Accounts and their rules.
4. What is the difference between Cash Discount and Trade Discount ?
5. What do you mean by Source Documents or Vouchers ? Name few of them.