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
L.F Debit Amount (₹
Date Particulars 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
Debit Amount (₹ Credit Amount (₹
Date Particulars L.F.
) )
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 A/c       3,000
  (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
5   Received from Dev in full settlement of his account 98,000
6   Sold goods to Manmohan 80,000
8   Manmohan returned goods 1,000
Received from Manmohan in full settlement of his
15   78,200
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 ₹ 25,000 at 20%
25    
trade discount
ANSWER:
Journal
In the Books of Ganesh
Debit Amount (Rs
Date Particulars L.F. 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 Allowed A/c Dr.   2,000  
  To Dev’s A/c       1,00,000
  (Cash received from Dev in      
full settlement of his
 account)
           
Mar. 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 A/c       1,000
  (Goods returned to        
Manmohan)
           
Mar. Cash A/c Dr.   78,200  
15
  Discount Allowed A/c Dr.   800  
  To Manmohan’s A/c       79,000
  (Cash received from      
Manmohan in full settlement
of his account)
           
Mar. Cash A/c Dr.   19,500  
16
  Discount Allowed A/c Dr.   500  
  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 Received       300
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
Apr  Commenced business with cash 50,00
il 1 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
18  Purchased goods for cash from Govind for ₹ 6,000 at 20% trade discount.  
20  Purchased goods from Govind for ₹ 10,000 at 20% trade discount.  
24  Paid to Govind ₹ 7,850 in full settlement of his account.  
25  Paid to Subhash ₹ 4,750; discount received ₹ 250.  
30  Paid Wages ₹ 400; Salaries ₹ 4,000; Advertisement expenses ₹ 800 and Trade  
expenses ₹ 1,000.
ANSWER:
Journal
In the Books of Hari Shankar & Co.
L.F Debit Amount (₹ Credit Amount (₹
Date Particulars
. ) )
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 A/c Dr.   200  
  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 Received A/c       500
  (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 Received A/c       150
  (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 Received A/c       250
  (Cash paid to Subhash in full      
settlement of his account)
           
Apr. Wages A/c Dr.   400  
30
  Salaries A/c Dr.   4,000  
  Advertisement Expenses Dr.   800  
A/c
  Trade Expenses A/c Dr.   1,000  
  To Cash A/c       6,200
  (Expenses paid)        
  TOTAL   1,67,000 1,67,000
         

Page No 9.61:

Question 6:

Enter the following transaction in the Journal of Marutinandan Stores:

2017    
Purchased goods from Ghanshyam of the list price of ₹ 50,000 at 15%
Jan. 10  
trade discount.
13   Returned goods to Ghanshyam of the list price of ₹ 2,000.
15   Paid cash to Ghanshyam ₹ 40,000 in full settlement of his account.
Purchased goods from Raghu of the list price of ₹ 60,000 at 10% trade
20  
discount.
22   Returned goods to Raghu of the list price of ₹ 5,000.
25   Paid cash to Raghu ₹ 49,000 in full settlement of his account.
ANSWER:
Journal
 In the Books of Marutinandan Stores
Debit Amount (Rs
Date Particulars L.F. Credit Amount (Rs)
)
2017          
Jan. Purchases A/c Dr.   42,500  
10
  To Ghanshyam’s A/c       42,500
  (Goods purchased at        
15% trade discount)
           
Jan. Ghanshyam’s A/c Dr.   1,700  
13
  To Purchases Return A/c       1,700
  (Goods returned to      
Ghanshyam deducting trade
discount of 15%)
           
Jan. Ghanshyam’s A/c Dr.   40,800  
15
  To Cash A/c       40,000
  To Discount Received       800
A/c
  (Cash paid to Ghanshyam in      
full settlement of his account)
           
Jan. Purchases A/c Dr.   54,000  
20
  To Raghu’s A/c       54,000
  (Goods purchased from Raghu      
at trade discount of 10%)
           
Jan. Raghu’s A/c Dr.   4,500  
22
  To Purchases Return A/c       4,500
  (Goods returned to Raghu      
deducting trade discount of
10%)
           
Jan. Raghu’s A/c Dr.   49,500  
25
  To Cash A/c       49,000
  To Discount Received       500
A/c
  (Cash paid to Raghu in full      
settlement of his account)
        1,93,000 1,93,000
         

Page No 9.61:
Question 7:

Pass Journal Entries for the following transactions:

2017    
Sold goods to Muskan of the list price of ₹ 2,00,000 at
Jan 6  
trade discount of 20%.
8   Muskan returned goods of the list price of ₹ 5,000.
Received from Muskan the full payment under a cash
15  
discount of 4%.
ANSWER:
Journal
In the Books of …
L. Debit Amount (Rs
Date Particulars Credit Amount (Rs)
F. )
2017          
Jan. Muskan’s A/c Dr.   1,60,000  
06
  To Sales A/c       1,60,000
  (Goods sold to Muskan at trade      
discount of 20%)
           
Jan. Sales Return A/c     4,000  
08
  To Muskan’s A/c       4,000
  (Goods returned by        
Muskan deducting trade
discount of 20%)
           
Jan. Cash A/c Dr.   1,49,760  
15
  Discount Allowed A/c Dr.   6,240  
  To Muskan’s A/c       1,56,000
  (Cash received from Muskan in      
full settlement of her account)
        3,20,000 3,20,000
         

Page No 9.61:

Question 8:

Give Journal Entries for the following transactions in the books of Raja Ram & Co. :
2017    
March Bought goods for cash of the list price of ₹ 80,000 at 10% trade
 
3 discount and 212% cash discount.
 Sold goods for cash of the list price of ₹ 1,00,000 at 15% trade discount
5  
and 3% cash discount.
Sold goods to Nagpal of the list price of ₹ 50,000 at 20% trade
6  
discount.
8   Nagpal returned one-fourth of the above goods.
10   Nagpal settled the account by paying cash under a discount of 5%.
ANSWER:
Journal
In the Books of Raja Ram
Debit
Credit Amount
Date Particulars L.F. Amoun
(Rs)
t (Rs)
2017          
Mar. Purchases A/c Dr.   72,000  
03
    To Cash A/c       70,200
    To Discount Received A/c       1,800
  (Goods purchased for cash and received      
cash discount)
           
Mar. Cash A/c Dr.   82,450  
05
  Discount Allowed A/c Dr.   2,550  
    To Sales A/c       85,000
  (Goods sold for cash and allowed cash      
discount)
           
Mar. Nagpal’s A/c Dr.   40,000  
06
    To Sales A/c       40,000
  (Goods sold to Nagpal)        
           
Mar. Sales Return A/c Dr.   10,000  
08
    To Nagpal’s A/c       10,000
  (Goods returned by Nagpal)        
           
Mar. Cash A/c Dr.   28,500  
10
  Discount Allowed A/c Dr.   1,500  
    To Sales A/c       30,000
  (Cash received in full settlement)      
  TOTAL   2,37,000 2,37,000
         

 
 Page No 9.62:

Question 9:

Pass Journal entries in the books of Raghunath Bros. from the following transactions:-
2016  
Raghunath Bros. started business with cash ₹ 80,000; Goods ₹ 40,000 and
June 01
furniture ₹ 20,000.
Sold goods to Nandlal of the list price of ₹ 20,000 at trade discount of
June 02
10%.
June 04 Nandlal returned goods of the list price of ₹ 4,000.
June 08 Received from Nandlal ₹ 14,150 in full settlement of his account.
Purchased goods from Brij Mohan of the list price of ₹ 10,000 at 15%
June 10
trade discount.
June 13 Returned goods to Brij Mohan of the list price of ₹ 1,000.
June 16 Settled the account of Brij Mohan by paying cash, under a discount of 4%.
June 18 Purchased goods from Anil ₹ 5,000; Sunil ₹ 10,000.
June 19 Paid cash to Anil ₹ 1,900 and discount received ₹ 100.
June 20 Paid ₹ 9,800 to Sunil in full settlement of his account.
June 20 Bought a 'Table Fan' for ₹ 8,000 for the domestic use of Raghunath.
Sold goods for cash of the list price of ₹ 8,000 at 10% trade discount and
June 25
3% cash discount.
Paid Rent ₹ 8,000; Trade Expenses ₹ 7,000 and Travelling Expenses ₹
June 30
3,800.
ANSWER:
Journal
In the books of Raghunath Bros.
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
2016          
June 01 Cash A/c Dr.   80,000  
  Stock A/c Dr.   40,000  
  Furniture A/c Dr.   20,000  
    To Capital A/c       1,40,000
  (started business with cash, goods and        
furniture)
           
June 02 Nandlal Dr.   18,000  
    To Sales A/c       18,000
  (goods sold to Nandlal @ 10% Trade        
discount)
           
June 04 Sales return A/c Dr.   3,600  
     To Nandlal       3,600
  (goods sold to Nandlal returned)        
           
June 08 Cash A/c Dr.   14,150  
  Discount allowed A/c Dr.   250  
    To Nandlal       14,400
  (cash received from Nandlal in full        
settlement)
           
June 10 Purchases A/c Dr.   8,500  
    To Brij Mohan       8,500
  (purchased goods from Brij Mohan on        
credit)
           
June 13 Brij Mohan Dr.   850  
    To Purchase Return A/c       850
  (purchased goods returned by Brij Mohan)        
           
June 16 Brij Mohan Dr.   7,650  
    To discount received A/c       306
    To Cash A/c       7,344
  (settled amount due to Brij Mohan)        
           
June 18 Purchases A/c Dr.   15,000  
    To Anil       5,000
    To Sunil       10,000
  (credit purchase from Anil & Sunil)        
           
June 19 Anil     2,000  
    To discount received A/c       100
    To Cash A/c       1,900
  (cash paid to Anil and received discount)        
           
June 20 Sunil Dr.   10,000  
    To discount received A/c       200
    To Cash A/c       9,800
  (cash paid to Sunil and received discount)        
           
June 20 Drawings A/c Dr.   8,000  
    To Cash A/c       8,000
  (table fan purchased for personal use)        
           
June 25 Cash A/c     6,984  
  Discount allowed A/c     216  
    To Sales A/c       7,200
  (cash sales @10% TD & @5% Cash        
Discount)
           
June 30 Rent A/c Dr.   8,000  
  Trade expenses A/c Dr.   7,000  
   Travelling A/c Dr.   3,800  
    To Cash A/c       18,800
  (expenses paid in cash)        
  TOTAL     2,54,000 2,54,000
           

Page No 9.62:

Question 10:

Journalise the following transactions:

2019    
March Sold goods to Shruti for ₹ 80,000 at 15% trade discount and 4% cash
 
5 discount. Received 75% amount immediately through a cheque.
Purchased goods from Richa for ₹ 60,000 at 10% trade discount and 5%
10  
cash discount. 60% amount paid by cheque immediately.
ANSWER:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
2019          
Mar.05 Shruti Dr.   68,000  
      To Sales A/c       68,000
  (Goods sold to Shruti at 15% trade        
discount)
           
Mar.05 Bank A/c Dr.   48,960  
  Discount Allowed A/c Dr.   2,040  
      To Shruti       51,000
  (Payment received and cash discount        
allowed)
           
Mar.10 Purchases A/c Dr.   54,000  
      To Richa       54,000
  (Goods purchased from Richa at 10%        
trade discount)
           
Mar.10 Richa Dr.   32,400  
      To Bank A/c       30,780
      To Discount Received A/c       1,620
  (Payment made and cash discount        
received)
         

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

2. Amount of goods purchased would be Rs 54,000 (60,000 - 10% of 60,000) and cash

discount would be Rs 1,620, it would be calculated on amount paid Rs 32,400 i.e., 60% of Rs
54,000

Page No 9.62:

Question 11:

Pass journal entries for the following:

2019    
Purchased goods from Henry for ₹ 50,000 on 10% trade
Jan. 6  
discount and 4% cash discount and paid 60% amount by cheque.
Bought goods from Amit for ₹ 2,00,000 at terms 5% cash
Jan.
  discount and 20% trade discount. Paid 3/4th of the amount in
15
cash at the time of purchase.
Sold goods to Sherpa at the list price of ₹ 50,000 less 20% trade
Jan.
  discount and 4% cash discount if the payment is made within 7
18
days. 75% payment is received by cheque on Jan. 23rd.
Sold goods to Garima for ₹ 1,00,000, allowed her 20% trade
Jan. discount and 5% cash discount if the payment is made within 15
 
25 days. She paid 1/4th of the amount by cheque on Feb. 5th and
60% of the remainder on Feb.15th in cash
ANSWER:
Journal
In the Books of …
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
2019          
Jan. Purchases A/c Dr.   45,000  
06
  To Bank A/c (WN1)       25,920
  To Discount Received       1,080
A/c
  To Henry’s A/c       18,000
  (Goods purchased and discount      
received on cash payment)
           
Jan. Purchases A/c Dr.   1,60,000  
15
  To Bank A/c       1,14,000
  To Discount Received       6,000
A/c
  To Amit’s A/c       40,000
  (Goods purchased and discount      
received on cash payment)
            
Jan. Sherpa’s A/c Dr.   40,000  
18
  To Sales A/c       40,000
  (Goods sold to Sherpa on        
credit)
           
Jan. Bank A/c Dr.   28,800  
23
  Discount Allowed A/c Dr.   1,200  
  To Sherpa’s A/c       30,000
  (75% payment received by      
Sherpa and allowed cash
discount)
           
Jan. Garima’s A/c Dr.   80,000  
25
  To Sales A/c       80,000
  (Goods sold to Garima        
on credit)
           
Feb. Bank A/c Dr.   19,000  
05
  Discount Allowed A/c Dr.   1,000  
  To Garima’s A/c       20,000
  (Cheque received from Garima      
and allowed cash discount)
           
Feb. Cash A/c* Dr.   60,000  
15
  To Garima’s A/c       60,000
  (Cash received from        
Garima)
  TOTAL   4,35,000 4,35,000
         

Working Notes:

WN1: Calculation of Payment made to Henry

  

WN2: Calculation of Payment made to Amit

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

Page No 9.63:

Question 12:

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

2018  
March Sold goods to Dilip of the list price of ₹ 62,000 for ₹ 60,000.
2
16 Purchased goods costing ₹ 2,00,000 from Hari & Co. Paid
75% immediately by cheque to avail 4% discount.
20 Sold goods to Vishal Traders costing ₹ 40,000 at 25% profit,
allowing 10% trade discount and 10% cash discount. Received
80% payment immediately by cheque.
26 Sold goods to Brij & Co. costing ₹ 50,000 at 40% profit,
allowing 10% trade discount and 5% cash discount. Brij & Co.
paid the full amount by cheque and availed cash discount.
ANSWER:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
2018          
Mar Dixit A/c Dr.   60,000
02   To Sales A/c 60,000
  (Sold to Dixit)        
           
Mar Purchases A/c Dr.   2,00,000  
16
    To Hari & Co.       50,000
    To Bank A/c       1,44,000
    To Discount Received A/c       6,000
  (Purchased from Hari & Co., 75% paid through        
cheque and partly credit)
           
Mar Bank A/c Dr.   9,000  
20
  Vishal Traders A/c Dr.   32,400  
  Discount Allowed A/c Dr.   3,600  
    To Sales A/c       45,000
  (Sold to Vishal Traders, partly received through        
cheque and partly credit)
            
Mar Bank A/c Dr.   59,850  
26
  Discount Allowed A/c Dr.   3,150  
    To Sales A/c       63,000
  (Sold to Brij & Co., received fully through cheque)        
        3,68,000 3,68,000
           

Page No 9.63:

Question 13:

Journalise the following transactions:

2017     ₹
Jan.
  Paid into bank for opening a Current Account 10,000
1
Goods sold for ₹ 50,000 and the amount was deposited into the
3    
bank
7   Amount withdrawn from bank 20,000
10   Goods sold for Cash 15,000
12   Amount deposited into bank 12,000
14   Goods purchased and payment made by cheque. 25,000
ANSWER:
Journal
In the Books of …
Debit Amount (Rs
Date Particulars L.F. Credit Amount (Rs)
)
2017          
Jan. Bank A/c Dr.   10,000  
01
  To Cash A/c       10,000
  (Payment made to open        
current account)
           
Jan. Bank A/c Dr.   50,000  
03
  To Sales A/c       50,000
  (Goods sold and        
amount deposited into
bank)
           
Jan. Cash A/c Dr.   20,000  
07
  To Bank A/c       20,000
  (Cash withdrawn from        
Bank)
            
Jan. Cash A/c Dr.   15,000  
10
  To Sales A/c       15,000
  (Goods sold for cash)        
           
Jan. Bank A/c Dr.   12,000  
12
  To Cash A/c       12,000
  (Cash deposited into        
bank)
           
Jan. Purchases A/c Dr.   25,000  
14
  To Bank A/c       25,000
  (Goods purchased and        
payment made by
cheque)
  TOTAL   1,32,000 1,32,000
         

Page No 9.63:

Question 14(A):

Following balances appeared in the books of Radhika Traders as on 1st

April, 2017:−
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors : ₹
36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹
5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000. 
In April, 2017, the following transaction took place:
2017     ₹
Bought goods of the list price of ₹ 6,000 from Khanna Brothers
April
  less 15% trade discount and 2% cash discount and paid 40%  
2
price at the same time.
Received a draft from Mohan in full settlement and deposited it
3   9,750
into Bank
Purchased goods from Suresh of the list price of ₹ 8,000 at 20%
5    
trade discount and paid him by cheque.
8   Sold goods and received a cheque 25,000
10   Deposited the above cheque into Bank  
12   Sohan deposited in our Bank A/c 4,000
16   Paid Income Tax by Cheque 5,600
20   Received a cheque from Sohan and sent to Bank 7,800
    Discount allowed 200
21   Withdrew from Bank−for office 2,000
    for private use 4,000
23   Sent a cheque to X in full settlement of his A/c 4,900
 27   Cheque of Sohan returned by the bank as dishonoured.  
Dinesh was declared insolvent and a payment of 60 paise in a ₹
28    
received from his estate by a Cheque
30   Bank allowed Interest 350
    Paid for Rent by cheque 1,500
    Paid for traveling expenses by cheque 500
Pass Journal entries for the above transactions.
ANSWER:
Journal
In the Books of Radhika Traders
Debit Amount (Rs
Date Particulars L.F. Credit Amount (Rs)
)
2017          
April Cash in Hand A/c Dr.   8,000  
01
  Cash at Bank A/c Dr.   7,000  
  Stock A/c Dr.   30,000  
  Mohan’s A/c Dr.   10,000  
  Sohan’s A/c Dr.   12,000  
  Dinesh’s A/c Dr.   14,000  
  Furniture A/c Dr.   5,000  
  Building A/c Dr.   25,000  
    To X’s A/c       5,000
    To Y’s A/c       6,000
    To Capital A/c       1,00,000
(Balancing figure)
  (Balances of previous year      
brought forward)
           
April Purchases A/c Dr.   5,100  
02
    To Khanna Brothers       3,060
    To Cash A/c       1,999
    To Discount       41
Received A/c
  (Goods purchased and      
received discount on cash
payment)
           
April Bank A/c Dr.   9,750  
03
  Discount Allowed Dr.   250  
A/c
    To Mohan       10,000
  (Draft received from Mohan      
deposited into bank)
           
April Purchases A/c Dr.   6,400  
05
     To Bank A/c       6,400
  (Goods purchased and      
payment made by cheque)
           
April Cheques-in-Hand A/c Dr.   25,000  
08
    To Sales A/c       25,000
  (Goods sold and        
received a cheque)
           
April Bank A/c Dr.   25,000  
10
    To Cheques-in-       25,000
Hand A/c
  (Cheque deposited        
into bank)
           
April Bank A/c Dr.   4,000  
12
    To Sohan’s A/c       4,000
  (Amount deposited        
by Sohan)
           
April Drawings A/c Dr.   5,600  
16
    To Cash A/c       5,600
  (Income tax paid)        
           
April Bank A/c Dr.   7,800  
20
  Discount Allowed Dr.   200  
A/c
    To Sohan’s A/c       8,000
  (Banked cash received from      
Sohan in full settlement)
           
April Drawings A/c Dr.   4,000  
21
  Cash A/c Dr.   2,000  
    To Bank A/c       6,000
  (Amount withdrawn for      
office and personal use)
           
April X Dr.   5,000  
23
    To Bank A/c       4,900
    To Discount       100
Received A/c
  (Cheque issued to X in full      
settlement of his account)
            
April Sohan’s A/c Dr.   8,000  
27
    To Bank A/c       7,800
    To Discount       200
Allowed A/c
  (Cheque received from Sohan      
gets dishonoured)
           
April Cash A/c Dr.   8,400  
28
  Bad Debts A/c Dr.   5,600  
    To Dinesh’s A/c       14,000
  (Cash received and bad-debts      
written off)
           
April Bank A/c Dr.   350  
30
    To Interest A/c       350
  (Interest allowed by        
bank)
           
April Rent A/c Dr.   1,500  
30
  Travelling Expenses Dr.   500  
A/c
    To Bank A/c       2,000
  (Expenses paid        
through cheque)
  TOTAL   2,35,450 2,35,450
         

Page No 9.64:

Question 14(B):

Following was the position of Harish & Co. as on 1st April, 2017 :−
Cash in Hand ₹ 10,000; Cash at Bank ₹ 16,800; Furniture ₹ 8,000; Stock ₹ 50,000;
Debtors− Ram ₹ 8,000; Shyam ₹ 12,000; Creditors− Anil ₹ 4,000; Sunil ₹ 5,000.
Following transactions took place during April, 2017 :−
2017    
April Received a cheque from Ram in full settlement of his account
 
2 after deducting 5% cash discount.
4   Deposited the above cheque into Bank.
5   Goods purchased for ₹ 20,000 at 10% trade discount and 5%
 cash discount. Payment made by cheque.
Received a cheque from Shyam for ₹ 3,860 and discount
6   allowed to him ₹ 140. Cheque deposited into the bank on the
same day.
10   Cash paid to Anil after deducting 2% cash discount.
15   Old furniture sold for ₹ 800.
Sold goods to Shiv Parshad of the list price of ₹ 10,000 at a
16  
trade discount of 15%.
18   Shiv Parshad returned goods of the list price of ₹ 1,000.
20   Paid for furniture repairs to Bahadur Singh ₹ 100.
Received a cheque from Shiv Parshad after deducting 4%
25  
cash discount. Cheque was deposited into bank.
28   Bank charged ₹ 50 for 'Bank Charges'.
30   Received Commission ₹ 200.
ANSWER:
Journal
In the Books of Harish & Co.
Debit Amount (Rs
Date Particulars L.F. Credit Amount (Rs)
)
2017          
April Cash in Hand A/c Dr.   10,000  
01
  Cash at Bank A/c Dr.   16,800  
  Furniture A/c Dr.   8,000  
  Stock A/c Dr.   50,000  
  Ram’s A/c Dr.   8,000  
  Shyam’s A/c Dr.   12,000  
    To Anil’s A/c       4,000
    To Sunil’s A/c       5,000
    To Capital A/c       95,800
(Balancing figure)
  (Previous year’s balances      
brought forward)
           
April Cheques-in-Hand A/c Dr.   7,600  
02
  Discount Allowed A/c Dr.   400  
    To Ram’s A/c       8,000
  (Cheque received from Ram      
in full settlement)
           
April Bank A/c Dr.   7,600  
04
    To Cheques-in-Hand       7,600
A/c
  (Cheques-in-hand sent        
to bank)
           
April Purchases A/c Dr.   18,000  
 05
    To Bank A/c       17,100
    To Discount Received       900
A/c
  (Goods purchased for cash      
and received discount)
           
April Bank A/c Dr.   3,860  
06
  Discount Allowed A/c Dr.   140  
    To Shyam’s A/c       4,000
  (Cheque received from        
Shyam)
           
April Anil’s A/c Dr.   4,000  
10
    To Cash A/c       3,920
    To Discount Received       80
A/c
  (Cash paid to Anil in full      
settlement)
           
April Cash A/c Dr.   800  
15
    To Furniture A/c       800
  (Furniture sold for        
cash)
           
April Shiv Parshad’s A/c Dr.   8,500  
16
    To Sales A/c       8,500
  (Goods sold to Shiv Parshad      
on credit)
           
April Sales Return A/c Dr.   850  
18
    To Shiv Parshad’s A/c       850
  (Goods returned by        
Shiv Parshad)
           
April Repairs A/c Dr.   100  
20
    To Cash A/c       100
  (Cash paid for repair of        
furniture)
           
April Bank A/c Dr.   7,344  
25
  Discount Allowed A/c Dr.   306  
    To Shiv Parshad’s A/c       7,650
   (Cheque received in        
full settlement)
           
April Bank Charges A/c Dr.   50  
28
    To Bank A/c       50
  (Bank charged some        
charges)
           
April Cash A/c Dr.   200  
30
    To Commission A/c       200
  (Commission received)        
  TOTAL   1,64,550 1,64,550
         

Page No 9.65:

Question 15:

Pass Journal Entries for the following transactions:−

1. Provide depreciation on Furniture ₹ 500 and on Machinery ₹ 2,000.
2. Received cash ₹ 1,000 for bad-debts written off last year.
3. Ajay Singh was declared bankrupt. He owed ₹ 2,500 to us. Nothing could be
recovered from his estate.
4. ₹ 20,000 for wages and ₹ 4,000 for salaries are outstanding.
5. Purchased furniture for ₹ 6,000 for the proprietor and paid the amount by cheque.
6. Provide 9% interest on capital amounting to ₹ 2,00,000.
7. Charge interest on drawings ₹ 1,000.
ANSWER:
Journal
In the Books of …
Dat
Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
e
1. Depreciation A/c Dr.   2,500  
    To Furniture A/c       500
    To Machinery A/c       2,000
  (Depreciation charged on      
furniture and machinery)
           
2. Cash A/c Dr.   1,000  
    To Bad Debts       1,000
 Recovered A/c
  (Bad debts recovered)        
           
3. Bad Debts Dr.   2,500  
    To Ajay Singh’s A/c       2,500
  (Bad debts written-off)        
           
4. Wages A/c Dr.   20,000  
  Salaries A/c Dr.   4,000  
    To Outstanding Wages       20,000
A/c
    To Outstanding       4,000
Salaries A/c
  (Wages and Salaries        
were outstanding)
           
5. Drawings A/c Dr.   6,000  
    To Bank A/c       6,000
  (Furniture purchased for        
personal use)
           
6. Interest on Capital A/c Dr.   18,000  
    To Capital A/c       18,000
  (Interest on capital        
provided)
           
7. Drawings A/c Dr.   1,000  
    To Interest on       1,000
Drawings A/c
  (Interest on drawings        
charged)
  TOTAL   55,000 55,000
         

Page No 9.65:

Question 16:

Pass journal entries for the following:

Jan. Purchased goods for Cash ₹ 10,000 and spent ₹ 200 for their
 
5 carriage.
Jan. Purchased machinery for Cash ₹ 50,000 and spent ₹ 500 for its
 
10 carriage.
Jan. Paid ₹ 20,000 for cement, ₹ 10,000 for timber and ₹ 5,000 as
 
15 wages for the construction of building.
Jan. Purchased an old machinery for ₹ 20,000 and spent ₹ 2,500 on its
 
17 immediate repairs.
Jan.
  Paid ₹ 500 for repairing some other machinery.
20
ANSWER:
Journal
In the Books of …
Date Particulars L.F Debit Amount (Rs) Credit Amount (Rs)
.
Jan. Purchases A/c Dr.   10,000  
05
  Carriage A/c Dr.   200  
    To Cash A/c       10,200
  (Goods purchased for        
cash and paid carriage)
           
Jan. Machinery A/c Dr.   50,500  
10
    To Cash A/c       50,500
  (Machinery purchased        
for cash and carriage
paid)
           
Jan. Building A/c Dr.   35,000  
15
    To Cash A/c       35,000
  (Payment made for        
construction of
building)
           
Jan. Machinery A/c Dr.   22,500  
17
    To Cash A/c       22,500
  (Machinery purchased        
and expenses paid)
           
Jan. Repairs A/c Dr.   500  
20
    To Cash A/c       500
  (Payment made for        
repairs)
  TOTAL   1,18,700 1,18,700
         

Page No 9.66:

Question 17:

Enter the following transactions in the Journal of Arun Govil & Co. :
2018  
 June 1 Arun Govil & Co. paid into bank as capital ₹ 6,00,000.
Purchased goods from Mukesh of the list price of ₹ 2,00,000 at 10% trade
June 3
discount.
One-fourth of the above goods returned to Mukesh for not being upto
June 4
specifications.
Issued a  cheque to Mukesh for the amount due to him after deducting 2%
June 6
as cash discount.
Withdrew from bank ₹ 2,50,000 for office use and ₹ 10,000 for personal
June 7
use.
Purchased a machinery for ₹ 1,00,000 and spent ₹ 5,000 on its
June
installation. Payment for machinery was made by cheque and installation
10
expenses were paid in cash.
June
Sold goods for ₹ 1,00,000 to Amar.
12
June Amar clears his account by giving a cheque of ₹ 98,500. Cheque is
13 immediately sent to bank.
June
Purchased stationery for personal use ₹ 3,000 and for office use ₹ 5,000.
15
June Purchased land for ₹ 2,00,000 and paid 1% as brokerage and ₹ 15,000 as
20 registration charges on it. Entire payment is made by Cheque.
June
Wages due to labourers ₹ 20,000 and salary due to the clerk ₹ 30,000.
30
ANSWER:
Journal
In the Books of Sh. Arun Govil & Co.
Debit Amount (₹
Date Particulars L.F. Credit Amount (₹)
)
2018          
June Bank A/c Dr.   6,00,000  
01
  To Capital A/c       6,00,000
  (Business started with        
cash)
           
June Purchases A/c Dr.   1,80,000  
03
  To Mukesh’s A/c       1,80,000
  (Goods purchased from        
Mukesh @ 10% trade
discount)
           
June Mukesh’s A/c Dr.   45,000  
04
  To Purchases Return A/c       45,000
  (1/4th goods returned to        
Mukesh)
           
June Mukesh Dr.   1,35,000  
06
   To Bank A/c       1,32,300
  To Discount Received       2,700
A/c
  (Cheque issued to        
Mukesh in full
settlement)
           
June Drawings A/c Dr.   10,000  
07
  Cash A/c Dr.   2,50,000  
  To Bank A/c       2,60,000
  (Cash withdrawn for        
office and personal use)
           
June Machinery A/c Dr.   1,05,000  
10
  To Bank A/c       1,00,000
  To Cash A/c       5,000
  (Machinery purchased and paid      
installation charges)
           
June Amar’s A/c Dr.   1,00,000  
12
  To Sales A/c       1,00,000
  (Goods sold to Amar on        
credit)
           
June Bank A/c Dr.   98,500  
13
  Discount Allowed A/c Dr.   1,500  
  To Amar’s A/c       1,00,000
  (Cheque received from        
Amar in full settlement)
           
June Drawings A/c Dr.   3,000  
15
  Stationery A/c Dr.   5,000  
  To Cash A/c       8,000
  (Stationery purchased for office      
and personal use)
           
June Land A/c Dr.   2,17,000  
20
  To Bank A/c       2,17,000
  (Land purchased and        
brokerage paid)
           
June Salaries A/c Dr.   30,000  
30
  Wages A/c Dr.   20,000  
   To Outstanding Wages       20,000
A/c
  To Outstanding Salaries       30,000
A/c
  (Outstanding expenses        
provided)
  TOTAL   18,00,000 18,00,000
         

Page No 9.66:

Question 18:

Journalise the following transactions of Raj Kumar Traders, timber merchants:-

1. Purchased timber from Kuldeep Kumar, for cash ₹ 2,000 and credit ₹ 10,000.
2. Paid to Kuldeep Kumar in full settlement of his account ₹ 9,950.
3. Paid rent in advance ₹ 10,000.
4. Purchased machinery for ₹ 1,00,000 by cheque and carriage ₹ 2,000 and installation
charges ₹ 1,000 paid in Cash.
5. Purchased goods for ₹ 50,000 from Govind and sold it to Manohar for  ₹ 65,000.
ANSWER:
Journal
In the Books of Raj Kumar
Debit Amount (₹
Date Particulars L.F. Credit Amount (₹)
)
1) Purchases A/c Dr.   12,000  
    To Cash A/c       2,000
    To Kuldeep Kumar’s       10,000
A/c
  (Goods purchased for        
cash and credit)
           
2) Kuldeep Kumar’s A/c Dr.   10,000  
    To Cash A/c       9,950
    To Discount Received       50
A/c
  (Cash paid to Kuldeep        
Kumar in full settlement)
           
3) Prepaid Rent A/c Dr.   10,000  
    To Cash A/c       10,000
  (Rent paid in advance)        
           
4) Machinery A/c Dr.   1,03,000  
    To Bank A/c       1,00,000
    To Cash A/c       3,000
  (Machinery purchased        
and expenses paid)
            
5) Purchases A/c Dr.   50,000  
    To Govind’s A/c       50,000
  (Goods purchased from        
Govind)
           
  Manohar Lal’s A/c Dr.   65,000  
    To Sales A/c       65,000
  (Goods sold to Manohar        
Lal)
  TOTAL   2,50,000 2,50,000
         

Page No 9.66:

Question 19:

Pass Journal entries for the following transactions:−

1. Purchased Machinery for ₹ 20,000 and paid ₹ 200 for its carriage.
2. Received a cheque fo ₹ 4,850 from X in full settlement of his account of ₹ 5,000.
Cheque was immediately deposited into bank.
3. Received by cheque a first and final payment of 60 paise in a ₹ from  Y who owed us
₹ 10,000.
4. Sold goods to Z for ₹ 10,000 at a trade discount of 20%. Next day a cheque was
received from him after deducting 5% cash discount. Cheque was immediately
deposited into Bank.
5. Goods costing ₹ 20,000 sold to Manoj at a profit of 20% on cost less 10% trade
discount.
ANSWER:
Journal
In the Books of …
Dat Debit Amount (Rs
Particulars L.F. Credit Amount (Rs)
e )
1) Machinery A/c Dr.   20,200  
    To Cash A/c       20,200
  (Machinery purchased        
and paid for carriage)
           
2) Bank A/c Dr.   4,850  
   Discount Allowed A/c Dr.   150  
    To X’s A/c       5,000
  (Cheque received from X        
in full settlement)
           
3) Cash A/c Dr.   6,000  
   Bad Debts A/c Dr.   4,000  
    To Y’s A/c       10,000
  (Cash received and bad        
debts written-off)
           
4) Z’s A/c Dr.   8,000  
    To Sales A/c       8,000
  (Goods sold to Z on        
credit)
           
  Bank A/c Dr.   7,600  
  Discount Allowed A/c Dr.   400  
    To Z’s A/c       8,000
  (Cheque received in full        
settlement)
           
5) Manoj’s A/c (WN) Dr.   21,600  
    To Sales A/c       21,600
  (Goods sold to Manoj)        
TOTAL   72,800 72,800
         

Working Notes: Calculation of amount of goods sold to Manoj

Page No 9.67:

Question 20:

Journalise the following transactions:−

1. Goods for ₹ 50,000 were destroyed by fire.
2. Goods worth ₹ 18,000 were distributed as free samples and ₹ 20,000 were given
away as charity in cash.
3. Goods worth ₹ 25,000 and cash ₹ 40,000 were taken away by the proprietor for his
personal use.
4. Goods worth ₹ 20,000 and cash ₹ 5,000 were given away as charity.
5. Cash ₹ 1,00,000 were stolen from the Iron Safe of the trader.
ANSWER:
Journal
In the Books of …
Debit Amount (Rs
Date Particulars L.F. Credit Amount (Rs)
)
1) Loss by Fire A/c Dr.   50,000  
     To Purchases A/c       50,000
  (Goods destroyed by        
fire)
           
2) Advertisement Dr.   18,000  
Expenses A/c
    To Purchases A/c       18,000
  (Goods distributed as        
free samples)
           
  Charity A/c Dr.   20,000 20,000
    To Cash A/c        
  (Cash given away as        
charity)
           
3) Drawings A/c Dr.   65,000  
    To Cash A/c       40,000
    To Purchases A/c       25,000
  (Goods and cash        
withdrawn for personal
use)
           
4) Charity A/c Dr.   25,000  
    To Cash A/c       5,000
    To Purchases A/c       20,000
  (Goods and cash given        
away as charity)
           
5) Loss by Theft A/c Dr.   1,00,000  
    To Cash A/c       1,00,000
  (Cash stolen)        
TOTAL   2,78,000 2,78,000
         

Page No 9.67:

Question 21:

Journalise the following transactions:−

(i) Sold goods to Brijesh of the list price of ₹ 10,000 at trade discount of 5%. Received
full payment in cash.
(ii) Goods given away as charity ₹ 1,000.
(iii) Charge interest on capital of ₹ 5,00,000 @ 7% p.a.
(iv) Outstanding wages ₹ 3,000.
(v) ₹ 5,000 due from Sunny are now bad debts.
(vi) ₹ 50,000 cash sales (of goods costing ₹ 40,000).
ANSWER:
Journal
In the Books of …
Dat L.F
Particulars Debit Amount (Rs) Credit Amount (Rs)
e .
1) Cash A/c Dr.   9,500  
  To Sales A/c       9,500
  (Goods sold for cash to        
Brijesh)
           
2)  Charity A/c Dr.   1,000  
  To Purchases A/c       1,000
  (Goods given away as        
charity)
           
3) Interest on Capital A/c Dr.   35,000  
  To Capital A/c       35,000
  (Interest on capital        
provided)
           
4) Wages A/c Dr.   3,000  
  To Outstanding Wages       3,000
A/c
  (Outstanding wages        
provided)
           
5) Bad Debts A/c Dr.   5,000  
  To Sunny’s A/c       5,000
  (Bad debts written-off)        
           
6) Cash A/c Dr.   50,000  
  To Sales A/c       50,000
  (Goods sold for cash)        
  TOTAL   1,03,500 1,03,500
         

Page No 9.67:

Question 22:

Prepare journal from the transactions given below:−

(a) Proprietor withdrew for private use ₹ 10,000 from bank.
(b) Goods costing ₹ 50,000 were burnt by fire.
(c) Purchased machinery for cash ₹ 1,50,000 and paid ₹ 2,000 on its installation.
(d) Charge 5% depreciation on building costing ₹ 2,00,000 and 8% depreciation on
furniture costing ₹ 5,000.
(e) Prepaid salary ₹ 2,000.
(f) Kapil who owed us ₹ 20,000 becomes insolvent and nothing is received from his
estate.
ANSWER:
Journal
In the Books of …
Dat Debit Amount (Rs
Particulars L.F. Credit Amount (Rs)
e )
a) Drawings A/c Dr.   10,000  
  To Bank A/c       10,000
  (Cash withdrawn from bank      
for personal use)
           
b) Loss by Fire A/c Dr.   50,000  
  To Purchases A/c       50,000
  (Goods destroyed by        
fire)
           
c) Machinery A/c Dr.   1,52,000  
  To Cash A/c       1,52,000
  (Purchased machinery for      
cash and installation charges
were paid)
           
d) Depreciation A/c Dr.   10,400  
  To Building A/c       10,000
  To Furniture A/c       400
  (Depreciation charged on      
building and furniture)
           
e) Prepaid Salary A/c Dr.   2,000  
  To Salary A/c       2,000
  (Prepaid salary        
recorded)
           
f) Bad Debts A/c Dr.   20,000  
  To Kapil’s A/c       20,000
  (Bad debts written-off)      
  TOTAL   2,44,400 2,44,400
         

Page No 9.67:

Question 23:

Journalise the following transactions in the Journal of Navin Gupta & Sons.:-
1. Out of Insurance premium paid this year, ₹ 15,000 is related to next year.
2. Credit purchases from Ram & Co. for ₹ 50,000. Cash discount will be received at 5%
on payment of bill within 10 days.
3. Cash paid to Ram & Co. and discount availed of.
4. Paid Income Tax ₹ 20,000 by cheque.
5. Goods costing ₹ 2,00,000 sold for cash at a profit of 10%.
6. Purchased iron safe for ₹ 2,00,000 filing cabinet for ₹ 50,000 and Computer for ₹
1,00,000.
ANSWER:
Journal
In the Books of Sh. Navin Gupta
Dat Debit Amount (₹
Particulars L.F. Credit Amount (₹)
e )
1) Prepaid Insurance A/c Dr.   15,000  
  To Insurance A/c       15,000
  (Prepaid insurance        
recorded)
           
2) Purchases A/c Dr.   50,000  
  To Ram & Co.       50,000
  (Goods purchased on credit from      
Ram & Co.)
           
3) Ram & Co. Dr.   50,000  
  To Cash A/c       47,500
  To Discount Received A/c       2,500
  (Cash paid to Ram & Co. in full      
settlement)
           
4) Drawings A/c Dr.   20,000  
  To Cash A/c       20,000
  (Paid income tax)        
           
5) Cash A/c Dr.   2,20,000  
  To Sales A/c       2,20,000
  (Goods sold for cash including      
profit of 10%)
           
6) Office Equipment A/c Dr.   3,50,000  
  To Cash A/c       3,50,000
  (Office equipment purchased)      
  TOTAL   7,05,000 7,05,000
         

Page No 9.68:

Question 24:
Journalise the following transactions in the books of Kanishk Traders:

(i) Sold goods costing ₹ 1,20,000 to Charu at a profit of 3313% on cost less 15%

Trade Discount.
(ii) Sold goods costing ₹ 80,000 to Arun against cheque at a profit of 25% on
cost less 15% Trade Discount.
(iii) Paid by cheque ₹ 8,400 as insurance premium for a period of 12 months
starting 1st August 2016. Financial year closes on 31st March every year.
 
ANSWER:
Journal
In the Books of Kanishk
Debit Amount (₹
Date Particulars L.F. Credit Amount (₹)
)
i) Charu’s A/c (WN1) Dr.   1,36,000  
  To Sales A/c       1,36,000
  (Goods sold to Charu)        
           
ii) Bank A/c (WN2) Dr.   85,000  
  To Sales A/c       85,000
  (Goods sold to Arun)        
           
iii) Insurance A/c Dr.   8,400  
  To Bank A/c       8,400
  (Insurance premium paid through      
cheque)
           
  Prepaid Insurance A/c Dr.   2,800  
  To Insurance A/c       2,800
  (Insurance premium paid in      
advance for four months)
  TOTAL   2,32,200 2,32,200
         

Working Notes:

WN1: Calculation of amount of goods sold to Charu

 Cost                                                 = 1,20,000Add: Profit @ 3313% on 1,20,000          =  
40,0001,60,000Less: Trade Discount @ 15% on 1,60,000 =  24,0001,36,000

WN2: Calculation of amount of goods sold to Arun

 Cost                                    = 80,000Add: Profit @ 25% on 80,000 = 20,0001,00,000Less: Tr
ade Discount @ 15%     = 15,00085,000

Page No 9.68:
Question 25:

Journalise the following:−

2017    
March 4 Purchased building for ₹ 1,50,000 and incurred expenses of ₹ 10,000 on
 
its purchase.
March 10 Satish who owed us ₹ 20,000 is declared insolvent and 60 paise per ₹ is
 
received from his estate.
March 15   Paid ₹ 500 for repairing the office furniture.
March 18 Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹
 
2,000.
March 20   Purchased the following items for business:
  Iron Safe ₹ 15,000; Filing Cabinet ₹ 5,000; Computer ₹ 12,000; Postage
 
₹ 200 and Stationery ₹ 150.
March 28   Paid electricity charges ₹ 1,600.
March 31 Charge depreciation on Machinery @ 10% for one year (Machinery ₹
 
75,000).
March 31   Outstanding wages at the end of the year ₹ 6,000.
ANSWER:
Journal
In the Books of …
Debit Amount (Rs
Date Particulars L.F. Credit Amount (Rs)
)
2017          
Mar. Building A/c Dr.   1,60,000  
04
  To Bank A/c       1,60,000
  (Building purchased and      
expenses paid)
           
Mar. Cash A/c Dr.   12,000  
10
  Bad Debts A/c     8,000  
  To Satish’s A/c       20,000
  (Cash received from Satish      
and bad debts written-off)
           
Mar. Repairs A/c Dr.   500  
15
  To Cash A/c       500
  (Payment made for        
repair of office
furniture)
           
Mar. Drawings A/c Dr.   7,000  
18
  To Cash A/c       5,000
  To Purchases A/c       2,000
  (Cash and goods        
 withdrawn for personal
use)
           
Mar. Office Equipment A/c Dr.   32,000  
20
  To Cash A/c       32,000
  (Purchased iron safe, filling      
cabinet and typewriter)
           
Mar. Postage & Stationery Dr.   350  
20 A/c
  To Cash A/c       350
  (Expenses paid for postage      
and stationery)
           
Mar. Electricity Charges A/c Dr.   1,600  
28
  To Cash A/c       1,600
  (Paid electricity        
charges)
           
Mar. Depreciation A/c Dr.   7,500  
31
  To Machinery A/c       7,500
  (Depreciation charged on      
machinery)
           
Mar. Wages A/c Dr.   6,000  
31
  To Outstanding Wages       6,000
A/c
  (Outstanding wages        
recorded)
  TOTAL   2,34,950 2,34,950
         

Page No 9.68:

Question 26:

Journalise the following:

1. Purchased goods for ₹ 25,000 for Cash and paid ₹ 200 for carriage on these goods.
2. Purchased goods for ₹ 40,000 on Credit from Sudhir and paid ₹ 500 for carriage on
these goods.
3. Purchased machinery for ₹ 20,000 and spent ₹ 500 on its carriage and ₹ 300 on its
installation.
4. Purchased goods from Anil for ₹ 15,000.
5. Sold 13rd of the above goods at a profit of 20% on cost.
6. Goods costing ₹ 12,000 sold to Mr. X, issued invoice at 25% above cost less 10%
trade discount.
7. Provide 20% depreciation on furniture costing ₹ 10,000.
8. Gave as charity − Cash ₹ 500 and Goods ₹ 2,000.
ANSWER:
Journal
In the Books of …
Dat Debit Amount (Rs
Particulars L.F. Credit Amount (Rs)
e )
1) Purchases A/c Dr.   25,000  
  Carriage A/c Dr.   200  
  To Cash A/c       25,200
  (Purchased goods for        
cash and carriage paid)
           
2) Purchases A/c Dr.   40,000  
  To Sudhir’s A/c       40,000
  (Goods purchased on        
credit from Sudhir)
           
  Carriage A/c Dr.   500  
  To Cash A/c       500
  (Carriage paid on goods        
purchased from Sudhir)
           
3) Machinery A/c Dr.   20,800  
  To Bank A/c       20,800
  (Machinery purchased        
and expenses paid)
           
4) Purchases A/c Dr.   15,000  
  To Anil’s A/c       15,000
  (Purchased goods on        
credit from Anil)
           
5) Cash A/c Dr.   6,000  
  To Sales A/c       6,000
  (Goods purchased from Anil      
sold for cash at a profit of 20%
on cost)
           
6) X’s A/c (WN) Dr.   13,500  
  To Sales A/c       13,500
  (Goods sold to X)        
           
7) Depreciation A/c Dr.   2,000  
  To Furniture A/c       2,000
  (Depreciation charged on        
furniture)
           
 8) Charity A/c Dr.   2,500  
  To Cash A/c       500
  To Purchases A/c       2,000
  (Cash and goods given in        
charity)
  TOTAL   1,25,500 1,25,500
         

Working Notes: Calculation of amount of goods sold to X

Page No 9.69:

Question 27:

Journalise the following:

 
(i) Received a V.P.P. from Mohan Lal for ₹ 25,000. Sent a
peon to collect it who paid ₹ 200 as cartage.
(ii) Received ₹ 1,000 from sales of old newspapers and ₹
5,000 from sales of old chairs.
(iii) Goods given away as charity goods costing ₹ 7,000.
(iv) Received Cash from a debtor written off as bad-debt last
year ₹ 20,000.
(v) Sold goods costing ₹ 50,000 to Ashok on credit at a profit
of 20% on cost.
(vi) Sold goods costing ₹ 1,00,000 for ₹ 1,40,000.
(vii) Provide ₹ 50,000 as interest on Capital.
Paid rent of building ₹ 60,000 by cheque. Half the
(viii)
building is used by the proprietor for residential purpose.
(ix) Outstanding salary at the end of the year ₹ 30,000.
ANSWER:
Journal
In the Books of …
Dat L.F Debit Amount (₹
Particulars Credit Amount (₹)
e . )
i) Purchases A/c Dr.   25,000  
  Cartage A/c Dr.   200  
  To Cash A/c       25,200
  (VPP received and        
cartage paid)
           
ii) Cash A/c Dr.   1,000  
  To Sundry Income A/c       1,000
   (Income received from sale of      
old newspapers)
           
  Cash A/c Dr.   5,000  
  To Furniture A/c       5,000
  (Cash received from sale of      
old chairs)
           
iii) Charity A/c Dr.   7,000  
  To Purchases A/c       7,000
  (Goods given away as charity)      
           
iv) Cash A/c Dr.   20,000  
  To Bad Debts       20,000
Recovered A/c
  (Bad debts recovered)        
           
v) Ashok’s A/c Dr.   60,000  
  To Sales A/c       60,000
  (Goods sold on credit to Ashok      
at a profit of 20%)
           
vi) Cash A/c Dr.   1,40,000  
  To Sales A/c       1,40,000
  (Goods sold for cash)        
           
vii) Interest on Capital A/c Dr.   50,000  
  To Capital A/c       50,000
  (Provided interest on capital)      
           
viii) Rent A/c Dr.   30,000  
  Drawings A/c     30,000  
  To Bank A/c       60,000
  (Rent paid for the building)      
           
ix) Salary A/c Dr.   30,000  
  To Outstanding Salary       30,000
A/c
  (Outstanding salary provided)      
  TOTAL   3,98,200 3,98,200
         

Page No 9.69:

Question 28:

Journalise the following transactions:

 
2018  
 April 1 Purchased goods for ₹ 1,00,000 from Manoj and availed discount of ₹
10,000.
2 Paid amount due to Manoj by cheque and availed discount of ₹ 4,500.
5 Cash ₹ 5,000 paid to Desai and discount allowed by him ₹ 200.
10 Cash ₹ 10,000 received from Govardhan and allowed him discount ₹ 500.
12 Sold personal Car of the proprietor for ₹ 80,00 against cheque, which was
deposited into the firm's bank account.
16 Sold personal Car of the proprietor for ₹ 1,50,000 against cheque, which was
deposited into the proprietor's personal bank account.
20 Sold goods to Gaurav costing ₹ 1,00,000 at a profit of 40% and allowed him
10% trade discount and paid for cartage ₹ 3,000 not to be charged from him.
24 Placed an order with Rudra & Co. for supply of goods of ₹ 80,000 and a
cheque for 40% amount is sent to them as an advance.
ANSWER:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
2018          
Apr Purchases A/c Dr.   90,000  
01
    To Manoj       90,000
  (Purchased from Manoj)        
           
Apr Manoj A/c Dr.   90,000  
02
    To Bank A/c       85,500
    To Discount Received A/c       4,500
  (Paid to Manoj)        
           
Apr Desai A/c Dr.   5,200  
05
    To Cash A/c       5,000
    To Discount Received A/c       200
  (Paid to Desai)        
           
Apr Cash A/c Dr.   10,000  
10
  Discount Allowed A/c     500  
    To Govardhan A/c       10,500
  (Cash received from Govardhan)        
           
Apr Bank A/c Dr.   80,000  
12
    To Capital A/c       80,000
  (Sold personal car and invested in business)        
           
Apr No entry        
16
           
 Apr Gaurav A/c Dr.   1,26,000  
20
    To Sales A/c       1,26,000
  (Sold to Gaurav)        
           
  Carriage Outwards A/c Dr.   3,000  
    To Cash A/c       3,000
  (Cartage paid on sales)        
           
Apr Advance for Purchases A/c Dr.   32,000  
24
    To Bank A/c       32,000
  (Advance cheque sent to Rudra and Co. against a        
purchase order)
        4,36,700 4,36,700
           

Page No 9.70:

Question 29:

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

 
Amount Amount
S. L.F
Particulars Dr. Cr.
No. .
(₹) (₹)
(i)   Dr.      
    Dr.      
  To        
  (Goods of the list price of ₹ 5,000 sold at 10% trade      
discount and 2% cash discount)
           
(ii)          
  (The purchase of Motor Car for ₹ 80,000        
and the payment of ₹ 5,000 as repairs
charges on it. Entire payment is made by
cheque)
           
(iii Chaturvedi’s Dr.   5,000  
)
  To Cash A/c        
  To        
  (Chaturvedi’s account settled, cash discount three      
percent)
           
(iv) Bank A/c Dr.      
     Dr.      
  To       8,400
  (70 paise per rupee received from the estate of      
Ashok on his insolvency)
           
(v)   Dr.   3,000  
  To       3,000
  (For goods used by proprietor for personal        
use)
           
(vi)   Dr.   2,000  
  To       2,000
  (For Rent due to landlord)      
ANSWER:
Journal
In the Books of …
Dat Debit Amount (Rs
Particulars L.F. Credit Amount (Rs)
e )
i) Cash A/c Dr.   4,410  
  Discount Allowed A/c Dr.   90  
  To Sales A/c       4,500
  (Goods of the list price of Rs      
5,000 sold at 10% trade
discount and 2% cash
discount)
           
ii) Motor Car A/c Dr.   85,000  
  To Cash A/c       85,000
  (The purchase of Motor        
Car for Rs 80,000 and
the payment of Rs 5,000
as repairs charges on it)
           
iii) Chaturvedi’s A/c Dr.   5,000  
  To Cash A/c       4,850
  To Discount Received       150
A/c
  (Chaturvedi’s account settled,      
cash discount three percent)
           
iv) Cash A/c Dr.   5,880  
  Bad Debts A/c Dr.   2,520  
  To Ashok’s A/c       8,400
  (70 paise per rupee received      
from the estate of Ashok on
his insolvency)
           
v) Drawings A/c Dr.   3,000  
  To Purchases A/c       3,000
   (For goods used by        
proprietor for personal
use)
           
vi) Rent A/c Dr.   2,000  
  To Outstanding Rent A/c       2,000
  (For Rent due to        
landlord)
  TOTAL   1,07,900 1,07,900
         

Page No 9.70:

Question 30:

Rectify the following entries assuming that the narration in each case is correct:
 
Amoun  Amou
L.F t nt
Date Particulars
. Dr. Cr.
(Rs) (Rs)
2017          
May Building A/c Dr   5,00,00  
04 . 0
  Brokerage A/c Dr   10,000  
.
  To Bank A/c       5,10,00
0
  (Purchase of building and payment of brokerage on its      
purchase)
           
May Drawings A/c Dr   12,000  
10 .
  To Sales A/c       12,000
  (Goods taken away by the proprietor for personal use)      
           
May Filing Cabinet A/c Dr   4,000  
16 .
  Electric Fan A/c Dr   2,500  
.
  To Cash A/c       6,500
  (Purchase of filing cabinet and an electric fan)      
           
May Cash A/c Dr   8,730  
18 .
  To Sales A/c       8,730
  (Goods worth ₹ 10,000 sold at 10% trade discount and      
3% cash discount)
           
 May Bank A/c Dr   10,000  
20 .
  To Naresh       10,000
  (Receipt of 25 paise per rupee from the estate of      
Naresh who is declared insolvent)
           
May Bank Charges A/c Dr   150  
31 .
  To Cash A/c       150
  (Charges made by bank for its services)      
ANSWER:
Journal
In the Books of …
Debit Amount (Rs
Date Particulars L.F. Credit Amount (Rs)
)
2017          
May Building A/c* Dr.   5,10,000  
04
  To Cash A/c       5,10,000
  (Purchase of building and      
payment of brokerage on its
purchase)
           
May Drawings A/c Dr.   12,000  
10
  To Purchases A/c       12,000
  (Goods taken away by the      
proprietor for personal use)
           
May Office Equipment A/c Dr.   6,500  
16
  To Cash A/c       6,500
  (Purchase of filling cabinet      
and an electric fan)
           
May Cash A/c (WN1) Dr.   8,730  
18
  Discount Allowed A/c     270  
  To Sales A/c       9,000
  (Goods worth Rs 10,000 sold      
at 10% trade discount and 3%
cash discount)
           
May Cash A/c (WN2) Dr.   10,000  
20
  Bad Debts A/c      30,000  
  To Naresh       40,000
  (Receipt of 25 paise per rupee      
from the estate of Naresh who
 is declared insolvent)
           
May Bank Charges A/c Dr.   150  
31
  To Bank A/c       150
  (Charges made by bank for its      
services)
  TOTAL   5,77,650 5,77,650
         

* Payment of brokerage will be included in cost of the building as it is

incurred at time of purchase of building.

Working Notes:

WN1: Calculation of amount of goods sold

WN2: Calculation of amount of bad debts

Page No 9.71:

Question 31:

Journalise the following transactions:

(a) Goods destroyed by Fire for ₹ 5,000.
(b) Paid by cheque ₹ 25,000 as wages on installation of a Machinery.
(c) Issued a cheque in favour of M/s Parmatma Saran & Sons on account of purchase of
goods ₹ 75,000.
(d) Goods sold costing ₹ 60,000 to M/s Kalu Sons at an invoice price 10% above cost
less 5% Trade discount.
ANSWER:
Journal
In the Books of …
L.F
Date Particulars Debit Amount (Rs) Credit Amount (Rs)
.
(a) Loss by Fire A/c Dr.   5,000  
  To Purchases A/c       5,000
  (Goods destroyed by        
 fire)
           
(b) Machinery A/c Dr.   25,000  
  To Cash A/c       25,000
  (Wages paid for        
installation of
machinery)
           
(c) Purchases A/c Dr.   75,000  
  To Bank A/c       75,000
  (Cheque issued for        
purchase of goods)
           
(d) M/s Kalu & Sons (WN) Dr.   62,700  
  To Sales A/c       62,700
  (Goods sold to M/s        
Kalu & Sons on credit)
  TOTAL   1,67,700 1,67,700
         

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

Page No 9.72:

Question 32:

Journalise the following trasactions:−

 
  (₹)
1.
Charge depreciation on Machinery 20,000
2.
Salary due to Office Clerks 1,00,000
3.
Received cash for Bad-Debts written off last year 5,000
4.
Purchased goods from Ashok & Co. for ₹ 50,000 at 20% Trade  
Discount. Half the payment was made in cash.
5. Issued cheque to Ashok & Co. in full settlement 19,500
6. Paid Life Insurance Premium by cheque 6,000
7. Proprietor used goods for household purposes 20,000
8. Goods given free to a hospital out of business 10,000
ANSWER:
Journal
In the Books of …
Dat Debit Amount (₹
Particulars L.F. Credit Amount (₹)
e )
 1) Depreciation A/c Dr.   20,000  
  To Machinery A/c       20,000
  (Depreciation charged on        
machinery)
           
2) Salary A/c Dr.   1,00,000  
  To Outstanding Salary       1,00,000
A/c
  (Salary due to office        
clerks)
           
3) Cash A/c Dr.   5,000  
  To Bad Debts Recovered       5,000
A/c
  (Bad debts recovered)        
           
4) Purchases A/c Dr.   40,000  
  To Ashok & Co.       20,000
  To Cash A/c       20,000
  (Goods purchased)        
           
5) Ashok & Co. Dr.   20,000  
  To Bank A/c       19,500
  To Discount Received       500
A/c
  (Payment made to Ashok &      
Co. in full settlement)
           
6) Drawings A/c Dr.   6,000  
  To Cash A/c       6,000
  (Payment made for life        
insurance premium)
           
7) Drawings A/c Dr.   20,000  
  To Purchases A/c       20,000
  (Goods used for        
household purposes)
           
8) Charity A/c Dr.   10,000  
  To Purchases A/c       10,000
  (Goods given away as        
charity)
  TOTAL   2,21,000 2,21,000
         

Page No 9.72:

Question 33:
Journalise the following transactions:-

2019   ₹
March Started business with cash 50,000
1 
2  Purchased Machinery for cash 20,000
  Paid installation charges on machinery 2,000
5  Purchased goods from X of the list price of ₹ 25,000, Trade  
Discount 20% and cash discount 5%. Payment was made in cash
immediately.
10  Sold goods to Y costing ₹ 10,000 at 30% profit on cost less 10%
 
trade discount.
15  Paid Rent 1,000
20  Goods stolen from business 2,000
22  Gave as charity :  
   Cash 100
   Goods 200
31  Purchased Post Cards and Envelopes 50
31  Purchased a Computer for business 25,000
ANSWER:
Journal
In the Books of …
Debit Amount (₹
Date Particulars L.F. Credit Amount (₹)
)
2019          
Mar. Cash A/c Dr.   50,000  
01
  To Capital A/c       50,000
  (Started business with        
cash)
           
Mar. Machinery A/c Dr.   22,000  
02
  To Cash A/c       22,000
  (Machinery purchased for      
cash and installation charges
paid)
           
Mar. Purchases A/c Dr.   20,000  
05
  To Cash A/c       19,000
  To Discount Received       1,000
A/c
  (Goods purchased for cash      
and received discount)
           
Mar. Y’s A/c Dr.   11,700  
10
  To Sales A/c       11,700
   (Goods sold on credit to Y at      
30% profit on cost)
           
Mar. Rent A/c Dr.   1,000  
15
  To Cash A/c       1,000
  (Rent paid)        
           
Mar. Loss by Theft A/c Dr.   2,000  
20
  To Purchases A/c       2,000
  (Goods stolen from        
business)
           
Mar. Charity A/c Dr.   300  
22
  To Cash A/c       100
  To Purchases A/c       200
  (Charity given)        
           
Mar. Postage A/c Dr.   50  
31
  To Cash A/c       50
  (Paid for postage)        
           
Mar. Computer A/c Dr.   25,000  
31
  To Cash A/c       25,000
  (Computer purchased)        
  TOTAL   1,32,050 1,32,050
         

Page No 9.72:

Question 34:

Journalise the following transactions:

1. Purchased a Motor Car for ₹ 3,00,000 and paid ₹ 25,000 for its repair and renewal.
Entire payment is made by cheque.
2. Received Rent ₹ 5,000.
3. Goods worth ₹ 20,000 were distributed as free samples.
4. Charge depreciation on Motor Car ₹ 32,500.
5. Rent due to Landlord ₹ 10,000 and Salary due to Clerks ₹ 80,000.
6. Charge interest on Capital ₹ 20,000.
7. ₹ 5,000 due from Sanjay Gupta are bad-debts.
8. Goods worth ₹ 50,000 were destroyed by fire.
9. Cash ₹ 5,000 and goods worth ₹ 20,000 were stolen by an employee.
ANSWER:
 Journal
In the Books of …
Dat Debit Amount (₹
Particulars L.F. Credit Amount (₹)
e )
1) Motor Car A/c Dr.   3,25,000  
  To Bank A/c       3,25,000
  (Purchased motorcar and      
payment made for repair and
renewal)
           
2) Cash A/c Dr.   5,000  
  To Rent A/c       5,000
  (Rent received)        
           
3) Advertisement Expenses Dr.   20,000  
A/c
  To Purchases A/c       20,000
  (Goods distributed as free      
samples)
           
4) Depreciation A/c Dr.   32,500  
  To Motor Car A/c       32,500
  (Depreciation charged on        
motor car)
           
5) Rent A/c Dr.   10,000  
  Salaries A/c Dr.   80,000  
  To Outstanding Expenses       90,000
A/c
  (Outstanding expenses        
provided)
           
6) Interest on Capital  A/c Dr.   20,000  
  To Capital A/c       20,000
  (Interest on capital        
provided)
           
7) Bad Debts A/c Dr.   5,000  
  To Sanjay Gupta’s A/c       5,000
  (Bad debts written-off)        
           
8) Loss by Fire A/c Dr.   50,000  
  To Purchases A/c       50,000
  (Goods destroyed by fire)        
           
9) Loss by Theft A/c Dr.   25,000  
  To Cash A/c       5,000
  To Purchases A/c       20,000
  (Cash and goods stolen by        
an employee)
   TOTAL   5,72,500 5,72,500
         

Page No 9.73:

Question 35:

Journalise the following transactions:

(i) Bought goods from Arun for ₹ 2,00,000 at a trade discount of 15% and cash discount
of 2%. Paid 80% amount immediately.
(ii) Purchased foods for ₹ 20,000 from X and supplied it to Y for ₹ 26,000.
(iii) Cash withdrawn from bank ₹ 5,000 for personal use and ₹ 25,000 for office use.
(iv) Goods destroyed by fire : Cost Price ₹ 40,000.
(v) Provide 20% depreciation on machinery costing ₹ 50,000.
(vi) Out of insurance paid this year, ₹ 3,000 is related to next year.
(vii) Allow ₹ 5,000 as interest on capital and charge ₹ 1,000 as interest on drawings.
(viii) Sohan who owed us ₹ 25,000 was declared insolvent and a cheque of 40 paise in a
₹ is received from him in full settlement.
(ix) Paid Income Tax ₹ 10,000 by cheque.
(x) Salary paid ₹ 80,000 and Salary Outstanding ₹ 20,000.
ANSWER:
Journal
In the Books of …
Dat L.F Debit Amount (₹
Particulars Credit Amount (₹)
e . )
(i) Purchases A/c (WN) Dr.   1,70,000  
  To Arun’s A/c       34,000
  To Cash A/c       1,33,280
  To Discount Received       2,720
A/c
  (Goods purchased and 80%      
payment made in cash)
           
(ii) Purchases A/c Dr.   20,000  
  To X’s A/c       20,000
  (Goods purchased on        
credit from X)
           
  Y’s A/c Dr.   26,000  
  To Sales A/c       26,000
  (Goods sold on credit to        
Y)
           
(iii) Cash A/c Dr.   25,000  
   Drawings A/c Dr.   5,000  
  To Bank A/c       30,000
  (Cash withdrawn from bank for      
personal and office use)
           
(iv) Loss by Fire A/c Dr.   40,000  
  To Purchases A/c       40,000
  (Goods destroyed by fire)        
           
(v) Depreciation A/c Dr.   10,000  
  To Machinery A/c       10,000
  (Depreciation charged on        
machinery)
           
(vi) Prepaid Insurance A/c Dr.   3,000  
  To Insurance A/c       3,000
  (Insurance paid in        
advance)
           
(vii) Interest on Capital A/c Dr.   5,000  
  To Capital A/c       5,000
  (Allowed interest on        
capital)
           
  Drawings A/c Dr.   1,000  
  To Interest on Drawings       1,000
A/c
  (Charged interest on        
drawings)
           
(viii Cash A/c Dr.   10,000  
)
  Bad Debts A/c Dr.   15,000  
  To Sohan’s A/c       25,000
  (Cash received from Sohan and      
bad debts written-off)
           
(ix) Drawings A/c Dr.   10,000  
  To Bank A/c       10,000
  (Income tax paid)        
           
(x) Salaries A/c Dr.   1,00,000  
  To Cash A/c       80,000
  To Outstanding Salaries       20,000
A/c
  (Salary paid and        
outstanding)
  TOTAL   4,40,000 4,40,000
         
Working Notes: Calculation of payment made and outstanding amount to Arun

Page No 9.73:

Question 36:

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

2019  
May 1  Purchased a Machinery for ₹ 1,00,000 and the payment was made
by issuing a cheque from Proprietor's saving bank account.
4  Received an order from Chakravarti for goods of ₹ 4,00,000
alongwith a cheque of 10% of the order as advance.
8  Paid cash ₹ 8,000 to Dushyant and discount allowed by him ₹
800.
10  Goods stolen by an employee (Sale Price ₹ 20,000; Cost ₹
15,000).
15  Purchased stationery worth ₹ 8,000 for office use and ₹ 2,000 for
personal use.
20  Manoj pays us ₹ 5,400 after deducting 10% for prompt payment.
28  Sold goods to Kuber costing ₹ 2,00,000 at 25% above cost less
trade discount of 10% and cash discount of 5%. Kuber did not
avail the cash discount.
ANSWER:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
2019          
May 01 Machinery A/c Dr.   1,00,000  
    To Capital A/c       1,00,000
  (Purchased Machinery and payment made        
through personal bank account)
           
May 04 Bank A/c Dr.   40,000  
    To Advance against Sales A/c       40,000
  (Advance cheque received from Chakravarti        
against a sales order)
           
May 08 Dushyant A/c Dr.   8,800  
    To Cash A/c       8,000
    To Discount Received A/c       800
  (Paid to Dushyant)        
           
May 10 Loss by Theft A/c Dr.   15,000  
    To Purchases A/c       15,000
  (Goods stolen by employee)        
           
 May 15 Stationery A/c Dr.   8,000  
  Drawings A/c     2,000  
    To Cash A/c       10,000
  (Purchased stationery for office and personal        
use)
           
May 20 Cash A/c Dr.   5,400  
  Discount Allowed A/c     600  
    To Manoj A/c       6,000
  (Received from Manoj)        
           
May 28 Kuber A/c Dr.   2,25,000  
    To Sales A/c       2,25000
  (Sold goods to Kuber)        
        4,04,800 4,04,800
           

Page No 9.73:

Question 37:

Journalise the following transactions in the books of Prakash:

(i) Opened a current account with Punjab National Bank ₹ 1,00,000.

(ii) Received a cheque of ₹ 12,900 from Chandradev and allowed discount ₹ 300 to him.
The cheque was deposited into Bank on the same day.
(iii) Purchased machinery for ₹ 1,00,000, payment made by cheque. Installation charge
of machinery ₹ 6,000 paid in cash.
(iv) Purchased a horse for business for ₹ 20,000.
(v) Sold goods to Gokul at a list price of ₹ 4,000. Trade discount 10% and cash discount
5%. He paid the amount on the same day and availed the cash discount.
(vi) Purchased goods for ₹ 10,000 and paid ₹ 400 for carriage on these goods.
(vii) Additional cash introduced by the proprietor ₹ 40,000.
(viii) Purchased stationery ₹ 800 and postal stamps ₹ 100.
(ix) Withdrawn from bank ₹ 20,000.
(x) Received an order to supply goods of ₹ 40,000 from Manu and received ₹ 10,000 as
an advance together with the order.
(xi) Cash ₹ 10,000 and goods worth ₹ 4,000 were stolen.
(xii) Purchased goods from Devendra for ₹ 40,000 and the payment was made by
cheque.
(xiii) Sold 1/4th of the above goods at a profit of 25% on cash.
ANSWER:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
(i) Bank A/c Dr.   1,00,000  
   To Cash A/c       1,00,000
  (opened a bank account in PNB)        
           
(ii) Bank A/c Dr.   12,900  
  Discount Allowed A/c Dr.   300  
  To Chandradev       13,200
  (received cheque from Chandradev and        
allowed discount)
           
(iii) Machinery A/c Dr.   1,06,000  
  To Bank A/c       1,00,000
  To Cash A/c       6,000
  (machinery purchased and installation charges        
paid)
           
(iv) Livestock A/c Dr.   20,000  
  To Cash A/c       20,000
  (purchased horse for business)        
           
(v) Cash A/c Dr.   3,420  
  Discount Allowed A/c Dr.   180  
  To Sales A/c       3,600
  (sold goods to Gokul and received payment)        
           
(vi) Purchases A/c Dr.   10,000  
  Carriage inwards A/c Dr.   400  
  To Cash A/c       10,400
  (purchases made and carriage paid)        
           
(vii) Cash A/c Dr   40,000  
  To Capital A/c       40,000
  (capital introduced)        
           
(viii) Stationery A/c Dr.   800  
  Postage A/c Dr.   100  
  To Cash A/c       900
  (stationery & postal stamps bought)        
           
(ix) Cash A/c Dr.   20,000  
  To Bank A/c       20,000
  (withdrawn from bank)        
           
(x) Cash A/c Dr.   10,000  
  To Manu(Advance)       10,000
  (Advance received from Manu)        
           
(xi) Loss by theft A/c Dr.   14,000  
  To Purchases A/c       4,000
  To Cash A/c       10,000
  (cash & goods stolen)        
            
(xii) Purchases A/c Dr.   40,000  
  To Bank A/c       40,000
  (purchases paid via cheque)        
           
(xiii) Cash A/c Dr.   12,500  
  To Sales A/c       12,500
  (1/4 th of the goods sold @25% profit)        
  TOTAL     3,90,600 3,90,600