Theory & Practical Question Journal Enteries

Question 1.
What is a Journal?
Ans- A Journal is the book of original entry or prime entry in which transactions are recorded in the books of
accounts from the source documents. The transactions are recorded in a chronological order, i.e. as and when
they take place. The transactions are recorded following the double-entry system of accounting.
Question 2.
State the meaning of Narration?
Ans- A brief explanation of the transaction, together with necessary details, is provided with the Journal entry.
This explanation is called a narration. It provides the details of the Journal entry and helps understand the
account debited or credited.
Question 3.
What do you mean by Journalising?
Ans- The process of recording transactions in the book of original entry is known as Journalising. The
transactions are recorded in the form of a Journal entry. Recording is made following the double-entry system
of accounting. Thus, it records the two-fold effect of every transaction. In the process of Journalising, the
transaction is first analysed in order to decide the account to be debited and credited by ascertaining the rule
of debit and credit. After this, entries are recorded in the books of accounts.
Question 4.
Which column in a journal is not filled in at the time of journalising?
Ans- The ledger folio (L.F.) is the column that is not filled at the time of Journalising. This column indicates the
page number of the Ledger book on which the relevant account appears. All the entries from Journal are
posted to the Ledger Accounts. Therefore, the ledger folio is recorded after the entries are posted to the
Ledger Accounts and not at the time of Journalising.
Question 5.
State the meaning of Simple Entry?
Ans- When only two accounts are affected while recording a transaction in the book of original entry, i.e. one
account is debited and one account is credited, it is known as a Simple Journal Entry. For example, if Rs 500 were
paid to Hari, the entry will be:
Question 6.
Which account is credited, when salary is paid by cheque?
Ans- When salary is paid by cheque, the Bank A/c is credited because payment is made through a cheque.
According to the modern classification of accounts, an increase in any asset should be debited, whereas a
decrease in any asset should be credited. The Bank A/c is an asset of a business and, thus, it is credited.
Question 7.
Why is journal called the Book of Prime Entry?
Ans- A Journal is called the book of prime entry because all the transactions of a business are first recorded in
a Journal, i.e. book of original entry. The transactions are recorded in chronological order and on the basis of
the source documents. After recording, these transactions are posted to the ledger accounts, i.e. secondary
books. Hence, a Journal is called the book of prime entry.
Question 8.
In which order the transactions are recorded in a journal?
Ans- A Journal records the transactions in a chronological order, i.e. as and when they occur. Transactions of
a business are recorded in the book of original entry on the basis of their occurrence from the source
document.
Question 9.
Which discount is not recorded in the books of account?
Ans- A trade discount is not recorded in the books of accounts. This discount is allowed at the time of sale or
purchase of goods at an affixed percentage on the printed list price of the goods. The purchases and sale
transactions are recorded in the books at net value (i.e. List Price minus Trade Discount). Thus, the books of
accounts do not reflect the amount of trade discount so allowed or received.
Question 10.
Which account is debited, when goods are destroyed by fire?
Ans- When goods are destroyed by fire, then ‘Loss by Fire A/c’ is debited and ‘Purchases A/c’ is credited. The
goods destroyed by fire are considered to be a loss for a business entity and is classified as a nominal
account. Therefore, according to the rule of nominal account, all the expenses and losses are to be debited.
Hence, ‘Loss by Fire A/c’ is debited when goods are destroyed by fire.
11: What is a journal?
ANS- Journal is a main entry book or an original entry book in which the event is first entered in a linear order or
sequence. As all transactions are originally documented in it, the document is called the Book of Original Entry.
12: Why is the journal called a book of original entry?
ANS- All the transactions are recorded frstly in the journal so it is called book of original entry.
13: What is journalising?
ANS- The process by which the transaction is reported in the journal is called journalising.
14: Give one advantage of journal.
ANS- The benefit of report is the compilation of financial data in chronological order.
15: Give one limitation of a journal.
ANS- The journal’s only drawback is that it is difficult to document all the heavy and cumbersome transactions.
16: What is a narrative?
ANS- Every transaction has a short summary after each entry is known as the narrative.
17: What is ledger folio or L.F.?
ANS- Ledger Folio or L.F. It’s the number of the page where the journal poses. In the document, the page number
is registered.
18: What is compound journal entry?
ANS- When, on the same day, two or more purchases belonging to one individual account take place. In this case,
only one entry is passed, instead of logging different entries. This form of journal entry is known as the journal
entry compound.
19: What is opening entry?
ANS- The first entry in the Journal is moved to the preceding year’s closing balances ledger. The opening entry is
called it. The balance sheet prepared at the end of the year displays each asset and liability’s closing balances and
forms the basis for this opening entry.
20: What entry is passed for withdrawing of goods by the proprietor for personal use?
ANS- Below is the Journal of withdrawing of goods by the proprietor.
Drawings A/c Dr.
To Purchases A/c
(Being goods withdrawing by the owner)
21: Which account should be debited, if wages are paid for the installation of amachine?
ANS- Machine account is debited if wages are paid for the installation of a machine.

Give one word / term or phrase for each of the following statements.
1. A book of original entry.
 Ans- A book of original entry- Journal
Explanation:
All the transactions of a business are recorded for the first time in the book of original entry. A
Journal is one of the main book of original entry. It is called the book of original entry as all the
transactions are recorded in the Journal in a chronological order.
2. The process of recording transactions in the journal.
Ans-The process of recording transactions in the journal- Journalising
Explanation:
Journalising is the process of recording transactions in the book of original entry, i.e. a Journal.
The transactions are recorded in a chronological order, i.e. occurrence-wise. These
transactions are recorded according to the rules of debit and credit and after ascertaining the
accounts that are affected.
3. Brief explanation of an entry.
Ans -Brief explanation of an entry- Narration
Explanation:
The narration is a brief explanation of the transaction together with the necessary details that
are provided with the Journal entry. It is necessary to write the narration, as it provides the
details of the Journal entry and helps understand the account that is debited or credited. For
example, a narration for the transaction of payment of Rs 2,000 as salary will be:
Salary of Rs 2000 is paid in cash.
4. The French word from which the word journal is derived.
Ans-The French word from which the word journal is derived- Jour
Explanation:
Journal is derived from the French word ‘Jour’ which means daily records. Therefore, Journal
means a book, wherein the day-to-day transactions are recorded date–wise, i.e. in a
chronological order.
5. Entry in which more than one account are to be debited or credited.
Ans- Entry in which more than one account are to be debited or credited- Compound/
Combined entry
Explanation:
The Journal entries in which more than one account is to be debited or credited are known as
compound or combined journal entries. Sometimes, two or more transactions, relating to one
particular account, may take place on the same date. Hence, instead of passing separate
entries for all such transactions, only one entry is passed.

6. Anything taken by proprietor from business for his personal use.

Ans- Anything taken by proprietor from business for his personal use- Drawings
Explanation:
The amount/ value of goods taken by a proprietor from a business for his personal use are
termed as drawings.
7. Amount of money payable to broker while buying and selling the shares and securities.
Ans- Amount of money payable to broker while buying and selling the shares and securities-
Brokerage
Explanation:
Any fee or commission paid to a broker, who is engaged in buying and selling of shares and
securities, is termed as brokerage.
 8. Entry in which one account is debited and another account is credited.
Ans- Entry in which one account is debited and another account is credited- Simple entry
Explanation:
An entry in which one account is debited and another account is credited, is termed as simple
entry. It involves only two accounts, i.e. one is debited and other is credited. For example:
Goods worth Rs 4,000 are purchased for cash. It involves two accounts: ‘Purchases A/c’, which
will be debited and ‘Cash A/c’, which will be credited.
9. The column in journal, which is not filled at the time of Journalising.
Ans- The column in journal, which is not filled at the time of Journalising- Ledger Folio
Explanation:
The Ledger Folio is the column that is not filled at the time of Journalising. This column records
the page number or folio number of the ledger accounts on which the relevant account
appears. Thus, the page number of the ledger accounts can only be recorded once the entries
are posted to the ledger. Hence, this column is not filled at the time of Journalising.
10. An account that is debited when rent is paid to landlord.
Ans- An account that is debited when rent is paid to landlord- Rent A/c
Explanation:
The payment of rent is an expense for a business and all the expenses are classified as a
nominal account. As per the rule of nominal account, all expenses and losses should be debited
and all incomes and gains should be credited. Hence, Rent A/c will be debited.
Question 1.
The ______ column of the journal is not entered at the time of Journalising.
a) Date b) Particulars c) Ledger Folio d) Amount
ANSWER:-The Ledger Folio column of the journal is not entered at the time of Journalising.
Explanation:
The Ledger Folio column shows the page number or folio number on which the relevant account appears. A
Journal is the book of original entry from where the entries are posted to their respective ledger accounts. Thus,
the Ledger Folio column is entered after the entries are posted to the ledger accounts and not at the time of
Journalising.
Question 2.
Recording of transaction in the journal is called _____ .
a) Posting b) Casting c) Tallying d) Journalising
ANSWER:- Recording of transaction in the journal is called Journalising.
Explanation:
The process of recording transactions in the book of original entry, i.e. a Journal, is known as Journalising.
The process of posting entries from the Journal to the Ledger is known as posting. All the entries from the Journal
are posted in their respective Ledger Accounts.
The totaling of Sales and Purchases Books is known as casting.
Tallying means matching the debit and credit totals of the columns.
Question 3.
Goods or Amount taken by proprietor for his personal use should be debited to ______.
a) Sales A/c b) Drawing A/c c) Purchases A/c d) Cash A/c
ANSWER:-Goods or Amount taken by proprietor for his personal use should be debited to Drawings A/c.
Explanation:
Drawings represent the amount withdrawn by the proprietor from his/her business. It can be either in cash or
kind (goods withdrawn for personal use). Such withdrawals reduce the amount of capital and are debited to a
separate account known as Drawings Account.
Rationale behind why drawings are not debited to Purchases A/c, Sales A/c or Cash A/c?
Purchases A/c is debited when some goods are purchased for resale.
Sales A/c is credited when goods are sold for cash or on credit.
Finally, Cash A/c is debited when cash sales are made.
Hence, Drawings A/c is debited when the proprietor withdraws goods or cash from the business for his/her
personal use.
Question 4.
Cash purchases of goods should be credited to ______.
a) Purchase A/c b) Sales A/c c) Cash A/c d) Goods A/c
ANSWER:- Cash purchases of goods should be credited to Cash A/c.
Explanation:
A cash account is classified as a real account. The rule for recording transactions of a real account is to debit what
comes in and to credit what goes out. Cash purchases of goods will lead to an outflow of cash, i.e. cash is going
out. Hence, the cash account is credited and the purchases account is debited. The sales account is credited only
when goods are sold.
Question 5.
Wages paid for installation of machinery should be debited to ______.
a) Wages A/c b) Machinery A/c c) Cash A/c d) Installation A/c
ANSWER:-Wages paid for installation of machinery should be debited to Machinery A/c.
Explanation:
Any expenditure incurred on the carriage and installation of machinery such as freight, transit expenses,
installation expenses, wages etc should be treated as capital expenditure and should be debited to the Machinery
A/c. This expenditure is non-recurring in nature and, thus, added to the value of the machinery. Thus, it should be
debited to the Machinery A/c and not to the Wages A/c.
Question 6.
The rent paid to the land lord should be debited to ______.
a) Drawing A/c b) Cash A/c c) Landlord A/c d) Rent A/c
ANSWER:- The rent paid to the land lord should be debited to Rent A/c.
Explanation:
The rent paid to the landlord is an expense. Thus, in adherence to the rule of nominal accounts, all such expenses
and losses are to be debited; therefore, in this case, Rent A/c will be debited.
Question 7.
The amount brought in by the proprietor in the business should be credited to
a) Salary A/c b) Mandar’s A/c c) Cash A/c d) Capital A/c
ANSWER:-The amount brought in by the proprietor in the business should be credited to Capital A/c.
Explanation:
Any amount/value of goods withdrawn from a business is known as drawings and is deducted from the capital
account of the proprietor. Likewise, any additional amount brought in by the proprietor is treated as capital and
will be added to the existing capital of the business.
Question 8.
A payment of Rs. 100 to Kokate Carriage Co. for bringing a machine to the business place should be debited to
______.
a) Machine A/c b) Cash A/c c) Kokate carnage Co. A/c d) Carriage A/c
ANSWER:- A payment of Rs. 100 to Kokate Carriage Co. for bringing a machine to the business place should be
debited to the Machine A/c.
Explanation:
The expenses incurred to bring in assets in a workable condition before they are put to use are capitalised and
added to the asset account. Therefore, the expenses incurred for bringing a machine to a business place should be
debited to the machine account. This expenditure is non-recurring in nature and any expenses incurred before the
asset is put to use are debited to the asset account.
Question 9.
A purchase of horse in cash should be debited to ______
a) Livestock A/c b) Goods A/c c) Cash A/c d) Bank A/c
ANSWER:- A purchase of horse in cash should be debited to Livestock A/c.
Explanation:
Domestic animals used in a business to help in doing business more effectively are treated as assets of the
business and included under the head of the Livestock A/c. Hence, the purchase of a horse will be debited to the
Livestock A/c.
It is not the goods of the business, as it is not purchased for resale in business.

State whether the following statements are true or false:

Question 1.
A journal voucher is must for all transactions recorded in the journal.
ANSWER:- True
Explanation:
The above statement is true, since vouchers act as the base for the recording of all the transactions.
Vouchers are regarded as the source documents, based on which the transactions are recorded in the
Journal book in form of Journal entries. Thus, for all the transactions that are recorded in the Journal
book, corresponding voucher is a necessary condition.
Question 2.
Journal is a book of secondary entry.
ANSWER:-False
Explanation:
A Journal is a book of original or prime entry and not a book of secondary entry. All the business
transactions are first recorded in the Journal, and then postings are made in the respective Ledger
Accounts, i.e. secondary books. Thus, a Journal is a book of original entry.
Question 3.
Narration is not necessary for each and every journal entry.
ANSWER:-False
Explanation:
This statement is false because narration is a brief explanation of a transaction, together with
necessary details that are provided with the Journal entry, which helps to understand the account
which is to be debited or credited. Thus, a narration is necessary for each and every Journal entry, as
it provides the details of the Journal entry and helps understand the entry.
Question 4.
Every transaction is recorded first in the journal.
ANSWER:-True
Explanation:
Every business transaction is first of all recorded in a Journal or Subsidiary Books known as books of
original or prime entry and then postings are made in the relevant ledger accounts from which the
final accounts are prepared. Thus, every transaction is recorded first in the Journal.
Question 5.
Live Stock A/c is a Nominal A/c.
ANSWER:- False
Explanation:
Livestock A/c records the monetary value of the domestic animals used in a business such as dog,
horse, cow etc. Thus, it is a fixed asset of a business and all the assets of the business whose value
can be measured in terms of money are classified under the real account, whereas , the nominal
account includes the accounts related to expenses, losses, incomes and gains. Therefore, the Live
Stock A/c is a real account and not a nominal account.
Question 6.
Bank of Maharashtra A/c is a Nominal A/c.
ANSWER:-False
Explanation:
All the accounts of persons, companies or institutions are classified as personal accounts. The Bank of
Maharashtra A/c is related to the banking firm, which is an artificial person, and all the accounts
related to people, whether artificial or natural, are termed as personal accounts.
Question 7.
Brokerage paid on sale of goods is debited to brokerage A/c.
ANSWER:-True
Explanation:
Brokerage is a fee or commission paid to a broker who is engaged in buying and selling shares and
securities. Hence, it is an indirect expense for a business that is to be accounted under Brokerage A/c.
Being an expense for the business, it should be debited to the Profit and Loss A/c, according to the
rule of nominal account.
Question 8.
If the goods are sold the entry should be recorded in the journal.
ANSWER:-True
Explanation:
When goods are sold, the transactions should be recorded in the book of original entry, i.e. Journal.
All the business transactions of a business are recorded in the Journal and, thus, it is called the book
of original entry. Hence, the entries for the goods sold should be recorded in the Journal.
Question 9.
Goods withdrawn by the proprietor from business is debited to the Drawing A/c.
ANSWER:-True
Explanation:
Drawings A/c shows all the withdrawals made by a proprietor from the business for his/her personal
use. The withdrawals may be in the form of cash or goods. Thus, goods withdrawn by the proprietor
are debited to Drawings A/c.
Question 10.
Cash discount does not appear in the books of accounts.
ANSWER:-False
Explanation:
A cash discount is the discount given to the customers for early payments. It is provided at the time
of receiving the payment. Thus, it should be recorded in the books of accounts. Thus, the cash
discount appears in the books of accounts, whereas, the trade discount does not appear in the books
of accounts.
Question 11.
If rent is paid to the landlord, landlord’s A/c should be debited.
ANSWER:-False
Explanation:
If rent is paid to a landlord, Rent A/c should be debited and not the Landlord’s A/c. It is an expense
for the business and should be accounted under Rent A/c. Rent is an expense for the business and
falls under the category of nominal accounts. Hence, Rent A/c should be debited.
Question 12.
Book keeping records monetary transactions only.
ANSWER:-True
Explanation:
Book keeping records only those transactions whose value can be measured in terms of money.
Note:
As we all know that all those transactions which can be measured in monetary terms are recorded in the books of accounts.
Thus, the above statement is true and the solution provided in the book is incorrect.
Question 13.
Drawings made by the proprietor increases his capital.
ANSWER:-False
Explanation:
This statement is false because drawings made by a proprietor decrease his capital. Drawings are the
cash or goods that are withdrawn by a proprietor from business for his/her personal use. Thus, it will
reduce or decrease the capital of the proprietor in the business.
Question 14.
Premium paid on the life policy of the proprietor should be debited to insurance premium account.
ANSWER:-False
Explanation:
Premium paid on the life policy of a proprietor is regarded as the personal expense of the proprietor
and, thus, should be treated as drawings. Hence, it should be debited to Drawings A/c instead of
Insurance Premium A/c.
Practical Question
1: Prepare a journal of Manohar Lal & sons from the following transactions:-
2024 Particulars Amount.
March 1 Manohar Lal & Sons started a business with cash. 60,000.
March 2 Purchased furniture for cash. 10,000.
March 4 Purchased goods for cash. 25,000.
March 5 Bought goods from Kamlesh. 15,000.
March 10 Paid cash to Kamlesh. 15,000.
March 16 Purchased goods from Sohan. 6,000.
March 18 Purchased goods from Sohan for cash. 8,000.
March 20 Paid rent for the office. 1,000.

Point in Mind :-
Journal is a prime entry book or an original entry book in which the transaction is f i rst entered in a linear order or
sequence. As all transactions are originally documented in it, thedocument is called the Book of Original Entry.

2: Prepare Journal of M/s Tripathi Bros from the following transactions:-

2024 Particulars Amount
Jan. 6 Sold goods for Cash. 36,000.
Jan. 8 Sold goods to Hari. 30,000.
Jan. 14 Received cash from Hari. 18,000.
Jan. 26 Received Commission. 750.
Jan. 27 Paid Salary to Gopal. 1200.
Jan. 28 Received cash from Hari. 12,000.
Jan. 29 Withdrew cash from office personal use. 4,000.
Jan. 30 Wages paid. 7,200.
Jan. 30 Bought Machinery for cash. 8,000.

Point in Mind:- The entry in the Journal is passed to record closing balances of the previous year. It is called the
opening entry. The Balance Sheet prepared at the end of the year shows the closing balances of each asset and
liability and forms the basis for this opening entry.
3: Prepare Journal of Sahil Bros. from the following transactions:-
 2024 Particulars Amount
Oct.1 Purchased goods from Anil for cash. 40,000.
Oct.3 Purchased goods from Atul. 75,000.
Oct.6 Returned goods to Atul. 3,000.
Oct.8 Paid cash to Atul. 50,000.
Oct.10 Sold goods to Charu. 1,00,000.
Oct.12 Charu returned 20% of goods.
Oct.15 Paid rent. 2,000.
Oct.20 Sahil withdrew for personal use. 10,000.

4: Enter the following transactions in the Journal of Ganesh Bros:-

2024 Particulars Amount

March 3 Sold goods to Dev 1,00,000.

March 5 Received from Dev in full settlement of his account. 98,000.
March 6 Sold goods to Manmohan. 80,000.
March 8 Manmohan returned goods. 1,000.
March 15 Received from Manmohan in full settlement of his account. 78,200.
March16 Received cash from Ram discount allowed. 19,500.
March20 Paid cash to Pawan and discount received from him. 4,700.
March25 Sold goods to Varun of the list price of Rs. 25,000 at 20% trade discount.

5: Prepare a journal of Marutinandan stores:-

(a) Purchased goods from Ghanshyam of the list price of Rs. 50,000 at 15% trade discount.
(b) Returned goods to Ghanshyam of the list price of Rs. 2,000.
(c) Paid cash to Ghanshyam Rs. 40,000 in full settlement of his account.
(d) Purchased goods from Raghu of the list price of Rs. 60,000 at 10% trade discount.
(e) Returned goods to Raghu of the list price of Rs. 5,000.
(f) Paid cash to Raghu Rs. 49,000 in full settlement of his account.

6: Prepare a journal of the following transaction:-

A. Sold goods to Muskan of the list price of Rs. 2,00,000 at trade discount of 20%.
B. Muskan returned goods of the list price of Rs. 5,000.
C. Received from Muskan the full payment under a cash discount of 4%.
7: Prepare a journal of the following transaction of Raja Ram:-
A. Bought goods for cash of the list price of Rs. 80,000 at 10% trade discount and 2%cash discount.
B. Sold goods for cash of the list price of Rs. 1,00,000 at 15% trade discount and 3% cash discount.
C. Sold goods to Nagpal of the list price of Rs. 50,000 at 20% trade discount.
D. Nagpal returned one-fourth of the above goods.
E. Nagpal settled the account by paying cash under a discount of 5%.
8: Prepare a journal entry:-
A. Sold goods to Shruti for Rs. 80,000 at 15% trade discount and 4% cash discount,Received 75% amount
immediately through a cheque.
B. Purchased goods from Richa for Rs. 60,000 at 10% trade discount and 5% cashdiscount. 60% amount paid by
cheque immediately.
9: Prepare a journal entry:-
A. Purchased goods from Henry for Rs. 50,000 on 10% trade discount and 4% cash discount and paid 60% amount by
cheque.
 B. Bought goods from Amit for Rs. 2,00,000 at terms 5% cash discount and 20% trade discount. Paid 3/4th of the amount
in cash at the time of purchase.
C. Sold goods to Sherpa at the list price of Rs. 50,000 less 20% trade discount and 4% cash discount if the payment is
made within 7 days. 75% payment is received by cheque onJan 23rd.
D. Sold goods to Garima for Rs. 1,00,000, allowed her 20% trade discount and 5% cashdiscount if the payment is made
within 15 days. She paid 1/4th of the amount by cheque onFeb. 5th and 60% of the remainder on Feb.15th in cash.
10: Prepare Journal Entries:-
A. Sold goods to Dilip of the list price of Rs. 62,000 for Rs. 60,000.
B. Sold goods to Amrit Lal of the list price of Rs. 2,50,000 at 20% trade discount and
C. 10% cash discount. Amrit Lal paid Rs. 1,20,000 immediately through a banker’scheque.
D. Paid cheque of Rs. 30,000 to Chaturvedi and availed discount 2%.
E. Purchased goods costing Rs. 2,00,000 from Hari & Co. Paid 75% immediately bycheque to avail 4% discount.
F. Sold goods to Vhsal Traders costing Rs. 40,000 at 25% profit, allowing 10% trade discount and 10% cash discount. Received
80% payment immediately by cheque.
G. Sold goods to Brij & Co. costing Rs. 50,000 at 40% pro몭t, allowing 10% trade
H. discount and 5% cash discount. Brij & Co. paid the full amount by cheque and availed cash discount.
11: Enter the Shyam Sunder & Sons transactions in their Journal:-
A. Shyam Sunder & Sons started a business with Cash Rs. 75,000; Goods Rs. 30,000 and Furniture Rs. 5,000.
B. Sold goods to Bhushan of the list price of Rs. 10,000 at a trade discount of 10%.
C. Paid cheque of Rs. 30,000 to Chaturvedi and availed discount 2%.
D. Received from Bhushan Rs. 8,000 in full settlement of his account.
E. Purchased Furniture for Rs. 6,000.
F. Purchased goods from Navin for Rs. 25,000 less trade discount 12%.
G. Returned goods to Navin goods of the list price of Rs. 2,000.
H. Cleared the account of Navin by applying cash, under a discount of 5%.
I. Sold goods to Ajay Rs. 10,000 and Vijay Rs. 16,000.
J. Received cash from Ajay Rs. 9,800 in full settlement of his account. Paid insurance premium Rs. 750.
K. Paid for Shyam Sunder’s Life Insurance Premium Rs. 1,200.
L. Purchased goods for Rs. 8,000 for cash at a trade discount of 10% and a cash discount of 2%.
M. Received cash from Vijay at a cash discount of 5% in full settlement of his account.
N. Paid Rent Rs. 800; Advertisement Rs. 1,000; and Salaries Rs. 4,000.
O. Received Commission Rs. 500.
12: Prepare a journal entry:-
2023 Particulars Amount
Jan-01 Paid into the bank to open a Current Account 10,000
Jan-03 Goods sold for Rs. 50,000 and the amount was deposited into the bank
Jan-07 The amount is withdrawn from a bank 20,000
Jan-10 Goods sold for Cash 15,000
Jan-12 The amount deposited into bank 12,000
Apr-14 Goods purchased and payment made by cheque 25,000
13: Prepare a journal entry:-
1. Received a cheque from Ram in full settlement of his account after deducting 5% cash discount.
2. Deposited the above cheque into Bank.
3. Goods purchased for Rs. 20,000 at 10% trade discount and 5% cash discount. Paymentmade by cheque.
4. Received a cheque from Shyam for Rs. 3,860 and discount allowed to him Rs. 140.Cheque deposited into the bank
on the same day.
5. Cash paid to Anil after deducting 2% cash discount.
6. Old furniture sold for Rs. 800.
7. Sold goods to Shiv Parshad of the list price of Rs. 10,000 at a trade discount of 15%.
8. Shiv Parshad returned goods of the list price of Rs. 1,000.
9. Paid for furniture repairs to Bahadur Singh Rs. 100.
10. Received a cheque from Shiv Parshad after deducting 4% cash discount. Cheque was deposited into bank.
11. Bank charged Rs. 50 for ‘ Bank Charges.
12. Received Commission Rs. 200.
14: Pass Journal Entries:-
 1. Provide depreciation on Furniture Rs. 500 and on Machinery Rs. 2,000.
2. Received cash Rs. 1,000 for bad-debts written off last year.
3. Ajay Singh was declared bankrupt. He owed Rs. 2,500 to us. Nothing could be recovered from his estate.
4. Rs. 20,000 for wages and Rs. 4,000 for salaries are outstanding.
5. Purchased furniture for Rs. 6,000 for the proprietor and paid the amount by cheque.
6. Provide 9% interest on capital amounting to Rs. 2,00,000.
7. Charge interest on drawings Rs. 1,000.
15: Pass Journal Entries:-
1. Purchased goods for Cash Rs. 10,000 and spent Rs. 200 for their carriage
2. Purchased machinery for Cash Rs. 50,000 and spent Rs. 500 for its carriage.
3. Paid Rs. 20,000 for cement, Rs. 10,000 for timber and Rs. 5,000 as wages for the construction of building.
4. Purchased an old machinery for Rs. 20,000 and spent Rs. 2,500 on its immediate repair.
5. Paid Rs. 500 to repairing some other machinery.
16: Pass Journal Entries:-
1. Arun Govil & Co. paid into bank as capital Rs. 6,00,000.
2. Purchased goods from Mukesh of the list price of Rs. 2,00,000 at 10% trade discount.
3. One-fourth of the above goods returned to Mukesh for not being upto specific Location.
4. Issued a cheque to Mukesh for the amount due to him after deducting 2% as cash discount.
5. Withdrew from bank Rs. 2,50,000 for office use and Rs. 10,000 for personal use.
6. Purchased a machinery for Rs. 1,00,000 and spent Rs. 5,000 on its installation. Payment for machinery was
made by cheque and installation expenses were paid in cash.
7. Sold goods for Rs. 1,00,000 to Amar.
8. Amar clears his account by giving a cheque of Rs. 98,500. Cheque is immediately sent to bank.
9. Purchased stationery for personal use Rs. 3,000 and for office use Rs. 5,000.
10. Purchased land for Rs. 2,00,000 and paid 1% as brokerage and Rs. 15,000 asregistration charges on it. Entire
payment is made by Cheque.
11. Wages due to labourers Rs. 20,000 and salary due to the clerk Rs. 30,000.
17: Pass Journal Entries:-
1. Purchased timber from Kuldeep Kumar, for cash Rs. 2,000 and credit Rs. 10,000.
2. Paid to Kuldeep Kumar in full settlement of his account Rs. 9,950.
3. Paid rent in advance Rs. 10,000.
4. Purchased machinery for Rs. 1,00,000 by cheque and carriage Rs. 2,000 and installationcharges Rs. 1,000 paid in Cash.
5. Purchased goods for Rs. 50,000 from Govind and sold it to Manohar for Rs. 65,000.
18: Pass Journal Entries:-
1. Purchased Machinery for Rs. 20,000 and paid Rs. 200 for its carriage.
2. Received a cheque for Rs. 4,850 from X in full settlement of his account of Rs. 5,000. Cheque was immediately
deposited into bank.
3. Received by cheque and Final payment of 60 paise in a Rs. from Y who owed us Rs. 10,000.
4. Sold goods to Z for Rs. 10,000 at a trade discount of 20%. Next day a cheque was receivedfrom him after deducting 5%
cash discount. Cheque was immediately deposited into Bank.
5. Goods costing Rs. 20,000 sold to Manoj at a profitt of 20% on cost less 10% trade discount.
19: Pass Journal Entries:-
1. Goods for Rs. 50,000 were destroyed by fire.
2. Goods worth Rs. 18,000 were distributed as free samples and Rs. 20,000 were given away as charity in cash.
3. Goods worth Rs. 25,000 and cash Rs. 40,000 were taken away by the proprietor for his personal use.
4. Goods worth Rs. 20,000 and cash Rs. 5,000 were given away as charity.
5. Cash Rs. 1,00,000 were stolen from the Iron Safe of the trader.
20: Pass Journal Entries:-
1. Sold goods to Brijesh of the list price of Rs. 10,000 at trade discount of 5%. Received full payment in cash.
2. Goods given away as charity Rs. 1,000.
3. Charge interest on capital of Rs. 5,00,000 @ 7% p.a.
4. Outstanding wages Rs. 3,000.
5. Rs. 5,000 due from Sunny are now bad -debts.
6. Rs. 50,000 cash sales (of goods costing Rs. 40,000).
21: Pass Journal Entries:-
 1. Proprietor withdrew for private use Rs. 10,000 from bank.
2. Goods costing Rs. 50,000 were burnt by Fire.
3. Purchased machinery for cash Rs. 1,50,000 and paid Rs. 2,000 on its installation.
4. Charge 5% depreciation on building costing Rs. 2,00,000 and 8% depreciation on furniture costing Rs. 5,000.
5. Prepaid salary Rs. 2,000.
6. Kapil who owed us Rs. 20,000 becomes insolvent and nothing is received from his estate.
22: Record Navin Gupta & Sons Journal Entries:-
1. Out of Insurance premium paid this year, Rs. 15,000 is related to next year.
2. Credit purchases from Ram & Co. for Rs. 50,000. Cash discount will be received at 5% onpayment of bill within 10 days.
3. Cash paid to Ram & Co. and discount availed of.
4. Paid Income Tax Rs. 20,000 by cheque.
5. Goods costing Rs. 2,00,000 sold for cash at a profitt of 10%.
6. Purchased iron safe for Rs. 2,00,000 filing cabinet for Rs. 50,000 and Computer for Rs 70000.
23: Record journal book of Kanishk Traders:-
1. Sold goods costing Rs. 1,20,000 to Charu at a proft of 33 1/2% on cost less 15% Trade Discount.
2. Sold goods costing Rs. 80,000 to Arun against cheque at a proft of 25% on cost less 15%Trade Discount.
3. Paid by cheque Rs. 8,400 as insurance premium for a period of 12 months starting 1st August 2016. Financial year closes
on 31st March every year.
24: Record journal book:-
1. Purchased building for Rs. 1,50,000 and incurred expenses of Rs. 10,000 on its purchase.
2. Satish who owed us Rs. 20,000 is declared insolvent and 60 paise per Rs. is received from his estate.
3. Paid Rs. 500 for repairing the office furniture.
4. Proprietor withdrew for his personal use cash Rs. 5,000 and goods worth Rs. 2,000.
5. Purchased the following items for business. Iron Safe Rs. 15,000; Filing Cabinet Rs. 5,000. Computer Rs. 12,000;
Postage Rs. 200 and Stationery Rs. 150
6. Paid electricity charges Rs. 1,600
7. Charge depreciation on Machinery @ 10% for one year (Machinery Rs. 75,000)
8. Outstanding wages at the end of the year Rs. 6,000
25: Record journal book:-
1. Purchased goods for Rs. 25,000 for Cash and paid Rs. 200 for carriage on these goods.
2. Purchased goods for Rs. 40,000 on Credit from Sudhir and paid Rs. 500 for carriage on these goods.
3. Purchased machinery for Rs. 20,000 and spent Rs. 500 on its carriage and Rs. 300 on itsinstallation.
4. Purchased goods from Anil for Rs. 15,000.
5. Sold of the above goods at a profit of 20% on cost.
6. Goods costing Rs. 12,000 sold to Mr. X, issued invoice at 25% above cost less 10% trade discount.
7. Provide 20% depreciation on furniture costing Rs. 10,000.
8. Gave as charity − Cash Rs. 500 and Goods Rs. 2,000.
26: Record journal book:-
1. Received a V.P.P. from Mohan Lal for Rs. 25,000. Sent a peon to collect it who paid Rs. 200 as cartage.
2. Received Rs. 1,000 from sales of old newspapers and Rs. 5,000 from sales of old chairs.
3. Goods given away as charity goods costing Rs. 7,000.
4. Received Cash from a debtor written off as bad -debt last year Rs. 20,000.
5. Sold goods costing Rs. 50,000 to Ashok on credit at a proft of 20% on cost.
6. Sold goods costing Rs. 1,00,000 for Rs. 1,40,000.
7. Provide Rs. 50,000 as interest on Capital.
8. Paid rent of building Rs. 60,000 by cheque. Half the building is used by the proprietor for residential purpose.
9. Outstanding salary at the end of the year Rs. 30,000.
27: Record Journal book:-
1. Purchased goods for Rs. 1,00,000 from Manoj and availed discount of Rs. 10,000.
2. Paid amount due to Manoj by cheque and availed discount of Rs. 4,500.
3. Cash Rs. 5,000 paid to Desai and discount allowed by him Rs. 200.
4. Cash Rs. 10,000 received from Govardhan and allowed him discount Rs. 500.
5. Sold personal Car of the proprietor for Rs. 80,00 against cheque, which was deposited into the firm’s bank
account.
6. Sold personal Car of the proprietor for Rs. 1,50,000 against cheque, which was deposited into the
proprietor’s personal bank account.
 7. Sold goods to Gaurav costing Rs. 1,00,000 at a proft of 40% and allowed him 10%trade discount and paid
for cartage Rs. 3,000 not to be charged from him.
8. Placed an order with Rudra & Co. for supply of goods of Rs. 80,000 and a cheque for 40% amount is
sent to them as an advance.
28: Record journal book:-
1. Goods destroyed by Fire for Rs. 5,000.
2. Paid by cheque Rs. 25,000 as wages on installation of a Machinery.
3. Issued a cheque in favour of M/s Parmatma Saran & Sons on account of purchase of goods Rs. 75,000.
4. Goods sold costing Rs.60,000 to M/s Kalu Sons at an invoice price 10% above cost less 5% Trade discount.
29: Record journal book :-
S no. Particulars (Rs.)
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 Rs. 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.

30: Record journal book:-

2023 March Particulars (Rs.)
1 Started business with cash. 50,000.
2 Purchased Machinery for cash. 20,000.
3 Paid installation charges on machinery. 2,000.
5 Purchased goods from X of the list price of Rs. 25,000, Trade Discount 20% and
cash discount 5%. Payment was made in cash immediately.
10 Sold goods to Y costing Rs. 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.
31: Record journal book:-
1. Purchased a Motor Car for Rs. 3,00,000 and paid Rs. 25,000 for its repair and renewal. Entire payment is made by
cheque.
2. Received Rent Rs. 5,000.
3. Goods worth Rs. 20,000 were distributed as free samples.
4. Charge depreciation on Motor Car Rs. 32,500.
5. Rent due to Landlord Rs. 10,000 and Salary due to Clerks Rs. 80,000.
6. Charge interest on Capital Rs. 20,000.
7. Rs. 5,000 due from Sanjay Gupta are bad-debts.
8. Goods worth Rs. 50,000 were destroyed by fire.
9. Cash Rs. 5,000 and goods worth Rs. 20,000 were stolen by an employee.
32: Journalise the following transactions:-
1. Bought goods from Arun for Rs. 2,00,000 at a trade discount of 15% and cash discount of 2%. Paid
80% amount immediately.
2. Purchased foods for Rs. 20,000 from X and supplied it to Y for Rs. 26,000.
3. Cash withdrawn from bank Rs. 5,000 for personal use and Rs. 25,000 for office use.
4. Goods destroyed by fire Cost Price Rs. 40,000.
5. Provide 20% depreciation on machinery costing Rs. 50,000.
 6. Out of insurance paid this year, Rs. 3,000 is related to next year.
7. Allow Rs. 5,000 as interest on capital and charge Rs. 1,000 as interest on drawings.
8. Sohan who owed us Rs. 25,000 was declared insolvent and a cheque of 40 paise in a Rs. Is received from
him in full settlement.
9. Paid Income Tax Rs. 10,000 by cheque.
10. Salary paid Rs. 80,000 and Salary Outstanding Rs. 20,000.
33: Prepare journal:-
1. Goods worth Rs. 2,000 destroyed by fire.
2. Received Rs. 5,000 from Suresh which were written off as bad debts.
3. Sold goods to Mohan of the list price of Rs. 5,000 subject to 10% trade discount and 5% cash
discount. Mohan availed cash discount.
4. Received Rs. 9,900 from Hari in full settlement of his account Rs. 10,000.
34: Prepare a journal for the following transaction of Vibha and Co:-
2023 Transaction Rs.
April 7 Sold goods for cash. 13,000.
April 9 Sold goods to Mani on credit. 15,000.
April 12 Received cash from Mani. 10,000.
April 18 Sold goods to Suri for cash. 12,600.
April 19 Sold goods to Suri on credit. 7,000.
April 24 Withdrew cash from office for personal use. 2,500.
April 29 Paid wages. 450.
April 30 Paid salary to Gopi. 1,200.
April 30 Received Commission. 200.
35: Record the following transactions in the journal of Vimal Bros:-
2023 Rs.

May 1 Commenced business with cash. 5,00,000.

May 2 Goods purchased from Mohan for cash. 50,000.
May 3 Goods purchased from Ajay. 1,20,000.
May 4 Goods returned to Ajay. 5,000.
May 8 Goods sold to Rajiv. 40,000.
May 12 Rajiv returned 10% of goods.

Question 36:
Journalise the following transactions in the books of Mr. Akshay.

2023 April 1 Mr. Akshay started business with Cash Rs 80,000.

4 Purchased goods form Mona Rs 28,000.
7 Deposited cash into Dena Bank Rs 39,000.
10 Sold goods to Dinesh Rs 41,000.
13 Purchased Laptop of Rs 30,000 in cash.
17 Paid Mona by cheque Rs 30,000.
20 Paid wages Rs 500.
Question 37:
Journalise the following transactions in the books of Miss. Nivedita.
2023 1 Commenced business with Cash Rs 2,10,000.
May
4 Purchased goods for cash Rs 60,000.
5 Sold good for cash Rs 70,000.
9 Deposited into Bank of India Rs 1,00,000.
13 Paid for stationery Rs 10,000.
17 Purchased Computer with printer Rs 40,000.
21 Purchased goods from Ravi for Rs 50,000 on credit.
 25 Paid for Office Rent Rs 2,000.
26 Received Commission Rs 1,000.
30 Withdrew from bank for office use Rs 50,000.
31 Paid for salaries Rs 4,500.
Question 38:
Journalise the following transactions in the books of Mantri.
2023 1 Commenced business with Cash Rs 1,20,000, Goods Rs. 60,000 and Furniture Rs 65,000.
June
3 Opened a current account in Bank of Baroda by depositing Rs 75,000.
5 Cash purchases Rs 35,000.
9 Cash Sales Rs 55,000.
10 Purchased goods worth Rs 20,000 from Amit & Co. subject trade discount of 2%
14 Credit sales to Kalpana Rs 15,000.
16 Paid cash to Amit & Co. Rs 9,500 who allowed us discount Rs 100.
19 Goods distributed as free samples of Rs 1,500.
21 Received Cash from Kalpana Rs 4,800 on account and allowed her cash discount Rs 200.
24 Returned goods of Rs 750 to Amit & Co.
26 Purchased shares of Rs 15,000 of HDFC Bank.
29 Received goods returned by Kalpana Rs 200.
30 Rent paid by cheque Rs 7,000.
Question 39:
Journalise the following transactions in the books of Mr. Bipin.

2023
1 Started business with Cash Rs 3,25,000 Goods worth Rs 50,000 and Laptop Rs 45, 000.
July
3 Deposited in Dena Bank Rs 1,50,000.
7 Bought goods on credit from Manish Rs 10,000 at 10% Trade discount.
11 Sold goods to Nitin of Rs 12,000 at 5% Trade Discount.
13 Goods worth Rs 900 burnt by fire.
17 Received cash of Rs 11,200 from Nitin in full settlement of his account.
20 Drew from bank Rs 4,000 for his personal purpose.
23 Paid cash Rs 9,300 to Manish in full settlement of his account.
25 Paid house rent Rs 2,500.
28 Sold goods worth Rs 12,000 to Dinesh who paid us Rs 8,000 on account.
31 Wages paid Rs 6,000.
Question 40:
Journalise the following transactions.
2023 Shri Akshay started his business with Cash Rs 90,000, Building Rs 1,50,000 borrowed from friend
1
Aug. Jayesh Rs 40,000.
3 Paid cash into Bank of Maharashtra Rs 80,000.
6 Purchased furniture from Mohan and issued him a cheque Rs 10,000.
9 Credit purchase from Sohan Rs 20,000 less 5% Trade Discount.
10 Returned goods to Sohan Rs 200.
13 Credit sales to Amit Rs 6,000 less 2% Trade Discount.
15 Amit returned goods of Rs 588.
17 Goods taken by Akshay for his personal use Rs 500.
18 Paid postage Rs 200 and Electricity bill Rs 900.
20 Sent a Telegram of Rs 30 to Sohan to supply goods of Rs 9,000 immediately.
21 Purchased Laptop & Printer of Rs 41,000 from Keshav & Co. and paid him cash Rs 21,000
27 Paid insurance premium on life of Akshay of Rs 4,000.
29 Paid Telephone Deposit for new telephone connection by cheque Rs 4,000.
31 Audit fees paid by cheque Rs 4,500.
Question 41:
Journalise the following transactions in the books of Mr. Arun.
2023
1 Commenced business with Cash 75,000 and Goods Rs 20,000 and Furniture Rs 30,000.
Sept.
2 Opened a current account in Bank of India by depositing Rs 50,000.
 5 Purchased stationery of Rs 200.
6 Goods purchased from Nisha Rs 15,000.
9 Gave a cheque for Rs 15,000 to Nisha.
11 Sold goods to Minakshi of Rs 20,000.
14 Received a cheque for Rs 19,500 from our debtor. Minakshi in full settlement of her account.
16 Gave loan to Sanjay by cheque Rs 10,000 at 12% interest p.a.
Bought Laptop of Rs 36,000 in exchange of goods from Pande & Co. Goods of Rs 40,000 were
19
given at 10% Trade Discount.
22 Purchased Printer of Rs 10,000, paying half the amount in cash from H.P.Ltd.
28 Uninsured goods worth Rs 700 destroyed by fire.
29 Paid office Rent Rs 2,000 to landlord.
30 Paid for Travelling expenses Rs 5,000.
Question 42:
Journalise the following transactions in the books of Mr. Sancheti.
2023 Mr. Sancheti received Rs 50,000 from his uncle as a gift and deposited the same into the
1
Oct. account of business Bank of India A/c.
3 Purchased goods of Rs 15,000 from Mahesh.
5 Sold goods on credit to Suman for Rs 18,000.
7 Goods of Rs 600 being defective returned by Suman.
11 Remitted cash to Mahesh Rs 14,800 and received discount Rs 200.
15 Bought machinery from KK & Co. Rs 30,000 and half the amount paid immediately.
17 Paid for repairs to Machinery Rs 400.
20 Purchased a horse for Rs 4,800 and carriage charges Rs 200 paid.
25 Withdrawn from bank Rs 5,000 for personal use.
Amount due from Girish Rs 900 is proved to be irrecoverable and has to be written off as
27
bad.
29 Paid for sales vouchers Rs 1,100.
31 Paid Insurance Premium Rs 6,000.
Question 43:
Enter the following transactions in the books of Mr. Smart.
2023
1 Bought goods of Rs 20,000 from Sunita at 5% T.D.
Nov.
4 Sold half the goods purchased from Sunita to Vrijaya at 20% profit on cost.
Purchased machinery for cash Rs 25, 000 and paid Rs 1,100 wages for the installation of
6
Machinery.
8 Paid for Traveling Expenses Rs 500.
12 Mr. Smart paid Rs 11,000 to Somaya Collage for his sons’ fees.
14 Placed an order for goods Rs 7,000 to Veeru.
16 Paid to Sunita Rs 15,000 on account
19 Veeru executed the order which was placed on 14th Nov.
22 Paid wages Rs 600.
25 Paid for proprietor’s house rent Rs 2,000.
28 Sold remaining half of the goods purchased from Sunita to Shashi at 25% profits on cost.
31 Shashi becomes insolvent and could pay only 50 paise in rupee.
29 Taxes paid in cash Rs 4,000.

*Mere placing an order for supplying of goods is not a transaction, hence, no entry has been
passed.

Question 44:
Journalise the following transactions in the books of Nana.
Debit balances on 1st April 2023:-
Cash in hand Rs 5,000; Cash at Bank Rs 95,000' Land & Building Rs 2,10,000; Furniture Rs 15,000; Debtors Rs
10,000.
Credit Balances on April 1, 2012:- Creditors Rs 10,000; Bank Loan Rs 28,000.
Transactions during the month of April 2023:-
2023 April 1 Purchased goods worth Rs 30,000 for cash less Trade Discount.
3 Sold goods to Meena Rs 25,000.
7 Purchased goods from Seema worth Rs 12,000.
9 Goods costing Rs 1,100 distributed as free samples.
Received an amount of Rs 1,500 from Vikram which was previously written off as
12
bad.
Purchased goods from Bhushan Rs 30,000 at 10% Trade Discount and paid him
14
1/3rd amount in cash after getting 5% cash discount.
Received cash gift Rs 10,000 from Father-in-law with which purchased shares
20
of Infosis Co.
24 Payment of Bank loan with interest Rs 6,000 [Interest amount Rs 1,500]
Sold goods to Anil Rs 50,000 at 10% trade discount and received half the amount in
28
cash, 5% cash discount allowed.
29 Paid for Advertisement Rs 5,000.
30 Withdrew cash Bank for personal purpose Rs 2,000.
Question 45:
Record the following transactions in the books Chitmani & Company for the month April, 2023.
Balance on 1st April 2023.
Cash in hand Rs 21,000; Cash at bank Rs 3,00,000. Furniture Rs 1,00,000; Laptop & Printer Rs 90,000; Debtors
Chetan- Rs 7,000, Dilip- Rs 9,000, Stock Rs 25,000, Creditors Gauri- Rs 6,000, Hema- Rs 8,000, Bank Loan Rs 30,000.
Transactions during the month of April were as follows:-
2023 Purchased goods of the list price Rs 30,000 at 10% Trade Discount on credit from Mr.
1
April Kavare.
3 Received Rs 8,800 cash from Mr. Dilip in full & Final settlement of his account.
5 Rent paid to landlord Rs 5,000.
7 Sold goods to Mr. Eknath on credit Rs 15,000.
9 Goods costing Rs 250 distributed as free samples.
12 cash withdrawn by proprietor for private purpose Rs 5,000.
15 Mr. Eknath pays Rs 14,250 after getting 5% discount for prompt payment.
20 Interest on Bank loan Rs 1,000 debited to the current account of the proprietor.
23 Paid Rs 7,900 to Mrs. Hema in full & final settlement of her account.
25 Cash Purchases at list price Rs 10,000 Trade Discount allowed Rs 500.
28 Purchased Maruti Van for Business Rs 1,75,000, amount paid by cheque.
30 Commission paid by cheque Rs 7,000.
Question 46:
Journalise the following transaction in the books of Sethi and Brothers for the month of April, 2023.
Balance on 1st April 2023
Cash at Bank Rs 2,00,000, Cash in hand Rs 2,500; Computer & Printer Rs 90,000 Land & Building Rs 1,80,000;
Sundry Debtors Rs 15,000; Bills Receivable Rs 10,000; Sundry Creditors Rs 14,000; Bills Payable Rs 5,000.
Transactions during the month of April were as follows:-
Purchased goods from Meeta worth Rs 40,000 at 10% trade discount and paid 1/4
2023 April 1
amount in cash and 1/4 amount by cheque, for which 5% cash discount is allowed.
4 Purchased shares of Reliance Company Rs 12,000 and 200 paid as brokerage.
Sold goods to Sunil worth Rs 60,000 at 10% Trade Discount and 5% Cash Discount received 1/3
7
amount in cash and 1/3 amount by cheque and 5% cash discount is allowed.
11 Paid Telephone Bill of Proprietor’s house Rs 700.
14 Paid House Rent Rs 1,500.
20 Received goods as free samples Rs 2,000.
23 Purchased Furniture Rs 30,000.
23 Paid carriage Rs 300 on the above furniture.
Goods worth Rs 6,000 were destroyed by fire and Insurance company admitted a
25
claim to the extent of Rs 4,000.
27 Paid income tax Rs 6,000.
28 Paid for printing and stationery Rs 2,000.
Transferred Rs 20,000 from private bank of proprietor to business Bank of
29
Maharashtra A/c.
30 Salaries paid Rs 5,000 in cash and Rs 10,000 by cheque.