1.

Journalise the following transactions in the books of Himanshu:

2008 Rs.
Feb. 01 Business started with cash 75,000
Feb. 07 Purchased goods for cash 10,000
Feb. 09 Sold goods to Swati or credit 5,000
Feb. 12 Purchased furniture for cash 3,000
Feb. 18 Cash received from Swati 5,000
Feb. 25 Paid rent 1,000
Feb. 28 Paid salary 1,500

2. Give journal entries of M/s Mohit Traders, from the following transactions:
2007 Rs.
Aug. 1 Commenced business with cash 1,10,000
2 Opened bank account with H.D.F.C 50,000
3 Purchased furniture for cash 20,000
7 Bought goods for cash from M/s Rupa Traders 30,000
8 Purchased goods from M/s Hema Traders 42,000
10 Sold goods for cash 30,000
14 Sold goods on credit to M/s Gupta Traders 12,000
16 Rent paid 4,000
18 Paid trade expenses 1,000
20 Received cash from Gupta Traders 12,000
22 Goods returned to Hema Traders 2,000
23 Cash paid to Hema Traders 40,000
25 Bought postage stamps 100
30 Paid salary to Rishabh 4,000

3. Journalise the following transaction in the books of Bharti Bhandar Ranchi:

2007 Rs.
Oct. 1 Commenced business with cash 10,000
2 Paid into Bank 8,000
3 Bought goods for cash 500
4 Bought furniture for office use by cheque 500
10 Withdrew from Bank for office use 900
13 Goods sold to Gopal 500
15 Bought Furniture from Ramashankar 510
18 Paid trade expenses 200
19 Received cash from Gopal 500
25 Paid wages 70
28 Paid Cash to Ramashankar 510
 30 Interest on capital charged 500
30 Paid Commission 150

4. Enter the following Transactions in the journal of Mudit:

2008 Rs.
Jan. 01 Commenced business with Cash 1,75,000
Building 1,00,000
Jan. 02 Goods Purchased for Cash 75,000
Jan. 03 Sold goods to Ramesh 30,000
Jan. 04 Paid wages 500
Jan. 06 Sold goods for cash 10,000
Jan. 10 Paid for Trade Expenses 700
Jan. 12 Cash Received from Ramesh 29,502
Discount allowed 500
Jan. 14 Goods purchased from Sudhir 27,000
Jan. 18 Cartage paid 1,000
Jan. 20 Drew cash for personal use 5,000
Jan. 22 Goods used for household purposes 2,000
Jan. 25 Cash paid to Sudhir 26,700
Discount received 300

5. Journalise the following transactions in the books of Ashok :

2007 Rs.
Dec. 01 Started Business with cash 1,00,000
Dec. 02 Opened a Bank account with SBI 30,000
Dec. 04 Purchased goods from Ashu 20,000
Dec. 06 Sold goods to Rahul for Cash 15,000
Dec. 10 Bought goods from Tara for cash 40,000
Dec. 13 Sold goods to Suman 20,000
Dec. 16 Received cheque from Suman 19,500
Discount allowed 500
Dec. 20 Cheque given to Ashu on account 10,000
Dec. 22 Rent paid by cheque 2,000
Dec. 23 Deposited into bank 16,000
Dec. 25 Machine purchased from Parigya 10,000

6. Journalise the following transactions in the journal of M/s Goel Brothers :

2008 Rs.
Jan. 01 Started business with cash 1,65,000
Jan. 02 Opened bank account in PNB 80,000
Jan. 04 Goods purchased from Tara 22,000
Jan. 05 Goods purchased for cash 30,000
 Jan. 08 Goods sold to Naman 12,000
Jan. 10 Cash paid to Tara 22,000
Jan. 15 Cash received from Naman 11,700
Discount allowed 300
Jan. 16 Paid wages 200
Jan. 18 Furniture purchased for office use 5,000
Jan. 20 Withdrawn from bank for personal use 4,000
Jan. 22 Issued cheque for rent 3,000
Jan. 23 Goods issued for household purposes 2,000
Jan. 24 Drawn cash from bank for office use 6,000
Jan. 26 Commission received 1,000
Jan. 27 Bank charges 200
Jan. 29 Paid salary 3,000
Jan. 28 Cheque given for insurance premium 7,000
Jan. 30 Cash sales 10,000

7. Journalise the following transactions in the books of Sita

(i) Business commenced with a capital of Rs. 6,00,000.
(ii) Rs. 4,50,000 deposited in a bank account.
(iii) Rs. 2,30,000 Plant and Machinery purchased by paying Rs. 30,000 cash immediately.
(iv) Purchased goods worth Rs. 40,000 for cash and Rs. 45,000 on account.
(v) Paid a cheque of Rs. 2,00,000 to the supplier for Plant and Machinery.
(vi) Rs. 70,000 cash sales (of goods costing Rs. 50,000).
(vii) Withdrawn by the proprietor Rs. 35,000 cash for personal use.
(viii) Insurance paid by cheque of Rs. 2,500.
(ix) Salary of Rs. 5,500 outstanding.
(x) Furniture of Rs. 30,000 purchased in cash.

8. Pass journal entries from the following transaction:

2008 Rs.
Apr. 1 Rajiv Sonar started business with cash Rs. 60,000,
Bank balance Rs. 30,000, plant Rs 50,000 & goods
Rs. 50,000.
2 paid for wages 3,000
Paid for repairing 1,000
Paid for Advertisement 6,000
3 sold goods for cash 7,000
Sold goods to Bharti Traders 10,200
Sold goods to Kalicharan for cash 1,800
5 purchased goods for cash 5,000
Purchased goods from Ram Narayan Sharma 6,000
Purchased goods from Singha Traders 10,000
 8 received from Bharti Traders a cheque of 10,000
Allow him discount 200
15 paid for Singha Traders by cheque 9,800
Discount allowed by him 200
16 purchased for cash : office equipment 5,000
Typewriters 16,000
Calculator 1,400

9. Journalise the following transactions in the books of Anil Vastralaya, Ranchi:

(i) Cash stolen by a thief from office Rs. 2,400. The thief was arrested but only Rs. 1,800
could be recovered from him
(ii) Charge interest on Capital @ 10% per annum on Rs. 1,20,000
(iii) Charge interest on Drawings @ 10% per annum on Rs. 20,000
(iv) Rs. 2,500 received as Bad debts recovered
(v) Goods costing Rs. 3,200 sold at a profit of 20% on cost to Ramesh & Co.
(vi) Plant purchased for Rs. 70,000 on 1st January, 2008 is valued at Rs. 65,000 on December
31, 2008
(vii) Goods returned to Amber House, valued Rs. 50,000
(viii) Goods returned by Chunari House, valued Rs. 20,000
(ix) Paid carriage on purchases Rs. 7,000 and carriage on sales Rs. 10,000
(x) A curtain valued Rs. 700 made from the cloths of the firm
(xi) Rs. 4,000 paid as rent out of personal cash

10. Give Journal entries for the following:

Rs.
1. Goods given as charity 5,000
2. Paid rent in advance 480
3. Rent due to landlord 1,200
4. Charged depreciation on Machinery 800
5. Due from Lakhan are bad debts 600
6. Paid income tax 700
7. Cash used at home 800
8. Purchased wheat for domestic use 1,000
9. Wages payable to Ram Narayan 5,000

11. Record the following events in Journal:

1. Received a first and final dividend of 60 paise in a rupee from the official receiver of Mr. Raj
Kumar Singh Jha who owed us Rs. 10,000.
2. Shri Rama Shankar declared insolvent. Rs. 525 due from him written off as bad debt as
nothing was recovered from his estate.
3. Bought Motor Cycle for personal use for Rs. 38,000 and the payment made out of business
money.
4. Purchased Machinery Rs. 50,000 and paid carriage thereon Rs. 5,000.
12. Journalise the following transactions in the Books of M/s Beauty Traders:

2007 Rs.
Dec. 1 Started business with cash 2,00,000
Dec. 2 Bought office furniture 30,000
Dec. 3 Paid into bank to open an current account 1,00,000
Dec. 5 Purchased ten computers and paid by cheque 2,50,000
Dec. 6 Bought goods on credit from Ritika 60,000
Dec. 8 Cash sales 30,000
Dec. 9 Sold goods to Karishma on credit 25,000
Dec. 12 Cash paid to Mansi on account 30,000
Dec. 14 Goods returned to Ritika 2,000
Dec. 15 Stationery purchased for cash 3,000
Dec. 16 Paid wages 1,000
Dec. 18 Goods returned by Karishma 2,000
Dec. 20 Cheque given to Ritika 28,000
Dec. 22 Cash received from Karishma on account 15,000
Dec. 24 Insurance premium paid by cheque 4,000
Dec. 26 Cheque received from Karishma 8,000
Dec. 28 Rent paid by cheque 3,000
Dec. 29 Purchased goods on credit from Meena Traders 20,000
Dec. 30 Cash sales 14,000

13. Journalise the following transactions in the books of the M/s Bhanu Traders:
2007 Rs.
Dec. 1 Started business with cash 92,000
Dec. 2 Deposited into bank 60,000
Dec. 4 Bought goods on credit from Himani 40,000
Dec. 6 Purchased goods for cash 20,000
Dec. 8 Returned goods to Himani 4,000
Dec. 10 Sold goods for cash 20,000
Dec. 14 Cheque given to Himani 36,000
Dec. 17 Goods sold to M/s Goyal Traders 3,50,000
Dec. 19 Drew cash from bank for personal use 2,000
Dec. 21 Goyal Traders returned goods 3,500
Dec. 22 Cash deposited into bank 20,000
Dec. 26 Cheque received from Goyal Traders 31,000
Dec. 28 Goods given as charity 2,000
Dec. 29 Rent paid 3,000
Dec. 30 Salary paid 7,000
Dec. 31 Office machine purchased for cash 3,000
14. From the following balances of M/s Ajay & Co. pass opening journal entry on Jan. 1, 2008:
Debit balances: Cash in hand Rs. 2,000, Cash at Bank Rs. 4,000, Stock Rs. 10,000,
Investment Rs. 2,000, Debtors Rs. 10,000, Furniture Rs. 20,000, Machinery Rs. 20,000, Plant Rs.
10,000.
Credit balances: Creditors Rs. 20,000, Bills Payable Rs. 10,000, Loan from Bank Rs. 8,000,
Capital Rs. 40,000.

15. Journalise the following transctions in the books of Sanjana:

2008 Rs.
Jan. 1 Cash in hand 6,000
Cash at bank 55,000
Stock of goods 40,000
Due to Rohan 6,000
Due from Tarun 10,000
3 Sold goods to Karuna 15,000
4 Cash sales 10,000
6 Goods sold to Heena 5,000
8 Purchased goods from Rupali 30,000
10 Goods returned from Karuna 2,000
14 Cash received from Karuna 13,000
15 Cheque given to Rohan 3,000
16 Cash received form Heena 6,000
20 Cheque received from Tarun 10,000
22 Cheque received from Heena 2,000
25 Cash given to Rupali 18,000
26 Paid cartage 1,000
27 Paid salary 8,000
28 Cash sale 7,000
29 Cheque given to Rupali 12,000
30 Sanjana took goods for personal use 4,000
31 Paid General expenses 500

16. Enter the following transactions in the journal:

(a) Bought goods from Dinesh for Rs. 3,000 at 10% trade discount and 2% cash discount and paid
50% cash immediately.
(b) Goods sold for Rs. 8,000 at 10% trade discount and 3% cash discount for cash.
(c) Sold goods costing Rs. 6,000 to Ashok & Co. issued invoice 20% above cost and allowed 10%
trade discount.

17. Journalise the following transactions:

(a) Goods destroyed by fire of Rs. 500.
(b) Paid Rs. 2,500 in cash as wages a installation of Machinery.
 (c) Issued a cheque in favour of M/s Parmatma Saran & Sons on account of purchase of goods Rs.
7,500.
(d) Goods sold costing Rs. 6,000 to M/s Kalu Sons at an invoice price 10% above cost less 5%
trade discount.

18. Journalise the following transactions:

(a) Goods worth Rs. 500 were used by Proprietor for domestic purposes.
(b) Good uninsured worth Rs. 3,000 were destroyed by fire.
(c) Paid Rs. 250 as wages on installation of new Machine.
(d) Sold goods costing Rs. 600 to Mohan issued at 10% above cost less 5% trade discount.

19. Journalise the following transactions:

(a) Received a cheque from J. Peterson Rs. 5,450. Allowed him discount Rs. 150.
(b) Returned goods to Sudarshan of the value of Rs. 350.
(c) Bought goods from Nilesh for cash Rs. 1,500.
(d) Paid to Sita Rs. 965 in full payment of her dues of Rs. 1,000.

20. Journalise the following transactions in the books of Harpreet Bros.:

(a) Rs. 1,000 due from Rohit are now bad debts.
(b) Goods worth Rs. 2,000 were used by the proprietor.
(c) Charge depreciation @ 10% p.a for two months on Machine costing Rs. 30,000.
(d) Provide interest on capital of Rs. 1,50,000 at 6% p.a. for 9 months.
(e) Rahul became insolvent, who owed us Rs. 2,000, a final dividend of 60 paise in a rupee is
received from his estate.

21. Prepare Journal from the transactions given below :

Rs.
(a) Cash paid for installation of machine 500
(b) Goods given as charity 2,000
(c) Interest charged on capital @ 7% p.a. when total capital were 70,000
(d) Received Rs. 1,200 of bad debts written off last year.
(e) Goods destroyed by fire 2,000
(f) Rent outstanding 1,000
(g) Interest on drawings 900
(h) Sudhir Kumar who owed me Rs. 3,000 has failed to pay the amount.
He pays me a compensation of 45 paise in a rupee.
(i) Commission received in advance 7,000

22. Journalise the following transactions in the the books of Ram:

(i) Beena who owed Rs. 1,500 is declared insolvent and 65 paise in a rupee is received as final
dividend from her eatate.
 (ii) Sold goods to Leela list price Rs. 2,000, trade discount 10% and cash discount 5%. She paid
the amount on the same day.
(iii) Rent due to landlord Rs. 500.
(iv) Goods worth Rs. 10,000 were destroyed by fire.

23. Journalise the following transactions in the books of M/s Abhishek Traders, Agra:
(i) Purchased goods from Manjul: Rs. 75,000 less 20% Trade discound plus 5% VAT.
(ii) Sales of goods to Rajul: Rs. 22,500 plus 10% VAT.
(iii) Pash Sales for receiving goods: Rs. 40,000 plus 10% VAT.
(iv) VAT was deposited in Government Account on the due date.

Illustration 3:
Pass journal entries to rectify the following errors assuming the existence of Suspense Account:
(i) Goods bought from Mukesh amounting to ` 5,500 was posted to the credit of his account as `
5,000.
(ii) Sales book was overcast by ` 10,000.
(iii) While carrying forward the total of one page of the Purchases Book to the next, the amount
of
` 2,12,350 was written as ` 2,13,250.
(iv) Cartage ` 780 paid on machinery newly acquired was debited to carriage inward account.
(v) Purchases returns to Shivalker Bros. ` 3,100 were not recorded in purchases returns book but
the
account of Shivalker Bros. was duly debited with the amount.
(vi) Drawings of goods costing 300 were not recorded in the books of account.
(vii) Whitewashing expenses, ` 670 were posted from cash book to the nominal account as ` 760.
Also prepare Suspense Account starting it with debit balance of ` 320. Have you any comments
to offer on
Suspense Account?

Journalise the following transactions:

2012 `
Mar., 2 Commenced business with cash 2,50,000
” 4 Purchased furniture for cash 20,000
” 4 Cash purchases 1,45,000
” 5 Deposited with bank 30,000
” 6 Purchase from Patil 40,000
Sold to Natarajan for cash 14,300
” 7 Stationery purchased 1,050
” 7 Purchase from Salil 26,000
” 7 Sold to Mukherjee 8,080
” 9 Rent for two years paid in advance 24,000
” 9 Drawings by the proprietor for household expenses 4,000
Goods taken out by the proprietor for domestic use 500
” 9 Cash withdrawn from Bank 25,000
” 10 Sold to Mathur on credit 9,850
” 11 Purchases made, payment through cheque 2,900
” 14 Cash received from Patil on account 10,000