chapter 3

10. Journalise the following transactions in the books of Harbhajan & Co. for the
month of 1st April 2019.
Balance on 1st April 2019
Cash in hand ` 35,000, Cash at Bank ` 25,000, Furniture ` 1,50,000, Laptop
`1,00,000, Debtors : Sangita ` 40,000, Viru ` 30,000Creditors : Ganesh ` 10,000,
Garima ` 40,000, Bank loan ` 50,000.
April 1 Purchased goods from Ajay kumar worth ` 2,50,000 at 10% Trade discount @18%
GST and paid 1/4 amount in Cash.
5 Purchased shares of Infosysis Company ` 50,000 and ` 500 paid as brokerage by
DematA/c.
8 Sold goods to Raj worth ` 90,000 at 10% Trade discount and 1/3 amount received by
cash and 5% cash discount is allowed.
12 Paid house rent of proprietor ` 9,000 and office rent ` 5,000.
15 Purchased Laptop of ` 60,000 @ 18% GST and paid amount by cheque.
20 Paid transport charges on the above Laptop ` 1,000 @ 18% GST.
25 Paid Commission ` 20,000 to Ram.
26 Paid Telephone Charges ` 1,000.
28 Transferred from private Bank A/c of proprietor to business Bank A/c ` 40,000.
30 Bought goods for ` 1,50,000 @ 12% as GST by cheque.
30 Exchanged our Furniture of ` 30,000 against a Motor car of the same value for
business.
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9. Journalise the following transactions in the books of Hero Enterprises.
Balance on 1st April 2019 Cash at Bank ` 80,000, Sundry Debtors Ram ` 20,000,
Rahim ` 30,000, Stock ` 55,000, Building ` 1,50,000. Credit Balances on 1st April
2019 Sundry Creditors Swapna ` 20,000, Rohit ` 30,000, Bank Loan ` 50,000
April 1 Purchased goods worth ` 1,50,000 from Prashant & Co., less 10% Trade
Discount.
4 Sold goods to Mr. Amit Sharma ` 70,000 at 10% Trade Discount on credit.
9 Purchased goods for cash ` 2,00,000 @28% GST amount paid by NEFT.
12 Sold Goods to Aditya Ray of ` 90,000 @28% GST.
15 Paid for Rent ` 5000 and Salary ` 18,000.
17 Paid for Proprietor's house Rent ` 12,000.
20 Sold half of the goods purchased on 9th April at 20% Profit and 28% GST.
25 Paid for Wages ` 1,500.
25 Purchased Furniture ` 1,80,000 @12% GST and amount paid by RTGS.
28 Sold an old Furniture of ` 20,000 for ` 12,000.
30 Sold shares of ` 10,000 for ` 15,000 and amount received by cheque.
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8. Journalise the following transactions in the books of Dhoni Auto Car Centre 2018
Nov 1 Sold 1,000 shares for ` 100 each and paid brokerage @ 1% and amount credited
to our account.
4 Purchased goods from Ashish & Co. of ` 2,00,000.
6 Sold goods to Virat & Co. ` 1,50,000.
8 Paid for Advertisement ` 30,000 to Times of India.
10 Paid for Printing and Stationery ` 7,000.
12 Purchased goods from Prakash & Co. 1,50,000 @18% GST.
15 Paid for Transport charges ` 10,000 @12% GST.
20 Purchased goods from Vikram & Sons ` 1,20,000 @ 18% GST and paid half the amount
immediately.
25 Paid to Prakash & Co. less 10% discount.
30 Invoiced Goods to Sanjay ` 60,000.
31 Sanjay returned goods of ` 10,000.
31 Sanjay became insolvent and recovered only 50 paise in a rupee as final
settlement from him.
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7. Journalise the following transactions in the books of Varun
Oct 1 Purchased Machinery of ` 95,000 and paid ` 5,000 for freight.
3 Purchased goods for ` 1,50,000 and amount paid by Bank.
6 Purchased Laptop from Nagesh & Co. worth ` 1,80,000 @ 18% GST.
10 Paid into Bank of Baroda ` 70,000.
12 Paid for Rent ` 4,000 and Commission ` 3,000.
15 Bought goods from Tushar Company Ltd. ` 1,20,000 at 12% GST and paid 1/2 amount
by RTGS.
16 Cash purchases ` 50,000 amount paid by cheque.
20 Invoiced goods to Satish ` 80,000 at 12% GST and amount received by cheque.
25 Paid for Telephone charges ` 90,000
27 Mrs. Varsha bought goods from us ` 90,000 at 12% Trade Discount.
28 Purchased goods from Abhijeet & Sons ` 1,50,000 at 18% GST.
30 Paid to Abhijeet & Sons and received 10% Cash Discount by cheque.
31. Paid for Advertisement ` 8,000 and Brokerage ` 12,000.
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6. Journalise the following transactions in the books of Nina General Stores
Sept 1 Sold goods of ` 50,000 at 10% Trade Discount and 10% Cash Discount to Raj
and received 50% by cheque and 20% by cash.
3 Bought goods worth ` 60,000 from Prashant at 7.5% Trade Discount and half amount
paid by cash.
5 Returned goods worth ` 550 to Prashant.
7 Sold goods worth ` 90,000 to Ranvir on credit at 10% Trade Discount.
12 Received Commission ` 4,500.
15 Received cheque of ` 80,000 from Ranvir in full settlement of his account.
18 Purchased Computer worth ` 80,000 from Reliance Company by cheque at 28% GST.
22 Wages paid ` 13,000.
23 Paid for Life Insurance premium ` 17,000.
27 Sold goods worth ` 28,000 to Tushar who paid us ` 18,000 immediately
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5. Journalise the following transactions in the books of Kunal Stores.
August 1 Purchased goods of ` 90,000 at 10% Trade Discount and 10% Cash Discount
from Rakesh and 1/3rd amount paid by cheque.
5 Opened current account in State Bank of India by depositing ` 60,000.
8 Cash purchases ` 85,000.
10 Goods sold on credit to Tushar ` 20,000 @ 10% Trade Discount.
12 Paid Salary ` 4,000.
16 Tushar returned goods of ` 250.
17 Goods taken by Kunal for his private use ` 2,000.
20 Purchased Laptop of ` 40,000 from Joshi Electronics @18% GST and paid by cheque.
22 Rent paid by cheque ` 15,000.
25 Purchased Motor car worth ` 2,00,000 for cash @ 18% GST and paid by Bank.
26 Goods distributed as free sample ` 4,000.
28 Purchased goods from Amit of ` 60,000 on credit.
30 Paid by ECS cash to Amit ` 58,500, who allowed us discount ` 1,500.
30 Sold goods ` 5,000 at a loss of ` 1,000
31 Sold goods for ` 20,000.
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4. Journalise the following transactions in the books of Sanjay General Stores.
June 1 Started business with cash ` 50,000, Bank ` 1,00,000, Goods worth ` 50,000.
5 Purchased goods from Mohan on credit ` 80,000 at 10% Trade Discount.
9 Sold goods to Urmila ` 30,000 at 5% Trade Discount.
12 Paid in to Dena Bank ` 40,000.
15 Goods worth ` 5000 distributed as free sample.
22 Paid for Commission ` 5,000 to Anand.
24 Received ` 28,000 from Urmila in full settlement of her account by Debit Card.
29 Paid for Advertisement ` 9,000/
30 Purchased Laptop for ` 20,000 @28% GST and amount paid by NEFT.
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3. Journalise the following transactions in the books of Ashok General Stores.
May 1 Received ` 5,000 from Ram on behalf of Bharat.
4 Purchased Goods for cash ` 55,000.
8 Paid for Salary ` 8,000.
12 Purchased goods from Ganesh ` 30,000 on credit.
17 Sold goods to Mrs. Neha ` 60,000 on credit.
20 Purchased Machinery of ` 80,000 @ 12% GST and amount paid by cheque.
25 Paid to SG & Sons by cheque ` 30,000.
28 Received Commission ` 10,000 from Ganesh.
30 Paid Rent ` 5000.
31 Purchased Shares of Atul Company Ltd. for ` 10,000 through Demat account.
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2. Journalise the following transactions in the books of Gajanan
May 3 Purchased goods for ` 90,000 and amount paid by Bank directly
7 Sold goods to Satish on credit ` 30,000.
9 Paid for Postage ` 10,000
12 Paid for Wages ` 15,000.
15 Received cheque of ` 30,000 from Sati.
21 Received Dividend ` 5000.
25 Purchased Laptop of ` 40,000 and paid by cheque.
28 Deposited cash ` 10,000 into State Bank of India.
31 Purchased goods for ` 40,000 and paid by RTGS
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1. Journalise the following transactions in the books of Anand General Merchants.
April 1 Mr. Anand started business with cash ` 60,000.
5 Purchased goods for cash ` 30,000.
7 Sold goods of ` 10,000 to Suresh.
10 Purchased Furniture from Mr. Govind on credit ` 30,000.
15 Paid for Rent ` 3000 and paid by debit card.
21 Purchased goods from Urmila on credit ` 70,000.
27 Paid for Transport ` 1,000 to United Transport.
30 Paid to Urmila ` 20,000 on behalf of Sharmila
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Q.9 Calculate the following :
1) Purchased Motor Car from Tata & Company worth ` 2,00,000 at 18% GST. Find out
GST amount.
2) Paid Transport charges ` 10,000 @ 5% GST. Calculate CGST & SGST.
3) Bought goods from Ranjan ` 10,000 @ 5% GST and 10% cash discount. Calculate cash
discount.
4) Received cheque of ` 90,000 from Kiran in full settlement of his account `
1,00,000/-.Calculate discount rate.
5) Sold goods of ` 1,00,000 at 10%. Trade Discount and 10% cash discount to Ram and
received 50% amount by cheque. Calculate the amount of cheque received.
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Q.8 Do you agree or disagree with following statements.
1) Narration is required for every entry.
2) GST stands for Goods and Sales Tax.
3) Trade discount is not recorded in the books of accounts.
4) Wages paid for installation of Machinery is debited to Wages Account.
5) The process of entering or recording the transactions in a Journal is called as
Journalising
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Q.7 Correct the following statements and rewrite the statements
1) All business transactions are recorded in the Journal.
2) Cash discount is not recorded in the books of accounts.
3) Journal is a book of Secondary entry.
4) GST is imposed by the Government of India from 1st July 2018.
5) Machinery purchased by the Proprietor decreases his capital.
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Q.5 Fill in the blanks.
1) The first book of original entry is the ………
2) The process of recording transaction into journal is called ……
3) An explanation of the transaction recorded in the journal ……
4) …… discount is not recorded in the books of accounts.
5) …… is concession allowed for bulk purchase of goods or for immediate payment.
6) Every Journal Entry requires ……
7) …… discount is always recorded in the books of accounts.
8) …… is the document on the basis of which the entry is recorded in journal.
9) There are …… parties to a cheque.
10) The …… cheque is more safe than other cheques as it cannot be encashed on the
counter of the bank.
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Q.4 State whether the following statements are True or False with reasons.
1) Narration is not required for each and every entry.
2) A journal voucher is must for all transactions recorded in the Journal.
3) Cash discount allowed should be debited to discount A/c.
4) Journal is a book of prime entry.
5) Trade discount is recorded in the books of accounts.
6) Goods lost by theft is debited to goods A/c.
7) If rent is paid to landlord, landlord's A/c should be debited.
8) Book Keeping records monetary and non-monetory transactions.
9) Drawings made by the proprietor increases his capital.
10) GST paid on purchase of goods Input tax A/c should be debited.
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Q.3 Select the most appropriate alternative from the alternatives given below and
rewrite
1) ……… means explanation of the transactions recorded in the Journal.a) Narration
b) Journalising c) posting d) Casting
2) ……… discount is not recorded in the books of accounts.a) Trade b) Cash c) GST d)
VAT
3) Recording of transaction in Journal is called ……a) posting b) journalising c)
narration d) prime entry
4) Every Journal entry require ……a) casting b) posting c) narration d) journalising
5) The ……… column of the Journal is not recorded at the time of journalising.a)
date b) particulars c) ledger folio d) amount
6) Goods sold on credit should be debited to ………a) purchase A/c b) customer A/c c)
sales A/c d) cash A/c
7) 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
8) The commission paid to the agent should be debited to ………a) drawing A/c b) cash
A/c c) commission A/c d) Agent A/c
9) Loan taken from Dena Bank should be credited to ……a) Capital A/c b) Dena Bank
A/c c) Cash A/c d) Dena Bank Loan A/c
10) Purchase of animals for cash should be debited to ……a) Live stock A/c b) Goods
A/c c) Cash A/c d) Bank A/c
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Q.2 Give one word/term or phrase for each of the following statements:
1) A book of prime entry.
2) The tax imposed by Central Government on Goods and Services
3) Brief explanation of an entry.
4) The process of recording transactions in the Journal.
5) The French word from which the word Journal is derived.
6) Concession given for immediate payment.
7) Entry in which more than one accounts are to debited or credited.
8) Anything taken by proprietor from business for his private use.
9) Tax payable to the Government on purchase of goods.
10) Page number of the ledger
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Q.1 A) Answer in One Sentence:
1) What is Journal ?
2) What is Narration ?
3) What is GST ?
4) In which year GST was imposed by the Central Government of India ?
5) What is meant by simple entry ?
6) What is the meaning of combined entry ?
7) Which account is debited, when rent is paid by Debit card ?
8) Which discount is not recorded in the books of account ?
9) In which order monthly transactions are recorded in a Journal ?
10) Which account is credited, when goods are sold on credit ?
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Illustration-8
Journalise the following transactions in the books of Reymond for the Month of
April 2019
April 1 Purchased goods from Kajal worth ` 2,00,000 at 5% Trade Discount and @ 18%
GST and ½ amount paid by cheque.
4 Purchased Shares of Mahindra Company ` 60,000 and ` 1,000 paid as Brokerage.
9 Sold goods to Ravikant worth ` 60,000 at 10% Trade Discount and @ 18% GST 1/3
amount received by cash at 5% Cash Discount.
10 Paid College Fees of proprietor’s son ` 1,000.
12 Purchased Computer of ` 50,000 @ 18% GST
15 Paid Transport charges on the above computer of ` 2,000.
20 Paid for Salary ` 15,000.
26 Paid for Rent ` 5,000 and ` Advertisement 15,000.
27 Sold goods to Salman ` 20,000 @ 18% GST .
30 Purchased Goods for ` 1,00,000 @ 12%GST and paid by cheque.
30 Wages Outstanding ` 20,000.
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Illustration-7
Journalise the following transactions in the books of Saniya Electronics, Pune
Debit balance on 1st April 2019 Cash at bank ` 50,000, Sundry Debtors ` 15,000,
Stock ` 35,000, Plant & Machinery ` 1,00,000, Credit balances on 1st April 2019
Sundry Creditor Varsha ` 10,000 Bank loan ` 40,000 .
April 1 Purchased goods worth ` 90,000 from Kangana @ 12% GST and amount paid by
Cheque.
5 Sold goods to Neha `30,000 @ 18% GST.
10 Sold goods to Sanjay of ` 50,000 @ 28% GST and payment received by Cheque.
14 Purchased Goods for Cash ` 50,000 @ 18% GST less 10% Cash Discount.
18 Paid for Advertisement ` 8,000.
20 Purchased a Horse for ` 40,000 and paid Carriage Charges ` 2,000.
22 Paid for Printing & Stationery ` 11,000.
26 Sold goods to Alok for Cash ` 13,000 @ 12% GST less 10% Cash Discount.
28 Received an amount of ` 1,000 from Varsha which was previously written off as
Bad Debts.
30 Goods costing ` 5,000 distributed as Free Sample.
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Illustration-6
Journalise the following transactions in the books of Rajwade Trading Company
May 1 Started business with Cash ` 1,00,000,Bank Balance ` 2,00,000 and Building `
2,00,000
3 Purchased goods from Ram of ` 50,000 at 18% GST.
5 Sold goods to Rakesh of ` 70,000 at 18% GST for Cash.
7 Paid for Repairs ` 5,000.
10 Placed an order with Ranveer and Sons for goods ` 60,000 at 12%GST
15 Paid for Wages ` 15,000.
18 Purchased goods from Mohan of ` 10,0000 at 12% GST.
20 Paid for Conveyance Expenses ` 7,000.
25 Purchased goods from Kishor of ` 50,000 at 28% GST and paid the amount by
Cheque.
30 Purchased Machinery of ` 50,000 at 18% GST and half the amount paid immediately
by Cheque.
31 Withdrew from Bank ` 10,000 for personal use.
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Illustration-5
Journalise the following transactions of in the books of Vishal Electronics
April 1 Vishal commenced business with Cash ` 90,000, and Furniture ` 60,000
Building ` 1,00,000.
4 Purchased Motor Car from Honda Company by Cheque ` 55,000 at 18% GST.
5 Paid Insurance of the above Car ` 3,000 to United India Insurance Company.
10 Paid into State Bank of India ` 40,000.
12 Paid for Salary ` 10,000 and Rent ` 3,000
15 Bought goods from Rajesh ` 80,000 and paid him ¼ amount in cash immediately.
18 Cash sales ` 60,000 @ 5% GST.
20 Received Rent ` 1,000 and Commission ` 4,000.
25 Paid for Telephone Charges ` 1,500.
27 Invoiced goods to Katrina for cash ` 75,000 at 5% GST.
29 Sunita brought goods from us ` 45,000 @ 5% GST .
30 Paid for Printing `17,000 by Debit Card of SBI.
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Illustration-4
Journalise the following transactions in the books of Shridevi Medical Store
August 1 Shridevi started business with own Cash ` 90,000 , Stock of goods worth `
40,000
Machinery worth ` 70,000 and borrowed money ` 50,000 from her friend Konika at 12%
p.a.
4 Bought goods worth ` 50,000 from Madhuri @ 10% trade discount .
6 Returned goods worth `450 to Madhuri for not being as per sample
8 Sold goods worth ` 80,000 to Kiran @ 10% trade discount and received cash after
allowing her 5% cash discount.
13 Paid for Rent ` 4,000.
17 Purchased a new Machinery worth `1,00,000 from Bajaj Ltd. at 28% GST and amount
paid by debit card.
20 Paid for Salary ` 27,000.
27 Purchased 4 Computers of ` 1,20,000 @18% GST and amount paid by Debit Card.
31 Withdrew from Bank ` 10,000 for personal use.
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Illustration-3
Journalise the following transactions in the books of Rajkumar Grocery Seller.
April 1 Rajkumar started business with Cash ` 2,00,000, Building ` 2,00,000 and
borrowed loan from Rakesh ` 50,000.
4 Deposited Cash into Dena Bank ` 50,000.
7 Purchased Computer from Brijesh of ` 30,000 @ 18% GST and paid by Cheque.
10 Cash Sales ` 90,000..
12 Goods sold on credit to Ganesh ` 10,000 at 5% Trade Discount.
15 Ganesh returned goods of ` 950.
18 Goods taken by Rajkumar for his personal use ` 1,000.
20 Paid Telephone Charges ` 500 and Taxi Fare ` 200.
22 Paid Transport Charges ` 5,000 @ 5% GST.
24 Paid Audit Fees ` 5,000 by Cheque.
26 Purchased Furniture of ` 70,000 and amount paid by cheque @ 12% GST.
28 Sold Motor Car worth ` 1,00,000 @18% GST and Sales proceeds credited to our
account.
30 Paid cash to Kavita ` 15,500,who allowed us discount ` 500.
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Illustration-2
Journalise the following transactions in the books of Sankalp General Stores
July 1 Started business with Cash ` 1,00,000, Stock of Goods worth ` 50,000,and
Computer ` 50,000.
4 Purchased goods from Karina on credit ` 10,000 at 5% trade discount.
10 Sold goods to Priyanka ` 20,000 at 10% trade discount.
13 Paid into State Bank of India ` 50,000.
15 Goods worth ` 2,000 lost by theft.
18 Paid for Rent ` 4,000.
20 Received Cash of ` 17,500 from Priyanka in full settlement of her account.
25 Paid for Stationery purchased ` 8,000.
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Example 2: Transaction :Sold goods worth `30,000 to Kishor who paid us `10,000 on
account.
ex 1 Started business with Cash ` 150,000 Goods, ` 30,000 and Laptop ` 50,000.
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Paid to Chanda ` 980 who allowed us discount ` 20
Received from Kartik ` 1,900 and allowed him discount ` 100
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Illustration-1
Journalise the following transactions in the books of Narendra General Stores
2019 April 1 Narendra commenced business with Cash ` 80,000
3 Purchased goods from Kiran ` 40,000 on credit
5 Paid rent ` 2,000
10 Sold goods to Mr.Vikas ` 55,000 on credit
15 Purchased Furniture of ` 30,000 @ GST 18%
18 Received a Bearer Cheque of ` 25,000 from Mr.Vikas
21 Paid to Kiran by Cheque of Dena Bank ` 20,000
30 Paid Salary ` 5000
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