Journalise the following transaction in the Books of the M/s Bhanu Traders and Post them into the Ledger - Accountancy - Recording of Transactions - I

Question

Journalise the following transaction in the Books of the
M/s Bhanu Traders and Post them into the Ledger

December, 2005

Rs

1

Started business with cash

92,000

2

Deposited into bank

60,000

4

Bought goods on credit from Himani

40,000

6

Purchased goods from cash

20,000

8

Returned goods to Himani

4,000

10

Sold goods for cash

20,000

14

Cheque given to Himani

36,000

17

Goods sold to M/s Goyal TradeRs

3,50,000

19

Drew cash from bank for personal use

2,000

21

Goyal traders returned goods

3,500

22

Cash deposited into bank

20,000

26

Cheque received from Goyal Traders

31,500

28

Goods given as charity

2,000

29

Rent paid

3,000

30

Salary paid

7,000

31

Office machine purchased for cash

3,000

Saurabh Mehta · Accepted Answer

Books of M/s Bhanu Traders

Journal

Date

Particulars

L F

Debit Amount
Rs

Credit Amount
Rs

2005

Dec 01

Cash
A/c

Dr

92,000

To Capital
A/c

92,000

(Started business with
cash)

Dec 02

Bank
A/c

Dr

60,000

To Cash A/c

60,000

(Cash deposited into
bank)

Dec 04

Purchases A/c

Dr

40,000

To Himani

40,000

(Goods purchased from
Himani)

Dec 06

Purchases A/c

Dr

20,000

To Cash A/c

20,000

(Goods purchased for
cash)

Dec 08

Himani

Dr

4,000

To Purchases Return
A/c

4,000

(Goods returned to
Himani)

Dec 10

Cash
A/c

Dr

20,000

To Sales A/c

20,000

(Goods sold for
cash)

Dec 14

Himani

Dr

36,000

To Bank A/c

36,000

(Cheque given to Himani)

Dec 17

M/s
Goyal Traders A/c

Dr

35,000

To Sales A/c

35,000

(Goods sold to M/s
Goyal Traders)

Dec 19

Drawings A/c

Dr

2,000

To Bank A/c

2,000

(Cash withdrawn from bank for
personal use)

Dec 21

Sales Return A/c

Dr

3,500

To M/s Goyal Traders

3,500

(Goods returned by
Goyal Traders)

Dec 22

Bank
A/c

Dr

20,000

To Cash A/c

20,000

(Cash deposited into
bank)

Dec 26

Bank
A/c

Dr

31,500

To M/s Goyal Traders

31,500

(Cheque received from M/s
Goyal Traders)

Dec 28

Charity A/c

Dr

2,000

To Purchases
A/c

2,000

(Goods given as
charity)

Dec 29

Rent
A/c

Dr

3,000

To Bank A/c

3,000

(Rent paid) see
note

Dec 30

Salaries A/c

7,000

To Cash A/c

7,000

(Salaries paid)

Dec 31

Office Machine A/c

3,000

To Cash A/c

3,000

(Office machinery
purchased)

Total

6,94,000

Cash Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 01

Capital

92,000

Dec 02

Bank

60,000

Dec 10

Sales

20,000

Dec 06

Purchases

20,000

Dec 22

Bank

20,000

Dec 30

Salaries

7,000

Dec 31

Office Machine

3,000

Dec 31

Balance c/d

2,000

1,12,000

Capital
Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 01

Cash

92,000

Dec 31

Balance c/d

92,000

Bank Account

Dr

Cr

Date

Particulars

J F

Amount Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 02

Cash

60,000

Dec 14

Himani

36,000

Dec 22

Cash

20,000

Dec 19

Drawings

2,000

Dec 26

Goyal
Traders

31,500

Dec 29

Rent (see
note)

3,000

Dec 31

Balance c/d

70,500

1,11,500

11,500

Note: For transaction on December 29,
2005, it has been assumed that the rent of Rs 3,000 is paid through
cheque If instead the rent would have been paid in cash, the cash
account would have shown a credit (negative) balance and that is
logically not correct

Purchases
Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 04

Himani

40,000

Dec 28

Charity

2,000

Dec 06

Cash

20,000

Dec 31

Balance c/d

58,000

60,000

Himani's
Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 08

Purchases Return

4,000

Dec 04

Purchases

40,000

Dec 14

Bank

36,000

40,000

Sales Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 10

Cash

20,000

Dec 31

Balance c/d

55,000

Dec 17

M/s
Goyal Traders

35,000

55,000

M/s Goyal Traders Account

Dr

Cr

Date

Particulars

J F

Amount Rs

Date

Particulars

J F

Amount Rs

2005

Dec 17

Sales

35,000

Dec 21

Sales Return

3,500

Dec 26

Bank

31,500

35,000

Purchases Return
Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 08

Himani

4,000

Dec 31

Balance c/d

4,000

Drawings
Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 19

Bank

2,000

Dec 31

Balance c/d

2,000

Sales Return
Account

Dr

Cr

Date

Particulars

J F

Amount Rs

Date

Particulars

J F

Amount Rs

2005

Dec 21

M/s
Goyal Traders

3,500

Dec 31

Balance c/d

3,500

Charity
Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 28

Purchases

2,000

Aug 31

Balance c/d

2,000

Rent Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 29

Cash

3,000

Dec 31

Balance c/d

3,000

Salaries
Account

Dr

Cr

Date

Particulars

J F

Amount Rs

Date

Particulars

J F

Amount
Rs

2005

Dec 30

Cash

7,000

Dec 31

Balance c/d

7,000

Office Machine
Account

Dr

Cr

Date

Particulars

J F

Amount Rs

Date

Particulars

J F

Amount Rs

2005

Dec 31

Cash

3,000

Dec 31

Balance c/d

3,000

Capital Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
				Dec.01	Cash		92,000
Dec.31	Balance c/d		92,000
			92,000				92,000

Bank Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.02	Cash		60,000	Dec.14	Himani		36,000
Dec.22	Cash		20,000	Dec.19	Drawings		2,000
Dec.26	Goyal Traders		31,500	Dec.29	Rent (see note)		3,000
				Dec.31	Balance c/d		70,500
			1,11,500				11,500

Purchases Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.04	Himani		40,000	Dec.28	Charity		2,000
Dec.06	Cash		20,000	Dec.31	Balance c/d		58,000

			60,000				60,000

Himani's Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.08	Purchases Return		4,000	Dec.04	Purchases		40,000
Dec.14	Bank		36,000

			40,000				40,000

Sales Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
				Dec.10	Cash		20,000
Dec.31	Balance c/d		55,000	Dec.17	M/s. Goyal Traders		35,000

			55,000				55,000

December, 2005		Rs
1	Started business with cash	92,000
2	Deposited into bank	60,000
4	Bought goods on credit from Himani	40,000
6	Purchased goods from cash	20,000
8	Returned goods to Himani	4,000
10	Sold goods for cash	20,000
14	Cheque given to Himani	36,000
17	Goods sold to M/s. Goyal TradeRs	3,50,000
19	Drew cash from bank for personal use	2,000
21	Goyal traders returned goods	3,500
22	Cash deposited into bank	20,000
26	Cheque received from Goyal Traders	31,500
28	Goods given as charity	2,000
29	Rent paid	3,000
30	Salary paid	7,000
31	Office machine purchased for cash	3,000

Books of M/s. Bhanu Traders
Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2005
Dec.01	Cash A/c		Dr.		92,000
		To Capital A/c				92,000
	(Started business with cash)

Dec.02	Bank A/c		Dr.		60,000
		To Cash A/c				60,000
	(Cash deposited into bank)

Dec.04	Purchases A/c		Dr.		40,000
		To Himani				40,000
	(Goods purchased from Himani)

Dec.06	Purchases A/c		Dr.		20,000
		To Cash A/c				20,000
	(Goods purchased for cash)

Dec.08	Himani		Dr.		4,000
		To Purchases Return A/c				4,000
	(Goods returned to Himani)

Dec.10	Cash A/c		Dr.		20,000
		To Sales A/c				20,000
	(Goods sold for cash)

Dec.14	Himani		Dr.		36,000
		To Bank A/c				36,000
	(Cheque given to Himani)

Dec.17	M/s. Goyal Traders A/c		Dr.		35,000
		To Sales A/c				35,000
	(Goods sold to M/s. Goyal Traders)

Dec.19	Drawings A/c		Dr.		2,000
		To Bank A/c				2,000
	(Cash withdrawn from bank for personal use)

Dec.21	Sales Return A/c		Dr.		3,500
		To M/s. Goyal Traders				3,500
	(Goods returned by Goyal Traders)

Dec.22	Bank A/c		Dr.		20,000
		To Cash A/c				20,000
	(Cash deposited into bank)

Dec.26	Bank A/c		Dr.		31,500
		To M/s. Goyal Traders				31,500
	(Cheque received from M/s. Goyal Traders)

Dec.28	Charity A/c		Dr.		2,000
		To Purchases A/c				2,000
	(Goods given as charity)

Dec.29	Rent A/c		Dr.		3,000
		To Bank A/c				3,000
	(Rent paid) see note

Dec.30	Salaries A/c				7,000
		To Cash A/c				7,000
	(Salaries paid)

Dec.31	Office Machine A/c				3,000
		To Cash A/c				3,000
	(Office machinery purchased)
		Total			6,94,000	6,94,000

Cash Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.01	Capital		92,000	Dec.02	Bank		60,000
Dec.10	Sales		20,000	Dec.06	Purchases		20,000
				Dec.22	Bank		20,000
				Dec.30	Salaries		7,000
				Dec.31	Office Machine		3,000
				Dec.31	Balance c/d		2,000

			1,12,000				1,12,000

M/s. Goyal Traders Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.17	Sales		35,000	Dec.21	Sales Return		3,500
				Dec.26	Bank		31,500
			35,000				35,000

Purchases Return Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
				Dec.08	Himani		4,000
Dec.31	Balance c/d		4,000
			4,000				4,000

Drawings Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.19	Bank		2,000
				Dec.31	Balance c/d		2,000
			2,000				2,000

Sales Return Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.21	M/s. Goyal Traders		3,500
				Dec.31	Balance c/d		3,500
			3,500				3,500

Charity Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.28	Purchases		2,000
				Aug.31	Balance c/d		2,000
			2,000				2,000

Rent Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.29	Cash		3,000
				Dec.31	Balance c/d		3,000
			3,000				3,000

Salaries Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.30	Cash		7,000
				Dec.31	Balance c/d		7,000
			7,000				7,000

Office Machine Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2005				2005
Dec.31	Cash		3,000
				Dec.31	Balance c/d		3,000
			3,000				3,000