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Page No 9.59:

Question 1:

Enter the following transactions in the Journal of Manohar Lal & Sons.:-

2019   ₹
March 1  Manohar Lal & Sons started business with cash 60,000
2  Purchased furniture for cash 10,000
4  Purchased goods for cash 25,000
5  Bought goods from Kamlesh 15,000
10  Paid cash to Kamlesh 15,000
16  Purchased goods from Sohan 6,000
18  Purchased goods from Sohan for cash 8,000
20  Paid rent for the office 1,000

Answer:

Journal
In the Books of Manohar Lal
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
2019          
Mar. 01 Cash A/c Dr.   60,000  
 
To Capital A/c
      60,000
  ( Started business with cash)        
           
Mar. 02 Furniture A/c Dr.   10,000  
 
To Cash A/c
      10,000
  (Furniture purchased for cash)        
           
Mar. 04 Purchases A/c Dr.   25,000  
 
To Cash A/c
      25,000
  ( Goods purchased for cash)        
           
Mar. 05 Purchases A/c Dr.   15,000  
 
To Kamlesh’s A/c
      15,000
  (Goods purchased from Kamlesh)        
           
Mar. 10 Kamlesh’s A/c Dr.   15,000  
 
To Cash A/c
      15,000
  (Cash  paid to Kamlesh)        
           
Mar. 16 Purchases A/c Dr.   6,000  
 
To Sohan’s A/c
      6,000
  (Goods purchased from Sohan)        
           
Mar. 18 Purchases A/c Dr.   8,000  
 
To Cash A/c
      8,000
  (Goods purchased from Sohan for cash)        
           
Mar. 20 Rent A/c Dr.   1,000  
 
To Cash A/c
      1,000
  (Paid office rent)        
TOTAL   1,40,000 1,40,000
       

 



Page No 9.60:

Question 2:

Enter the following transactions in the Journal of M/s Tripathi Bros. :-

2019   ₹
Jan. 6  Sold goods for cash 36,000
8  Sold goods to Hari 30,000
14  Received cash from Hari 18,000
26  Received Commission 750
27  Paid Salary to Gopal  1,200
28  Received cash from Hari 12,000
29  Withdrew cash from office for personal use 4,000
30  Wages paid 7,200
30  Bought Machinery for Cash 8,000

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

 

Jan 06

Cash A/c

Dr.

 

36,000

 

 

  To Sales A/c

 

 

 

36,000

 

(Sold goods for cash)

 

 

 

 

 

 

 

 

 

 

Jan 08

Hari A/c

Dr.

 

30,000

 

 

  To Sales A/c

 

 

 

30,000

 

(Sold goods to Hari)

 

 

 

 

 

 

 

 

 

 

Jan 14

Cash A/c

Dr.

 

18,000

 

 

  To Hari A/c

 

 

 

18,000

 

(Received cash from Hari)

 

 

 

 

 

 

 

 

 

 

Jan 26

Cash A/c

Dr.

 

750

 

 

  To Commission A/c

 

 

 

750

 

(Received commission)

 

 

 

 

 

 

 

 

 

 

Jan 27

Salary A/c

Dr.

 

1,200

 

 

  To Cash A/c

 

 

 

1,200

 

(Paid salary to Gopal)

 

 

 

 

 

 

 

 

 

 

Jan 28

Cash A/c

Dr.

 

12,000

 

 

  To Hari A/c

 

 

 

12,000

 

(Received cash from Hari)

 

 

 

 

 

 

 

 

 

 

Jan 29

Drawings A/c

Dr.

 

4,000

 

 

  To Cash A/c

 

 

 

4,000

 

(Drew cash for personal use)

 

 

 

 

 

 

 

 

 

 

Jan 30

Wages A/c

Dr.

 

7,200

 

 

  To Cash A/c

 

 

 

7,200

 

(Paid wages)

 

 

 

 

 

 

 

 

 

 

Jan 30

Machinery A/c

Dr.

 

8,000

 

 

  To Cash A/c

 

 

 

8,000

 

(Purchased machinery)

 

 

 

 

 

 

 

 

1,17,150

1,17,150

 

 

 

 

 

 

Page No 9.60:

Question 3:

Enter the following transactions in the Journal of Sahil Bros. :

2018     ₹
October 1 Purchased goods from Anil for Cash 40,000
  3 Purchased goods from Atul 75,000
  6 Returned goods to Atul 3,000
  8 Paid cash to Atul 50,000
  10 Sold goods to Charu 1,00,000
  12 Charu returned 20% of goods  
  15 Paid rent 2,000
  20 Sahil withdrew for personal use 10,000

Answer:

Journal
In the Books of Sahil
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
2018          
Oct. 01 Purchases A/c Dr.   40,000  
 
To Cash A/c
      40,000
  (Goods purchased from Anil for cash)        
           
Oct. 03 Purchases A/c Dr.   75,000  
 
To Atul’s A/c
      75,000
  (Goods purchased from Atul)        
           
Oct. 06 Atul’s A/c Dr.   3,000  
 
To Purchases Return A/c
      3,000
  (Goods returned to Atul)        
           
Oct. 08 Atul’s A/c Dr.   50,000  
 
To Cash A/c
      50,000
  (Cash paid to Atul)        
           
Oct. 10 Charu’s A/c Dr.   1,00,000  
 
To Sales A/c
      1,00,000
  ( Goods sold to Charu)        
           
Oct. 12 Sales Return A/c Dr.   20,000  
 
To Charu’s A/c
      20,000
  (Goods returned to Charu)        
           
Oct. 15 Rent A/c Dr.   2,000  
 
To Cash A/c
      2,000
  (Rent paid)        
           
Oct. 20 Drawings A/c Dr.   10,000  
 
To Cash A/c
      10,000
  (Cash withdrawn for personal use)        
  TOTAL   3,00,000 3,00,000
         

 

Page No 9.60:

Question 4:

Enter the following transactions in the Journal of Ganesh Bros. :

2017     ₹
March 3   Sold goods to Dev 1,00,000
5   Received from Dev in full settlement of his account 98,000
6   Sold goods to Manmohan 80,000
8   Manmohan returned goods 1,000
15   Received from Manmohan in full settlement of his account 78,200
16   Received cash from Ram 19,500
    and discount allowed 500
20   Paid cash to Pawan 4,700
    and discount received from him 300
25   Sold goods to Varun of the list price of ₹ 25,000 at 20% trade discount  

Answer:

Journal
In the Books of Ganesh
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
2017          
Mar. 03 Dev’s A/c Dr.   1,00,000  
 
To Sales A/c
      1,00,000
  (Goods sold to Dev)        
           
Mar. 05 Cash A/c Dr.   98,000  
  Discount Allowed A/c Dr.   2,000  
 
To Dev’s A/c
      1,00,000
  (Cash received from Dev in full settlement of his account)      
           
Mar. 06 Manmohan’s A/c Dr.   80,000  
 
To Sales A/c
      80,000
  (Goods sold to Manmohan)        
           
Mar. 08 Sales Return A/c Dr.   1,000  
 
To Manmohan’s A/c
      1,000
  (Goods returned to Manmohan)        
           
Mar. 15 Cash A/c Dr.   78,200  
  Discount Allowed A/c Dr.   800  
 
To Manmohan’s A/c
      79,000
  (Cash received from Manmohan in full settlement of his account)      
           
Mar. 16 Cash A/c Dr.   19,500  
  Discount Allowed A/c Dr.   500  
 
To Ram’s A/c
      20,000
  (Cash received from Ram and discount allowed)      
           
Mar. 20 Pawan’s A/c Dr.   5,000  
 
To Cash A/c
      4,700
 
To Discount Received A/c
      300
  (Cash  paid to Pawan and received discount)      
           
Mar. 25 Varun’s A/c Dr.   20,000  
 
To Sales A/c
      20,000
  (Goods sold @ 20% trade discount)      
  TOTAL   4,05,000 4,05,000
         

 

Page No 9.60:

Question 5:

Pass Journal entries in the books of Hari Shankar & Co. from the following:

2017   ₹
April 1  Commenced business with cash 50,000
2  Purchased goods from Subhash 20,000
4  Sold goods to Ramnath 15,000
6  Ramnath returned defective goods 1,000
10  Received cash from Ramnath and 13,800
   Discount allowed 200
12  Gopal sold goods to us 10,000
14  Paid to Gopal in full settlement of his account after deducting 5% discount.  
15  Paid Rent 10,000
16  Paid Rent of Hari Shankar's residence 5,000
18  Purchased goods for cash from Govind for ₹ 6,000 at 20% trade discount.  
20  Purchased goods from Govind for ₹ 10,000 at 20% trade discount.  
24  Paid to Govind ₹ 7,850 in full settlement of his account.  
25  Paid to Subhash ₹ 4,750; discount received ₹ 250.  
30  Paid Wages ₹ 400; Salaries ₹ 4,000; Advertisement expenses ₹ 800 and Trade expenses ₹ 1,000.  

Answer:

Journal
In the Books of Hari Shankar & Co.
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
2017          
Apr. 01 Cash A/c Dr.   50,000  
 
To Capital A/c
      50,000
  (Started business with cash)        
           
Apr. 02 Purchases A/c Dr.   20,000  
 
To Subhash’s A/c
      20,000
  (Goods purchased from Subhash)        
           
Apr. 04 Ramnath’s A/c Dr.   15,000  
 
To Sales A/c
      15,000
  (Goods sold to Ramnath)        
           
Apr. 06 Sales Return A/c Dr.   1,000  
 
To Ramnath’s A/c
      1,000
  (Goods returned to Ramnath)        
           
Apr. 10 Cash A/c Dr.   13,800  
  Discount Allowed A/c Dr.   200  
 
To Ramnath’s A/c
      14,000
  (Cash received from Ramnath and allowed discount)      
           
Apr. 12 Purchases A/c Dr.   10,000  
 
To Gopal’s A/c
      10,000
  (Goods purchased from Gopal)        
           
Apr. 14 Gopal’s A/c Dr.   10,000  
 
To Cash A/c
      9,500
 
To Discount Received A/c
      500
  (Cash paid to Gopal in full settlement of his account)      
           
Apr. 15 Rent A/c Dr.   10,000  
 
To Cash A/c
      10,000
  (Rent paid)        
           
Apr. 16 Drawings A/c Dr.   5,000  
 
To Cash A/c
      5,000
  (Rent paid for Hari Shankar’s residence)        
           
Apr. 18 Purchases A/c Dr.   4,800  
 
To Cash A/c
      4,800
  (Goods purchased for cash at 20% trade discount)      
           
Apr. 20 Purchases A/c Dr.   8,000  
 
To Govind’s A/c
      8,000
  (Goods purchased from Govind at 20% trade discount)      
           
Apr. 24 Govind’s A/c Dr.   8,000  
 
To Cash A/c
      7,850
 
To Discount Received A/c
      150
  (Cash paid to Govind in full settlement of his account)      
           
Apr. 25 Subhash’s A/c Dr.   5,000  
 
To Cash A/c
      4,750
 
To Discount Received A/c
      250
  (Cash paid to Subhash in full settlement of his account)      
           
Apr. 30 Wages A/c Dr.   400  
  Salaries A/c Dr.   4,000  
  Advertisement Expenses A/c Dr.   800  
  Trade Expenses A/c Dr.   1,000  
 
To Cash A/c
      6,200
  (Expenses paid)        
  TOTAL   1,67,000 1,67,000
         

 



Page No 9.61:

Question 6:

Enter the following transaction in the Journal of Marutinandan Stores:

2017    
Jan. 10   Purchased goods from Ghanshyam of the list price of ₹ 50,000 at 15% trade discount.
13   Returned goods to Ghanshyam of the list price of ₹ 2,000.
15   Paid cash to Ghanshyam ₹ 40,000 in full settlement of his account.
20   Purchased goods from Raghu of the list price of ₹ 60,000 at 10% trade discount.
22   Returned goods to Raghu of the list price of ₹ 5,000.
25   Paid cash to Raghu â‚¹ 49,000 in full settlement of his account.

Answer:

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

Page No 9.61:

Question 7:

Pass Journal Entries for the following transactions:

2017    
Jan 6   Sold goods to Muskan of the list price of ₹ 2,00,000 at trade discount of 20%.
8   Muskan returned goods of the list price of ₹ 5,000.
15   Received from Muskan the full payment under a cash discount of 4%.

Answer:

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

 

Page No 9.61:

Question 8:

Give Journal Entries for the following transactions in the books of Raja Ram & Co. :

2017    
March 3   Bought goods for cash of the list price of ₹ 80,000 at 10% trade discount and 212% cash discount.
5   Sold goods for cash of the list price of ₹ 1,00,000 at 15% trade discount and 3% cash discount.
6   Sold goods to Nagpal of the list price of ₹ 50,000 at 20% trade discount.
8   Nagpal returned one-fourth of the above goods.
10   Nagpal settled the account by paying cash under a discount of 5%.

Answer:

Journal
In the Books of Raja Ram
Date
Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
2017
         
Mar. 03
Purchases A/c Dr.   72,000  
 
  To Cash A/c       70,200
 
  To Discount Received A/c       1,800
 
(Goods purchased for cash and received cash discount)      
 
         
Mar. 05
Cash A/c Dr.   82,450  
 
Discount Allowed A/c Dr.   2,550  
 
  To Sales A/c       85,000
 
(Goods sold for cash and allowed cash discount)      
 
         
Mar. 06
Nagpal’s A/c Dr.   40,000  
 
  To Sales A/c       40,000
 
(Goods sold to Nagpal)        
 
         
Mar. 08
Sales Return A/c Dr.   10,000  
 
  To Nagpal’s A/c       10,000
 
(Goods returned by Nagpal)        
 
         
Mar. 10
Cash A/c Dr.   28,500  
 
Discount Allowed A/c Dr.   1,500  
 
  To Sales A/c       30,000
 
(Cash received in full settlement)      
 
TOTAL   2,37,000 2,37,000
 
       

 



Page No 9.62:

Question 9:

Pass Journal entries in the books of Raghunath Bros. from the following transactions:-

2016  
June 01 Raghunath Bros. started business with cash ₹ 80,000; Goods ₹ 40,000 and furniture ₹ 20,000.
June 02 Sold goods to Nandlal of the list price of ₹ 20,000 at trade discount of 10%.
June 04 Nandlal returned goods of the list price of ₹ 4,000.
June 08 Received from Nandlal ₹ 14,150 in full settlement of his account.
June 10 Purchased goods from Brij Mohan of the list price of ₹ 10,000 at 15% trade discount.
June 13 Returned goods to Brij Mohan of the list price of ₹ 1,000.
June 16 Settled the account of Brij Mohan by paying cash, under a discount of 4%.
June 18 Purchased goods from Anil ₹ 5,000; Sunil ₹ 10,000.
June 19 Paid cash to Anil ₹ 1,900 and discount received ₹ 100.
June 20 Paid ₹ 9,800 to Sunil in full settlement of his account.
June 20 Bought a 'Table Fan' for ₹ 8,000 for the domestic use of Raghunath.
June 25 Sold goods for cash of the list price of ₹ 8,000 at 10% trade discount and 3% cash discount.
June 30 Paid Rent ₹ 8,000; Trade Expenses ₹ 7,000 and Travelling Expenses ₹ 3,800.

Answer:

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

Page No 9.62:

Question 10:

Journalise the following transactions:

2019    
March 5   Sold goods to Shruti for ₹ 80,000 at 15% trade discount and 4% cash discount. Received 75% amount immediately through a cheque.
10   Purchased goods from Richa for ₹ 60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

 

Mar.05

Shruti

Dr.

 

68,000

 

 

    To Sales A/c

 

 

 

68,000

 

(Goods sold to Shruti at 15% trade discount)

 

 

 

 

 

 

 

 

 

 

Mar.05

Bank A/c

Dr.

 

48,960

 

 

Discount Allowed A/c

Dr.

 

2,040

 

 

    To Shruti

 

 

 

51,000

 

(Payment received and cash discount allowed)

 

 

 

 

 

 

 

 

 

 

Mar.10

Purchases A/c

Dr.

 

54,000

 

 

    To Richa

 

 

 

54,000

 

(Goods purchased from Richa at 10% trade discount)

 

 

 

 

 

 

 

 

 

 

Mar.10

Richa

Dr.

 

32,400

 

 

    To Bank A/c

 

 

 

30,780

 

    To Discount Received A/c

 

 

 

1,620

 

(Payment made and cash discount received)

 

 

 

 

 

 

 

 

 


 

Working Notes:

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

2. Amount of goods purchased would be Rs 54,000 (60,000 - 10% of 60,000) and cash discount would be Rs 1,620, it would be calculated on amount paid Rs 32,400 i.e., 60% of Rs 54,000

Page No 9.62:

Question 11:

Pass journal entries for the following:

2019    
Jan. 6   Purchased goods from Henry for ₹ 50,000 on 10% trade discount and 4% cash discount and paid 60% amount by cheque.
Jan. 15   Bought goods from Amit for ₹ 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.
Jan. 18   Sold goods to Sherpa at the list price of ₹ 50,000 less 20% trade discount and 4% cash discount if the payment is made within 7 days. 75% payment is received by cheque on Jan. 23rd.
Jan. 25   Sold goods to Garima for ₹ 1,00,000, allowed her 20% trade discount and 5% cash discount if the payment is made within 15 days. She paid 1/4th of the amount by cheque on Feb. 5th and 60% of the remainder on Feb.15th in cash

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
2019          
Jan. 06 Purchases A/c Dr.   45,000  
 
To Bank A/c (WN1)
      25,920
 
To Discount Received A/c
      1,080
 
To Henry’s A/c
      18,000
  (Goods purchased and discount received on cash payment)      
           
Jan. 15 Purchases A/c Dr.   1,60,000  
 
To Bank A/c
      1,14,000
 
To Discount Received A/c
      6,000
 
To Amit’s A/c
      40,000
  (Goods purchased and discount received on cash payment)      
           
Jan. 18 Sherpa’s A/c Dr.   40,000  
 
To Sales A/c
      40,000
  (Goods sold to Sherpa on credit)        
           
Jan. 23 Bank A/c Dr.   28,800  
  Discount Allowed A/c Dr.   1,200  
 
To Sherpa’s A/c
      30,000
  (75% payment received by Sherpa and allowed cash discount)      
           
Jan. 25 Garima’s A/c Dr.   80,000  
 
To Sales A/c
      80,000
  (Goods sold to Garima on credit)        
           
Feb. 05 Bank A/c Dr.   19,000  
  Discount Allowed A/c Dr.   1,000  
 
To Garima’s A/c
      20,000
  (Cheque received from Garima and allowed cash discount)      
           
Feb. 15 Cash A/c* Dr.   60,000  
 
To Garima’s A/c
      60,000
  (Cash received from Garima)        
  TOTAL   4,35,000 4,35,000
         

Working Notes:

WN1: Calculation of Payment made to Henry

 


WN2: Calculation of Payment made to Amit

 
 

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



Page No 9.63:

Question 12:

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

2018  
March 2 Sold goods to Dilip of the list price of ₹ 62,000 for ₹ 60,000.
16 Purchased goods costing ₹ 2,00,000 from Hari & Co. Paid 75% immediately by cheque to avail 4% discount.
20 Sold goods to Vishal Traders costing ₹ 40,000 at 25% profit, allowing 10% trade discount and 10% cash discount. Received 80% payment immediately by cheque.
26 Sold goods to Brij & Co. costing ₹ 50,000 at 40% profit, allowing 10% trade discount and 5% cash discount. Brij & Co. paid the full amount by cheque and availed cash discount.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2018

 

 

 

 

 

Mar 02

Dixit A/c
  To Sales A/c

Dr.

 

60,000


60,000

 

(Sold to Dixit)

 

 

 

 

 

 

 

 

 

 

Mar 16

Purchases A/c

Dr.

 

2,00,000

 

 

  To Hari & Co.

 

 

 

50,000

 

  To Bank A/c

 

 

 

1,44,000

 

  To Discount Received A/c

 

 

 

6,000

 

(Purchased from Hari & Co., 75% paid through cheque and partly credit)

 

 

 

 

 

 

 

 

 

 

Mar 20

Bank A/c

Dr.

 

9,000

 

 

Vishal Traders A/c

Dr.

 

32,400

 

 

Discount Allowed A/c

Dr.

 

3,600

 

 

  To Sales A/c

 

 

 

45,000

 

(Sold to Vishal Traders, partly received through cheque and partly credit)

 

 

 

 

 

 

 

 

 

 

Mar 26

Bank A/c

Dr.

 

59,850

 

 

Discount Allowed A/c

Dr.

 

3,150

 

 

  To Sales A/c

 

 

 

63,000

 

(Sold to Brij & Co., received fully through cheque)

 

 

 

 

 

 

 

 

3,68,000

3,68,000

 

 

 

 

 

 


 

Page No 9.63:

Question 13:

Journalise the following transactions:

2017     ₹
Jan. 1   Paid into bank for opening a Current Account 10,000
3   Goods sold for ₹ 50,000 and the amount was deposited into the bank  
7   Amount withdrawn from bank 20,000
10   Goods sold for Cash 15,000
12   Amount deposited into bank 12,000
14   Goods purchased and payment made by cheque. 25,000

Answer:

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

Page No 9.63:

Question 14(A):

Following balances appeared in the books of Radhika Traders as on 1st April, 2017:−
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors : ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000. 
In April, 2017, the following transaction took place:
2017     ₹
April 2   Bought goods of the list price of ₹ 6,000 from Khanna Brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.  
3   Received a draft from Mohan in full settlement and deposited it into Bank 9,750
5   Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque.  
8   Sold goods and received a cheque 25,000
10   Deposited the above cheque into Bank  
12   Sohan deposited in our Bank A/c 4,000
16   Paid Income Tax by Cheque 5,600
20   Received a cheque from Sohan and sent to Bank 7,800
    Discount allowed 200
21   Withdrew from Bank−for office 2,000
   
for private use
4,000
23   Sent a cheque to X in full settlement of his A/c 4,900
27   Cheque of Sohan returned by the bank as dishonoured.  
28   Dinesh was declared insolvent and a payment of 60 paise in a ₹ received from his estate by a Cheque  
30   Bank allowed Interest 350
    Paid for Rent by cheque 1,500
    Paid for traveling expenses by cheque 500
Pass Journal entries for the above transactions.

Answer:

Journal
In the Books of Radhika Traders
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
2017          
April 01 Cash in Hand A/c Dr.   8,000  
  Cash at Bank A/c Dr.   7,000  
  Stock A/c Dr.   30,000  
  Mohan’s A/c Dr.   10,000  
  Sohan’s A/c Dr.   12,000  
  Dinesh’s A/c Dr.   14,000  
  Furniture A/c Dr.   5,000  
  Building A/c Dr.   25,000  
    To X’s A/c       5,000
    To Y’s A/c       6,000
    To Capital A/c (Balancing figure)       1,00,000
  (Balances of previous year brought forward)      
           
April 02 Purchases A/c Dr.   5,100  
    To Khanna Brothers       3,060
    To Cash A/c       1,999
    To Discount Received A/c       41
  (Goods purchased and received discount on cash payment)      
           
April 03 Bank A/c Dr.   9,750  
  Discount Allowed A/c Dr.   250  
    To Mohan       10,000
  (Draft received from Mohan deposited into bank)      
           
April 05 Purchases A/c Dr.   6,400  
    To Bank A/c       6,400
  (Goods purchased and payment made by cheque)      
           
April 08 Cheques-in-Hand A/c Dr.   25,000  
    To Sales A/c       25,000
  (Goods sold and received a cheque)        
           
April 10 Bank A/c Dr.   25,000  
    To Cheques-in-Hand A/c       25,000
  (Cheque deposited into bank)        
           
April 12 Bank A/c Dr.   4,000  
    To Sohan’s A/c       4,000
  (Amount deposited by Sohan)        
           
April 16 Drawings A/c Dr.   5,600  
    To Cash A/c       5,600
  (Income tax paid)        
           
April 20 Bank A/c Dr.   7,800  
  Discount Allowed A/c Dr.   200  
    To Sohan’s A/c       8,000
  (Banked cash received from Sohan in full settlement)      
           
April 21 Drawings A/c Dr.   4,000  
  Cash A/c Dr.   2,000  
    To Bank A/c       6,000
  (Amount withdrawn for office and personal use)      
           
April 23 X Dr.   5,000  
    To Bank A/c       4,900
    To Discount Received A/c       100
  (Cheque issued to X in full settlement of his account)      
           
April 27 Sohan’s A/c Dr.   8,000  
    To Bank A/c       7,800
    To Discount Allowed A/c       200
  (Cheque received from Sohan gets dishonoured)      
           
April 28 Cash A/c Dr.   8,400  
  Bad Debts A/c Dr.   5,600  
    To Dinesh’s A/c       14,000
  (Cash received and bad-debts written off)      
           
April 30 Bank A/c Dr.   350  
    To Interest A/c       350
  (Interest allowed by bank)        
           
April 30 Rent A/c Dr.   1,500  
  Travelling Expenses A/c Dr.   500  
    To Bank A/c       2,000
  (Expenses paid through cheque)        
  TOTAL   2,35,450 2,35,450
         



Page No 9.64:

Question 14(B):

Following was the position of Harish & Co. as on 1st April, 2017 :−
Cash in Hand ₹ 10,000; Cash at Bank ₹ 16,800; Furniture ₹ 8,000; Stock ₹ 50,000; Debtors− Ram ₹ 8,000; Shyam ₹ 12,000; Creditors− Anil ₹ 4,000; Sunil ₹ 5,000.
Following transactions took place during April, 2017 :−

2017    
April 2   Received a cheque from Ram in full settlement of his account after deducting 5% cash discount.
4   Deposited the above cheque into Bank.
5   Goods purchased for ₹ 20,000 at 10% trade discount and 5% cash discount. Payment made by cheque.
6   Received a cheque from Shyam for ₹ 3,860 and discount allowed to him ₹ 140. Cheque deposited into the bank on the same day.
10   Cash paid to Anil after deducting 2% cash discount.
15   Old furniture sold for ₹ 800.
16   Sold goods to Shiv Parshad of the list price of ₹ 10,000 at a trade discount of 15%.
18   Shiv Parshad returned goods of the list price of ₹ 1,000.
20   Paid for furniture repairs to Bahadur Singh ₹ 100.
25   Received a cheque from Shiv Parshad after deducting 4% cash discount. Cheque was deposited into bank.
28   Bank charged ₹ 50 for 'Bank Charges'.
30   Received Commission ₹ 200.

Answer:

Journal
In the Books of Harish & Co.
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
2017          
April 01 Cash in Hand A/c Dr.   10,000  
  Cash at Bank A/c Dr.   16,800  
  Furniture A/c Dr.   8,000  
  Stock A/c Dr.   50,000  
  Ram’s A/c Dr.   8,000  
  Shyam’s A/c Dr.   12,000  
    To Anil’s A/c       4,000
    To Sunil’s A/c       5,000
    To Capital A/c (Balancing figure)       95,800
  (Previous year’s balances brought forward)      
           
April 02 Cheques-in-Hand A/c Dr.   7,600  
  Discount Allowed A/c Dr.   400  
    To Ram’s A/c       8,000
  (Cheque received from Ram in full settlement)      
           
April 04 Bank A/c Dr.   7,600  
    To Cheques-in-Hand A/c       7,600
  (Cheques-in-hand sent to bank)        
           
April 05 Purchases A/c Dr.   18,000  
    To Bank A/c       17,100
    To Discount Received A/c       900
  (Goods purchased for cash and received discount)      
           
April 06 Bank A/c Dr.   3,860  
  Discount Allowed A/c Dr.   140  
    To Shyam’s A/c       4,000
  (Cheque received from Shyam)        
           
April 10 Anil’s A/c Dr.   4,000  
    To Cash A/c       3,920
    To Discount Received A/c       80
  (Cash paid to Anil in full settlement)      
           
April 15 Cash A/c Dr.   800  
    To Furniture A/c       800
  (Furniture sold for cash)        
           
April 16 Shiv Parshad’s A/c Dr.   8,500  
    To Sales A/c       8,500
  (Goods sold to Shiv Parshad on credit)      
           
April 18 Sales Return A/c Dr.   850  
    To Shiv Parshad’s A/c       850
  (Goods returned by Shiv Parshad)        
           
April 20 Repairs A/c Dr.   100  
    To Cash A/c       100
  (Cash paid for repair of furniture)        
           
April 25 Bank A/c Dr.   7,344  
  Discount Allowed A/c Dr.   306  
    To Shiv Parshad’s A/c       7,650
  (Cheque received in full settlement)        
           
April 28 Bank Charges A/c Dr.   50  
    To Bank A/c       50
  (Bank charged some charges)        
           
April 30 Cash A/c Dr.   200  
    To Commission A/c       200
  (Commission received)        
  TOTAL   1,64,550 1,64,550
         

 



Page No 9.65:

Question 15:

Pass Journal Entries for the following transactions:−
1. Provide depreciation on Furniture ₹ 500 and on Machinery ₹ 2,000.
2. Received cash ₹ 1,000 for bad-debts written off last year.
3. Ajay Singh was declared bankrupt. He owed ₹ 2,500 to us. Nothing could be recovered from his estate.
4. ₹ 20,000 for wages and ₹ 4,000 for salaries are outstanding.
5. Purchased furniture for ₹ 6,000 for the proprietor and paid the amount by cheque.
6. Provide 9% interest on capital amounting to ₹ 2,00,000.
7. Charge interest on drawings ₹ 1,000.

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
1. Depreciation A/c Dr.   2,500  
    To Furniture A/c       500
    To Machinery A/c       2,000
  (Depreciation charged on furniture and machinery)      
           
2. Cash A/c Dr.   1,000  
    To Bad Debts Recovered A/c       1,000
  (Bad debts recovered)        
           
3. Bad Debts Dr.   2,500  
    To Ajay Singh’s A/c       2,500
  (Bad debts written-off)        
           
4. Wages A/c Dr.   20,000  
  Salaries A/c Dr.   4,000  
    To Outstanding Wages A/c       20,000
    To Outstanding Salaries A/c       4,000
  (Wages and Salaries were outstanding)        
           
5. Drawings A/c Dr.   6,000  
    To Bank A/c       6,000
  (Furniture purchased for personal use)        
           
6. Interest on Capital A/c Dr.   18,000  
    To Capital A/c       18,000
  (Interest on capital provided)        
           
7. Drawings A/c Dr.   1,000  
    To Interest on Drawings A/c       1,000
  (Interest on drawings charged)        
  TOTAL   55,000 55,000
         

Page No 9.65:

Question 16:

Pass journal entries for the following:

Jan. 5   Purchased goods for Cash ₹ 10,000 and spent ₹ 200 for their carriage.
Jan. 10   Purchased machinery for Cash ₹ 50,000 and spent ₹ 500 for its carriage.
Jan. 15   Paid ₹ 20,000 for cement, ₹ 10,000 for timber and ₹ 5,000 as wages for the construction of building.
Jan. 17   Purchased an old machinery for â‚¹ 20,000 and spent ₹ 2,500 on its immediate repairs.
Jan. 20   Paid ₹ 500 for repairing some other machinery.

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
Jan. 05 Purchases A/c Dr.   10,000  
  Carriage A/c Dr.   200  
    To Cash A/c       10,200
  (Goods purchased for cash and paid carriage)        
           
Jan. 10 Machinery A/c Dr.   50,500  
    To Cash A/c       50,500
  (Machinery purchased for cash and carriage paid)        
           
Jan. 15 Building A/c Dr.   35,000  
    To Cash A/c       35,000
  (Payment made for construction of building)        
           
Jan. 17 Machinery A/c Dr.   22,500  
    To Cash A/c       22,500
  (Machinery purchased and expenses paid)        
           
Jan. 20 Repairs A/c Dr.   500  
    To Cash A/c       500
  (Payment made for repairs)        
  TOTAL   1,18,700 1,18,700
         



Page No 9.66:

Question 17:

Enter the following transactions in the Journal of Arun Govil & Co. :

2018  
June 1 Arun Govil & Co. paid into bank as capital ₹ 6,00,000.
June 3 Purchased goods from Mukesh of the list price of ₹ 2,00,000 at 10% trade discount.
June 4 One-fourth of the above goods returned to Mukesh for not being upto specifications.
June 6 Issued a  cheque to Mukesh for the amount due to him after deducting 2% as cash discount.
June 7 Withdrew from bank ₹ 2,50,000 for office use and ₹ 10,000 for personal use.
June 10 Purchased a machinery for ₹ 1,00,000 and spent ₹ 5,000 on its installation. Payment for machinery was made by cheque and installation expenses were paid in cash.
June 12 Sold goods for ₹ 1,00,000 to Amar.
June 13 Amar clears his account by giving a cheque of ₹ 98,500. Cheque is immediately sent to bank.
June 15 Purchased stationery for personal use ₹ 3,000 and for office use ₹ 5,000.
June 20 Purchased land for ₹ 2,00,000 and paid 1% as brokerage and ₹ 15,000 as registration charges on it. Entire payment is made by Cheque.
June 30 Wages due to labourers ₹ 20,000 and salary due to the clerk ₹ 30,000.

Answer:

Journal
In the Books of Sh. Arun Govil & Co.
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
2018          
June 01 Bank A/c Dr.   6,00,000  
 
To Capital A/c
      6,00,000
  (Business started with cash)        
           
June 03 Purchases A/c Dr.   1,80,000  
 
To Mukesh’s A/c
      1,80,000
  (Goods purchased from Mukesh @ 10% trade discount)        
           
June 04 Mukesh’s A/c Dr.   45,000  
 
To Purchases Return A/c
      45,000
  (1/4th goods returned to Mukesh)        
           
June 06 Mukesh Dr.   1,35,000  
 
To Bank A/c
      1,32,300
 
To Discount Received A/c
      2,700
  (Cheque issued to Mukesh in full settlement)        
           
June 07 Drawings A/c Dr.   10,000  
  Cash A/c Dr.   2,50,000  
 
To Bank A/c
      2,60,000
  (Cash withdrawn for office and personal use)        
           
June 10 Machinery A/c Dr.   1,05,000  
 
To Bank A/c
      1,00,000
 
To Cash A/c
      5,000
  (Machinery purchased and paid installation charges)      
           
June 12 Amar’s A/c Dr.   1,00,000  
 
To Sales A/c
      1,00,000
  (Goods sold to Amar on credit)        
           
June 13 Bank A/c Dr.   98,500  
  Discount Allowed A/c Dr.   1,500  
 
To Amar’s A/c
      1,00,000
  (Cheque received from Amar in full settlement)        
           
June 15 Drawings A/c Dr.   3,000  
  Stationery A/c Dr.   5,000  
 
To Cash A/c
      8,000
  (Stationery purchased for office and personal use)      
           
June 20 Land A/c Dr.   2,17,000  
 
To Bank A/c
      2,17,000
  (Land purchased and brokerage paid)        
           
June 30 Salaries A/c Dr.   30,000  
  Wages A/c Dr.   20,000  
 
To Outstanding Wages A/c
      20,000
 
To Outstanding Salaries A/c
      30,000
  (Outstanding expenses provided)        
  TOTAL   18,00,000 18,00,000
         

Page No 9.66:

Question 18:

Journalise the following transactions of Raj Kumar Traders, timber merchants:-
1. Purchased timber from Kuldeep Kumar, for cash ₹ 2,000 and credit ₹ 10,000.
2. Paid to Kuldeep Kumar in full settlement of his account ₹ 9,950.
3. Paid rent in advance ₹ 10,000.
4. Purchased machinery for ₹ 1,00,000 by cheque and carriage ₹ 2,000 and installation charges ₹ 1,000 paid in Cash.
5. Purchased goods for ₹ 50,000 from Govind and sold it to Manohar for â‚¹ 65,000.

Answer:

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

 

Page No 9.66:

Question 19:

Pass Journal entries for the following transactions:−
1. Purchased Machinery for ₹ 20,000 and paid ₹ 200 for its carriage.
2. Received a cheque fo ₹ 4,850 from X in full settlement of his account of ₹ 5,000. Cheque was immediately deposited into bank.
3. Received by cheque a first and final payment of 60 paise in a ₹ from Y who owed us ₹ 10,000.
4. Sold goods to Z for ₹ 10,000 at a trade discount of 20%. Next day a cheque was received from him after deducting 5% cash discount. Cheque was immediately deposited into Bank.
5. Goods costing ₹ 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount.

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
1) Machinery A/c Dr.   20,200  
    To Cash A/c       20,200
  (Machinery purchased and paid for carriage)        
           
2) Bank A/c Dr.   4,850  
   Discount Allowed A/c Dr.   150  
    To X’s A/c       5,000
  (Cheque received from X in full settlement)        
           
3) Cash A/c Dr.   6,000  
  Bad Debts A/c Dr.   4,000  
    To Y’s A/c       10,000
  (Cash received and bad debts written-off)        
           
4) Z’s A/c Dr.   8,000  
    To Sales A/c       8,000
  (Goods sold to Z on credit)        
           
  Bank A/c Dr.   7,600  
  Discount Allowed A/c Dr.   400  
    To Z’s A/c       8,000
  (Cheque received in full settlement)        
           
5) Manoj’s A/c (WN) Dr.   21,600  
    To Sales A/c       21,600
  (Goods sold to Manoj)        
TOTAL   72,800 72,800
         

Working Notes: Calculation of amount of goods sold to Manoj



Page No 9.67:

Question 20:

Journalise the following transactions:−
1. Goods for ₹ 50,000 were destroyed by fire.
2. Goods worth ₹ 18,000 were distributed as free samples and ₹ 20,000 were given away as charity in cash.
3. Goods worth ₹ 25,000 and cash ₹ 40,000 were taken away by the proprietor for his personal use.
4. Goods worth ₹ 20,000 and cash ₹ 5,000 were given away as charity.
5. Cash ₹ 1,00,000 were stolen from the Iron Safe of the trader.

Answer:

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

 

Page No 9.67:

Question 21:

Journalise the following transactions:−
(i) Sold goods to Brijesh of the list price of ₹ 10,000 at trade discount of 5%. Received full payment in cash.
(ii) Goods given away as charity ₹ 1,000.
(iii) Charge interest on capital of ₹ 5,00,000 @ 7% p.a.
(iv) Outstanding wages ₹ 3,000.
(v) ₹ 5,000 due from Sunny are now bad debts.
(vi) ₹ 50,000 cash sales (of goods costing ₹ 40,000).

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
1) Cash A/c Dr.   9,500  
 
To Sales A/c
      9,500
  (Goods sold for cash to Brijesh)        
           
2)  Charity A/c Dr.   1,000  
 
To Purchases A/c
      1,000
  (Goods given away as charity)        
           
3) Interest on Capital A/c Dr.   35,000  
 
To Capital A/c
      35,000
  (Interest on capital provided)        
           
4) Wages A/c Dr.   3,000  
 
To Outstanding Wages  A/c
      3,000
  (Outstanding wages provided)        
           
5) Bad Debts A/c Dr.   5,000  
 
To Sunny’s A/c
      5,000
  (Bad debts written-off)        
           
6) Cash A/c Dr.   50,000  
 
To Sales A/c
      50,000
  (Goods sold for cash)        
  TOTAL   1,03,500 1,03,500
         

Page No 9.67:

Question 22:

Prepare journal from the transactions given below:−
(a) Proprietor withdrew for private use ₹ 10,000 from bank.
(b) Goods costing ₹ 50,000 were burnt by fire.
(c) Purchased machinery for cash ₹ 1,50,000 and paid ₹ 2,000 on its installation.
(d) Charge 5% depreciation on building costing ₹ 2,00,000 and 8% depreciation on furniture costing ₹ 5,000.
(e) Prepaid salary ₹ 2,000.
(f) Kapil who owed us ₹ 20,000 becomes insolvent and nothing is received from his estate.

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
a) Drawings A/c Dr.   10,000  
 
To Bank A/c
      10,000
  (Cash withdrawn from bank for personal use)      
           
b) Loss by Fire A/c Dr.   50,000  
 
To Purchases A/c
      50,000
  (Goods destroyed by fire)        
           
c) Machinery A/c Dr.   1,52,000  
 
To Cash A/c
      1,52,000
  (Purchased machinery for cash and installation charges were paid)      
           
d) Depreciation A/c Dr.   10,400  
 
To Building A/c
      10,000
 
To Furniture A/c
      400
  (Depreciation charged on building and furniture)      
           
e) Prepaid Salary A/c Dr.   2,000  
 
To Salary A/c
      2,000
  (Prepaid salary recorded)        
           
f) Bad Debts A/c Dr.   20,000  
 
To Kapil’s A/c
      20,000
  (Bad debts written-off)      
  TOTAL   2,44,400 2,44,400
         

Page No 9.67:

Question 23:

Journalise the following transactions in the Journal of Navin Gupta & Sons.:-
1. Out of Insurance premium paid this year, ₹ 15,000 is related to next year.
2. Credit purchases from Ram & Co. for ₹ 50,000. Cash discount will be received at 5% on payment of bill within 10 days.
3. Cash paid to Ram & Co. and discount availed of.
4. Paid Income Tax ₹ 20,000 by cheque.
5. Goods costing ₹ 2,00,000 sold for cash at a profit of 10%.
6. Purchased iron safe for ₹ 2,00,000 filing cabinet for ₹ 50,000 and Computer for ₹ 1,00,000.

Answer:

Journal
In the Books of Sh. Navin Gupta
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
1) Prepaid Insurance A/c Dr.   15,000  
 
To Insurance A/c
      15,000
  (Prepaid insurance recorded)        
           
2) Purchases A/c Dr.   50,000  
 
To Ram & Co.
      50,000
  (Goods purchased on credit from Ram & Co.)      
           
3) Ram & Co. Dr.   50,000  
 
To Cash A/c
      47,500
 
To Discount Received A/c
      2,500
  (Cash paid to Ram & Co. in full settlement)      
           
4) Drawings A/c Dr.   20,000  
 
To Cash A/c
      20,000
  (Paid income tax)        
           
5) Cash A/c Dr.   2,20,000  
 
To Sales A/c
      2,20,000
  (Goods sold for cash including profit of 10%)      
           
6) Office Equipment A/c Dr.   3,50,000  
 
To Cash A/c
      3,50,000
  (Office equipment purchased)      
  TOTAL   7,05,000 7,05,000
         



Page No 9.68:

Question 24:

Journalise the following transactions in the books of Kanishk Traders:

(i) Sold goods costing â‚¹ 1,20,000 to Charu at a profit of 3313% on cost less 15% Trade Discount.
(ii) Sold goods costing ₹ 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount.
(iii) Paid by cheque ₹ 8,400 as insurance premium for a period of 12 months starting 1st August 2016. Financial year closes on 31st March every year.
 

Answer:

Journal
In the Books of Kanishk
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
i) Charu’s A/c (WN1) Dr.   1,36,000  
 
To Sales A/c
      1,36,000
  (Goods sold to Charu)        
           
ii) Bank A/c (WN2) Dr.   85,000  
 
To Sales A/c
      85,000
  (Goods sold to Arun)        
           
iii) Insurance A/c Dr.   8,400  
 
To Bank A/c
      8,400
  (Insurance premium paid through cheque)      
           
  Prepaid Insurance A/c Dr.   2,800  
 
To Insurance A/c
      2,800
  (Insurance premium paid in advance for four months)      
  TOTAL   2,32,200 2,32,200
         

Working Notes:

WN1: Calculation of amount of goods sold to Charu

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


WN2: Calculation of amount of goods sold to Arun

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

Page No 9.68:

Question 25:

Journalise the following:−

2017    
March 4   Purchased building for ₹ 1,50,000 and incurred expenses of ₹ 10,000 on its purchase.
March 10   Satish who owed us ₹ 20,000 is declared insolvent and 60 paise per ₹ is received from his estate.
March 15   Paid ₹ 500 for repairing the office furniture.
March 18   Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 2,000.
March 20   Purchased the following items for business:
    Iron Safe ₹ 15,000; Filing Cabinet ₹ 5,000; Computer ₹ 12,000; Postage ₹ 200 and Stationery ₹ 150.
March 28   Paid electricity charges ₹ 1,600.
March 31   Charge depreciation on Machinery @ 10% for one year (Machinery ₹ 75,000).
March 31   Outstanding wages at the end of the year ₹ 6,000.

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
2017          
Mar. 04 Building A/c Dr.   1,60,000  
 
To Bank A/c
      1,60,000
  (Building purchased and expenses paid)      
           
Mar. 10 Cash A/c Dr.   12,000  
  Bad Debts A/c     8,000  
 
To Satish’s A/c
      20,000
  (Cash received from Satish and bad debts written-off)      
           
Mar. 15 Repairs A/c Dr.   500  
 
To Cash A/c
      500
  (Payment made for repair of office furniture)        
           
Mar. 18 Drawings A/c Dr.   7,000  
 
To Cash A/c
      5,000
 
To Purchases A/c
      2,000
  (Cash and goods withdrawn for personal use)        
           
Mar. 20 Office Equipment A/c Dr.   32,000  
 
To Cash A/c
      32,000
  (Purchased iron safe, filling cabinet and typewriter)      
           
Mar. 20 Postage & Stationery A/c Dr.   350  
 
To Cash A/c
      350
  (Expenses paid for postage and stationery)      
           
Mar. 28 Electricity Charges A/c Dr.   1,600  
 
To Cash A/c
      1,600
  (Paid electricity charges)        
           
Mar. 31 Depreciation A/c Dr.   7,500  
 
To Machinery A/c
      7,500
  (Depreciation charged on machinery)      
           
Mar. 31 Wages A/c Dr.   6,000  
 
To Outstanding Wages A/c
      6,000
  (Outstanding wages recorded)        
  TOTAL   2,34,950 2,34,950
         

Page No 9.68:

Question 26:

Journalise the following:
1. Purchased goods for ₹ 25,000 for Cash and paid ₹ 200 for carriage on these goods.
2. Purchased goods for ₹ 40,000 on Credit from Sudhir and paid ₹ 500 for carriage on these goods.
3. Purchased machinery for ₹ 20,000 and spent ₹ 500 on its carriage and ₹ 300 on its installation.
4. Purchased goods from Anil for ₹ 15,000.
5. Sold 13rd of the above goods at a profit of 20% on cost.
6. Goods costing ₹ 12,000 sold to Mr. X, issued invoice at 25% above cost less 10% trade discount.
7. Provide 20% depreciation on furniture costing ₹ 10,000.
8. Gave as charity − Cash ₹ 500 and Goods ₹ 2,000.

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
1) Purchases A/c Dr.   25,000  
  Carriage A/c Dr.   200  
 
To Cash A/c
      25,200
  (Purchased goods for cash and carriage paid)        
           
2) Purchases A/c Dr.   40,000  
 
To Sudhir’s A/c
      40,000
  (Goods purchased on credit from Sudhir)        
           
  Carriage A/c Dr.   500  
 
To Cash A/c
      500
  (Carriage paid on goods purchased from Sudhir)        
           
3) Machinery A/c Dr.   20,800  
 
To Bank A/c
      20,800
  (Machinery purchased and expenses paid)        
           
4) Purchases A/c Dr.   15,000  
 
To Anil’s A/c
      15,000
  (Purchased goods on credit from Anil)        
           
5) Cash A/c Dr.   6,000  
 
To Sales A/c
      6,000
  (Goods purchased from Anil sold for cash at a profit of 20% on cost)      
           
6) X’s A/c (WN) Dr.   13,500  
 
To Sales A/c
      13,500
  (Goods sold to X)        
           
7) Depreciation A/c Dr.   2,000  
 
To Furniture A/c
      2,000
  (Depreciation charged on furniture)        
           
8) Charity A/c Dr.   2,500  
 
To Cash A/c
      500
 
To Purchases A/c
      2,000
  (Cash and goods given in charity)        
  TOTAL   1,25,500 1,25,500
         

Working Notes: Calculation of amount of goods sold to X



Page No 9.69:

Question 27:

Journalise the following:
 
(i) Received a V.P.P. from Mohan Lal for ₹ 25,000. Sent a peon to collect it who paid ₹ 200 as cartage.
(ii) Received ₹ 1,000 from sales of old newspapers and ₹ 5,000 from sales of old chairs.
(iii) Goods given away as charity goods costing ₹ 7,000.
(iv) Received Cash from a debtor written off as bad-debt last year ₹ 20,000.
(v) Sold goods costing ₹ 50,000 to Ashok on credit at a profit of 20% on cost.
(vi) Sold goods costing ₹ 1,00,000 for ₹ 1,40,000.
(vii) Provide ₹ 50,000 as interest on Capital.
(viii) Paid rent of building ₹ 60,000 by cheque. Half the building is used by the proprietor for residential purpose.
(ix) Outstanding salary at the end of the year ₹ 30,000.

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
i) Purchases A/c Dr.   25,000  
  Cartage A/c Dr.   200  
 
To Cash A/c
      25,200
  (VPP received and cartage paid)        
           
ii) Cash A/c Dr.   1,000  
 
To Sundry Income A/c
      1,000
  (Income received from sale of old newspapers)      
           
  Cash A/c Dr.   5,000  
 
To Furniture A/c
      5,000
  (Cash received from sale of old chairs)      
           
iii) Charity A/c Dr.   7,000  
 
To Purchases A/c
      7,000
  (Goods given away as charity)      
           
iv) Cash A/c Dr.   20,000  
 
To Bad Debts Recovered A/c
      20,000
  (Bad debts recovered)        
           
v) Ashok’s A/c Dr.   60,000  
 
To Sales A/c
      60,000
  (Goods sold on credit to Ashok at a profit of 20%)      
           
vi) Cash A/c Dr.   1,40,000  
 
To Sales A/c
      1,40,000
  (Goods sold for cash)        
           
vii) Interest on Capital A/c Dr.   50,000  
 
To Capital A/c
      50,000
  (Provided interest on capital)      
           
viii) Rent A/c Dr.   30,000  
  Drawings A/c     30,000  
 
To Bank A/c
      60,000
  (Rent paid for the building)      
           
ix) Salary A/c Dr.   30,000  
 
To Outstanding Salary A/c
      30,000
  (Outstanding salary provided)      
  TOTAL   3,98,200 3,98,200
         

Page No 9.69:

Question 28:

Journalise the following transactions:
 
2018  
April 1 Purchased goods for ₹ 1,00,000 from Manoj and availed discount of ₹ 10,000.
2 Paid amount due to Manoj by cheque and availed discount of ₹ 4,500.
5 Cash ₹ 5,000 paid to Desai and discount allowed by him ₹ 200.
10 Cash ₹ 10,000 received from Govardhan and allowed him discount ₹ 500.
12 Sold personal Car of the proprietor for ₹ 80,00 against cheque, which was deposited into the firm's bank account.
16 Sold personal Car of the proprietor for ₹ 1,50,000 against cheque, which was deposited into the proprietor's personal bank account.
20 Sold goods to Gaurav costing ₹ 1,00,000 at a profit of 40% and allowed him 10% trade discount and paid for cartage ₹ 3,000 not to be charged from him.
24 Placed an order with Rudra & Co. for supply of goods of ₹ 80,000 and a cheque for 40% amount is sent to them as an advance.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2018

 

 

 

 

 

Apr 01

Purchases A/c

Dr.

 

90,000

 

 

  To Manoj

 

 

 

90,000

 

(Purchased from Manoj)

 

 

 

 

 

 

 

 

 

 

Apr 02

Manoj A/c

Dr.

 

90,000

 

 

  To Bank A/c

 

 

 

85,500

 

  To Discount Received A/c

 

 

 

4,500

 

(Paid to Manoj)

 

 

 

 

 

 

 

 

 

 

Apr 05

Desai A/c

Dr.

 

5,200

 

 

  To Cash A/c

 

 

 

5,000

 

  To Discount Received A/c

 

 

 

200

 

(Paid to Desai)

 

 

 

 

 

 

 

 

 

 

Apr 10

Cash A/c

Dr.

 

10,000

 

 

Discount Allowed A/c

 

 

500

 

 

  To Govardhan A/c

 

 

 

10,500

 

(Cash received from Govardhan)

 

 

 

 

 

 

 

 

 

 

Apr 12

Bank A/c

Dr.

 

80,000

 

 

  To Capital A/c

 

 

 

80,000

 

(Sold personal car and invested in business)

 

 

 

 

 

 

 

 

 

 

Apr 16

No entry

 

 

 

 

 

 

 

 

 

 

Apr 20

Gaurav A/c

Dr.

 

1,26,000

 

 

  To Sales A/c

 

 

 

1,26,000

 

(Sold to Gaurav)

 

 

 

 

 

 

 

 

 

 

 

Carriage Outwards A/c

Dr.

 

3,000

 

 

  To Cash A/c

 

 

 

3,000

 

(Cartage paid on sales)

 

 

 

 

 

 

 

 

 

 

Apr 24

Advance for Purchases A/c

Dr.

 

32,000

 

 

  To Bank A/c

 

 

 

32,000

 

(Advance cheque sent to Rudra and Co. against a purchase order)

 

 

 

 

 

 

 

 

4,36,700

4,36,700

 

 

 

 

 

 



Page No 9.70:

Question 29:

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

 
S. No. Particulars L.F. Amount
Dr.

(₹)
Amount
Cr.

(₹)
(i)   Dr.      
    Dr.      
 
To
       
  (Goods of the list price of ₹ 5,000 sold at 10% trade discount and 2% cash discount)      
           
(ii)          
  (The purchase of Motor Car for ₹ 80,000 and the payment of ₹ 5,000 as repairs charges on it. Entire payment is made by cheque)        
           
(iii) Chaturvedi’s Dr.   5,000  
 
To Cash A/c
       
 
To
       
  (Chaturvedi’s account settled, cash discount three percent)      
           
(iv) Bank A/c Dr.      
    Dr.      
 
To
      8,400
  (70 paise per rupee received from the estate of Ashok on his insolvency)      
           
(v)   Dr.   3,000  
 
To
      3,000
  (For goods used by proprietor for personal use)        
           
(vi)   Dr.   2,000  
 
To
      2,000
  (For Rent due to landlord)      

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
i) Cash A/c Dr.   4,410  
  Discount Allowed A/c Dr.   90  
 
To Sales A/c
      4,500
  (Goods of the list price of Rs 5,000 sold at 10% trade discount and 2% cash discount)      
           
ii) Motor Car A/c Dr.   85,000  
 
To Cash A/c
      85,000
  (The purchase of Motor Car for Rs 80,000 and the payment of Rs 5,000 as repairs charges on it)        
           
iii) Chaturvedi’s A/c Dr.   5,000  
 
To Cash A/c
      4,850
 
To Discount Received A/c
      150
  (Chaturvedi’s account settled, cash discount three percent)      
           
iv) Cash A/c Dr.   5,880  
  Bad Debts A/c Dr.   2,520  
 
To Ashok’s A/c
      8,400
  (70 paise per rupee received from the estate of Ashok on his insolvency)      
           
v) Drawings A/c Dr.   3,000  
 
To Purchases A/c
      3,000
  (For goods used by proprietor for personal use)        
           
vi) Rent A/c Dr.   2,000  
 
To Outstanding Rent A/c
      2,000
  (For Rent due to landlord)        
  TOTAL   1,07,900 1,07,900
         

Page No 9.70:

Question 30:

Rectify the following entries assuming that the narration in each case is correct:

 
Date Particulars L.F. Amount
Dr.

(Rs)
 Amount
Cr.

(Rs)
2017          
May 04 Building A/c Dr.   5,00,000  
  Brokerage A/c Dr.   10,000  
 
To Bank A/c
      5,10,000
  (Purchase of building and payment of brokerage on its purchase)      
           
May 10 Drawings A/c Dr.   12,000  
 
To Sales A/c
      12,000
  (Goods taken away by the proprietor for personal use)      
           
May 16 Filing Cabinet A/c Dr.   4,000  
  Electric Fan A/c Dr.   2,500  
 
To Cash A/c
      6,500
  (Purchase of filing cabinet and an electric fan)      
           
May 18 Cash A/c Dr.   8,730  
 
To Sales A/c
      8,730
  (Goods worth ₹ 10,000 sold at 10% trade discount and 3% cash discount)      
           
May 20 Bank A/c Dr.   10,000  
 
To Naresh
      10,000
  (Receipt of 25 paise per rupee from the estate of Naresh who is declared insolvent)      
           
May 31 Bank Charges A/c Dr.   150  
 
To Cash A/c
      150
  (Charges made by bank for its services)      

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
2017          
May 04 Building A/c* Dr.   5,10,000  
 
To Cash A/c
      5,10,000
  (Purchase of building and payment of brokerage on its purchase)      
           
May 10 Drawings A/c Dr.   12,000  
 
To Purchases A/c
      12,000
  (Goods taken away by the proprietor for personal use)      
           
May 16 Office Equipment A/c Dr.   6,500  
 
To Cash A/c
      6,500
  (Purchase of filling cabinet and an electric fan)      
           
May 18 Cash A/c (WN1) Dr.   8,730  
  Discount Allowed A/c     270  
 
To Sales A/c
      9,000
  (Goods worth Rs 10,000 sold at 10% trade discount and 3% cash discount)      
           
May 20 Cash A/c (WN2) Dr.   10,000  
  Bad Debts A/c      30,000  
 
To Naresh
      40,000
  (Receipt of 25 paise per rupee from the estate of Naresh who is declared insolvent)      
           
May 31 Bank Charges A/c Dr.   150  
 
To Bank A/c
      150
  (Charges made by bank for its services)      
  TOTAL   5,77,650 5,77,650
         

* Payment of brokerage will be included in cost of the building as it is incurred at time of purchase of building.

Working Notes:

WN1: Calculation of amount of goods sold

 


WN2: Calculation of amount of bad debts

 



Page No 9.71:

Question 31:

Journalise the following transactions:
(a) Goods destroyed by Fire for ₹ 5,000.
(b) Paid by cheque ₹ 25,000 as wages on installation of a Machinery.
(c) Issued a cheque in favour of M/s Parmatma Saran & Sons on account of purchase of goods ₹ 75,000.
(d) Goods sold costing ₹ 60,000 to M/s Kalu Sons at an invoice price 10% above cost less 5% Trade discount.

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
(a) Loss by Fire A/c Dr.   5,000  
 
To Purchases A/c
      5,000
  (Goods destroyed by fire)        
           
(b) Machinery A/c Dr.   25,000  
 
To Cash A/c
      25,000
  (Wages paid for installation of machinery)        
           
(c) Purchases A/c Dr.   75,000  
 
To Bank A/c
      75,000
  (Cheque issued for purchase of goods)        
           
(d) M/s Kalu & Sons (WN) Dr.   62,700  
 
To Sales A/c
      62,700
  (Goods sold to M/s Kalu & Sons on credit)        
  TOTAL   1,67,700 1,67,700
         

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



Page No 9.72:

Question 32:

Journalise the following trasactions:−

 

 

(₹)

1. Charge depreciation on Machinery 20,000
2. Salary due to Office Clerks 1,00,000
3. Received cash for Bad-Debts written off last year 5,000
4. Purchased goods from Ashok & Co. for ₹ 50,000 at 20% Trade Discount. Half the payment was made in cash.  
5. Issued cheque to Ashok & Co. in full settlement 19,500
6. Paid Life Insurance Premium by cheque 6,000
7. Proprietor used goods for household purposes 20,000
8. Goods given free to a hospital out of business 10,000

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
1) Depreciation A/c Dr.   20,000  
 
To Machinery A/c
      20,000
  (Depreciation charged on machinery)        
           
2) Salary A/c Dr.   1,00,000  
 
To Outstanding Salary A/c
      1,00,000
  (Salary due to office clerks)        
           
3) Cash A/c Dr.   5,000  
 
To Bad Debts Recovered A/c
      5,000
  (Bad debts recovered)        
           
4) Purchases A/c Dr.   40,000  
 
To Ashok & Co.
      20,000
 
To Cash A/c
      20,000
  (Goods purchased)        
           
5) Ashok & Co. Dr.   20,000  
 
To Bank A/c
      19,500
 
To Discount Received A/c
      500
  (Payment made to Ashok & Co. in full settlement)      
           
6) Drawings A/c Dr.   6,000  
 
To Cash A/c
      6,000
  (Payment made for life insurance premium)        
           
7) Drawings A/c Dr.   20,000  
 
To Purchases A/c
      20,000
  (Goods used for household purposes)        
           
8) Charity A/c Dr.   10,000  
 
To Purchases A/c
      10,000
  (Goods given away as charity)        
  TOTAL   2,21,000 2,21,000
         

Page No 9.72:

Question 33:

Journalise the following transactions:-

2019   ₹
March 1  Started business with cash 50,000
Purchased Machinery for cash 20,000
  Paid installation charges on machinery 2,000
Purchased goods from X of the list price of ₹ 25,000, Trade Discount 20% and cash discount 5%. Payment was made in cash immediately.  
10  Sold goods to Y costing ₹ 10,000 at 30% profit on cost less 10% trade discount.  
15  Paid Rent 1,000
20  Goods stolen from business 2,000
22  Gave as charity :  
 
 Cash
100
 
 Goods
200
31  Purchased Post Cards and Envelopes 50
31  Purchased a Computer for business 25,000

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
2019          
Mar. 01 Cash A/c Dr.   50,000  
 
To Capital A/c
      50,000
  (Started business with cash)        
           
Mar. 02 Machinery A/c Dr.   22,000  
 
To Cash A/c
      22,000
  (Machinery purchased for cash and installation charges paid)      
           
Mar. 05 Purchases A/c Dr.   20,000  
 
To Cash A/c
      19,000
 
To Discount Received A/c
      1,000
  (Goods purchased for cash and received discount)      
           
Mar. 10 Y’s A/c Dr.   11,700  
 
To Sales A/c
      11,700
  (Goods sold on credit to Y at 30% profit on cost)      
           
Mar. 15 Rent A/c Dr.   1,000  
 
To Cash A/c
      1,000
  (Rent paid)        
           
Mar. 20 Loss by Theft A/c Dr.   2,000  
 
To Purchases A/c
      2,000
  (Goods stolen from business)        
           
Mar. 22 Charity A/c Dr.   300  
 
To Cash A/c
      100
 
To Purchases A/c
      200
  (Charity given)        
           
Mar. 31 Postage A/c Dr.   50  
 
To Cash A/c
      50
  (Paid for postage)        
           
Mar. 31 Computer A/c Dr.   25,000  
 
To Cash A/c
      25,000
  (Computer purchased)        
  TOTAL   1,32,050 1,32,050
         

Page No 9.72:

Question 34:

Journalise the following transactions:
1. Purchased a Motor Car for ₹ 3,00,000 and paid ₹ 25,000 for its repair and renewal. Entire payment is made by cheque.
2. Received Rent ₹ 5,000.
3. Goods worth ₹ 20,000 were distributed as free samples.
4. Charge depreciation on Motor Car ₹ 32,500.
5. Rent due to Landlord ₹ 10,000 and Salary due to Clerks ₹ 80,000.
6. Charge interest on Capital ₹ 20,000.
7. ₹ 5,000 due from Sanjay Gupta are bad-debts.
8. Goods worth ₹ 50,000 were destroyed by fire.
9. Cash ₹ 5,000 and goods worth ₹ 20,000 were stolen by an employee.

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
1) Motor Car A/c Dr.   3,25,000  
 
To Bank A/c
      3,25,000
  (Purchased motorcar and payment made for repair and renewal)      
           
2) Cash A/c Dr.   5,000  
 
To Rent A/c
      5,000
  (Rent received)        
           
3) Advertisement Expenses A/c Dr.   20,000  
 
To Purchases A/c
      20,000
  (Goods distributed as free samples)      
           
4) Depreciation A/c Dr.   32,500  
 
To Motor Car A/c
      32,500
  (Depreciation charged on motor car)        
           
5) Rent A/c Dr.   10,000  
  Salaries A/c Dr.   80,000  
 
To Outstanding Expenses A/c
      90,000
  (Outstanding expenses provided)        
           
6) Interest on Capital  A/c Dr.   20,000  
 
To Capital A/c
      20,000
  (Interest on capital provided)        
           
7) Bad Debts A/c Dr.   5,000  
 
To Sanjay Gupta’s A/c
      5,000
  (Bad debts written-off)        
           
8) Loss by Fire A/c Dr.   50,000  
 
To Purchases A/c
      50,000
  (Goods destroyed by fire)        
           
9) Loss by Theft A/c Dr.   25,000  
 
To Cash A/c
      5,000
 
To Purchases A/c
      20,000
  (Cash and goods stolen by an employee)        
  TOTAL   5,72,500 5,72,500
         



Page No 9.73:

Question 35:

Journalise the following transactions:
(i) Bought goods from Arun for ₹ 2,00,000 at a trade discount of 15% and cash discount of 2%. Paid 80% amount immediately.
(ii) Purchased foods for ₹ 20,000 from X and supplied it to Y for ₹ 26,000.
(iii) Cash withdrawn from bank ₹ 5,000 for personal use and ₹ 25,000 for office use.
(iv) Goods destroyed by fire : Cost Price ₹ 40,000.
(v) Provide 20% depreciation on machinery costing ₹ 50,000.
(vi) Out of insurance paid this year, ₹ 3,000 is related to next year.
(vii) Allow ₹ 5,000 as interest on capital and charge ₹ 1,000 as interest on drawings.
(viii) Sohan who owed us ₹ 25,000 was declared insolvent and a cheque of 40 paise in a ₹ is received from him in full settlement.
(ix) Paid Income Tax ₹ 10,000 by cheque.
(x) Salary paid ₹ 80,000 and Salary Outstanding ₹ 20,000.

Answer:

Journal
In the Books of …
Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
(i) Purchases A/c (WN) Dr.   1,70,000  
 
To Arun’s A/c
      34,000
 
To Cash A/c
      1,33,280
 
To Discount Received A/c
      2,720
  (Goods purchased and 80% payment made in cash)      
           
(ii) Purchases A/c Dr.   20,000  
 
To X’s A/c
      20,000
  (Goods purchased on credit from X)        
           
  Y’s A/c Dr.   26,000  
 
To Sales A/c
      26,000
  (Goods sold on credit to Y)        
           
(iii) Cash A/c Dr.   25,000  
  Drawings A/c Dr.   5,000  
 
To Bank A/c
      30,000
  (Cash withdrawn from bank for personal and office use)      
           
(iv) Loss by Fire A/c Dr.   40,000  
 
To Purchases A/c
      40,000
  (Goods destroyed by fire)        
           
(v) Depreciation A/c Dr.   10,000  
 
To Machinery A/c
      10,000
  (Depreciation charged on machinery)        
           
(vi) Prepaid Insurance A/c Dr.   3,000  
 
To Insurance A/c
      3,000
  (Insurance paid in advance)        
           
(vii) Interest on Capital A/c Dr.   5,000  
 
To Capital A/c
      5,000
  (Allowed interest on capital)        
           
  Drawings A/c Dr.   1,000  
 
To Interest on Drawings A/c
      1,000
  (Charged interest on drawings)        
           
(viii) Cash A/c Dr.   10,000  
  Bad Debts A/c Dr.   15,000  
 
To Sohan’s A/c
      25,000
  (Cash received from Sohan and bad debts written-off)      
           
(ix) Drawings A/c Dr.   10,000  
 
To Bank A/c
      10,000
  (Income tax paid)        
           
(x) Salaries A/c Dr.   1,00,000  
 
To Cash A/c
      80,000
 
To Outstanding Salaries A/c
      20,000
  (Salary paid and outstanding)        
  TOTAL   4,40,000 4,40,000
         

Working Notes: Calculation of payment made and outstanding amount to Arun

Page No 9.73:

Question 36:

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

2019  
May 1  Purchased a Machinery for ₹ 1,00,000 and the payment was made by issuing a cheque from Proprietor's saving bank account.
Received an order from Chakravarti for goods of ₹ 4,00,000 alongwith a cheque of 10% of the order as advance.
Paid cash ₹ 8,000 to Dushyant and discount allowed by him ₹ 800.
10  Goods stolen by an employee (Sale Price ₹ 20,000; Cost ₹ 15,000).
15  Purchased stationery worth ₹ 8,000 for office use and ₹ 2,000 for personal use.
20  Manoj pays us ₹ 5,400 after deducting 10% for prompt payment.
28  Sold goods to Kuber costing ₹ 2,00,000 at 25% above cost less trade discount of 10% and cash discount of 5%. Kuber did not avail the cash discount.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

 

May 01

Machinery A/c

Dr.

 

1,00,000

 

 

  To Capital A/c

 

 

 

1,00,000

 

(Purchased Machinery and payment made through personal bank account)

 

 

 

 

 

 

 

 

 

 

May 04

Bank A/c

Dr.

 

40,000

 

 

  To Advance against Sales A/c

 

 

 

40,000

 

(Advance cheque received from Chakravarti against a sales order)

 

 

 

 

 

 

 

 

 

 

May 08

Dushyant A/c

Dr.

 

8,800

 

 

  To Cash A/c

 

 

 

8,000

 

  To Discount Received A/c

 

 

 

800

 

(Paid to Dushyant)

 

 

 

 

 

 

 

 

 

 

May 10

Loss by Theft A/c

Dr.

 

15,000

 

 

  To Purchases A/c

 

 

 

15,000

 

(Goods stolen by employee)

 

 

 

 

 

 

 

 

 

 

May 15

Stationery A/c

Dr.

 

8,000

 

 

Drawings A/c

 

 

2,000

 

 

  To Cash A/c

 

 

 

10,000

 

(Purchased stationery for office and personal use)

 

 

 

 

 

 

 

 

 

 

May 20

Cash A/c

Dr.

 

5,400

 

 

Discount Allowed A/c

 

 

600

 

 

  To Manoj A/c

 

 

 

6,000

 

(Received from Manoj)

 

 

 

 

 

 

 

 

 

 

May 28

Kuber A/c

Dr.

 

2,25,000

 

 

  To Sales A/c

 

 

 

2,25000

 

(Sold goods to Kuber)

 

 

 

 

 

 

 

 

4,04,800

4,04,800

 

 

 

 

 

 

Page No 9.73:

Question 37:

Journalise the following transactions in the books of Prakash:

(i) Opened a current account with Punjab National Bank ₹ 1,00,000.
(ii) Received a cheque of ₹ 12,900 from Chandradev and allowed discount ₹ 300 to him. The cheque was deposited into Bank on the same day.
(iii) Purchased machinery for ₹ 1,00,000, payment made by cheque. Installation charge of machinery ₹ 6,000 paid in cash.
(iv) Purchased a horse for business for ₹ 20,000.
(v) Sold goods to Gokul at a list price of ₹ 4,000. Trade discount 10% and cash discount 5%. He paid the amount on the same day and availed the cash discount.
(vi) Purchased goods for ₹ 10,000 and paid ₹ 400 for carriage on these goods.
(vii) Additional cash introduced by the proprietor ₹ 40,000.
(viii) Purchased stationery ₹ 800 and postal stamps ₹ 100.
(ix) Withdrawn from bank ₹ 20,000.
(x) Received an order to supply goods of ₹ 40,000 from Manu and received ₹ 10,000 as an advance together with the order.
(xi) Cash ₹ 10,000 and goods worth ₹ 4,000 were stolen.
(xii) Purchased goods from Devendra for ₹ 40,000 and the payment was made by cheque.
(xiii) Sold 1/4th of the above goods at a profit of 25% on cash.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

(i)

Bank A/c

Dr.

 

1,00,000

 

 

To Cash A/c

 

 

 

1,00,000

 

(opened a bank account in PNB)

 

 

 

 

 

 

 

 

 

 

(ii)

Bank A/c

Dr.

 

12,900

 

 

Discount Allowed A/c

Dr.

 

300

 

 

To Chandradev

 

 

 

13,200

 

(received cheque from Chandradev and allowed discount)

 

 

 

 

 

 

 

 

 

 

(iii)

Machinery A/c

Dr.

 

1,06,000

 

 

To Bank A/c

 

 

 

1,00,000

 

To Cash A/c

 

 

 

6,000

 

(machinery purchased and installation charges paid)

 

 

 

 

 

 

 

 

 

 

(iv)

Livestock A/c

Dr.

 

20,000

 

 

To Cash A/c

 

 

 

20,000

 

(purchased horse for business)

 

 

 

 

 

 

 

 

 

 

(v)

Cash A/c

Dr.

 

3,420

 

 

Discount Allowed A/c

Dr.

 

180

 

 

To Sales A/c

 

 

 

3,600

 

(sold goods to Gokul and received payment)

 

 

 

 

 

 

 

 

 

 

(vi)

Purchases A/c

Dr.

 

10,000

 

 

Carriage inwards A/c

Dr.

 

400

 

 

To Cash A/c

 

 

 

10,400

 

(purchases made and carriage paid)

 

 

 

 

 

 

 

 

 

 

(vii)

Cash A/c

Dr

 

40,000

 

 

To Capital A/c

 

 

 

40,000

 

(capital introduced)

 

 

 

 

 

 

 

 

 

 

(viii)

Stationery A/c

Dr.

 

800

 

 

Postage A/c

Dr.

 

100

 

 

To Cash A/c

 

 

 

900

 

(stationery & postal stamps bought)

 

 

 

 

 

 

 

 

 

 

(ix)

Cash A/c

Dr.

 

20,000

 

 

To Bank A/c

 

 

 

20,000

 

(withdrawn from bank)

 

 

 

 

 

 

 

 

 

 

(x)

Cash A/c

Dr.

 

10,000

 

 

To Manu(Advance)

 

 

 

10,000

 

(Advance received from Manu)

 

 

 

 

 

 

 

 

 

 

(xi)

Loss by theft A/c

Dr.

 

14,000

 

 

To Purchases A/c

 

 

 

4,000

 

To Cash A/c

 

 

 

10,000

 

(cash & goods stolen)

 

 

 

 

 

 

 

 

 

 

(xii)

Purchases A/c

Dr.

 

40,000

 

 

To Bank A/c

 

 

 

40,000

 

(purchases paid via cheque)

 

 

 

 

 

 

 

 

 

 

(xiii)

Cash A/c

Dr.

 

12,500

 

 

To Sales A/c

 

 

 

12,500

 

(1/4 th of the goods sold @25% profit)

 

 

 

 

 

TOTAL

 

 

3,90,600

3,90,600

 

 

 

 

 

 



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