DK Goel Solutions Chapter 12 Books of Original Entry - Special Purpose Subsidiary Books

DK Goel Accountancy Class 11 Solutions Chapter 12 Books of Original Entry – Special Purpose Subsidiary Books which is outlined by expert Accountancy teachers from the latest version of DK Goel Class 11 Accountancy books. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. There are numerous concepts in Accountancy, but the concepts of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required.

DK Goel Accountancy Class 11 Solutions – Chapter 12

Question 1

Prepare a Purchase Book in the books of M/s Modern Furniture House, Lucknow (U.P) from the following transactions assuming CGST @ 6% and SGST @ 6% :-

2017
June 5 Bought from Mohan Lal & Co., Kanpur (U.P) :-
20 Godrej Chairs @ ₹ 2,000 each
5 Godrej Tables @ ₹ 6,000 each
Trade Discount 20%
10 Purchased from Bharat Bhushan & Sons, Varanasi (U.P) :-
5 Almirahs @ ₹ 12,000 each
2 Revolving Chairs @ ₹ 20,000 each
Trade Discount 10%
14 Purchased from Surya Traders, Lucknow (U.P)
80 Desks @ ₹ 2,500 each
10 Sofa Sets @ ₹ 20,000 each
Trade Discount @ 15%
20 Purchased for cash from Gopi Chand Haldi Ram, Delhi :-
4 Tables @ ₹ 5,000 each
25 Bought Furniture for office use from New Furniture House, Faridabad on Credit :
5 Chairs @ ₹ 2,500 per Chair.
2 Tables @ ₹ 5,000 per Table.
Solution:
Purchases Book
Date

June

Particulars Invoice No. L.F. Details Cost Input

CGST

Input SGST Total
5 Mohan Lal & Company, Kanpur
20 Godrej Chairs @ ₹ 2,000 each 40,000
5 Godrej Tables @ ₹ 6,000 each 30,000
70,000
Less: 20% T.D. 14,000
56,000
Add: CGST @ 6% 3,360
Add: SGST @ 6% 3,360
62,720 56,000 3,360 3,360 62,720
10 Bharat Bhushan & Sons, Varanasi
5 Almirahs @ ₹ 12,000 each 60,000
2 Revolving Chairs @ ₹ 20,000 each 40,000
1,00,000
Less: 10% T.D. 10,000
90,000
Add: CGST @ 6% 5,400
Add: SGST @ 6% 5,400
1,00,800 90,000 5,400 5,400 1,00,800
14 Surya Traders, Lucknow
80 Desks @ ₹ 2,500 each 2,00,000
10 Sofa Sets @ ₹ 20,000 each 2,00,000
4,00,000
Less: 15% T.D. 60,000
3,40,000
Add: CGST @ 6% 20,400
Add: SGST @ 6% 20,400
3,80,800 3,40,000 20,400 20,400 3,80,800
4,86,000 29,160 29,160 5,44,320

Question 2

M/s Ram Narain & Sons of Kerala, who are dealers in readymade garments, purchased the following :-

2017
May 2 Purchased from Fashion House, Mumbai (Maharashtra) :-
100 Shirts @ ₹1,800 per Shirt
75 T-shirts @ ₹ 1,600 per piece
Less: Trade Discount 20%; and freight charges payable ₹ 10,000.
10 Purchased from Appolo Garments, Kerala :-
65 Shirts @ ₹ 2,000 per piece
80 T-shirts @ ₹ 1,500 per piece
Less: 20% Trade Discount and freight charges payable ₹ 2,000.
May 15 Purchased from Garden Furniture House, Kolkata :-
12 Chairs @ ₹ 5,000 per Chair
25 Purchased from Amitabh Shirts, New Delhi for cash :-
120 Shirts @ ₹ 1,500 per Shirt

Prepare Purchase Book assuming CGST @ 9% and SGST @ 9%

Solution:

Purchases Book of M/s Ram Narain & Sons, Kerala
Date

2017

Particulars Invoice No. L.F. Details

Purchase

Input CGST

Input SGST

Input IGST

Total

Amount

May
2 Fashion House, Mumbai (Maharashtra)
100 Shirts @ Rs 1,800 per Shirt 1,80,000
75 T-Shirts @ Rs 1,600 per piece 1,20,000
3,00,000
Less: 20% Trade Discount 60,000
2,40,000
Add: 18% IGST 43,200
2,83,200 2,40,000 43,200 2,83,200
10 Appolo Garments, Kerala
65 Shirts @ Rs 2,000 per piece 1,30,000
80 T-Shirts @ Rs 1,500 per piece 1,20,000
2,50,000
Less: 20% Trade Discount 50,000
2,00,000
Add: 9% CGST 18,000
9% SGST 18,000
2,36,000 2,00,000 18,000 18,000 2,36,000
4,40,000 18,000 18,000 43,200 5,19,200

Working Notes :

(i) As the transaction made on May 15 and 25 are made through credit and cash, therefore, it will not be recorded in the record book.

(ii) For freight charges payable on May 02, 2017 and May 10, 2017, a separate entry will be recorded in the journal account. With the assumption of 18% GST rate, below is the journal entry made.

Journal Proper
Date

2017

Particulars L.F. Debit ₹ Credit ₹
May
2 Freight Inwards A/c

Input IGST A/c

Dr.

Dr.

10,000

1,800

To Fashion House

(Freight charges on inter-state purchase of goods @ 18% GST)

11,800
10 Freight Inwards A/c

Input CGST A/c

Input SGST A/c

Dr.

Dr.

Dr.

2,000

180

180

To Appolo Garments

(Freight charges on intra-state purchase of goods @ 9% GST)

2,360

Question 3

Record the following transactions in the Sales Book of Ganesh & Co. of Jaipur (Rajasthan), who deal in Furniture. Assume CGST @ 6% and SGST @ 6% :-

2017
June 4 Sold to Gupta Furniture House, New Delhi :-
120 Chairs @ ₹ 2,500 per Chair
25 Table @ ₹ 8,000 per Table
Less: 5%
8 Sold to Raja Furniture House, Ahmedabad (Gujarat) :-
8 Almirahs @ ₹ 15,000 each
9 Steel Cabinets @ ₹ 20,000 each
Less: Trade discount of 10%
12 Sold old Computer for ₹ 1,500 to Mohan & Co. on Credit.
20 Sold 4 Sofa sets @ ₹ 25,000 each to Varun & Co. for cash
25 Sold to New Furniture House, Jaipur:-
5 Sofa sets @ ₹ 20,000 each
10 Tables @ ₹ 8,000 each
28 Purchased from Ram Lal & Co. Jaipur on credit :-
50 chairs @ ₹ 2,000 each

Solution:

Sales Book of Ganesh & Co. of Jaipur        
Date

2017

Particulars Invoice No. L.F. Details ₹ Sale

Output CGST

Output SGST

Output IGST

Total ₹
June
4 Gupta Furniture House, New Delhi
120 Chairs @ Rs 2,500 per Chair 3,00,000
25 Tables @ Rs 8,000 per Table 2,00,000
5,00,000
Less: 5% Trade Discount 25,000
4,75,000
Add: 12% IGST 57,000
5,32,000 4,75,000 57,000 5,32,000
8 Raja Furniture House, Ahemadabad (Gujarat)
8 Almirahs @ Rs 15,000 each 1,20,000
9 Steel Cabinets @ Rs20,000 each 1,80,000
3,00,000
Less: 10% Trade Discount 30,000
2,70,000
Add: 12% IGST 32,400
3,02,400 2,70,000 32,400 3,02,400
25 New Furniture House, Jaipur
5 Sofa Sets @ Rs 20,000 each 1,00,000
10 Tables @ Rs 8,000 each 80,000
1,80,000
Add: 6% CGST 10,800
6% SGST 10,800
2,01,600 1,80,000 10,800 10,800 2,01,600
30 9,25,000 10,800 10,800 89,400 10,36,000

Note: In Sales Book, only credit sales are recorded, so transaction made on June 12th and 20th will not be recorded.

Question 4

Record the following transactions in the Sales Book of M/s Ajanta Electronics, Ranchi (Jharkhand) assuming CGST @ 9% and SGST @ 9%:

2018
March 1 Sold to Vandna Electronics, Kolkata (West Bengal) Vide Invoice No. 1255 :
50 Musical Alarm Clocks @ ₹ 800 each
40 Wall Clocks @ ₹ 500 each
Trade Discount 20%
10 Sold to Mohan Watch Company, Patna (Bihar) Vide Invoice No. 1256 :
25 Deluxe Wall Clocks @ ₹ 800 each
Trade Discount 10%
15 Sold to Superior Watch Company, Ranchi Vide Invoice No. 1257 :
75 Deluxe Wall Clocks @ ₹ 800 each
40 Super Deluxe Wall Clocks @ ₹ 1,000 each
Trade Discount 15%
20 Sold to Modern Electronics, Ranchi Vide Cash Memo No. 5234 :
100% Musical Alarm Clocks @ ₹ 800 each
Trade Discount 20%
Sales Book of M/s Ajanta Electronics, Ranchi (Jharkhand)
Date

2018

Particulars Invoice No. LF Details

Sale

Output CGST

Output SGST

Output IGST

Total

March
1 Vandna Electronics, Kolkata 1255
50 Musical Alarm Clocks @ Rs 800 each 40,000
40 Wall Clocks @ Rs 500 each 20,000
60,000
Less: 20% Trade Discount 12,000
48,000
Add: 18% IGST 8,640
56,640 48,000 8,640 56,640
10 Mohan Watch Company, Patna (Bihar) 1256
25 Deluxe Wall Clocks @ Rs 800 each 20,000
Less: 10% Trade Discount 2,000
18,000
Add: 18% IGST 3,240
21,240 18,000 3,240 21,240
Mar. 15 Superior Watch Company, Ranchi 1257
75 Deluxe Wall Clocks @ Rs 800 each 60,000
40 Super Deluxe Wall Clocks @ Rs 1,000 each 40,000
1,00,000
Less: 20% Trade Discount 15,000
85,000
Add: 9% CGST 7,650
9% SGST 7,650
1,00,300 85,000 7,650 7,650 1,00,300
1,51,000 7,650 7,650 11,880 1,78,180

Note: Since, the transaction made on March 20nd was made on cash, so it will not be recorded in the sales book.

Question 5

Write up Return Outward Book of Malhotra & Co., Bhiwani (Haryana) from the following transactions assuming CGST @ 6% and SGST @ 6% : –

2017
August 4 Returned to Saraswati House, Bhiwani 25 Chairs @ ₹ 1,800 per Chair, being not of specified quality.
Trade Discount 10%
12 Sent back one Dining Table to Navneet Enterprise, Karnal (Haryana) for not being polished @ ₹ 10,000 and 20 Chairs @ ₹ 2,000 each.
20 Returned to Yadav & Co., Patiala (Punjab), is not according to sample:-
20 Chairs @ ₹ 1,500 each.
2 Dressing Tables @ ₹ 7,500 each.
28 Allowance claimed from Navneet Enterprise, Ludhiana (Punjab) on account of a mistake in the invoice ₹ 5,000.

Solution:

Purchases Return Book of Malhotra & Co., Bhiwani (Haryana)
Date

2017

Particulars Debit

Note

No.

L.F. Details (₹) Purchase Return (₹) Input CGST

Input SGST

Input IGST

Total ₹
Aug.
4 Saraswati House, Bhiwani
25 Chairs @ Rs 1,800 per Chair 45,000
Less: 10% Trade Discount 4,500
40,500
Add: 6% CGST 2,430
6% SGST 2,430
45,360 40,500 2,430 2,430 45,360
12 Navneet Enterprise, Karnal (Haryana)
1 Dining Table @ Rs10,000 10,000
20 Chairs @ Rs 2,000 each 40,000
50,000
Add: 6% CGST 3,000
6% SGST 3,000
56,000 50,000 3,000 3,000 56,000
20 Yadav & Co., Patiyala (Punjab)
20 Chairs @ 1,500 each 30,000
2 Dressing Tables @ 7,500 each 15,000
45,000
Add: 12% IGST 5,400
50,400 45,000 5,400 50,400
28 Navneet Enterprise, Ludhiyana (Punjab)
Mistake in the Invoice 5,000
Add: 12% IGST 600
5,600 5,000 600 5,600
31 1,40,500 5,430 5,430 6,000 1,57,360

Question 6

Enter the following transactions in the Returns Inward Book of Anand Cloth House, Ajmal Khan Road, New Delhi Assuming CGST @ 2.5% and SGST @ 2.5 %:-

October 3 Chakravarti & Co. Jaipur (Rajasthan), returned to us is not according to sample:-
50 Metre Cotton Cloth @ ₹ 200 per Metre
30 Metre Silk Cloth @ ₹ 500 per Metre
Trade Discount 20%
12 Narain Rai & Co. Indore (M.P.), a return is not up to the approved sample:-
25 Metre woollen cloth @ ₹ 400 per Metre
20 Goods sold to Janaki Das Sita Ram, New Delhi now returned by them, being defective valued at ₹ 8,000.
28 Allowance allowed to Kesari Lal & Sons, Sadar Bazar, New Delhi on account of a mistake in the invoice ₹ 3,000.

Solution:

Returns Inward Book of Anand Cloth House, Ajmal Khan Road, New Delhi
Date

Oct

Particulars Credit Note No. L.F. Details

Sales Return Output CGST

Output SGST

Output IGST

Total ₹
3 Chakravarti & Co., Jaipur (Rajasthan)
50 metre Cotton Cloth @ Rs 200/metre 10,000
30 metre Silk Cloth @ Rs 500/ metre 15,000
25,000
Less: 20% Trade Discount 5,000
20,000
Add: 5% IGST 1,000
21,000 20,000 1,000 21,000
12 Narain Rai & Co., Indore (MP)
25 metre Woolen Cloth @ Rs 400/ metre 10,000
Add: 5% IGST 500
10,500 10,000 500 10,500
20 Janaki Dass Sita Ram, New Delhi
Defective Goods 8,000
Add: 2.5% CGST 200
2.5% SGST 200
8,400 8,000 200 200 8,400
28 Kesari Lal & Sons, Sadar Bazar, New Delhi
Mistake in the Invoice 3,000
Add: 2.5% CGST 75
2.5% SGST 75
3,150 3,000 75 75 3,150
31 41,000 275 275 1,500 43,050

Question 7

Prepare Returns Inward and Returns Outward Books from the following in the books of Modern Shoes, Kolkata (West Bengal) assuming CGST @ 6% and SGST @ 6% .

2018
January 3 Returned to Bata Shoe Co., Kolkata
50 pairs of Chappals being not up to the approved sample @ ₹ 600 per pair
Less: Trade Discount 20%
10 Guru Nanak & Co., Kolkata, returned to us :-
10 pairs of Shoes, for being defective @ ₹ 1,200 per pair
Less: Trade Discount 10%
15 Returned to Baluja Shoe Co., Kolkata
20 pairs of ladies chappals @ ₹ 500 per pair
Less: 15%
22 Partap Footwear Co., Patna (Bihar), returned to us :-
50 pairs of Shoes @ ₹ 1,400 per pair
Less: 5%
27 Manoj Shoe Co., Kolkata, returned to us :-
20 pairs of Sandals @ ₹ 1,000 per pair
31 Returned to Liberty Shoe Co., Ranchi (Jharkhand) defective shoes worth ₹ 5,000.

Solution:

Returns Outward Book of Modern Shoes, Kolkata (West Bengal
Date

2018

Particulars Debit Note No. L.F. Details ₹ Purchases

Return

Input CGST

Input SGST

Input IGST

Total ₹
Jan
3 Bata Shoe Co., Kolkata
50 pairs of Chappals @ Rs 600/ pair 30,000
Less: 20% Trade Discount 6,000
24,000
Add: 6% CGST 1,440
6% SGST 1,440
26,880 24,000 1,440 1,440 26,880
15 Baluja Shoe Co., Kolkata
20 pairs of Ladies Chappals @ Rs 500/ pair 10,000
Less: 15% Trade Discount 1,500
8,500
Add: 6% CGST 510
6% SGST 510
9,520 8,500 510 510 9,520
31 Liberty Shoe Co.,Ranchi (Jharkhand)
Defective Shoes 5,000
Add:12% IGST 600
5,600 5,000 600 5,600
31 37,500 1,950 1,950 600 42,000
Returns Inward Book of Modern Shoes, Kolkata (West Bengal)
Date

2017

Particulars Credit Note No. L.F. Details ₹ Sales Return Output CGST

Output SGST

Output IGST

Total

Jan
10 Guru Nanak & Co., Kolkata
10 pairs of Shoes @ Rs 1,200/pair 12,000
Less: 10% Trade Discount 1,200
10,800
Add: 6% CGST 648
6% SGST 648
12,096 10,800 648 648 12,096
22 Partap Footwear Co., Patna (Bihar)
50 pairs of Shoe @ Rs 1,400/ pair 70,000
Less: 5% Trade Discount 3,500
66,500
Add:12% IGST 7,980
74,480 66,500 7,980 74,480
27 Manoj Shoe Co., Kolkata
20 pairs of Sandals @ Rs 1,000/ pair 20,000
Add: 6% CGST 1,200
6% SGST 1,200
22,400 20,000 1,200 1,200 22,400
31 97,300 1,848 1,848 7,980 1,08,976

Question 8

Enter the following transactions in the ‘Journal Proper’ of Karuna Stores :

March 1 Purchased furniture on credit from Kuber Furniture Store for ₹ 15,000.
March 5 Goods for ₹ 6,000 given away as charity.
March 12 Goods worth ₹ 8,000 and Cash ₹ 4,000 were stolen by an employee.
March 15 Arun who owed us ₹ 20,000 was declared insolvent and nothing was received from him.
March 18 Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 10,000.
March 31 Provide interest on capital of ₹ 5,00,000 at 6% p.a. for full year.
March 31 Out of the rent paid this year, ₹ 5,000 is related to the next year.
March 31 Salaries due to clerks ₹ 12,000.

Solution:

Journal books of Sh. Karuna Sagar
Date Particulars L.F. Debit ₹ Credit ₹
Mar. 1 Furniture A/c Dr. 15,000
To Kuber Furniture Store

(Purchased furniture on credit)

15,000
5 Charity A/c Dr. 6,000
To Purchases A/c

(Goods given for charity)

6,000
12 Loss by Theft A/c Dr. 8,000
To Purchases A/c

(Stolen goods)

8,000
15 Bad Debts A/c Dr. 20,000
To Arun

(Arun was declared insolvent)

20,000
18 Drawings A/c Dr. 15,000
To Purchases A/c

(Withdrawn goods for personal use)

10,000
31 Interest on Capital A/c Dr. 30,000
To Capital A/c

(Interest allowed on capital)

30,000
31 Prepaid Rent A/c Dr. 5,000
To Rent A/c

(Prepaid rent adjustment)

5,000
31 Salary A/c Dr. 12,000
To Outstanding Salary A/c

(Salary to clerks was outstanding)

12,000

Note: In journal proper, cash transactions will not be registered.

Question 9

Record the following transactions of Keshav Bros. in the proper books :

2017
Jan. 1 Assets : Cash in hand ₹ 8,500; Cash at Bank ₹ 1,40,000; Stock of goods ₹ 2,20,000; Due from Manohar Lal ₹ 30,000 and Deep Chand ₹ 24,000; Furniture and Equipment ₹ 3,00,000.
Liabilities : Due to Sunil ₹ 15,000.
2 Withdrawn from bank ₹ 20,000.
4 Paid salaries ₹ 22,000.
6 Sold goods to Surya Narain :
60 metres silk @ ₹ 150 per metre
100 metres cotton @ ₹ 70 per metre
Less : Trade Discount @ \(12\frac{1}{2}\)%
8 Surya Narain returned 40 metres Cotton.
9 Received full payment from Manohar Lal by cheque, sent it to bank, Discount allowed 3%.
10 Purchased from Ganga Parshad :
300 metres cotton @ ₹ 60 per metre
500 metres silk @ ₹ 120 per metre
Less : Trade Discount 10%.
12 Sold goods to Vinita for cash ₹ 16,000.
13 Accepted a bill for ₹ 25,000 for 30 days drawn by Ganga Parshad.
15 Gave cheque to Ganga Parshad for ₹ 45,000, discount allowed by him ₹ 200.
18 Paid to Sunil ₹ 14,850 after receiving discount of 1%.
20 Mr. Keshav Chand took away 5 metres silk costing ₹ 100 per metre for his personal use.
24 Paid rent by cheque ₹ 2,000.
25 Received from Surya Narain ₹ 11,000 in full settlement of his account.
27 Old newspapers sold for cash ₹ 400.
27 Paid for stationery and postage ₹ 500.
28 Sold 400 metres silk @ ₹ 160 per metre to Sh. Ganesh Chand.
31 Received cash ₹ 40,000 from Sh. Ganesh Chand and also received a B/R from him for the balance amount due from him for 2 months.

Solution:

Proper Subsidiary Books

Cash Book
Dr. Cr.
Date

2017

Particulars L.F. Cash ₹ Bank ₹ Date Particulars L.F. Cash ₹ Bank ₹
Jan Jan
1 Balance b/d 8,500 1,40,000 2 Cash A/c C 20,000
2 Bank A/c C 20,000 4 Salaries A/c 22,000
9 Manohar Lal (WN1) 29,100 15 Ganga Parshad 45,000
9 Sales A/c 16,000 18 Sunil (WN2) 14,850
25 Surya Narain (WN3) 11,000 24 Rent A/c 2,000
27 Sundry Income 400 27 Stationery & Postage A/c 500
31 Sh. Ganesh Chand 40,000 31 Balance c/d 58,550 1,02,100
95,900 1,69,100 95,900 1,69,100
Feb. 1 Balance b/d 58,550 1,02,100

Working Note 1: Evaluating discount given to Manohar Lal

Amount due from Manohar Lal = 30,000

Discount allowed = \(\frac{3}{100}\) X 30,000 = ₹ 900

Therefore, amount received from Manohar Lal = 30,000 – 900 = ₹ 29,100

Working Note 2: Evaluating discount given to Sunil

Amount due to Sunil = 15,000

Received discount = 15,000 X \(\frac{1}{100}\) = ₹ 150

Working Note 3: Evaluating discount given to Surya Narain

Net sale to Surya Narain = Total sales – sales return

= 14,000- 2,450

= ₹ 11,500

Received amount = 11,000

So, the discount allowed = ₹550

Purchases Book
Date

2017

Particulars L.F. Details ₹ Amount ₹
Jan
10 Ganga Parshad
300 metres Cotton @ 60/metre 18,000
500 metres Silk @ 120 per metre 60,000
78,000
Less: 10% Trade Discount 7,800 70,200
31 Purchases A/c Dr. 70,200
Sales Book
Date

2017

Particulars L.F. Details₹ Amount ₹
Jan
6 Surya Narain
60 metres Silk @ Rs 150/metre 9,000
100 metres Cotton @ Rs 70/ metre 7,000
16,000
Less: 12.5% Trade Discount 2,000 14,000
28 Sh. Ganesh Chand
40 metres Silk @ Rs 160/ metre 64,000 64,000
31 Sales A/c Cr. 78,000
Sales Return Book
Date

2017

Particulars Debit Note No. L.F. Details (Rs) Amount (Rs)
Jan
8 Surya Narain
40 metres Cotton @ Rs 70 per metre 2,800
Less: 12.5% Trade Discount 350 2,450
31 Sales Return A/c Dr. 2,450
Journal
Date

2017

Particulars L.F. Debit ₹ Credit ₹
Jan
1 Cash A/c

Bank A/c

Stock A/c

Manohar Lal

Deep Chand

Furniture & Equipment

Dr.

Dr.

Dr.

Dr.

Dr.

Dr.

8,500

1,40,000

2,20,000

30,000

24,000

3,00,000

To Sunil

To Capital A/c

(Opening balances brought forward)

15,000

7,07,500

9 Discount Allowed A/c Dr. 900
To Manohar Lal

(3% discount given to Manohar Lal )

900
13 Ganga Parshad Dr. 25,000
To Bills Payable A/c

(Acceptance given to Ganga Parshad)

25,000
15 Ganga Parshad Dr. 200
To Discount Received A/c

(₹ 200 discount received from Ganga Parshad)

200
18 Sunil Dr. 150
To Discount Received A/c

(1% of discount received from Sunil )

150
20 Drawings A/c Dr. 500
To Purchases A/c

(5 meters silk costing ₹100 each was taken for personal use)

500
25 Discount Allowed A/c Dr. 550
To Surya Narain

(Allowed discount of ₹ 550 to Surya Narain)

550
31 Bills Receivable A/c Dr. 24,000
To Sh. Ganesh Chand

(Acceptance received)

24,000
7,73,800 7,73,800

Question 10

Name the books of original entry where the following transactions will be recorded with reasons thereof:

(a) Goods Purchased from Ram Lal ₹ 5,000 on credit.
(b) Provision for doubtful debts created @ 5% on debtors with book value of ₹ 10,000.
(c) Defective goods sold to Babita on credit worth ₹ 4,000 were returned by her.
(d) Purchased furniture on credit from Mr. Ratan Singh for ₹ 15,000 for use in the business.

Solution :

Sl no. Transactions Books of Original Entry Reason
(a) Goods purchased from Ram Lal @ Rs 5,000 on credit Purchases Book Goods bought in credit is only recorded in purchase book.
(b) Provision for doubtful debts created @ 5% on debtors with book value of Rs 10,000 Journal Proper In journal proper, only provision for doubtful debts is recorded
(c) Defective goods sold to Babita on credit worth Rs 4,000 were returned by her Sales Return Book In sales return book, goods sold to customers in credit and now returned are recorded
(d) Purchased furniture on credit from Mr. Ratan Singh for Rs 15,000 for use in the business Journal Proper Goods (like furniture) purchased in credit is mentioned in Journal Proper

Question 11

Prepare the purchase book of M/s Shiv Stationers from the following:

2010
June 1 Purchased from Gagan Stationery Mart on credit
(i) 70 dozens pencils @ ₹ 25 per dozen.
(ii) 10 dozens registers @ ₹ 15 per register.
June 10 Purchased from Amrit Furniture
2 Tables @ ₹ 1,500 per table.
June 15 Purchased 3 dozens ink pots @ ₹ 80 per dozen from Mehar Paper Co. and received cash discount of ₹ 50.
June 18 Purchased from Rehman Bros. on credit
(i) 5 reams of white paper @ ₹ 50 per ream
(ii) 120 pens @ ₹ 60 per dozen.
Less trade discount of 10%

Solution:

M/s Shiv Stationers Purchases Book
Date

2010

Particulars L.F. Details ₹ Amount
June
1 Gagan Stationery Mart
70 dozen Pencils @ Rs 25/dozen 1,750
120* Registers @ Rs 15/ register 1,800 3,550
18 Rehman Bros.
5 reams of White Paper @ Rs 50 per ream 250
10 Dozen** @ 60/dozen 600
850
Less: 10% Trade Discount 85 765
30 Purchases A/c Dr. 4,315

Note: Purchase of goods made on JUne 10th and 15th, will not be recorded as it was made in cash. And purchases book only records credit purchase.

Working Note:

1) 1 dozen contains a quantity of 12

So, 10 dozen will contain = 10 X 12 = 120 registered

2) 1 dozen contains a quantity of 12

So, 120 pens will be = \(\frac{120}{12}\) = 10 dozen

Question 12

From the following particulars prepare the Purchases Book of Rama Book Store:

Feb 1, 2017 Purchased from M/s Brown & Co. on credit.
5 gross pencils @ ₹ 100 per gross.
1 gross registers @ ₹ 200 per dozen.
Less: 10% trade discount.
Feb 2, 2017 Purchased for cash from stationery Mart.
10 gross exercise books @ ₹ 60 per dozen.
Feb 6, 2017 Purchased from The Paper Co.
5 reams of white paper @ ₹ 100 per ream
10 reams of brown paper @ ₹ 65 per ream
Less: trade discount @ 10%

Solution:

Date Particulars Invoice No. L.F. Details Total
Feb 1 M/s Brown & Co.
5 Gross Pencils @ ₹ 100/ gross 500
1 Gross Register @ ₹ 200/ dozen (12 × 200) 2,400
2,900
Less: 10% T.D. 290 2,610
Feb 6 The Paper Co.
5 Reams of White Paper @ ₹ 100/ ream 500
10 Reams of Brown Paper @ ₹ 65 / ream 650
1,150
Less: 10% T.D. 115 1,035
3,645

Question 13

Enter the following transactions in the Sales Book of M/s Sri Ram & Sons, Kolkata:−

2017
Jan 5 Sold to Ramesh Stationery House, Kolkata :−
50 Dozen Pencils @ ₹ 20 per doz.
20 Dozen Pens @ ₹ 5 per Pen
Trade Discount 10%
8 Sold to Gupta Stationery Shop, Kanpur :−
10 Dozen Note Books @ ₹ 60 per doz.
15 Gross Rubbers @ ₹ 10 per doz.
20 Sold old newspapers for ₹ 150
24 Sold to Modern Stationery House, Lucknow for Cash :−
25 Dozen Pencils @ ₹ 22 per doz.
28 Sold to Ali Mohammad & Sons, Allahabad :−
10 Reams of Paper @ ₹ 80 per Ream
Discount 15%
31 Sold old furniture to Kedar Nath & Co., Allahabad on credit ₹2,200

Solution:

M/s Sri Ram & Sons, Kolkata Sales Book
Date

2017

Particulars L.F. Details ₹ Amount
Jan
5 Ramesh Stationery House, Kolkata
50 Dozen Pencils @ Rs 20 per dozen 1,000
240 Pens @ Rs 5 per pen 1,200
2,200
Less: 10% Trade Discount 220 1,980
8 Gupta Stationery Shop, Kanpur
10 Dozen Notebooks @ Rs 60 per dozen 600
15 Gross* Rubbers @ Rs 10 per dozen 1,800 2,400
28 Ali Mohammad & Sons, Allahabad
10 Reams of Paper @ Rs 80 per Ream 800
Less: 15% Trade Discount 120 680
Sales A/c Cr. 5,060

Note: Sale of goods made on Jan 20th, 24th,and 30th will not be recorded as it was made in cash and Sales book records only the credit sale of goods.

Working Note:

1 Gross = 12 dozen

15 dozen 12 X 15 = 180 dozen

Question 14

Prepare Sales book and Purchases book of M/s Deendayal from the following transactions:−

2016
June 7 Purchased from Arora & Co., Nai Sarak
10 Chairs @ ₹ 200 each
1 Table for ₹ 600
Trade discount 10%
June 10 Sold to Sudha Furniture Co., Agra
2 Almirahs @ ₹ 2,000 each
Less : 15%
June 12 Sold to Meera Mart for cash
10 Tables @ ₹ 1,000 each
June 15 Purchased from Hira Lal & Sons for cash
15 Chairs @ ₹ 350 each
June 16 Purchased from Fateh Chand & Co., Delhi
5 Chairs @ ₹ 180 each
June 25 Sold to Ravi Sharma, Delhi
2 Dining Tables @ ₹ 6,000 each
Less : 10%

Solution:

Purchases Book
Date

2016

Particulars L.F. Details Amount
June
7 Arora & Co., Nai Sarak
10 Chairs @ Rs 200 each 2,000
1 Table @ Rs 600 600
2,600
Less: 10% Trade Discount 260 2,340
16 Fateh Chand & Co., Delhi
5 Chairs @ Rs 180 each 900 900
30 Purchases A/c Dr. 3,240

Note: Purchase made on June 15, will not be recorded in the purchase book as the purchases was made on cash. And purchases book records only the credit purchase of goods.

Sales Book
Date

2016

Particulars L.F. Details Amount
June
10 Sudha Furniture Co., Agra
2 Almirahs @ Rs 2,000 each 4,000
Less: 15% Trade Discount 600 3,400
25 Ravi Sharma, Delhi
2 Dining Tables @ Rs 6,000 each 12,000
Less: 10% Trade Discount 1,200 10,800
30 Sales A/c Cr. 14,200

Note: Transaction made on June 12 will not be recorded as it was made on cash, and sales book only records credit sales of goods.

Question 15

Following transactions were recorded in the books of Darshan Traders:−

2017
March 1 Sold to Chandra Light House :−
50 Tubelights @ ₹ 60 each Less : 20%
20 Heaters @ ₹120 each Less : 25%
5 Purchased from Charat Ram Electric Co. :−
25 Table Fans @ ₹ 600 each
20 Ceiling Fans @ ₹800 each
10 Chaudhary & Sons purchased from us :−
80 Dozen Bulbs @ ₹ 90 per Dozen
12 Purchased from Ram Lal & Sons one Typewriter for ₹ 6,000 on credit, for office use.
16 Sri Ram & Sons sold to us :−
10 Electric Irons @ ₹ 180 each less : 10%
20 Chandra Light House returned :−
5 Tubelights sold on March 1.
22 Sold goods to Jai Bhagwan & Co. for cash ₹ 10,000.
25 Returned to Sri Ram & Sons 2 Electric Irons purchased on March 16.

You are required to prepare (i) Purchase Book; (ii) Sales Book; (iii) Purchase Return Book, and (iv) Sales Return Book.

Solution:

Purchases Book
Date

2017

Particulars L.F. Details ₹ Amount
March
5 Charat Ram Electric Co.
25 Table Fans @ Rs 600 /table fan 15,000
20 Ceiling Fans @ Rs 800 /ceiling fan 16,000 31,000
16 Sri Ram & Sons
10 Electric Fans @ Rs 180/fan 1,800
Less: 10% Trade Discount 180 1,620
31 Purchases A/c Dr. 32,620
Sales Book
Date

2017

Particulars L.F. Details ₹ Amount
March
1 Chandra Light House
50 Tube Light @ Rs 60 /tube lights 3,000
Less: 20% Trade Discount 600 2,400
20 Heaters @ Rs 120 /heaters 2,400
Less: 25% Trade Discount 600 1,800
10 Chaudhry & Sons
80 dozen Bulbs @ Rs 90 / dozen 7,200 7,200
Sales A/c Cr. 11,400
Purchases Return Book
Date

2017

Particulars Debit Note No. L.F. Details ₹ Amount ₹
March
25 Sri Ram & Sons
2 Electric Irons @ Rs 180/irons 360
Less: 10% Trade Discount 36 324
31 Purchases Return A/c Cr. 324
Sales Return Book
Date

2017

Particulars Debit Note No. L.F. Details ₹ Amount
March
20 Chandra Light House
5 Tube Light @ Rs 60/ tube light 300
Less: 20% Trade Discount 60 240
Jan.31 Sales Return A/c Dr. 240

Question 16

Enter the following transactions of a dealer in electrical goods in the appropriate subsidiary books:

2017 (₹)
Jan. 1 Assets : Cash in hand ₹ 12,400; Stock ₹ 3,60,000; Debtors : Abhilash ₹ 20,000; Bhuwan ₹ 30,000, Charu ₹ 52,000; Furniture ₹ 2,25,000.
Liabilities : Bank overdraft ₹ 38,000; Creditors : Dinesh ₹ 15,000; Eknath ₹ 25,000.
3 Purchased from Raghuraj & Sons :
80 electric Kettles @ ₹ 300 each
40 electric irons @ ₹ 420 each
20% Trade Discount.
5 Withdrew from Bank 20,000
6 Acceptance received from Abhilash at one month for the amount due from him.
10 Purchased a computer from Gursharan Bros. on credit for office use 40,000
12 Returned 10 electric kettles to Raghuraj & Sons.
14 Paid Raghuraj & Sons by cheque the balance due to them.
15 Paid to Gursharan Bros. ₹ 30,000 in cash and the balance by a cheque.
16 Paid wages in cash 500
20 Purchased from Dinesh :
10 Washing Machines @ ₹ 16,000 each
4 Vacuum cleaners @ ₹ 6,000 each
15% Trade Discount
22 Sold to Charu
200 electric shavers @ ₹ 250 each
400 toasters @ ₹ 150 each
450 heaters @ ₹ 200 each
10% Trade Discount
24 Received from Charu a cheque in full settlement of his account. The cheque is paid into bank. 2,30,000
25 Acceptance given to Dinesh for 30 days 1,50,000
25 Cheque issued to Dinesh in full settlement of his account 21,000
25 Sold for Cash 20 electric irons 9,000
27 Deposited into bank 5,000
30 Paid staff salaries by cheque 15,000
30 Bank charged incidental expenses ₹ 50 and charged interest ₹ 1,200.

Solution:

Cash Book
Dr. Cr.
Date

2017

Particulars L.F. Cash Bank Date

2017

Particulars L.F. Cash Bank
Jan. Jan.
1 Balance b/d 12,400 1 Balance b/d 38,000
5 Bank A/c C 20,000 5 Cash A/c C 20,000
24 Charu 2,30,000 14 Raghuraj & Sons

(32,640 – 2,400)

30,240
25 Sales A/c 9,000 15 Gursharan Bros. 30,000 10,000
27 Cash A/c C 5,000 16 Wages A/c 500
25 Dinesh 21,000
27 Bank A/c C 5,000
30 Salary A/c 15,000
30 Bank Charges A/c 50
30 Bank Interest A/c 1,200
31 Balance c/d 5,900 99,510
41,400 2,35,000 41,400 2,35,000
Feb. 1 Balance b/d 5,900 99,510
Purchases Book
Date

2017

Particulars L.F. Details ₹ Amount
Jan.
3 Raghuraj & Sons
80 Electric Kettles @ Rs 300/kettle 24,000
40 Electric Irons @ Rs 420/irons 16,800
40,800
Less: 20% Trade Discount 8,160 32,640
20 Dinesh
10 Washing Machines @ Rs 16,000/ washing .machine 1,60,000
4 Vacuum Cleaners @ Rs 6,000/ V. Cleaner 24,000
1,84,000
Less: 15% Trade Discount 27,600 1,56,400
31 Purchases A/c Dr. 1,89,040
Sales Book
Date

2017

Particulars L.F. Details ₹ Amount
Jan
22 Charu
200 Electric Shavers @ Rs 250 /shaver 50,000
400 Toasters @ Rs 150 /toaster 60,000
450 Heaters @ Rs 200 / heater 90,000
2,00,000
Less: 10% Trade Discount 20,000 1,80,000
31 Sales A/c Cr. 1,80,000
Purchases Return Book
Date

2017

Particulars Debit

Note

No.

L.F. Details ₹ Amount
Jan.
12 Raghuraj & Sons
10 Electric Kettles @ Rs 300/ kettle 3,000
Less: 20% Trade Discount 600 2,400
31 Purchases ReturnA/c Dr. 2,400
Journal Proper
Date

2017

Particulars L.F. Debit Credit
Jan.
1 Cash A/c

Stock A/c

Abhilash A/c

Bhuwan A/c

Charu A/c

Furniture A/c

Dr.

Dr.

Dr.

Dr.

Dr.

Dr.

12,400

3,60,000

20,000

30,000

52,000

2,25,000

To Bank Overdraft A/c

To Dinesh

To Ekta

To Capital A/c (balancing figure)

(Balance of previous brought forward)

38,000

15,000

25,000

6,21,400

6 Bills Receivable A/c Dr. 20,000
To Abhilash

(Acceptance received for the amount due from him)

20,000
10 Computer A/c Dr. 40,000
To Gurusharan Bros.

(Computers purchased on credit)

40,000
24 Discount Allowed A/c Dr. 2,000
To Charu

(Discount of Rs 2,000 allowed to Charu)

2,000
25 Dinesh Dr. 1,50,000
To Bills Payable A/c

(Acceptance given)

1,50,000
25 Dinesh Dr. 400
To Discount Received A/c

(Discount of Rs 400 received on payment to Dinesh)

400
9,11,800 9,11,800

Question 17

Prepare a sales book of Mahesh Electronics from the following details.

2018
June 3 Sold to Ruchi Electronics, Bangalore, vide Invoice No.431

5colour T.V set @ ₹20,000 each

Less: Trade discount 20%

June 10 Sold to Garima Electronics, Jaipur, vide Invoice No 432

10 washing machine @₹8,000 each

Less: Trade Discount 25%

June 12 Sold to Raghav & Sons, Bangalore, vide cash memo no. 2510

6 color T.V sets @ ₹18,000 each less trade discount 15%

June 16 Sold to Nitin Company, M.P vide invoice no. 433

8 music system @ ₹15,000 each

10colour T.V set @ ₹22,000 each

Less: Trade discount 20%

Solution:

Date

2018

Particulars Invoice No. L.F Details Sales Amount Output CGST OutputSGST Output IGST Total
June 3 Ruchi Electronics, Kolkata: 431
5 colour T.V Sets @ ₹20,000 each 1,00,000
Less: Trade Discount @ 20% 20,000
80,000
Add: CGST@9%

SGST@9%

7,200

7,200

94,400 80,000 7,200 7,200 94,400
June 10 Garima Electronics

Jaipur

432
10 washing machines @ ₹8,000 each 80,000
Less: Trade discount @25% 20,000
60,000
Add: IGST@18% 10,800
70,800 60,000 10,800 70,800
June 16 Nitin Company, Bangalore 433
8 music systems @ ₹15,000 each 1,20,000
10 color T.V set @ ₹22,000 each 2,20,000
3,40,000
Less: Trade discount @20% 68,000
2,72,000
Add: IGST @18% 48,960
3,20,960 2,72,000 48,960 3,20,960
June 30 Total 4,12,000 7,200 7,200 59,760 4,86,160

Note: (1) Goods are sold to Raghav & Sons in cash. Therefore, it is not recorded in the sales book.

(2) At the time of posting into the Leger

  • Ruchi Electronics will be debited with ₹94,400
  • Garima Electronics will be debited with ₹70,800
  • Nitin Company will be debited with ₹3,20,960
  • Sales A/c will be credited with ₹4,12,000
  • Output CGST A/c will be credited with ₹7,200
  • Output SGST A/c will be credited with ₹7,200
  • Output IGST A/c will be credited with ₹59,760

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1 Comment

  1. good explaination

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