DK Goel Solutions Chapter 9 Books of Original Entry - Journal

DK Goel Accountancy Class 11 Solutions Chapter 9 Books of Original Entry – Journal which are 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 9

Very Short Questions

Question 1

What is a journal?

Answer: A journal is a book of original entry in which transactions are recorded in the order in which they occur i.e. in chronology order.

Question 2

Why is the journal called a book of original entry?

Answer: A journal is known as a book of original entry because all the transactions are first entered in this book.

Question 3

What is journalizing?

Answer: Journalising is a method of registering the transaction in the journal.

Question 4

Give one advantage of journal.

Answer: The one advantage of the journal is that all the transactions are registered as and when they take place. Therefore, the chances of omitting any transaction in the books of account are minimized.

Question 5

Give one limitation of a journal.

Answer: The one limitation of a journal is whenever there is a huge transaction, it is impossible to record all the transactions as it becomes bulky and voluminous.

Question 6

What is a narrative?

Answer: A brief description of all the required details after each entry is known as a narrative.

Question 7

What is ledger folio or L.F?

Answer: Ledger folio or L.F is the ledger account page number where posting is made from the journal. The page number is recorded in the journal.

Question 8

What is compound journal entry?

Answer: When two or more transactions related to one particular account take place on the same date. In this situation, instead of recording separate entries only one entry is passed. This type of journal entry is known as compound journal entry.

Question 9

What is opening entry?

Answer: Opening entry are those entries which carry forward all the assets and liabilities balances of the previous year to the current year.

Question 10

What entry is passed for withdrawing of goods by the proprietor for personal use?

Answer: Drawings A/c Dr.

To Purchase A/c

Question 11

Which account should be debited, if wages are paid for the installation of a machine?

Answer: Machine account.

Practical Question

Question 1

Prepare a journal of Manohar Lal & sons from the following transactions

2018
March 1 Manohar Lal & Sons started a 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 for Manohar Lal & sons
Date Particular L.F Amount Dr. Amount Cr.
March 1 Cash A/c Dr. 60,000
To Capital A/c

(Begin company with cash)

60,000
March 2 Furniture A/c Dr. 10,000
To Cash A/c

(Furniture bought for cash)

10,000
March 4 Purchases A/c Dr. 25,000
To Cash A/c

(Goods bought for cash)

25,000
March 5 Purchases A/c

To Kamlesh’s A/c

(Goods bought from Kamlesh)

Dr. 15,000 15,000
March 10 Kamlesh’s A/c Dr. 15,000
To Cash A/c

(Paid cash to Kamlesh)

15,000
March 16 Purchases A/c Dr. 6,000
To Sohan’s A/c

(Goods bought from Sohan)

6,000
March 18 Purchases A/c Dr. 8,000
To Cash A/c

(Goods bought in cash from Sohan)

8,000
March 20 Rent A/c Dr. 1,000
To Cash A/c

(Office rent paid)

1,000
Total 1,40,000 1,40,000

Question 2

Prepare Journal of M/s Tripathi Bros from the following transactions

2018
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

Solution:

Journal of M/s Tripathi Bros.
Date Particular L.F Amount Dr. Amount Cr.
Jan 6 Cash A/c Dr. 36,000
To Sales A/c

(Sold products for cash)

36,000
Jan 8 Hari A/c Dr. 30,000
To Sales A/c

(Sold products to Hari)

30,000
Jan 14 Cash A/c Dr. 18,000
To Hari A/c

(Cash received from Hari)

18,000
Jan 26 Cash A/c

To Commission A/c

(Received commission)

Dr. 750 750
Jan 27 Salary A/c Dr. 1,200
To Cash A/c

(Salary paid to Gopal)

1,200
Jan 28 Cash A/c Dr. 12,000
To Hari A/c

(Cash received from Hari)

12,000
Jan 29 Drawings A/c Dr. 4,000
To Cash A/c

(Cash drew for personal use)

4,000
Jan 30 Wages A/c Dr. 7,200
To Cash A/c

(Paid wages)

7,200
Jan 30 Machinery A/c 8,000
To Cash A/c

(Purchased machinery)

8,000
Total 1,17,150 1,17,150

Question 3

Prepare Journal of Sahil Bros. from the following transactions

2016
Oct 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

Solution:

Journal of Sahil Bros
Date Particular L.F Amount Dr. Amount Cr.
Oct 1 Purchases A/c Dr. 40,000
To Cash A/c

(Goods bought in cash from Anil)

40,000
Oct 3 Purchases A/c Dr. 75,000
To Atul’s A/c

(Goods bought from Atul)

75,000
Oct 6 Atul’s A/c Dr. 3,000
To Purchases Return A/c

(Returned goods to Atul)

3,000
Oct 8 Atul’s A/c

To Cash A/c

(Paid cash to Atul)

Dr. 50,000 50,000
Oct 10 Charu’s A/c Dr. 1,00,000
To Sales A/c

(Sold goods to Charu)

1,00,000
Oct 12 Sales Return A/c Dr. 20,000
To Charu’s A/c

(GReturned goods to Charu)

20,000
Oct 15 Rent A/c Dr. 2,000
To Cash A/c

(Paid rent)

2,000
Oct 20 Drawings A/c Dr. 10,000 10,000
To Cash A/c

(Withdrawn cash for personal use)

7,200
Total 3,00,000 3,00,000

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 and

discount allowed

19,500 500
20 Paid cash to Pawan and discount received from him 4,700
25 Sold goods to Varun of the list price of ₹ 25,000 at 20% trade discount 300

Solution:

Journal of Sahil Bros
Date Particular L.F Amount Dr. Amount Cr.
March 3 Dev’s A/c Dr. 1,00,000
To Sales A/c

(Sold goods to Dev)

1,00,000
March 5 Cash A/c

Discount Allowed A/c

Dr.

Dr.

75,000

2,000

To Dev’s A/c

(Received full settlement cash from Dev)

1,00,000
March 6 Manmohan’s A/c Dr. 80,000
To Sales A/c

(Sold good to Manmohan)

80,000
March 8 Sales Return A/c

To Manmohan’s A/c

(Returned goods to Manmohan)

Dr. 1,000 1,000
March 15 Cash A/c

Discount Allowed A/c

Dr.

Dr.

78,200

800

To Manmohan’s A/c

(Received full settlement cash from Manmohan)

79,000
March 16 Cash A/c

Discount Allowed A/c

Dr.

Dr.

19,500

500

To Ram’s A/c

(Received cash from Ram and allowed discount)

20,000
March 20 Pawan’s A/c Dr. 5,000
To Cash A/c

To Discount Received A/c

(Paid cash to Pawan and received discount)

4,700

300

March 25 Varun’s A/c Dr. 20,000
To Sales A/c

(Sold goods @ trade discount 20% )

20,000
Total 4,05,000 4,05,000

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

Discount allowed

13,800

200

12 Gopal sold goods to us 10,000
14 Paid to Gopal in full settlement of his account after 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.

Solution:

Journal of Hari Shankar & Co.
Date

2017

Particular L.F Amount Dr. Amount Cr.
April 1 Cash A/c Dr. 50,000
To Capital A/c

(Begin business with cash)

50,000
April 2 Purchases A/c Dr. 20,000
To Subhash’s A/c

(Goods bought from Subhash)

20,000
April 4 Ramnath’s A/c Dr. 15,000
To Sales A/c

(Sold goods to Ramnath)

15,000
April 6 Sales Return A/c Dr. 1,000
To Sales Return A/c

(Returned goods to Manmohan)

1,000
April 10 Cash A/c

Discount Allowed A/c

Dr.

Dr.

13,800

200

To Ramnath’s A/c

(Received cash from Ramnath and discount was allowed)

14,000
April 12 Purchases A/c Dr. 10,000
To Cash A/c

(Goods bought from Gopal)

10,000
April 14 Gopal’s A/c Dr. 10,000
To Cash A/c

To Discount Received A/c

(Paid cash to Pawan and received discount)

9,500

500

April 15 Rent A/c Dr. 10,000
To Cash A/c

(Sold goods @ 20% trade discount)

10,000
April 16 Drawings A/c Dr. 5,000
To Cash A/c

(Paid rent for Hari Shankar’s residence)

5,000
April 18 Purchases A/c Dr. 4,800
To Cash A/c

(Purchased goods for cash at trade discount of 20%)

4,800
April 20 Purchases A/c Dr. 8,000
To Govind’s A/c

(GPurchased goods from Govind at trade discount of 20%)

8,000
April 24 Govind’s A/c Dr. 8,000
To Cash A/c

To Discount Received A/c

(Paid full settlement cash to Govind)

7,850

150

April 25 Subhash’s A/c Dr. 5,000
To Cash A/c

To Discount Received A/c

(Paid full settlement cash to Subhash)

4,750

250

April 30 Wages A/c

Salaries A/c

Advertisement Expenses A/c

Trade Expenses A/c

Dr.

Dr.

Dr.

Dr.

400

4000

800

1,000

To Cash A/c

(Expenses paid)

6,200
Total 1,67,000 1,67,000

Question 6

Prepare a journal of Marutinandan stores

2017
Oct 1 Purchased goods from Ghanshyam of the list price of ₹ 50,000 at 15% trade discount.
3 Returned goods to Ghanshyam of the list price of ₹ 2,000
6 Paid cash to Ghanshyam ₹ 40,000 in full settlement of his account
8 Purchased goods from Raghu of the list price of ₹ 60,000 at 10% trade discount.v
10 Returned goods to Raghu of the list price of ₹ 5,000.
12 Paid cash to Raghu ₹ 49,000 in full settlement of his account.

Solution:

Journal of Marutinandan stores
Date

2017

Particular L.F Amount Dr. Amount Cr.
Jan 10 Purchases A/c Dr. 42,500
To Ghanshyam’s A/c

(Purchased goods at trade discount of 15%)

42,500
Jan 13 Ghanshyam’s A/c Dr. 1,700
To Purchases Return A/c

(Returned goods to Ghanshyam at 15% trade discount)

1,700
Jan 15 Ghanshyam’s A/c Dr. 40,800
To Cash A/c

To Discount Received A/c

(Paid full settlement cash to Ghanshyam)

40,000

800

Jan 20 Purchases A/c Dr. 54,000
To Raghu’s A/c

(Purchased goods from Raghu at 10% trade discount )

54,000
Jan 22 Raghu’s A/c Dr. 4,500
To Purchases Return A/c

(Returned goods to Raghu after 10% trade discount)

4,500
Jan 25 Raghu’s A/c Dr. 49,500
To Cash A/c

To Discount Received A/c

(Paid full settlement cash to Raghu)

49,000

500

Total 1,93,000 1,93,000

Question 7

Prepare a journal of the following transaction

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%

Solution:

Journal account
Date

2017

Particular L.F Amount Dr. Amount Cr.
Jan 6 Muskan’s A/c Dr. 1,60,000
To Sales A/c

(Sold goods to Muskan at 20% trade discount)

1,60,000
Jan 8 Sales Return A/c Dr. 4,000
To Muskan’s A/c

(Returned goods by Muskan after 20% mtrade discount)

4,000
Jan 15 Cash A/c

Discount Allowed A/c

Dr.

Dr.

1,49,760

6,240

To Muskan’s A/c

(Received full settlement cash from Muskan)

1,56,000
Total 3,20,000 3,20,000

Question 8

Prepare a journal of the following transaction of Raja Ram

2017
March 3 Bought goods for cash of the list price of ₹ 80,000 at 10% trade discount and \(2\frac{1}{2}\)% 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%

Solution:

Journal account of Raja Ram
Date

2017

Particular L.F Amount Dr. Amount Cr.
March 3 Purchases A/c Dr. 72,000
To Cash A/c

To Discount Received A/c

(Goods bought for cash and got cash discount)

70,200

1,800

March 5 Cash A/c

Discount Allowed A/c

Dr.

Dr.

82,450

2,550

To Sales A/c

(Sold goods for cash and allowed cash discount)

85,000
March 6 Nagpal’s A/c Dr. 40,000
To Sales A/c

(Sold goods to Nagpal)

40,000
March 8 Sales Return A/c Dr. 10,000
To Nagpal’s A/c

(Goods returned goods by Nagpal)

10,000
March 10 Cash A/c

Discount Allowed A/c

Dr.

Dr.

28,500

1,500

To Sales A/c

(Received full settlement cash)

30,000
Total 2,37,000 2,37,000

Question 9

Prepare a journal entry

2016
Mar 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

Solution:

Journal entry
Date

2016

Particular L.F Amount Dr. Amount Cr.
March 5 Shruti A/c Dr. 68,000
To Sales A/c

(Sold goods to Shruti at trade discount 15%)

68,000
March 5 Bank A/c

Discount Allowed A/c

Dr.

Dr.

48,960

2,040

To Shruti A/c

(Received payment and allowed cash discount)

51,000
March 10 Purchases A/c Dr. 54,000
To Richa

(Purchased discount from Richa at trade discount 10% )

54,000
March 10 Richa A/c Dr. 32,400
To Bank A/c

To Discount Received A/c

(Made payment and received cash discount)

30,780

1,620

Working Notes

1. Goods sold will be ₹68,000 (80,000 – 15% of 80,000) and discount allowed in cash will be ₹2,040. Therefore, it would be evaluated on received amount ₹51,000 which would be 75% of Rs 68,000.

2. Goods bought amount will be ₹54,000 (60,000 – 10% of 60,000) and cash discount will be ₹1,620. Hence, it the calculation will be on amount paid ₹32,400 that is 60% of ₹54,000

Question 10

Prepare a journal entry

2017
Jan 6 Purchased goods from Henry for ₹ 50,000 on 10% trade discount and 4% cash discount and paid 60% amount by cheque
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
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
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

Solution:

Journal entry
Date

2016

Particular L.F Amount Dr. Amount Cr.
Jan 6 Purchases A/c Dr. 45,000
To Bank A/c (WN1)

To Discount Received A/c

To Henry’s A/c

(Purchased goods and received a discount on cash payment)

25,920

1,080

18,000

Jan 15 Purchases A/c Dr. 1,60,000
To Bank A/c

To Discount Received A/c

To Amit’s A/c

(Purchased goods and received a discount on cash payment)

1,14,000

6,000

40,000

Jan 18 Sherpa’s A/c Dr. 40,000
To Sales A/c

(Sold goods on credit to Sherpa)

40,000
Jan 23 Bank A/c

Discount Allowed A/c

Dr.

Dr.

28,800

1,200

To Sherpa’s A/c

(Sherpa received 75% payment and cash discount was allowed)

30,000
Jan 25 Garima’s A/c Dr. 80,000
To Sales A/c

(Sold goods on credit to Garima)

80,000
Feb 5 Bank A/c

Discount Allowed A/c

Dr.

Dr.

19,000

1,000

To Garima’s A/c

(Received cheque from Garima and cash discount was allowed)

20,000
Feb 15 Cash A/c* 60,000
To Garima’s A/c 60,000
Total 4,35,000 4,35,000

Working Notes 1: Evaluating payment made to Henry

Cost price of goods                                  = 50,000

Less: Trade discount 10%                      = 5,000

Purchased cost                                         = ₹45,000

Cash payment = 45,000 x 60%            = 27,000

Less: Cash discount = 27,000 x4%     = 1,080

Paid cash                                                  = ₹25,920

Working Notes 2: Evaluating payment made to Amit

Cost price of goods                                     = 2,00,000

Less: Trade discount 20%                         = 40,000

Purchased cost                                            = ₹1,60,000

Cash payment = 1,60,000 x 3/4             = ₹ 1,20,000

Less: Cash discount = 1,20,000 x4%    = 6,000

Paid cash                                                    = ₹ 1,14,000

In this scenario, the cash discount is available only if the amount is paid in 15 days. Because the payment is made on 15th February, she will be allowed no refund.

Question 11

2017

March

Particulars
2 Sold goods to Dilip of the list price of ₹ 62,000 for ₹ 60,000.
5 Sold goods to Amrit Lal of the list price of ₹ 2,50,000 at 20% trade discount and 10% cash discount. Amrit Lal paid ₹ 1,20,000 immediately through a banker’s cheque.
10 Paid cheque of ₹ 30,000 to Chaturvedi and availed discount 2%.
16 Purchased goods costing ₹ 2,00,000 from Hari & Co. Paid 75% immediately by cheque to avail 4% discount.
20 Sold goods to Vhsal 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.

Solution:

Journal entry
Date

2016

Particular L.F Amount Dr. Amount Cr.
March 2 Dixit A/c Dr. 60,000
To Sales A/c

(Sold goods to Dixit)

60,000
5 Bank A/c

Amrit Lal A/c

Discount Allowed A/c

Dr.

Dr.

Dr.

1,20,000

68,000

12,000

To Sales A/c

(Sold to Amrit Lal, partly received through cheque and partly credit)

2,00,000
10 Chaturvedi A/c Dr. 30,600
To Bank A/c

To Discount Received A/c

(Paid to Chaturvedi)

30,000

600

16 Purchase A/c Dr. 2,00,000
To Harry & Co. A/c

To Bank A/c

To Discount Received A/c

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

50,000

1,44,000

6,000

20 Bank A/c

Vishal Traders A/c

Discount Allowed A/c

Dr.

Dr.

Dr.

9,000

32,400

3,600

To Sales A/c

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

45,000
26 Bank A/c

Discount Allowed A/c

Dr.

Dr.

59,850

3,150

To Sales A/c

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

63,000
5,98,600 5,98,600

Question 12

Enter the Shyam Sunder & Sons transactions in their Journal.

2017

April

Particulars
1 Shyam Sunder & Sons started a business with Cash ₹75,000; Goods ₹30,000 and Furniture ₹5,000.
2 Sold goods to Bhushan of the list price of ₹10,000 at a trade discount of 10%.
5 Paid cheque of ₹ 30,000 to Chaturvedi and availed discount 2%.
10 Received from Bhushan ₹8,000 in full settlement of his account.
12 Purchased Furniture for ₹6,000.

Purchased goods from Navin for ₹25,000 less trade discount 12%

15 Returned goods to Navin goods of the list price of ₹2,000.
16 Cleared the account of Navin by applying cash, under a discount of 5%.
17 Sold goods to Ajay ₹10,000 and Vijay ₹16,000.
20 Received cash from Ajay ₹9,800 in full settlement of his account. Paid insurance premium ₹750.
22 Paid for Shyam Sunder’s Life Insurance Premium ₹1,200.
24 Purchased goods for ₹8,000 for cash at a trade discount of 10% and a cash discount of 2%.
25 Received cash from Vijay at a cash discount of 5% in full settlement of his account.
30 Paid Rent ₹800; Advertisement ₹1,000; and Salaries ₹4,000.
30 Received Commission ₹500.

Solution:

Date

2016

Particular L.F Amount Dr. Amount Cr.
April 1 Cash A/c

Stock A/c

Furniture A/c

Dr.

Dr.

Dr.

75,000

30,000

5,000

To Sales A/c

(Business started with cash, goods and furniture)

1,10,000
2 Bhushan’s A/c Dr. 9,000
To Sales A/c

(Goods sold to Bhushan deducting trade discount)

9,000
5 Sales Return A/c Dr. 900
To Bhushan’s A/c

(Goods returned by Bhushan deducting trade discount)

900
10 Cash A/c

Discount Allowed A/c

Dr. 8,000

100

To Bhushan’s A/c

(Cash received from Bhushan in full settlement)

8,100
12 Furniture A/c Dr. 6,000
To Cash A/c

(Furniture purchased for cash)

6,000
12 Purchases A/c Dr. 22,000
To Navin’s A/c

Goods purchased from Navin on credit)

22,000
15 Navin’s A/c Dr. 1,760
To Purchases Return A/c

(Goods returned to Navin)

1,760
16 Navin’s A/c Dr. 20,240
To Cash A/c

To Discount Received A/c

(Cash paid to Navin in full settlement)

20,240
17 Ajay’s A/c

Vijay’s A/c

Dr.

Dr.

10,000

16,000

To Sales A/c

(Goods sold to Ajay and Vijay)

26,000
20 Cash A/c

Discount Allowed A/c

Dr.

Dr.

9,800

200

To Ajay’s A/c

(Cash received from Ajay in full settlement)

10,000
20 Insurance A/c Dr. 750
To Cash A/c

(Paid insurance premium)

750
22 Drawings A/c Dr. 1,200
To Cash A/c

(Paid for proprietor’s life insurance premium)

1,200
24 Purchases A/c Dr. 7,200
To Cash A/c

To Discount Received A/c

(Goods purchased for cash at a discount of 2%)

7,056

144

25 Cash A/c

Discount Allowed A/c

Dr.

Dr.

15,200

800

To Vijay’s A/c

(Cash received in full settlement)

16,000
30 Rent A/c

Advertisement A/c

Salaries A/c

Dr. 800

1000

4,000

To Cash A/c

(Expenses paid)

5,800
30 Cash A/c Dr. 500
To Commission A/c

(Commission received)

500
2,45,450 2,45,450

Question 13

Prepare a journal entry

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

Solution:

Journal entry
Date

2016

Particular L.F Amount Dr. Amount Cr.
Jan 1 Bank A/c Dr. 10,000
To Cash A/c

(Payment made to open a current account)

10,000
Jan 3 Bank A/c Dr. 50,000
To Sales A/c

(Goods sold and amount deposited into a bank)

50,000
Jan 7 Cash A/c Dr. 20,000
To Bank A/c

(Cash withdrawn from Bank)

20,000
Jan 10 Cash A/c Dr. 15,000
To Sales A/c

(Goods sold for cash)

15,000
Jan 12 Bank A/c Dr. 12,000
To Cash A/c

(Cash deposited into bank)

12,000
Jan 14 Purchases A/c Dr. 25,000
To Bank A/c

(Goods purchased and payment made by cheque)

25,000
Total 1,32,000 1,32,000

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

Discount allowed

7,800

200

21 Withdrew from Bank−for office

for private use

2,000

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

Paid for Rent by cheque

Paid for travelling expenses by cheque

350

1,500

500

Solution:

Journal entry
Date

2016

Particular L.F Amount Dr. Amount Cr.
April 1 Cash in Hand A/c

Cash at Bank A/c

Stock A/c

Mohan’s A/c

Sohan’s A/c

Dinesh’s A/c

Furniture A/c

Building A/c

Dr.

Dr.

Dr.

Dr.

Dr.

Dr.

Dr.Dr.

8,000

7,000

30,000

10,000

12,000

14,000

5,000

25,000

To X’s A/c

To Y’s A/c

To Capital A/c

(Balances of previous year brought forward)

5,000

6,000

1,00,000

2 Purchases A/c Dr. 5,100
To Khanna Brothers

To Cash A/c

To Discount Received A/c

(Purchased goods in cash and received a discount)

3,060

1,999

41

3 Bank A/c

Discount Allowed A/c

Dr.

Dr.

9,750

250

To Mohan A/c

(Received draft from Mohan deposited into bank)

10,000
5 Purchases A/c 6,400
To Bank A/c

(Purchased goods and payment was done by cheque)

6,400
8 Cheques-in-Hand A/c Dr. 25,000
To Sales A/c

(GSold goods and received a cheque)

25,000
10 Bank A/c Dr. 25,000
To Cheques-in-Hand A/c

(Deposited cheque into bank)

25,000
12 Bank A/c Dr. 4,000
To Sohan’s A/c

(Deposited amount by Sohan)

4,000
16 Drawings A/c Dr. 5,600
To Cash A/c

(Paid Income tax )

5,600
20 Bank A/c

Discount Allowed A/c

Dr.

Dr.

7,800

200

To Sohan’s A/c 8,000
21 Drawings A/c

Cash A/c

Dr.

Dr.

4,000

2,000

To Bank A/c

(Withdrawn amount for personal and office use)

6,000
23 X’s A/c Dr. 5,000
To Bank A/c

To Discount Received A/c

(Full settlement cheque issued to X)

4,900

100

27 Sohan’s A/c Dr. 8,000
To Bank A/c

To Discount Allowed A/c

(Received cheque from Sohan gets dishonoured)

7,800

200

28 Cash A/c

Bad Debts A/c

Dr.

Dr.

8,400

5,600

To Dinesh’s A/c

(Received cash and bad-debts written off)

14,000
30 Bank A/c Dr. 350
To Interest A/c

(Allowed interest by bank)

350
30 Rent A/c

Travelling Expenses A/c

Dr.

Dr.

1,500

500

To Bank A/c

(Paid expenses by cheque)

2,000
2,35,450 2,35,450

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.

Solution:

Journal Books of Harish & Co.
Date

2017

Particulars L.F. Debit ₹ Credit ₹
April 1 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

(Previous year’s balances brought forward)

95,800
2 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)
4 Bank A/c Dr. 7,600
To Cheques-in-Hand A/c 7,600
(Cheques-in-hand sent to bank)
5 Purchases A/c Dr. 18,000
To Bank A/c 17,100
To Discount Received A/c

(Purchased goods for cash and received discount)

900
6 Bank A/c Dr. 3,860
Discount Allowed A/c Dr. 140
To Shyam’s A/c

(REceived cheque from Shyam)

4,000
10 Anil’s A/c Dr. 4,000
To Cash A/c 3,920
To Discount Received A/c

(Paid full settlement cash to Anil)

80
15 Cash A/c Dr. 800
To Furniture A/c 800
(Sold furniture for cash)
16 Shiv Parshad’s A/c Dr. 8,500
To Sales A/c

(Sold goods to Shiv Parshad on credit)

8,500
18 Sales Return A/c Dr. 850
To Shiv Parshad’s A/c

(Returned goods by Shiv Parshad)

850
20 Repairs A/c Dr. 100
To Cash A/c

(Paid cash for furniture repair)

100
25 Bank A/c Dr. 7,344
Discount Allowed A/c Dr. 306
To Shiv Parshad’s A/c

(Full settlement cheque received)

7,650
28 Bank Charges A/c Dr. 50
To Bank A/c

(Bank charged some charges)

50
30 Cash A/c Dr. 200
To Commission A/c

(Received commission)

200
TOTAL 1,64,550 1,64,550

Question 15

Pass Journal Entries

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.

Solution:

Journal Book
Sl no. Particulars L.F. Debit ₹ Credit ₹
1. Depreciation A/c Dr. 2,500
To Furniture A/c

To Machinery A/c

(Depreciation imposed on furniture and machinery)

500

2000

2. Cash A/c Dr. 1,000
To Bad Debts Recovered A/c

(Recovered Bad debts)

1,000
3. Bad Debts Dr. 2,500
To Ajay Singh’s A/c

(Bad debts written-off)

2,500
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

(Outstanding salaries and wages)

4,000
5. Drawings A/c Dr. 6,000
To Bank A/c

(Purchased furniture for personal use)

6,000
6. Interest on Capital A/c Dr. 18,000
To Capital A/c

(Interest on capital)

18,000
7. Drawings A/c Dr. 1,000
To Interest on Drawings A/c

(Interest on drawings)

1,000
TOTAL 55,000 55,000

Question 16

Pass Journal Entries

2017
Jan 5 Purchased goods for Cash ₹ 10,000 and spent ₹ 200 for their carriage
10 Purchased machinery for Cash ₹ 50,000 and spent ₹ 500 for its carriage.
15 Paid ₹ 20,000 for cement, ₹ 10,000 for timber and ₹ 5,000 as wages for the construction of building.
17 Purchased an old machinery for ₹ 20,000 and spent ₹ 2,500 on its immediate repair.
20 Paid ₹ 500 to repairing some other machinery.

Solution:

Journal Book
Date Particulars L.F. Debit ₹ Credit ₹
Jan. 5 Purchases A/c Dr. 10,000
Carriage A/c Dr. 200
To Cash A/c

(Purchased goods for cash and paid carriage)

10,200
10 Machinery A/c Dr. 50,500
To Cash A/c

(Purchased machine for cash and carriage paid)

50,500
15 Building A/c Dr. 35,000
To Cash A/c

(Made payment for construction of building)

35,000
17 Machinery A/c Dr. 22,500
To Cash A/c

(Purchased machine and expenses paid)

22,500
20 Repairs A/c Dr. 500
To Cash A/c

(Made payment for repairs)

500
TOTAL 1,18,700 1,18,700

Question 17

Pass Journal Entries

2016
June 1 Arun Govil & Co. paid into bank as capital ₹ 6,00,000
3 Purchased goods from Mukesh of the list price of ₹ 2,00,000 at 10% trade discount
4 One-fourth of the above goods returned to Mukesh for not being upto specifications
6 Issued a cheque to Mukesh for the amount due to him after deducting 2% as cash discount
7 Withdrew from bank ₹ 2,50,000 for office use and ₹ 10,000 for personal use
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
12 Sold goods for ₹ 1,00,000 to Amar
13 Amar clears his account by giving a cheque of ₹ 98,500. Cheque is immediately sent to bank
15 Purchased stationery for personal use ₹ 3,000 and for office use ₹ 5,000
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
30 Wages due to labourers ₹ 20,000 and salary due to the clerk ₹ 30,000

Solution:

Journal Books of Sh. Arun Govil & Co.
Date Particulars L.F. Debit (₹) Credit (₹)
2016
June 1 Bank A/c Dr. 6,00,000
To Capital A/c

(Started business with cash)

6,00,000
3 Purchases A/c Dr. 1,80,000
To Mukesh’s A/c

(Purchased goods @ 10% trade discount from Mukesh)

1,80,000
4 Mukesh’s A/c Dr. 45,000
To Purchases Return A/c

(1/4th of goods returned to Mukesh)

45,000
6 Mukesh Dr. 1,35,000
To Bank A/c

To Discount Received A/c

(Issued full settlement cheque to Mukesh)

1,32,300

2,700

7 Drawings A/c

Cash A/c

Dr.

Dr.

10,000

2,50,000

To Bank A/c

(Withdrawn cash for personal and office use)

2,60,000
10 Machinery A/c Dr. 1,05,000
To Bank A/c

To Cash A/c

(Purchased machinery and installation charges paid )

1,00,000

5,000

12 Amar’s A/c Dr. 1,00,000
To Sales A/c

(Sold goods on credit to Amar)

1,00,000
13 Bank A/c

Discount Allowed A/c

Dr.

Dr.

98,500

1,500

To Amar’s A/c

(Received full settlement from Amar)

1,00,000
15 Drawings A/c

Stationery A/c

Dr.

Dr.

3,000

5,000

To Cash A/c

(Purchased stationery for personal and office use)

8,000
20 Land A/c Dr. 2,17,000
To Bank A/c

(Purchased land and paid brokerage)

2,17,000
30 Salaries A/c

Wages A/c

Dr.

Dr.

30,000

20,000

To Outstanding Wages A/c

To Outstanding Salaries A/c

(Provided outstanding expenses)

20,000

30,000

TOTAL 18,00,000 18,00,000

Question 18

Pass Journal Entries

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 ₹ 65,000.

Solution:

Journal Books of Raj Kumar
Sl no. Particulars L.F. Debit (₹) Credit (₹)
1) Purchases A/c Dr. 12,000
To Cash A/c

To Kuldeep Kumar’s A/c

(Goods purchased for cash and credit)

2,000

10,000

2) Kuldeep Kumar’s A/c Dr. 10,000
To Cash A/c

To Discount Received A/c

(Cash paid to Kuldeep Kumar in full settlement)

9,950

50

3) Prepaid Rent A/c Dr. 10,000
To Cash A/c

(Rent paid in advance)

10,000
4) Machinery A/c Dr. 1,03,000
To Bank A/c

To Cash A/c

(Machinery purchased and expenses paid)

1,00,000

3,000

5) Purchases A/c Dr. 50,000
To Govind’s A/c

(Goods purchased from Govind)

50,000
Manohar Lal’s A/c Dr. 65,000
To Sales A/c

(Goods sold to Manohar Lal)

65,000
TOTAL 2,50,000 2,50,000

Question 19

Pass Journal Entries

1. Purchased Machinery for ₹ 20,000 and paid ₹ 200 for its carriage.

2. Received a cheque for ₹ 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.

Solution:

Journal Books
Sl no. Particulars L.F. Debit ₹ Credit ₹
1) Machinery A/c Dr. 20,200
To Cash A/c

(Purchased machinery and paid carriage charge)

20,200
2) Bank A/c

Discount Allowed A/c

Dr.

Dr.

4,850

150

To X’s A/c

(Received full settlement cheques from X)

5,000
3) Cash A/c

Bad Debts A/c

Dr.

Dr.

6,000

4,000

To Y’s A/c

(Received cash and written-off bad debts)

10,000
4) Z’s A/c Dr. 8,000
To Sales A/c

(Sold goods on credit to Z)

8,000
Bank A/c

Discount Allowed A/c

Dr.

Dr.

7,600

400

To Z’s A/c

(Received full settlement Cheque)

8,000
5) Manoj’s A/c (WN) Dr. 21,600
To Sales A/c

(Sold goods to Manoj)

21,600
TOTAL 72,800 72,800

Working Notes: Evaluation of goods sold to Manoj

Cost Price                           =   20,000

Add: Profit                        = 4,000

Invoice Price                    =24,000

Less: Trade Discount    = 2,400

Rs                                      =  21,600

Question 20

Pass Journal Entries

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.

Solution:

Journal Books
Sl no. Particulars L.F. Debit ₹ Credit ₹
1) Loss by Fire A/c Dr. 50,000
To Purchases A/c

(Destroyed goods by fire)

50,000
2) Advertisement Expenses A/c Dr. 18,000
To Purchases A/c

(Distributed goods as free samples)

18,000
Charity A/c Dr. 20,000 20,000
To Cash A/c

(Cash given for charity)

3) Drawings A/c Dr. 65,000
To Cash A/c

To Purchases A/c

(Cash and goods withdrawn for personal use)

40,000

25,000

4) Charity A/c Dr. 25,000
To Cash A/c

To Purchases A/c

(Cash and goods given for charity)

5,000

20,000

5) Loss by Theft A/c Dr. 1,00,000
To Cash A/c

(Cash stolen)

1,00,000
TOTAL 2,78,000 2,78,000

Solution 21

Pass Journal Entries

1. Sold goods to Brijesh of the list price of ₹ 10,000 at trade discount of 5%. Received full payment in cash.

2. Goods given away as charity ₹ 1,000.

3. Charge interest on capital of ₹ 5,00,000 @ 7% p.a.

4. Outstanding wages ₹ 3,000.

5. ₹ 5,000 due from Sunny are now bad debts.

6. ₹50,000 cash sales (of goods costing ₹ 40,000).

Solution:

Journal Books
Sl no. Particulars L.F. Debit ₹ Credit ₹
1) Cash A/c Dr. 9,500
To Sales A/c

(Sold goods for cash to Brijesh)

9,500
2) Charity A/c Dr. 1,000
To Purchases A/c

(Given goods for charity)

1,000
3) Interest on Capital A/c Dr. 35,000
To Capital A/c

(Interest on capital provided)

35,000
4) Wages A/c Dr. 3,000
To Outstanding Wages A/c

(Wages outstanding provided)

3,000
5) Bad Debts A/c Dr. 5,000
To Sunny’s A/c

(Bad debts written-off)

5,000
6) Cash A/c Dr. 50,000
To Sales A/c

(Sold goods for cash)

50,000
TOTAL 1,03,500 1,03,500

Solution 22

Pass Journal Entries

(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.

Solution:

Journal Books
Sl no. Particulars L.F. Debit Credit
a) Drawings A/c Dr. 10,000
To Bank A/c

(Withdrew cash for personal use from bank)

10,000
b) Loss by Fire A/c Dr. 50,000
To Purchases A/c

(Destroyed goods by fire)

50,000
c) Machinery A/c Dr. 1,52,000
To Cash A/c

(Machinery purchased for cash and paid installation charges)

1,52,000
d) Depreciation A/c Dr. 10,400
To Building A/c

To Furniture A/c

(Charged depreciation on furniture and building)

10,000

400

e) Prepaid Salary A/c Dr. 2,000
To Salary A/c

(Salary paid)

2,000
f) Bad Debts A/c Dr. 20,000
To Kapil’s A/c

(Written-off Bad debts)

20,000
TOTAL 2,44,400 2,44,400

Solution 23

Record Navin Gupta & Sons Journal Entries

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.

Solution:

Journal Books of Navin Gupta
Sl no. Particulars L.F. Debit ₹ Credit ₹
1 Prepaid Insurance A/c Dr. 15,000
To Insurance A/c

(Insurance paid)

15,000
2 Purchases A/c Dr. 50,000
To Ram & Co.

(Purchased goods from Ram & Co. on credit )

50,000
3 Ram & Co. Dr. 50,000
To Cash A/c

To Discount Received A/c

(Paid full settlement in cash to Ram & Co. in)

47,500

2,500

4 Drawings A/c Dr. 20,000
To Cash A/c

(income tax paid )

20,000
5 Cash A/c Dr. 2,20,000
To Sales A/c

(Sold goods for cash with 10% profit)

2,20,000
6 Office Equipment A/c Dr. 3,50,000
To Cash A/c

(Purchased office equipment)

3,50,000
TOTAL 7,05,000 7,05,000

Solution 24

Record journal book of Kanishk Traders

1. Sold goods costing ₹ 1,20,000 to Charu at a profit of 33 1/2% on cost less 15% Trade Discount.

2. Sold goods costing ₹ 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount.

3. 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.

Solution:

Journal

In the Books of Kanishk

Sl no. Particulars L.F. Debit ₹ Credit ₹
1 Charu’s A/c (WN1) Dr. 1,36,000
To Sales A/c

(Sold goods to Charu)

1,36,000
2 Bank A/c (WN2) Dr. 85,000
To Sales A/c

(Sold goods to Arun)

85,000
3 Insurance A/c Dr. 8,400
To Bank A/c

( Paid insurance premium through cheque)

8,400
Prepaid Insurance A/c Dr. 2,800
To Insurance A/c

(Paid four months advanced insurance premium)

2,800
TOTAL 2,32,200 2,32,200

Working notes 1: Evaluation of amount of goods sold to Charu

Cost = 1,20,000

Add: Profit @ 33 ⅓ % on 1,20,000 = \(\frac{40,000}{1,60,000}\)

Less: Trade Discount @ 15% on 1,60,000 = \(\frac{24,000}{1,36,000}\)

Working notes 2: Evaluation of amount of goods sold to Arun

Cost = 80,000

Add: Profit @ 25% on 80,000 = \(\frac{20,000}{1,00,000}\)

Less: Trade Discount @ 15% = \(\frac{15,000}{85,000}\)

Solution 25

Record journal book

2017

March

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

Solution:

Journal Book Entry
Date

2017

Particulars L.F. Debit ₹ Credit ₹
March 4 Building A/c Dr. 1,60,000
To Bank A/c

(Purchased building and paid expenses)

1,60,000
10 Cash A/c

Bad Debts A/c

Dr.

Dr.

12,000

8,000

To Satish’s A/c

(Received cash from Satish and written-off bad debts)

20,000
15 Repairs A/c Dr. 500
To Cash A/c

(Made payment to repair office furniture)

500
18 Drawings A/c Dr. 7,000
To Cash A/c

To Purchases A/c

(Goods and Cash withdrawn for personal use)

5,000

2,000

20 Office Equipment A/c Dr. 32,000
To Cash A/c

(Bought cabinet, typewriter, and iron safe)

32,000
20 Postage & Stationery A/c Dr. 350
To Cash A/c

(Paid expenses for stationery and postage)

350
28 Electricity Charges A/c Dr. 1,600
To Cash A/c

(Electricity charges aid)

1,600
31 Depreciation A/c Dr. 7,500
To Machinery A/c

(Paid depreciation on machinery)

7,500
31 Wages A/c Dr. 6,000
To Outstanding Wages A/c

(Recorded outstanding wages)

6,000
TOTAL 2,34,950 2,34,950

Solution 26

Record journal book

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 \(\frac{1}{3}\) rd 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.

Solution:

Journal Books Entry
Sl no. Particulars L.F. Debit ₹ Credit ₹
1 Purchases A/c

Carriage A/c

Dr.

Dr.

25,000

200

To Cash A/c

(Purchased goods for cash and carriage paid)

25,200
2 Purchases A/c Dr. 40,000
To Sudhir’s A/c

(Goods purchased on credit from Sudhir)

40,000
Carriage A/c Dr. 500
To Cash A/c

(Carriage paid on goods purchased from Sudhir)

500
3 Machinery A/c Dr. 20,800
To Bank A/c

(Machinery purchased and expenses paid)

20,800
4 Purchases A/c Dr. 15,000
To Anil’s A/c

(Purchased goods on credit from Anil)

15,000
5 Cash A/c Dr. 6,000
To Sales A/c

(Goods purchased from Anil sold for cash at a profit of 20% on cost)

6,000
6 X’s A/c (WN) Dr. 13,500
To Sales A/c

(Goods sold to X)

13,500
7 Depreciation A/c Dr. 2,000
To Furniture A/c

(Depreciation charged on furniture)

2,000
8 Charity A/c Dr. 2,500
To Cash A/c

To Purchases A/c

(Cash and goods given in charity)

500

2,000

TOTAL 1,25,500 1,25,500

Working Notes: Evaluation of goods sold to X

Cost                                                                   = 12,000

Add: Profit @ 25 % on 12,000                    = 3,000

= 15,000

Less: Trade Discount @ 10% on 15,000  = 1,500

Sale Price                                                       = 13,500

Solution 27

Record journal book

1. Received a V.P.P. from Mohan Lal for ₹ 25,000. Sent a peon to collect it who paid ₹ 200 as cartage

2. Received ₹ 1,000 from sales of old newspapers and ₹ 5,000 from sales of old chairs

3. Goods given away as charity goods costing ₹ 7,000

4. Received Cash from a debtor written off as bad-debt last year ₹ 20,000

5. Sold goods costing ₹ 50,000 to Ashok on credit at a profit of 20% on cost

6. Sold goods costing ₹ 1,00,000 for ₹ 1,40,000

7. Provide ₹ 50,000 as interest on Capital

8. Paid rent of building ₹ 60,000 by cheque. Half the building is used by the proprietor for residential purpose

9. Outstanding salary at the end of the year ₹ 30,000

Solution:

Journal Books
Sl no. Particulars L.F. Debit ₹ Credit ₹
1 Purchases A/c

Cartage A/c

Dr.

Dr.

25,000

200

To Cash A/c

(Received VPP and paid cartage)

25,200
2 Cash A/c Dr. 1,000
To Sundry Income A/c

(Received income from old newspaper sale)

1,000
Cash A/c Dr. 5,000
To Furniture A/c

(Received cash from old chairs sale)

5,000
3 Charity A/c Dr. 7,000
To Purchases A/c

(Given goods to charity)

7,000
4 Cash A/c Dr. 20,000
To Bad Debts Recovered A/c

(Recovered bad debts)

20,000
5 Ashok’s A/c Dr. 60,000
To Sales A/c

(Sold goods to Ashok at 20% profit on credit)

60,000
6 Cash A/c Dr. 1,40,000
To Sales A/c

(Sold goods for cash)

1,40,000
7 Interest on Capital A/c Dr. 50,000
To Capital A/c

(Interest provided on capital)

50,000
8 Rent A/c

Drawings A/c

Dr.

Dr.

30,000

30,000

To Bank A/c

(Paid building rent)

60,000
9 Salary A/c Dr. 30,000
To Outstanding Salary A/c

(Provided outstanding salary)

30,000
TOTAL 3,98,200 3,98,200

Solution 28

Record journal book

2018 April Particulars
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

Solution:

Journal
Date

April

Particulars L.F Debit Credit
1 Purchases A/c Dr. 90,000
To Manoj

(Bought goods from Manoj)

90,000
2 Manoj A/c Dr. 90,000
To Bank A/c

To Discount Received A/c

(Paid due to Manoj and availed discount)

85,500

4,500

5 Desai A/c Dr. 5,200
To Cash A/c

To Discount Received A/c

(Paid cash to Desai and allowed discount)

5,000

200

10 Cash A/c

Discount Allowed A/c

Dr.

Dr.

10,000

500

To Govardhan A/c

(Received cash from Govardhan)

10,500
12 Bank A/c Dr. 80,000
To Capital A/c

(Personal car sold and invested in business)

80,000
Apr 16 Entry Non
Apr 20 Gaurav A/c Dr. 1,26,000
To Sales A/c

(Goods sold to Gaurav)

1,26,000
CarriageOutwards A/c Dr. 3,000
To Cash A/c

(Paid cartage on sales)

3,000
Apr 24 Advance for Purchases A/c Dr. 32,000
To Bank A/c

(Against purchase order an advance cheque sent to Rudra and Co.)

32,000
4,36,700 4,36,700

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 the proprietor for personal use)
(vi) Dr. 2,000
To 2,000
(For Rent due to landlord)

Solution:

Journal Books
Date Particulars L.F. Debit ₹ Credit ₹
i) Cash A/c

Discount Allowed A/c

Dr.

Dr.

4,410

90

To Sales A/c

(Goods of the list price of ₹ 5,000 sold at 10% trade discount and 2% cash discount)

4,500
ii) Motor Car A/c Dr. 85,000
To Cash A/c

(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)

85,000
iii) Chaturvedi’s A/c Dr. 5,000
To Cash A/c

To Discount Received A/c

(Chaturvedi’s account settled, cash discount three per cent)

4,850

150

iv) Cash A/c

Bad Debts A/c

Dr.

Dr.

5,880

2,520

To Ashok’s A/c

(70 paise per rupee received from the estate of Ashok on his insolvency)

8,400
v) Drawings A/c Dr. 3,000
To Purchases A/c

(For goods used by the proprietor for personal use)

3,000
vi) Rent A/c Dr. 2,000
To Outstanding Rent A/c

(For Rent due to landlord)

2,000
TOTAL 1,07,900 1,07,900

Question 30

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

2017

May

Particulars L.F. Amount

Dr.

Amount

Cr.

4 Building A/c

Brokerage A/c

Dr.

Dr.

5,00,000

10,000

To Bank A/c

(Purchase of building and payment of brokerage on its purchase)

5,10,000
10 Drawings A/c Dr. 12,000
To Sales A/c

(Goods taken away by the proprietor for personal use)

12,000
16 Filing Cabinet A/c

Electric Fan A/c

Dr.

Dr.

4,000

2,500

To Cash A/c

(Purchase of filing cabinet and an electric fan)

6,500
18 Cash A/c Dr. 8,730
To Sales A/c

(Goods worth ₹ 10,000 sold at 10% trade discount and 3% cash discount)

8,730
20 Bank A/c Dr. 10,000
To Naresh

(Receipt of 25 paise per rupee from the estate of Naresh who is declared insolvent)

10,000
31 Bank Charges A/c Dr. 150
To Cash A/c

(Charges made by bank for its services)

150

Solution:

Journal Books
Date

2017

Particulars L.F. Debit ₹ Credit ₹
May 4 Building A/c* Dr. 5,10,000
To Cash A/c

(Purchase of building and payment of brokerage on its purchase)

5,10,000
10 Drawings A/c Dr. 12,000
To Purchases A/c

(Goods taken away by the proprietor for personal use)

12,000
16 Office Equipment A/c Dr. 6,500
To Cash A/c

(Purchase of filing cabinet and an electric fan)

6,500
18 Cash A/c (WN1)

Discount Allowed A/c

Dr.

Dr.

8,730

270

To Sales A/c

(Goods worth ₹ 10,000 sold at 10% trade discount and 3% cash discount)

9,000
20 Cash A/c (WN2)

Bad Debts A/c

Dr.

Dr.

10,000

30,000

To Naresh

(25 paise per rupee receipt of from the estate of Naresh who is declared insolvent)

40,000
31 Bank Charges A/c Dr. 150
To Bank A/c

(Charges made by bank for its services)

150
TOTAL 5,77,650 5,77,650

Working notes 1: Evaluation of goods sold

Cost                                                                 = 10,000

Less:Trade discount(10%0n 10,000)     = 1,000

= 9,000

Less: Cash discount 3% on 9,000           =  270

Sale price                                                    = 8730

Working notes 2: Evaluation of bad debt

25paise per rupee from Naresh =10,000

So, 75paise per not received from Naresh = \(\frac{10,000}{25}\) x = 30,000

Total amount due from Naresh = Rs 40,000 (10,000+30,000)

Solution 31

Record journal book

Sl no. Particulars
1 Goods destroyed by Fire for ₹ 5,000
2 Paid by cheque ₹ 25,000 as wages on installation of a Machinery
3 Issued a cheque in favour of M/s Parmatma Saran & Sons on account of purchase of goods ₹ 75,000
4 Goods sold costing ₹ 60,000 to M/s Kalu Sons at an invoice price 10% above cost less 5% Trade discount

Solution:

Journal Books
Date Particulars L.F. Debit ₹ Credit ₹
1 Loss by Fire A/c Dr. 5,000
To Purchases A/c

(Destroyed goods by fire)

5,000
2 Machinery A/c Dr. 25,000
To Cash A/c

(Paid wages for machine installation)

25,000
3 Purchases A/c Dr. 75,000
To Bank A/c

(Issued cheque for goods purchasing)

75,000
4 M/s Kalu & Sons (WN) Dr. 62,700
To Sales A/c

(Sold goods on credit to M/s Kalu & Sons)

62,700
TOTAL 1,67,700 1,67,700

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

Cost                                                          = 60,000

Add: Profit (10% om 60,000)            = 6,000

= 66,000

Less: Trade discount (5% on 66,000) = 3,300

Sale price                                                   62,700

Question 32

Record journal book

Journalise the following transactions:−

Sl no. Particulars (₹)
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

Solution:

Journal Books
Sl no. Particulars L.F. Debit ₹ Credit ₹
1 Depreciation A/c Dr. 20,000
To Machinery A/c

(Depreciation on machinery charged)

20,000
2 Salary A/c Dr. 1,00,000
To Outstanding Salary A/c

(Office clerk salary due)

1,00,000
3 Cash A/c Dr. 5,000
To Bad Debts Recovered A/c

(Recovered Bad debts)

5,000
4 Purchases A/c Dr. 40,000
To Ashok & Co.

To Cash A/c

(Bought goods)

20,000

20,000

5 Ashok & Co. Dr. 20,000
To Bank A/c

To Discount Received A/c

(Made full settlement payment to Ashok & Co.)

19,500

500

6 Drawings A/c Dr. 6,000
To Cash A/c

(Paid premium for life insurance)

6,000
7 Drawings A/c Dr. 20,000
To Purchases A/c

(Utilized goods for household purposes)

20,000
8 Charity A/c Dr. 10,000
To Purchases A/c

(Give goods for charity)

10,000
TOTAL 2,21,000 2,21,000

Question 33

Record journal book

2017

March

Particular
1 Started business with cash 50,000
2 Purchased Machinery for cash 20,000
Paid installation charges on machinery 2,000
5 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

Solution:

Journal Books
Date

2017

Particulars L.F. Debit ₹ Credit ₹
March 1 Cash A/c Dr. 50,000
To Capital A/c

(Business started with cash)

50,000
2 Machinery A/c Dr. 22,000
To Cash A/c

(Purchased machinery in cash and paid installation charges)

22,000
5 Purchases A/c Dr. 20,000
To Cash A/c

To Discount Received A/c

(Purchased goods for cash and discount received)

19,000

1,000

10 Y’s A/c Dr. 11,700
To Sales A/c

(Sold goods on credit at 30% profit to Y)

11,700
15 Rent A/c Dr. 1,000
To Cash A/c

(Paid rent)

1,000
20 Loss by Theft A/c Dr. 2,000
To Purchases A/c

(Stolen goods from business)

2,000
22 Charity A/c Dr. 300
To Cash A/c

To Purchases A/c

(Give goods and cash for charity)

100

200

31 Postage A/c Dr. 50
To Cash A/c

(Postage paid)

50
31 Computer A/c Dr. 25,000
To Cash A/c

(Purchased computer)

25,000
TOTAL 1,32,050 1,32,050

Question 34

Record journal book

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.

Solution:

Journal Books
Date Particulars L.F. Debit ₹ Credit ₹
1 Motor Car A/c Dr. 3,25,000
To Bank A/c

(Bought motorcar and made payment for renewal and repair)

3,25,000
2 Cash A/c Dr. 5,000
To Rent A/c

(Received rent)

5,000
3 Advertisement Expenses A/c Dr. 20,000
To Purchases A/c

(Distributed goods free samples)

20,000
4 Depreciation A/c Dr. 32,500
To Motor Car A/c

(Charged depreciation on motor car)

32,500
5 Rent A/c

Salaries A/c

Dr.

Dr.

10,000
To Outstanding Expenses A/c

(Provide outstanding expenses)

90,000
6 Interest on Capital A/c Dr. 20,000
To Capital A/c

(Capital interest provided)

20,000
7 Bad Debts A/c Dr. 5,000
To Sanjay Gupta’s A/c

(Written-off bad debts)

5,000
8 Loss by Fire A/c Dr. 50,000
To Purchases A/c

(Destroyed goods by fire)

50,000
9) Loss by Theft A/c Dr. 25,000
To Cash A/c

To Purchases A/c

(Employee stole goods and cash)

5,000

20,000

TOTAL 5,72,500 5,72,500

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.

Solution:

Journal Books
Date Particulars L.F. Debit ₹ Credit ₹
(i) Purchases A/c (WN) Dr. 1,70,000
To Arun’s A/c

To Cash A/c

To Discount Received A/c

(Purchased goods and paid 80% in cash)

34,000

1,33,280

2,720

(ii) Purchases A/c Dr. 20,000
To X’s A/c

(Purchased goods on credit from X)

20,000
Y’s A/c Dr. 26,000
To Sales A/c

(Sold goods to Y on credit)

26,000
(iii) Cash A/c

Drawings A/c

Dr.

Dr.

25,000

5,000

To Bank A/c

(Withdraw cash from bank for office and personal use)

30,000
(iv) Loss by Fire A/c Dr. 40,000
To Purchases A/c

(Destroyed goods by fire)

40,000
(v) Depreciation A/c Dr. 10,000
To Machinery A/c

(Charged depreciation on machinery)

10,000
(vi) Prepaid Insurance A/c Dr. 3,000
To Insurance A/c

(Paid insurance in advance)

3,000
(vii) Interest on Capital A/c Dr. 5,000
To Capital A/c

(Interest allowed ion capital)

5,000
Drawings A/c Dr. 1,000
To Interest on Drawings A/c

(Interest charged on drawings)

1,000
(viii) Cash A/c

Bad Debts A/c

Dr.

Dr.

10,000

15,000

To Sohan’s A/c

(Received cash from Sohan and written-off bad debts)

25,000
(ix) Drawings A/c Dr. 10,000
To Bank A/c

(Paid Income tax)

10,000
(x) Salaries A/c Dr. 1,00,000
To Cash A/c

To Outstanding Salaries A/c

(Paid salary and outstanding salary)

80,000

20,000

TOTAL 4,40,000 4,40,000

Working Notes: Evaluating outstanding amount and payment made to Arun

Cost                                                                 = 2,00,000

Less: Trade discount(15% on 2,00,000) = 30,000

= 1,70,000

Payment made in cash (80% 0f 1,70,000) =1,36,000

Less: Cash discount (2% on 1,36,000)       = 2,720

Net Amount                                                     = 1,33,280

Outstanding amount to Arun (20% of 1,70,000) = Rs, 34,000

Question 36

Journalise the following transactions:

2018

May

1 Purchased a Machinery for ₹ 1,00,000 and the payment was made by issuing a cheque from Proprietor’s saving bank account.
4 Received an order from Chakravarti for goods of ₹ 4,00,000 along with a cheque of 10% of the order as advance.
8 Paid cash ₹ 8,000 to Dushyant and discount allowed by him ₹ 800.
10 Goods were 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.

Solution:

Journal
Date

2018

Particulars L.F. Debit

Credit

May 1 Machinery A/c Dr. 1,00,000
To Capital A/c

(Bought Machine and paid through personal bank account)

1,00,000
4 Bank A/c Dr. 40,000
To Advance against Sales A/c

(Received advance a sales order cheque from Chakravarti)

40,000
8 Dushyant A/c Dr. 8,800
To Cash A/c

To Discount Received A/c

(Paid cash to Dushyant)

8,000

800

10 Loss by Theft A/c Dr. 15,000
To Purchases A/c

(Goods stolen by employee)

15,000
15 Stationery A/c

Drawings A/c

Dr.

Dr.

8,000

2,000

To Cash A/c

(Bought stationery for personal and office use)

10,000
20 Cash A/c

Discount Allowed A/c

Dr.

Dr.

5,400

600

To Manoj A/c

(Received payment from Manoj after giving 10% discount)

6,000
28 Kuber A/c Dr. 2,25,000
To Sales A/c

(Goods sold to Kuber)

2,25000
4,04,800 4,04,800

Question 37

Prepare journal

(a) Goods worth ₹ 2,000 destroyed by fire.

(b) Received ₹ 5,000 from Suresh which were written off as bad debts.

(c) Sold goods to Mohan of the list price of ₹ 5,000 subject to 10% trade discount and 5% cash discount. Mohan availed cash discount.

(d) Received ₹ 9,900 from Hari in full settlement of his account ₹ 10,000.

Solution:

Journal
Sl no. Particulars L.F. Debit

Credit

(a) Loss by Fire A/c Dr. 2,000
To Purchases A/c

(Lost goods by fire)

2,000
(b) Cash A/c Dr. 5,000
To Bad Debts Recovered A/c

(Received cash from Suresh, and written off bad debt)

5,000
(c) Cash A/c

Discount Allowed A/c

Dr.

Dr.

4,275

225

To Sales A/c

(SGoods sold for cash to Mohan)

4,500
(d) Cash A/c

Discount Allowed A/c

Dr.

Dr.

9,900

100

To Hari A/c

(Full settlement of account received)

10,000
4,04,800 4,04,800

Question 38

Prepare a journal for the following transaction of Vibha and Co.

2018
April 7

9

12

18

19

24

29

30

30

Sold goods for cash

Sold goods to Mani on credit

Received cash from Mani

Sold goods to Suri for cash

Sold goods to Suri on credit

Withdrew cash from office for personal use

Paid wages

Paid salary to Gopi

Received Commission

13,000

15,000

10,000

12,600

7,000

2,500

450

1,200

200

Solution

Journal for Vibha and Co.
Date Particular L.F Amount Dr. Amount Cr.
April 7 Cash A/c Dr.

To Sales A/c

(Goods sold for cash)

13,000 13,000
April 9 Mani Dr.

To Sales A/c

(Goods sold to Mani on credit)

15,000 15,000
April 12 Cash A/c Dr.

To Mani

(Goods received from Mani)

10,000 10,000
April 18 Cash A/c Dr.

To Sales A/c

(Goods sold for cash)

12,600 12,600
April 19 Suri Dr.

To Sales A/c

(Goods sold to Suri on credit)

7,000 7,000
April 24 Drawings A/c Dr.

To Sales A/c

(Withdrew amount for personal use)

2,500 2,500
April 29 Wages A/c Dr.

To Cash A/c

(Wages paid)

450 450
April 30 Salary A/c Dr.

To Cash A/c

(Salary paid)

1,200 1,200
April 30 Cash A/c Dr.

To Commission Received A/c

(Commission received)

200 200

Question 39

Record the following transactions in the journal of Vimal Bros.

2018
May 1

2

3

4

8

12

Commenced business with cash

Goods purchased from Mohan for cash

Goods purchased from Ajay

Goods returned to Ajay

Goods sold to Rajiv

Rajiv returned 10% of goods

5,00,000

50,000

1,20,000

5,000

40,000

Solution

Journal of Vimal Bros.
Date Particular L.F Amount Dr. ₹ Amount Cr. ₹
2018

May 1

Cash A/c Dr. 5,00,000
To Capital A/c

(Amount brought in by Vimal Bros. as capital)

5,00,000
May 2 Purchase A/c Dr. 50,000
To Cash A/c

(Goods purchased from Mohan by cash)

50,000
May 3 Purchase A/c Dr. 1,20,000
To Ajay A/c

(Goods purchased from Ajay)

1,20,000
May 4 Ajay Dr. 5,000
To Purchase Return A/c

(Goods return from Ajay)

5,000
May 8 Rajiv Dr. 40,000
To Sale A/c

(Goods sold to Rajiv)

40,000
May 12 Sales Return A/c Dr. 4,000
To Rajiv

(10% of goods sold to Rajiv returned by him: 10% of 40,000 = ₹4,000)

4,000
Total ₹ 7,19,000 7,19,000

The above-provided solutions are considered to be the best solution for ‘DK Goel Solutions Accountancy Class 11 Chapter 9 – “ Books of Original Entry – Journal”. Stay tuned for updated Class 11 accountancy solutions.

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