NCERT Solution for Class 11 Accountancy Chapter 3 - Recording of Transactions - 1

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Short Answers for NCERT Solution for Class 11 Accountancy Chapter 3 – Recording of Transactions – 1

1. State the three fundamental steps in the accounting process.

The fundamental steps of the accounting process are:

1. Identifying and analyzing business transactions.

2. Recording of business transactions.

3. Classifying and summarizing their effect and communicating the same to the interested users of business information.

2. Why is the evidence provided by source documents important to accounting?

The importance of source documents in accounting is due to the following reasons:

1. It provides evidence of the transaction that has taken place.

2. It acts as a backup in times of auditing and tax assessment.

3. It acts as primary legal evidence, as journal entries are based on data from source documents.

3. Should a transaction be first recorded in a journal or ledger? Why?

The practice of recording a transaction in the journal, in the first instance, provides for a complete record of each transaction and also keeps a track of all debits and credits related to each transaction.

4. Are debits or credits listed first in journal entries? Are debits or credits indented?

Debit gets recorded in the journal first before credit, but both debit and credit are recorded in the journal before being recorded in the ledger. Debit entry is recorded without any margin, indent or spacing. However, for a credit entry, some spacing, margin or indent is essential. The symbol Dr. for debit entry is right aligned.

5. Why are some accounting systems called double accounting systems?

Accounting systems are called double accounting systems as they have two aspects to each transaction. Every transaction is recorded on the debit and credit sides simultaneously.

6. Give a specimen of an account.

The specimen of an account can be represented as:

specimen of an account

7. Why are the rules of debit and credit same for both liability and capital?

Liability is towards creditors, while capital is the liability of a business towards its owners. Hence the same rules of debit and credit apply to both liability and capital.

8. What is the purpose of posting JF numbers that are entered in the journal at the time entries are posted to the accounts?

The number entered in a ledger at the time of posting entries into each account is called JF Number. It determines if transactions are properly posted or not. It is recorded at the time of posting. The purpose of posting JF in the ledger is to locate entries in the journal book and also to ensure that recording has been done in books of original entry.

9. What entry (debit or credit) would you make to: (a) increase revenue (b) decrease in expense, (c) record drawings (d) record the fresh capital introduced by the owner.

a. Increase in revenue

It will be credited as an increase in revenue increases capital.

b. Decrease in expense

It will be credited.

c. Record drawings

Drawings must be debited as it results in a decrease of capital

d. Record of fresh capital introduced by the owner

An increase in capital will be credited as it increases the liability of the business towards owners.

10. If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or as a credit?

Transactions that have a decreasing effect on an asset are always recorded on the credit side, and transactions that have a decreasing effect on the liabilities are recorded on the debit side.

Long Answers for NCERT Solution for Class 11 Accountancy Chapter 3 – Recording of Transactions – 1

1. Describe the events recorded in accounting systems and the importance of source documents in those systems.

Events that are recorded into the accounting system are those events that can be measured in monetary terms. Some examples include the installation of machinery after purchase, and payment of salaries to employees. The importance of source documents in the accounting system is as follows:

1. It provides evidence of the transaction that has taken place.

2. It acts as a backup in times of auditing and tax assessment.

3. It acts as primary legal evidence, as journal entries are based on data from source documents.

4. It protects against faulty transactions

5. It helps in resolving conflicts related to any transaction.

2. Describe how debits and credits are used to analyse transactions.

All transactions must be measured in monetary terms to be recorded. All such transactions have a dual aspect, i.e., both debit and credit. Therefore when recording transactions, both the debit and credit amounts should be the same. In the recording of transactions, debit and credit determine whether they should be placed on the left or right side of the account. Amount entered on the left side is debit and is represented by the notation Dr. while credit is recorded on the right side of an account, abbreviated as Cr.

For recording transactions, accounts are classified into the following types:

  • Assets
  • Liabilities
  • Capital
  • Expenses/Losses
  • Revenues/Gains

The following rules are used for recording transactions to an account:

For Assets/ Expenses or Losses: Increase in Assets, Expenses or losses is debited while a decrease is credited. For Liabilities/Capital/Revenues or Gains, the increase is credited, while a decrease is debited.

3. Describe how accounts are used to record information about the effects of transactions?

All monetary transactions contain a source document, and these transactions get recorded in the journal. Thus each transaction is in one place and helps link the credit and debit transactions. This process is known as journalising. These recorded transactions get moved to individual ledgers, which is called the principal book of entry through posting. The following steps are taken while posting the accounts. Let’s understand it with an example.

The journal has an entry in the Books of Wadia Bros wherein goods worth of Rs.5000 were sold to Raheja Bros. on credit on 15-Mar-2019, and payment of Rs.5000 received from Raheja Bros on 20-Mar-2019.

Dr. Wadia Bros A/C Cr.
Date Particulars J.F. Amount
₹
Date Particulars J.F. Amount
₹
15 Mar 2019 Sales 23 5,000 20 Mar 2019 Cash 25 5,000

The following steps are included:

  • Identify this account’s page in the ledger
  • If this entry is the first one on the ledger account page, the balance carried forward (balance C/F) from the previous page, if any, is brought forward (balance b/f) to this page.
  • Fill in the date in the column in which sales occurred on the debit side.
  • Fill details of the transaction.
  • Record the page number of the journal in the JF column where the transaction occurs.
  • Fill monetary value in the amount column, which is Rs.5,000.
  • Enter the date on which the transaction occurred
  • Enter the particulars of the transaction.
  • Enter the page number on which this transaction appears in the journal.
  • Enter the monetary value of the transaction in the Amount column. In this case, it is Rs.5,000
  • Calculate the totals of both the debit and credit sides of the transaction.
  • If this is the last transaction entry in the ledger account, compute the difference in the amounts and enter the balance c/f. This should be carried over to the next page.

4. What is a journal? Give a specimen of journal showing at least five entries.

A journal is the book of original entry which records transactions as they take place. Such an entry into the journal must contain a source document. Maintaining a journal ensures all transactions are recorded and in one place, and debit and credit for each transaction are linked properly. A journal consists of the following sections:

Date − Transaction date based on when the transaction has taken place.

Particulars − Details of the transaction recorded

L.F. − Page number of the ledger where entry is posted.

Debit Amount − Debited amount as per transaction.

Credit Amount − Credit amount as per transaction

Date Details
01.5.2019 Business started with cash Rs.1,00,000
01.5.2019 Goods purchased from Harish for Rs.20,000
01.5.2019 Stationary purchased for cash for Rs.2,200
02.5.2019 Opened a bank account with SBI for Rs. 30,000
02.5.2019 Goods sold to for Rs.10,000
03.5.2019 Received a cheque of Rs.10,000 from Sachin
Books of Sajal
Date Particulars L.F Debit
Amount
Rs.
Credit
Amount
Rs.
2019

May.01

Cash A/c Dr.

To Capital A/c

(Business started with cash)

1,00,000 1,00,000
May.01 Purchases A/c Dr.

To Manisha A/c

(Goods purchased on credit)

20,000 20,000
May.01 Stationary A/c Dr.

To Cash A/c

(Purchase of Stationary for cash)

2,200 2,200
May.02 Bank A/c Dr.

To Cash A/c

(Opened a bank account with SBI)

30,000 30,000
May.02 Priya A/c Dr.

To Sales A/c

(Goods sold to Sachin on credit)

10,000 10,000
May.03 Bank A/c Dr.

To Sachin A/c

(Cheque received from Sachin)

10,000 10,000
 Total c/f 1,72,200 1,72,200

5. Differentiate between source documents and vouchers.

Basis of Comparison Source Documents Vouchers
Meaning It contains details of transactions The source document considered as evidence of a transaction is called a voucher
Purpose Accounting voucher preparation Analysis of monetary transactions.
Recording Base document for accounting voucher preparation Base document for transaction recording
Preparation Prepared at a time when an event or a transaction occurs. Prepared either when an event or a transaction occurs, or at a later time.
Legality/Validity Legal evidence for transactions The authenticity of transaction is validated
Prepared By A person conducting the transaction or having the authority to do so. A person having the authority only
Examples Cash memo, pay-in-slip invoice, etc. Cash memos, cash vouchers, transfer vouchers, pay-in-slip (if used as evidence), invoices, debit notes, credit notes, etc.

6. Accounting equation remains intact under all circumstances. Justify the statement with the help of an example.

As per accounting, the assets of a business always equal the sum of its capital and liabilities.

Assets = Capital + Liabilities

The accounting equation depicts the fundamental relationship that exists among the components of the balance sheet, it is also referred to as the Balance Sheet Equation. A balance sheet is a statement of liabilities, capital and assets.

At any given point in time, the resources of the business must be equal to the claims of those who have financed those resources. Resources of the business are provided by proprietors and outsiders. The claim of the proprietors is called capital, and that of the outsiders is known as liabilities.

Consider an example

Mohit started a business with a cash of Rs. 6,00,000.

Opened a bank account with an amount of Rs. 5,80,000.

Bough furniture for Rs. 60,000 and issued cheque for the same.

Bought Plant and Machinery from Ramlal for the business for Rs. 1,25,000, and an advance of Rs. 10,000 in cash is given.

The transactions upon tabulation show that the accounting equation remains the same

Transaction
No.
Assets = Liabilities Capital Total
Cash Bank Furniture Plant and Machinery Total
1 6,00,000 6,00,000 = 6,00,000 6,00,000
6,00,000 – – – 6,00,000 = – 6,00,000 6,00,000
2 (5,80,000) 5,80,000
20,000 5,80,000 – – 6,00,000 = – 6,00,000 6,00,000
3 (60,000) 60,000
20,000 5,20,000 60,000 – 6,00,000 = – 6,00,000 6,00,000
4 (20,000) 20,000
– 5,20,000 60,000 20,000 6,00,000 = 6,00,000 6,00,000
Total 6,00,000 =   6,00,000

7. Explain the double entry mechanism with an illustrative example.

In a double-entry mechanism, every transaction impacts and gets recorded in two accounts. While recording the transactions in double entry, it is ensured that the total debit amount must equal the total credit amount.

The increase of an item is recorded on the left side, abbreviated as Dr and the decrease is recorded on the right side, abbreviated as Cr.

The following rules are taken into consideration when recording a transaction into an account.

For Assets or Expenses/Losses:

Increase is debited and Decrease is credited.

For Liabilities/Capital/Revenues or Gains:

Increase is credited and Decrease is debited

Let us understand this with one example

Ronit started a business with a cash of Rs. 4, 00,000

Cash Account
(1) 4,00,000
Capital Account
(1) 4,00,000

This transaction increases cash on one hand while increasing capital on the other. Therefore cash account is debited, and the capital account is credited.

Numerical Answers for NCERT Solution for Class 11 Accountancy Chapter 3 – Recording of Transactions – 1

1 .Prepare accounting equation on the basis of the following:

(a) Harsha started business with cash Rs 2, 00,000

(b) Purchased goods from Naman for cash Rs 40,000

(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000

(d) Bought furniture on credit Rs 7,000

The solution is as follows:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Debtors + Furniture Creditors
(a) Increase in cash 2,00,000 =
Increase in capital 2,00,000
2,00,000 = NIL + 2,00,000
(b) Increase in stock 40,000
Decrease in cash (40,000)
1,60,000 + 40,000 = NIL + 2,00,000
(c) Increase in debtors 12,000
Decrease in stock (10,000)
Profit 2,000
1,60,000 + 30,000 + 12,000 = NIL 2,02,000
(d) Increase in furniture 7,000
Increase in creditors 7,000
1,60,000 + 30,000 + 12,000 + 7,000 = 7,000 + 2,02,000

2. Prepare accounting equation from the following:

    Rs
(a) Kunal started business with cash 2,50,000
(b) He purchased furniture for cash 35,000
(c) He paid commission  2,000
(d) He purchases goods on credit 40,000
(e) He sold goods (costing Rs 20,000) for cash 26,000

The solution is as follows:

S.No. Explanation Assets   Liabilities + Capital
Cash + Furniture + Stock = Creditors
(a) Increase in cash 2,50,000
Increase in capital 2,50,000
2,50,000 = NIL + 2,50,000
(b) Increase in furniture 35,000
Decrease in cash (35,000)
2,15,000 + 35,000 = NIL + 2,50,000
(c) Decrease in capital (Expense) (2,000)
Decrease in cash (2,000)
2,13,000 + 35,000 = NIL + 2,48,000
(d) Increase in stock 40,000
Increase in creditors 40,000
2,13,000 + 35,000 + 40,000 = 40,000 + 2,48,000
(e) Increase in cash 26,000
Decrease in stock (20,000)
Increase in capital (Profit) 6,000
2,39,000 + 35,000 + 20,000 = 40,000 + 2,54,000

3. Mohit has the following transactions, prepare accounting equation:

 

    Rs
(a) Business started with cash 1,75,000
(b) Purchased goods from Rohit  50,000
(c) Sales goods on credit to Manish (Costing Rs 17,500) 20,000
(d) Purchased furniture for office use 10,000
(e) Cash paid to Rohit in full settlement 48,500
(f) Cash received from Manish 20,000
(g) Rent paid 1,000
(h) Cash withdrawn for personal use 3,000

The solution is as follows:

S.No. Explanation Assets   Liabilities + Capital
Cash + Stock + Debtors Furniture = Creditors
(a) Increase in cash 1,75,000
Increase in capital 1,75,000
1,75,000 = NIL + 1,75,000
(b) Increase in stock 50,000
Increase in creditors (Rohit) = 50,000 + 1,75,000
1,75,000 + 50,000 = 50,000 + 1,75,000
(c) Increase in debtors (Manish) 20,000
Decrease in stock (17,500)
Increase in capital (Profit) 2,500
1,75,000 + 32,500 + 20,000 = 50,000 + 1,77,500
(d) Increase in furniture 10,000
Decrease in cash (10,000)
1,65,000 + 32,500 + 20,000 + 10,000 = 50,000 + 1,77,500
(e) Decrease in creditors (Rohit) (50,000)
Decrease in dash (48,500)
Increase in capital

(Discount received)

1,500
1,16,500 + 32,500 + 20,000 + 10,000 = NIL + 1,79,000
(f) Increase in cash 20,000
Decrease in debtors (Manish) (20,000)
1,36,500 + 32,500 + NIL + 10,000 = NIL + 1,79,000
(g) Decrease in capital (Expense) (1,000)
Decrease in cash 1,000
1,35,500 + 32,500 + NIL + 10,000 = NIL + 1,78,000
(h) Decrease in capital (Drawings) (3,000)
Decrease in cash (3,000)
1,32,500 + 32,500 + NIL + 10,000 = NIL + 1,75,000

4. Rohit has the following transactions:

    Rs
(a) Commenced business with cash 1,50,000
(b) Purchased machinery on credit  40,000
(c) Purchased goods for cash  20,000
(d) Purchased car for personal use  80,000
(e) Paid to creditors in full settlement 38,000
(f) Sold goods for cash costing Rs 5,000 4,500
(g) Paid rent  1,000
(h) Commission received in advance 2,000

 

Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital.

 

 

The solution is as follows:

S.No. Explanation Assets Liabilities + Capital
Cash + Machinery + Stock = Creditors + Unaccrued Income
(a) Increase in cash 1,50,000
Increase in capital 1,50,000
1,50,000 = NIL + 1,50,000
(b) Increase in machinery 40,000
Increase in creditors = 40,000
1,50,000 + 40,000 = 40,000 + 1,50,000
(c) Increase in stock 20,000
Decrease in cash (20,000)
1,30,000 + 40,000 + 20,000 = 40,000 + 1,50,000
(d) Decrease in cash (80,000)
Decrease in capital (Drawings) (80,000)
50,000 + 40,000 + 20,000 = 40,000 + 70,000
(e) Decrease in creditors (40,000)
Decrease in cash (38,000)
Increase in capital

(Discount received)

2,000
12,000 + 40,000 + 20,000 = NIL + 72,000
(f) Increase in cash 4,500
Decrease in stock (5,000)
Decrease in capital (Loss) (500)
16,500 + 40,000 + 15,000 = NIL + 71,500
(g) Decrease in cash (1,000)
Decrease in capital (Expense) (1,000)
15,500 + 40,000 + 15,000 = NIL + 70,500
(h) Increase in cash 2,000
Increase in unaccrued income = 2,000
17,500 + 40,000 + 15,000 = NIL + 2,000 + 70,500

5. Use accounting equation to show the effect of the following transactions of M/s Royal Traders:

    Rs
(a) Started business with cash 1,20,000
(b) Purchased goods for cash  10,000
(c) Rent received 5,000
(d) Salary outstanding 2,000
(e) Prepaid Insurance 1,000
(f) Received interest  700
(g) Sold goods for cash (costing Rs 5,000)  7,000
(h) Goods destroyed by fire  500

Solution:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Prepaid Expenses Outstanding Expenses
(a) Increase in cash 1,20,000
Increase in capital 1,20,000
1,20,000 = NIL + 1,20,000
(b) Increase in stock 10,000
Increase in cash (10,000) =
1,10,000 + 10,000 = NIL + 1,20,000
(c) Increase in cash 5,000
Increase in capital (Profit) 5,000
1,15,000 + 10,000 = NIL + 1,25,000
(d) Increase in outstanding expenses = 2,000
Decrease in capital (Expense) (2,000)
1,15,000 + 10,000 = 2,000 + 1,23,000
(e) Increase in prepaid expenses 1,000
Decrease in cash (1,000)
1,14,000 + 10,000 + 1,000 = 2,000 + 1,23,000
(f) Increase in cash 700
Increase in capital (Profit) 700
1,14,700 + 10,000 + 1,000 = 2,000 + 1,23,700
(g) Increase in cash 7,000
Decrease in stock (5,000)
Increase in capital (Profit) 2,000
1,21,700 + 5,000 + 1,000 = 2,000 + 1,25,700
(h) Decrease in stock (500)
Decrease in capital (Loss) = (500)
1,21,700 + 4,500 + 1,000 = 2,000 + 1,25,200

6. Show the accounting equation on the basis of the following transaction:

     
(a) Udit started business with: Rs
  (i) Cash 5,00,000
  (ii) Goods 1,00,000
(b) Purchased building for cash 2,00,000
(c) Purchased goods from Himani  50,000
(d) Sold goods to Ashu (Cost Rs 25,000)  36,000
(e) Paid insurance premium  3,000
(f) Rent outstanding  5,000
(g) Depreciation on building  8,000
(h) Cash withdrawn for personal use  20,000
(i) Rent received in advance  5,000
(j) Cash paid to Himani on account  20,000
(k) Cash received from Ashu  30,000

The solution is as follows:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Building + Debtors Creditors + Outstanding Expenses + Unaccrued Income    
(a) Increase in cash 5,00,000
Increase in stock 1,00,000
Increase in capital 6,00,000
5,00,000 + 1,00,000 = NIL + 6,00,000
(b) Increase in building 2,00,000
Decrease in cash (2,00,000) =
3,00,000 + 1,00,000 + 2,00,000 = NIL + 6,00,000
(c) Increase in stock 50,000
Increase in creditors = 50,000
3,00,000 + 1,50,000 + 2,00,000 = 50,000 + 6,00,000
(d) Increase in debtors  36,000
Decrease in stock (25,000)
Increase in capital (Profit) 11,000
3,00,000 + 1,25,000 + 2,00,000 +  36,000 = 50,000 + 6,11,000
(e) Decrease in cash (3,000)
Decrease in capital (Expense) (3,000)
2,97,000 + 1,25,000 + 2,00,000 + 36,000 = 50,000 + + 6,08,000
(f) Decrease in capital (Expense) 5,000
Increase in liabilities (5,000)
2,97,000 + 1,25,000 + 2,00,000 + 36,000 = 50,000 + 5,000 + 6,03,000
(g) Decrease in building (8,000)
Decrease in capital (8,000)
2,97,000 + 1,25,000 + 1,92,000 + 36,000 = 50,000 + 5,000 + 5,95,000
(h) Decrease in cash (20,000)
Decrease in capital (20,000)
2,97,000 + 1,25,000 + 1,92,000 + 36,000 = 50,000 + 5,000 + 5,75,000
(i) Increase in cash 5,000
Increase in liability 5,000
2,82,000 + 1,25,000 + 1,92,000 + 36,000 = 50,000 + 5,000 + 5,000 + 5,75,000
(j) Decrease in creditors (20,000)
Decrease in cash (20,000)
2,62,000 + 1,25,000 + 1,92,000 + 36,000 = 30,000 + 5,000 + 5,000 + 5,75,000
(k) Increase in cash 30,000
Decrease in debtors (30,000)
2,92,000 + 1,25,000 + 1,92,000 + 6,000 = 30,000 + 5,000 + 5,000 + 5,75,000

7. Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:

    Rs
(a) Started business with cash 1,20,000
(b) Rent received 10,000
(c) Invested in shares 50,000
(d) Received dividend 5,000
(e) Purchase goods on credit from Ragani 35,000
(f) Paid cash for household Expenses 7,000
(g) Sold goods for cash (costing Rs 10,000) 14,000
(h)

(i)

Cash paid to Ragani

Deposited into bank

35,000

20,000

 

The solution is as follows:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Investment + Bank Creditors
(a)  Increase in cash 1,20,000
 Increase in capital 1,20,000
1,20,000 + = NIL + 1,20,000
(b)  Increase in cash 10,000
 Increase in capital (Income) = 10,000
1,30,000 = NIL + 1,30,000
(c)  Decrease in investment 50,000
 Decrease in cash (50,000) =
80,000 + 50,000 = NIL + 1,30,000
(d)  Increase in cash 5,000
 Increase in capital (Income) 5,000
85,000 + 50,000 = NIL + 1,35,000
(e)  Increase in stock 35,000
 Increase in creditor (Ragani) 35,000
85,000 + 35,000 + 50,000 = 35,000 + 1,35,000
(f)  Decrease in capital (7,000)
 Decrease in cash  (7,000)
78,000 + 35,000 + 50,000 = 35,000 + 1,28,000
(g)  Increase in cash 14,000
 Decrease in stock (10,000)
 Increase in capital (Profit) 4,000
92,000 + 25,000 + 50,000 = 35,000 + 1,32,000
(h)  Decrease in creditors (Ragani) (35,000)
 Decrease in cash (35,000)
57,000 + 25,000 + 50,000 = NIL + 1,32,000
(i)  Decrease in cash (20,000)
 Increase in bank 20,000
37,000 + 25,000 + 50,000 + 20,000 = NIL + 1,32,000

8. Show the effect of following transaction on the accounting equation:

    Rs
(a) Manoj started business with  
  (i) Cash 2,30,000
  (ii) Goods 1,00,000
  (iii) Building 2,00,000
(b) He purchased goods for cash 50,000
(c) He sold goods(costing Rs 20,000) 35,000
(d) He purchased goods from Rahul 55,000
(e) He sold goods to Varun (Costing Rs 52,000) 60,000
(f) He paid cash to Rahul in full settlement 53,000
(g) Salary paid by him 20,000
(h) Received cash from Varun in full settlement 59,000
(i) Rent outstanding 3,000
(j) Prepaid Insurance 2,000
(k) Commission received by him 13,000
(l) Amount withdrawn by him for personal use 20,000
(m) Depreciation charge on building 10,000
(n) Fresh capital invested 50,000
(o) Purchased goods from Rakhi 6,000

 

The solution is as follows:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Building + Debtors + Prepaid Expenses Creditors + Outstanding Expenses    
(a) Increase in cash, stock and building 2,30,000 + 1,00,000 + 2,00,000
Increase in capital 5,30,000
2,30,000 + 1,00,000 + 2,00,000 = + 5,30,000
(b) Increase in stock 50,000
Decrease in cash (50,000)
1,80,000 + 1,50,000 + 2,00,000 = + 5,30,000
(c) Increase in cash 35,000
Decrease in stock (20,000)
increase in capital (Profit) 15,000
2,15,000 + 1,30,000 + 2,00,000 + 5,45,000
(d) Increase in stock 55,000
Increase in creditors = 55,000
2,15,000 + 1,85,000 + 2,00,000 = 55,000 + 5,45,000
(e) Increase in debtors 60,000
Decrease in stock (52,000)
Increase in capital (Profit) 8,000
2,15,000 + 1,33,000 + 2,00,000 + 60,000 = 55,000 + 5,53,000
(f) Decrease in creditors = (55,000)
Decrease in cash (53,000)
Increase in capital (Discount received) 2,000
1,62,000 + 1,33,000 + 2,00,000 + 60,000 = NIL + 5,55,000
(g) Decrease in cash (20,000)
Decrease in capital (20,000)
1,42,000 + 1,33,000 + 2,00,000 + 60,000 = NIL + 5,35,000
(h) Increase in cash 59,000
Decrease in capital (Discount allowed) (1,000)
Decrease in debtors 60,000
2,01,000 + 1,33,000 + 2,00,000 + NIL = NIL + + 5,34,000
(i) Increase in outstanding Expenses 3,000
decrease in capital (Expense) (3,000)
2,01,000 + 1,33,000 + 2,00,000 + NIL = NIL + 3,000 + 5,31,000
(j) Decrease in prepaid expenses 2,000
Decrease in cash (2,000)
1,99,000 + 1,33,000 + 2,00,000 + NIL 2,000 = NIL + 3,000 + 5,31,000
(k) Increase in cash 13,000
increase in capital (Income) 13,000
2,12,000 + 1,33,000 + 2,00,000 + NIL + 2,000 = NIL + 3,000 + 5,44,000
(l) Decrease in capital (20,000)
Decrease in cash (20,000)
1,92,000 + 1,33,000 + 1,90,000 + NIL + 2,000 = NIL + 3,000 + 5,24,000
(m) Decrease in capital (10,000)
Decrease in building (10,000)
1,92,000 + 1,33,000 + 1,90,000 + NIL + 2,000 = NIL + 3,000 + 5,14,000
(n) Increase in cash 50,000
Increase in capital 50,000
2,42,000 + 1,33,000 + 1,90,000 + NIL + 2,000 = NIL + 3,000 + 5,64,000
(o) Increase in stock 10,000
Increase in creditors 10,000
2,42,000 + 1,43,000 + 1,90,000 + NIL + 2,000 = 10,000 + 3,000 + 5,64,000

9. Transactions of M/s. Vipin Traders are given below.

Show the effects on Assets, Liabilities and Capital with the help of the accounting Equation.

    Rs
(a) Business started with cash 1,25,000
(b) Purchased goods for cash 50,000
(c) Purchase furniture from R.K. Furniture 10,000
(d) Sold goods to Parul Traders (costing Rs 7,000 vide bill no. 5674) 9,000
(e) Paid cartage 100
(f) Cash Paid to R.K. furniture in full settlement 9,700
(g) Cash sales (costing Rs 10,000) 12,000
(h) Rent received 4,000
(i) Cash withdrawn for personal use 3,000

 

The solution is as follows:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Furniture + Debtors Creditors
(a) Increase in cash 1,25,000
Increase in capital 1,25,000
1,25,000 + = NIL + 1,25,000
(b) Increase in stock 50,000
Decrease in cash (50,000) =
75,000 + 50,000 = NIL + 1,25,000
(c) Increase in furniture 10,000 =
Increase in creditors = 10,000
75,000 + 50,000 + 10,000 = 10,000 + 1,25,000
(d) Increase in debtors 9,000
Decrease in stock (7,000)
Increase in capital (Profit) 2,000
75,000 + 43,000 + 10,000 + 9,000 = 10,000 + 1,27,000
(e) Decrease in capital (Cartage Expenses) (100)
Decrease in cash (100)
74,900 + 43,000 + 10,000 + 9,000 = 10,000 + 1,26,900
(f) Decrease in creditors = (10,000)
Decrease in cash (9,700)
Increase in capital (Discount-received) 300
65,200 + 43,000 + 10,000 + 9,000 = NIL + 1,27,200
(g) Increase in cash 12,000
Decrease in stock (10,000)
Increase in capital (Profit) 2,000
77,200 + 33,000 + 10,000 + 9,000 = NIL + 1,29,200
(h) Increase in cash 4,000
Increase in capital (Income) 4,000
81,200 + 33,000 + 10,000 + 9,000 = NIL + 1,33,200
(i) Decrease in capital (3,000)
Decrease in cash (3,000)
78,200 + 33,000 + 10,000 + 9,000 = NIL + 1,30,200

10. Bobby opened a consulting firm and completed these transactions during November, 2014

Invested ₹ 4,00,000 cash and office equipment with ₹ 1,50,000 in a business called Bobbie Consulting.

Purchased land and a small office building. The land was worth ₹ 1,50,000 and the building worth ₹ 3,50,000. The purchase price was paid with ₹ 2,00,000 cash and a long-term note payable for ₹ 8,00,000

Purchased office supplies on credit for ₹ 12,000

Bobbie transferred title of motor car to the business. The motor car was worth ₹ 90,000.

Purchased for ₹ 30,000 additional office equipment on credit.

Paid ₹ 7,500 salary to the office manager.

Provided services to a client and collected ₹ 30,000

Paid ₹ 4,000 for the month’s utilities.

Paid supplier created in transaction c.

Purchase new office equipment by paying ₹ 93,000 cash and trading in old equipment with a recorded cost of ₹ 7,000

Completed services of a client for ₹ 26,000. This amount is to be paid within 30 days.

Received ₹ 19,000 payment from the client created in transaction k.

Bobby withdrew ₹ 20,000 from the business.

Analyse the above stated transactions and open the following T-accounts:

Cash, client, office supplies, motor car, building, land, long term payables, capital, withdrawals, salary, expense and utilities expense.

  1. Invested ₹ 4, 00,000 cash and office equipment with ₹ 1, 50,000 in a business called Bobbie Consulting.
Dr Cash Account Cr
4,00,000
Dr Office Equipment Account Cr
1,50,000
Dr Capital Account Cr
4,00,000
1,50,000
  1. Purchased land and a small office building. The land was worth ₹ 1, 50,000 and the building was worth ₹ 3, 50,000. The purchase price was paid with ₹ 2, 00,000 cash and a long term note payable for ₹ 8, 00,000

Analysis of Transaction: The land purchased is an asset. An increase in the asset has to be debited.

Dr Land Account Cr
1,50,000
  1. Similarly, the purchase of the building increases the asset and hence should be debited.
Dr Building Account Cr
3,50,000
  1. For purchasing the above two assets, another asset, i.e. cash, is spent and hence decreased. And a decrease in the asset should be credited.
Dr Cash Account Cr
4,00,000 2,00,000
  1. At the same time, there is a long-term note payable for ₹ 8,00,000. This is a liability. An increase in liability should be credited.
Dr Long-term payable Account Cr
8,00,000
  1. Purchased office supplies on credit for ₹ 12,000 Analysis of transaction: Purchase of office supplies is an expense, and hence an increase in the expenses should be debited.
Dr Office Supplies Account Cr
12,000
  1. For purchasing the office supplies, a liability is created. Hence the accounts payable will be increased, and an increased liability should be credited.
Dr Accounts payable Cr
12,000
  1. Bobbie transferred the title of the motor car to the business. The motor car was worth ₹ 90,000. Analysis of the transaction: Motor car will be an asset, and hence an increase in the asset should be debited.
Dr Motor car account Cr
90,000
  1. Transferring the title of the motor car will increase the capital. An increase in capital should be credited.
Dr Capital Account Cr
4,00,000

1,50,000

90,000

  1. Purchased for ₹ 30,000 additional office equipment on credit. Analysis of the transaction: Office equipment is an asset, and hence an increase in the asset will be debited.
Dr Office Equipment Account Cr
1,50,000

30,000

  1. This office equipment is purchased on credit, so the liability of the accounts payable account will be increased. An increase in liability should be credited.
Dr Accounts payable Cr
12,000

30,000

  1. Paid ₹ 7,500 salary to the office manager.Analysis of the transaction: Salary is an expense, and hence an increase in the expense should be debited.
Dr Salary Account Cr
7,500
  1. Payment of salary will reduce the cash. A decrease in the cash asset should be credited.
Dr Cash Account Cr
4,00,000 2,00,000

7,500

  1. Provided services to a client and collected ₹ 30,000Analysis of the transaction: Providing services for cash should be debited to the cash account.
Dr Cash Account Cr
4,00,000

30,000

2,00,000

7,500

  1. This should be credited to the capital account.
Dr Capital Account Cr
4,00,000

1,50,000

90,000

30,000

  1. Paid ₹ 4,000 for the month’s utilities.Analysis of the transaction: Monthly utilities are an expense, and hence an increase in the expense should be debited.
Dr Expenses Account Cr
4,000
  1. On the other hand, the payment of the expenses will reduce the cash. And hence a decrease in the cash asset should be credited.
Dr Cash Account Cr
4,00,000

30,000

2,00,000

7,500

4,000

  1. Paid supplier created in transaction c.Analysis of the transaction: There is a decrease in the liability, and hence it should be debited.
Dr Accounts payable Cr
12,000 12,000

30,000

  1. As this liability is paid out through cash, it’ll reduce the cash asset. A decrease in the cash asset should be credited.
Dr Cash Account Cr
4,00,000

30,000

2,00,000

7,500

4,000

12,000

  1. Purchase new office equipment by paying ₹ 93,000 cash and trading in old equipment with a recorded cost of ₹ 7,000Analysis of the transaction: Buying the new office equipment will increase the assets and hence should be debited.
Dr Office Equipment Account Cr
1,50,000

30,000

93,000

  1. However, for buying this office equipment, the old equipment of ₹ 7,000 is traded out. Thus there is a decrease in the asset, and hence it should be credited.
Dr Office Equipment Account Cr
1,50,000

30,000

93,000

7,000

Also, the rest of the amount, i.e., 93,000 – 7,000 = 86,000, is paid out in cash. Thus there is a decrease in the cash asset, and hence it should be credited.

Dr Cash Account Cr
4,00,000

30,000

2,00,000

7,500

4,000

12,000

86,000

  1. Completed services of a client for ₹ 26,000. This amount is to be paid within 30 days. Analysis of the transaction: Completion of services has created revenue.
Dr Accounts Receivable Cr
26,000
  1. As this is a sale, the sales account should be credited.
Dr Sales Account Cr
26,000
  1. Received ₹ 19,000 payment from the client created in transaction k. Analysis of the transaction: There is revenue and hence should be credited.
Dr Accounts Receivable Cr
26,000 19,000

This is bringing in cash, and hence the cash account should be debited.

Dr Cash Account Cr
4,00,000

30,000

19,000

2,00,000

7,500

4,000

12,000

86,000

Bobby withdrew ₹ 20,000 from the business.

Analysis of the transaction: There is a withdrawal, and hence the drawings account, i.e. expenses, should be debited.

Dr Drawings Account Cr
20,000

The drawings will reduce the cash, and hence the cash asset should be credited.

Dr Cash Account Cr
4,00,000

30,000

19,000

2,00,000

7,500

4,000

12,000

86,000

20,000

11. Journalise the following transactions in the books of Himanshu:

2017   Rs
Dec.01 Business started with cash 75,000
Dec.07 Purchased goods for cash 10,000
Dec.09 Sold goods to Swati 5,000
Dec.12 Purchased furniture 3,000
Dec.18 Cash received from Swati in full settlement  4,000
Dec.25 Paid rent 1,000
Dec.30 Paid salary 1,500

 

The solution is as follows:

Books of Himanshu

Journal

Date Particulars L.F. Debit

Amount

 Rs

Credit Amount

 Rs

2017
Dec.01 Cash A/c Dr. 75,000
To Capital A/c 75,000
(Started business with cash)
Dec.07 Purchases A/c Dr. 10,000
To Cash A/c 10,000
(Goods purchased for cash)
Dec.09 Swati Dr. 5,000
To Sales A/c 5,000
(Goods sold on credit)
Dec.12 Furniture A/c Dr. 3,000
To Cash A/c 3,000
(Furniture purchased for cash)
Dec.18 Cash A/c Dr. 4,000
Discount Allowed A/c Dr. 1,000
To Swati 5,000
(Cash received from Swati and discount allowed)
Dec.25 Rent A/c Dr. 1,000
To Cash A/c 1,000
(Rent paid in cash)
Dec.30 Salaries A/c Dr. 1,500
To Cash A/c 1,500
(Salary paid in cash)
Total 1,00,500 1,00,500

12. Enter the following Transactions in the Journal of Mudit :

2017   Rs
Jan.01 Commenced business with cash 1,75,000
Jan.01 Building 1,00,000
Jan.02 Goods purchased for cash 75,000
Jan.03 Sold goods to Ramesh 30,000
Jan.04 Paid wages 500
Jan.06 Sold goods for cash 10,000
Jan.10 Paid for trade expenses 700
Jan.12 Cash received from Ramesh 29,500
  Discount allowed 500
Jan.14 Goods purchased for Sudhir 27,000
Jan.18 Cartage paid 1,000
Jan.20 Drew cash for personal use 5,000
Jan.22 Goods use for house hold 2,000
Jan.25 Cash paid to Sudhir 26,700
  Discount allowed 300

The solution is as follows:

Books of Mudit

Journal

Date Particulars L.F. Debit Amount

Rs

Credit Amount Rs
2017
Jan.01 Building A/c Dr. 1,00,000
Cash A/c Dr. 1,75,000
To Capital A/c 2,75,000
(Commenced business with cash and building)
Jan.02 Purchases A/c Dr. 75,000
To Cash A/c 75,000
(Goods purchased for cash)
Jan.03 Ramesh Dr. 30,000
To Sales A/c 30,000
(Goods sold to Ramesh)
Jan.04 Wages A/c Dr. 500
To Cash A/c 500
(Wages paid in cash)
Jan.06 Cash A/c Dr. 10,000
To Sales A/c 10,000
(Goods sold for cash)
Jan.10 Trade Expenses A/c Dr. 700
To Cash A/c 700
(Trade expenses paid in cash)
Jan.12 Cash A/c Dr. 29,500
Discount Allowed A/c Dr.     500
To Ramesh 30,000
(Cash received from Ramesh and discount

allowed to him)

Jan.14 Purchases A/c Dr. 27,000
To Sudhir 27,000
(Goods purchased from Sudhir on credit)
Jan.18 Cartage A/c Dr. 1,000
To Cash A/c 1,000
(Cartage paid in cash)
Jan.20 Drawings A/c Dr. 5,000
To Cash A/c 5,000
(Cash drawn for personal use)
Jan.22 Drawings A/c Dr. 2,000
To Purchases A/c 2,000
(Goods drawn from business for households use)
Jan.25 Sudhir Dr. 27,000
To Cash A/c 26,700
To Discount Received A/c     300
(Cash paid to Sudhir and discount received)
Total 4,83,200 4,83,200

13. Journalise the following transactions:

2017   Rs
Dec. 01 Hema started business with cash 1,00,000
Dec. 02 Open a bank account with SBI 30,000
Dec. 04 Purchased goods from Ashu 20,000
Dec.06 Sold goods to Rahul for cash 15,000
Dec.10 Bought goods from Tara for cash 40,000
Dec.13 Sold goods to Suman 20,000
Dec.16 Received cheque from Suman 19,500
  Discount allowed 500
Dec.20 Cheque given to Ashu on account 10,000
Dec.22 Rent paid by cheque 2,000
Dec.23 Deposited into bank 16,000
Dec.25 Machine purchased from Parigya 10,000
Dec.26 Trade expenses 2,000
Dec.28 Cheque issued to Parigya 10,000
Dec.29 Paid telephone expenses by cheque  1,200
Dec.31 Paid salary 4,500

The solution is as follows:

Books of Hema
Journal
Date Particulars L.F. Debit Amount Rs Credit Amount Rs
2017
Dec.01 Cash A/c Dr. 1,00,000
To Capital A/c 1,00,000
(Started business with cash)
Dec.02 Bank A/c Dr. 30,000
To Cash A/c 30,000
(Bank account opened with SBI)
Dec.04 Purchases A/c Dr. 20,000
To Ashu 20,000
(Goods purchased from Ashu)
Dec.06 Cash A/c Dr. 15,000
To Sales A/c 15,000
(Goods sold for cash)
Dec.10 Purchases A/c Dr. 40,000
To Cash A/c 40,000
(Goods purchased for cash)
Dec.13 Suman Dr. 20,000
To Sales A/c 20,000
(Goods goods to Suman)
Dec.16 Bank A/c Dr. 19,500
Discount Allowed A/c Dr.      500
To Suman 20,000
(Cheque received from Suman and discount allowed)
Dec.20 Ashu Dr. 10,000
To Bank A/c 10,000
(Cheque forwarded to Ashu)
Dec.22 Rent A/c Dr. 2,000
To Bank A/c 2,000
(Rent paid by cheque)
Dec.23 Bank A/c Dr. 16,000
To Cash A/c 16,000
(Cash deposited into bank)
Dec.25 Machinery A/c Dr. 10,000
To Parigya 10,000
(Machinery purchased from Parigya)
Dec.26 Trade Expenses A/c Dr. 2,000
To Cash A/c 2,000
(Trade expenses paid)
Dec.28 Parigya Dr. 10,000
To Bank A/c 10,000
(Cheque issued to Parigya)
Dec.29 Telephone Expenses A/c Dr. 1,200
To Bank A/c 1,200
(Telephone expenses paid through cheque)
Dec.30 Salaries A/c Dr. 4,500
To Cash A/c 4,500
(Salary paid)
Total 3,00,700 3,00,700

14. Jouranlise the following transactions in the books of Harpreet Bros.:

(a) Rs 1,000 due from Rohit are now bad debts.
(b) Goods worth Rs 2,000 were used by the proprietor.
(c) Charge depreciation @ 10% p.a for two month on machine costing Rs 30,000.
(d) Provide interest on capital of Rs 1,50,000 at 6% p.a. for 9 months.
(e) Rahul become insolvent, who owed is Rs 2,000 a final dividend of 60 paise in a rupee is received from his estate.

The solution is as follows:

Books of Harpreet Bros.
Journal
S. No. Particulars L.F. Debit Amount Rs Credit Amount Rs
(a) Bad Debt A/c Dr. 1,000
To Rohit (Debtors) 1,000
(Due from Rohit became bad debt)
(b) Drawings A/c Dr. 2,000
To Purchases A/c 2,000
(Goods withdrawn by proprietor for personal use)
(c) Depreciation A/c Dr. 500
To Machinery A/c 500
(Depreciation charged on machinery for two

months)

(d) Interest on Capital A/c Dr. 6,750
To Capital A/c 6,750
(Interest on capital at 6% due for 9 months)
(e) Bad Debt A/c Dr.      800
Cash A/c Dr.     1,200
To Rahul (Debtor) 2,000
(Received from Rahul 60 paise in a rupee and rest amount considered as bad debt)
Total 12,250 12,250

15. Prepare Journal from the transactions given below:

    Rs
(a) Cash paid for installation of machine 500
(b) Goods given as charity 2,000
(c) Interest charge on capital @ 7% p.a. when total capital were 70,000
(d) Received Rs 1,200 of a bad debts written-off last year.  
(e) Goods destroyed by fire 2,000
(f) Rent outstanding 1,000
(g) Interest on drawings 900
(h) Sudhir Kumar who owed me Rs 3,000 has failed to pay the amount. He pays me a compensation of 45 paise in a rupee.  
(i) Commission received in advance 7,000

Solution:

Journal
S. No. Particulars L.F. Debit Amount

Rs

Credit Amount

Rs

(a) Machinery A/c Dr. 500
To Cash A/c 500
(Cash paid for installation of machinery)
(b) Charity A/c Dr. 2,000
To Purchases A/c 2,000
(Goods given as charity)
(c) Interest on Capital A/c Dr. 4,900
To Capital A/c 4,900
(Interest on capital charged @ 7% p.a.)
(d) Cash A/c Dr. 1,200
To Bad Debt Recovered A/c 1,200
(Cash received on from debtors which was

previously written off as bad)

(e) Goods Destroyed by Fire A/c Dr. 2,000
To Purchases A/c 2,000
(Goods destroyed by fire)
(f) Rent A/c Dr. 1,000
To Rent Outstanding A/c 1,000
(Rent due but not paid)
(g) Drawings A/c Dr. 900
To Interest on Drawings A/c 900
(Interest allowed on drawings)
(h) Cash A/c Dr. 1,350
Bad Debt A/c Dr. 1,650
To Sudhir Kumar 3,000
(Sudhir Kumar declared insolvent and cash

received from him 45 paise in a rupee in full

settlement)

(i) Commission A/c Dr. 7,000
To Commission Received in Advance A/c 7,000
(Commission received in advance)
(Note: If it is assumed, commission in

advance already credited as commission)

OR
Cash A/c Dr. 7,000
To Commission Received in Advance 7,000
(Commission received in Advance)
(Note: If it is assumed, commission in advance

not already credited as commission)

Total 22,500 22,500

16. Journalise the following transactions, post to the ledger:

2017   Rs
Nov. 01 Business started with (i) Cash 1,50,000
    (ii) Goods 50,000
Nov. 03 Purchased goods from Harish 30,000
Nov. 05 Sold goods for cash 12,000
Nov. 08 Purchase furniture for cash 5,000
Nov. 10 Cash paid to Harish on account 15,000
Nov. 13 Paid sundry expenses 200
Nov. 15 Cash sales 15,000
Nov. 18 Deposited into bank 5,000
Nov. 20 Drew cash for personal use 1,000
Nov. 22 Cash paid to Harish in full settlement of account 14,700
Nov. 25 Good sold to Nitesh 7,000
Nov. 26 Cartage paid 200
Nov. 27 Rent paid 1,500
Nov. 29 Received cash from Nitesh 6,800
  Discount allowed 200
Nov. 30 Salary paid   3,000

 

Solution:

Journal
Date Particulars L.F. Debit Amount Rs Credit Amount

Rs

2017      
Nov.01 Cash A/c Dr. 1,50,000
Stock A/c Dr.     50,000
To Capital A/c 2,00,000
(Started business with cash and goods)
Nov.03 Purchases A/c Dr. 30,000
To Harish 30,000
(Goods purchased from Harish)
Nov.05 Cash A/c Dr. 12,000
To Sales A/c 12,000
(Goods sold for cash)
Nov.08 Furniture A/c Dr. 5,000
To Cash A/c 5,000
(Furniture purchased for cash)
Nov.10 Harish A/c Dr. 15,000
To Cash A/c 15,000
(Cash paid to Harish)
Nov.13 Sundry Expenses A/c Dr. 200
To Cash 200
(Sundry expenses paid)
Nov.15 Cash A/c Dr. 15,000
To Sales A/c 15,000
(Goods sold for cash)
Nov.18 Bank A/c Dr. 5,000
To Cash A/c 5,000
(Cash deposited into bank)
Nov.20 Drawings A/c Dr. 1,000
To Cash A/c 1,000
(Cash drawn for personal use)
Nov.22 Harish Dr. 15,000
To Cash A/c 14,700
To Discount Received A/c 300
(Payment made to Harish and discount received)
Nov.25 Nitesh Dr. 7,000
To Sales A/c 7,000
(Goods sold to Nitesh)
Nov.26 Cartage A/c Dr. 200
To Cash A/c 200
(Cartage paid)
Nov.27 Rent A/c Dr. 1,500
To Cash A/c 1,500
(Rent paid)
Nov.29 Cash A/c Dr. 6,800
Discount Allowed A/c    200
To Nitesh 7,000
(Cash received from Nitesh and discount allowed)
Nov.30 Salaries A/c Dr. 3,000
To Cash A/c 3,000
(Salary paid)
Total 3,16,900 3,16,900
Ledger
Cash Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Nov.01 Capital 1,50,000 Nov.08 Furniture 5,000
Nov.05 Sales 12,000 Nov.10 Harish 15,000
Nov.15 Sales 15,000 Nov.13 Sundry Expenses 200
Nov.29 Nitesh 6,800 Nov.18 Bank 5,000
Nov.20 Drawings 1,000
Nov.22 Harish 14,700
Nov.26 Cartage 200
Nov.27 Rent 1,500
Nov.30 Salaries 3,000
Nov.30 Balance c/d 1,38,200
1,83,000 1,83,000
Capital Account
Dr. Cr.
Date Particulars J.F. Amount

 Rs

Date Particulars J.F. Amount

 Rs

2017 2017
Nov.01 Cash 1,50,000
Nov.01 Stock 50,000
Nov.30 Balance c/d 2,00,000
2,00,000 2,00,000
Stock Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount

 Rs

2017 2017
Nov.01 Capital 50,000
Nov. 30 Balance c/d 50,000
50,000 50,000
Cartage Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Nov.26 Cash 200
Nov.30 Balance c/d 200
200 200
Rent Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Nov.27 Cash 1,500
Nov.30 Balance c/d 1,500
1,500 1,500
Salaries Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount

Rs

2017 2017
Nov.30 Cash 3,000
Nov.30 Balance c/d  3,000
3,000 3,000
Furniture Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount

Rs

2017 2017
Nov.08 Cash 5,000
Nov.30 Balance c/d
5,000 5,000
Nitesh’s Account
Dr Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Nov.25 Sales 7,000 Nov.29 Cash 6,800
Nov.29 Discount Allowed 200
7,000 7,000
Sales Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Nov.05 Cash 12,000
Nov.15 Cash 15,000
Nov.30 Balanced c/d 34,000 Nov.25 Nitesh 7,000
34,000 34,000
Purchases Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount

Rs

2017 2017
Nov.03 Harish 30,000
Nov.30 Balance c/d 30,000
30,000 30,000
Harish’s Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Nov.10 Cash 15,000 Nov.03 Purchases 30,000
Nov.22 Cash 14,700
Nov.22 Discount Received 300
30,000 30,000
Sundry Expenses Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Nov.13 Cash 200
Nov.30 Balance c/d 200
200 200
Bank Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Nov.18 Cash 5,000
Nov.30 Balance c/d 5,000
5,000 5,000
Drawings Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Nov.20 Cash 1,000
Nov.30 Balance c/d 1,000
1,000 1,000
Discount Received Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Nov.22 Harish 300
Nov.30 Balance c/d 300
300 3,00
Discount Allowed Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Nov.29 Nitesh 200
Nov.30 Balance c/d 200
200 200

17. Journalise the following transactions in the journal of M/s. Goel Brothers and post them to the ledger.

2017   Rs
Jan. 01 Started business with cash 1,65,000
Jan. 02 Opened bank account in PNB 80,000
Jan. 04 Goods purchased from Tara 22,000
Jan.05 Goods purchased for cash 30,000
Jan.08 Goods sold to Naman 12,000
Jan.10 Cash paid to Tara 22,000
Jan.15 Cash received from Naman 11,700
  Discount allowed 300
Jan. 16 Paid wages 200
Jan. 18 Furniture purchased for office use 5,000
Jan. 20 Withdrawn from bank for personal use 4,000
Jan. 22 Issued cheque for rent 3,000
Jan. 23 Goods issued for house hold purpose 2,000
Jan. 24 Drawn cash from bank for office use 6,000
Jan. 26 Commission received 1,000
Jan. 27 Bank charges 200
Jan. 28 Cheque given for insurance premium 3,000
Jan. 29 Paid salary 7,000
Jan. 30 Cash sales 10,000

 

Solution:

Books of M/s Goel Brothers
Journal
Date Particulars L.F. Debit Amount

Rs

Credit Amount

Rs

2017    
Jan.01 Cash A/c Dr. 1,65,000
To Capital A/c 1,65,000
(Started business with cash)
Jan.02 Bank A/c Dr. 80,000
To Cash A/c 80,000
(Bank account opened with PNB)
Jan.04 Purchases A/c Dr. 22,000
To Tara 22,000
(Goods purchased from Tara)
Jan.05 Purchases A/c Dr. 30,000
To Cash A/c 30,000
(Goods purchased for cash)
Jan.08 Naman Dr. 12,000
To Sales A/c 12,000
(Sale of goods to Naman)
Jan.10 Tara Dr. 22,000
To Cash A/c 22,000
(Cash paid to Tara)
Jan.15 Cash A/c Dr. 11,700
Discount Allowed A/c Dr.      300
To Naman 12,000
(Cash received from Naman and discount allowed)
Jan.16 Wages A/c Dr. 200
To Cash A/c 200
(Wages paid)
Jan.18 Furniture A/c Dr. 5,000
To Cash A/c 5,000
(Furniture purchased for cash)
Jan.20 Drawings A/c Dr. 4,000
To Bank A/c 4,000
(Cash drawn from bank for personal use)
Jan.22 Rent A/c Dr. 3,000
To Bank A/c 3,000
(Rent paid through cheque)
Jan.23 Drawings A/c Dr. 2,000
To Purchases A/c 2,000
(Goods drawn for household  purpose)
Jan.24 Cash A/c Dr. 6,000
To Bank A/c 6,000
(Cash drawn from bank)
Jan.26 Cash A/c Dr. 1,000
To Commission A/c 1,000
(Commission received)
Jan.27 Bank Charges A/c Dr. 200
To Bank A/c 200
(Bank charged charges)
Jan.28 Insurance A/c Dr. 3,000
To Bank A/c 3,000
(Insurance paid through cheque)
Jan.29 Salaries A/c Dr. 7,000
To Cash A/c 7,000
(Salary paid)
Jan.30 Cash A/c Dr. 10,000
To Sales A/c 10,000
(Cash received for sale of goods)
Total 3,84,400 3,84,400

 

Ledger
Cash Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount

Rs

2017 2017
Jan.01 Capital 1,65,000 Jan.02 Bank 80,000
Jan.15 Naman 11,700 Jan.05 Purchases 30,000
Jan.24 Bank 6,000 Jan.10 Tara 22,000
Jan.26 Commission 1,000 Jan.16 Wages 200
Jan.30 Sales 10,000 Jan.18 Furniture 5,000
Jan.29 Salaries 7,000
Jan.31 Balance c/d 49,500
1,93,700 1,93,700
Capital Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.01 Cash 1,65,000
Jan.31 Balance c/d 1,65,000
1,65,000 1,65,000
Bank Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.02 Cash 80,000 Jan.20 Drawings 4,000
Jan.22 Rent 3,000
Jan.24 Cash 6,000
Jan.27 Bank charges 200
Jan.28 Insurance 3,000
Jan.31 Balance c/d 63,800
80,000 80,000
Tara’s Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.10 Cash 22,000 Jan.04 Purchases 22,000
22,000 22,000
Purchases Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

 Rs

2017 2017
Jan.04 Tara 22,000 Jan.23 Drawings 2,000
Jan.05 Cash 30,000 Jan.31 Balance c/d 50,000
52,000 52,000
Sales Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Jan.08 Naman 12,000
Jan.31 Balanced c/d 22,000 Jan.30 Cash 10,000
22,000 22,000
Naman’s Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Jan.08 Sales 12,000 Jan.15 Cash 11,700
Jan.15 Discount Allowed 300
12,000 12,000
Discount Allowed Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.15 Naman 300
Jan.31 Balance c/d 300
300 300
Wages Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.16 Cash 200
Jan.31 Balance c/d 200
200 200
Furniture Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.18 Cash 5,000
Jan.31 Balance c/d 5,000
5,000 5,000
Drawings Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.20 Bank 4,000
Jan.23 Purchases 2,000 Jan.31 Balance c/d 6,000
6,000 6,000
Rent Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.22 Bank 3,000
Jan.31 Balance c/d 3,000
3,000 3,000
Commission Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Jan.26 Cash 1,000
Jan.31 Balance c/d 1,000
1,000 1,000
Bank Charges Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.27 Bank 200
Jan.31 Balance c/d 200
200 200
Insurance Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Jan.28 Bank 3,000
Jan.31 Balance c/d 3,000
3,000 3,000
Salaries Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.29 Cash 7,000
Jan.31 Balance c/d 7,000
7,000 7,000

18. Give journal entries of M/s. Mohit traders; post them to the Ledger from the following transactions:

 

August, 2017   Rs
1 Commenced business with cash 1,10,000
2 Opened bank account with H.D.F.C. 50,000
3 Purchased furniture 20,000
7 Bought goods for cash from M/s. Rupa Traders 30,000
8 Purchased good from M/s. Hema Traders 42,000
10 Sold goods for cash 30,000
14 Sold goods on credit to M/s. Gupta Traders 12,000
16 Rent paid 4,000
18 Paid trade expenses 1,000
20 Received cash from Gupta Traders 12,000
22 Goods return to Hema Traders 2,000
23 Cash paid to Hema Traders 40,000
25 Bought postage stamps 100
30 Paid salary to Rishabh 4,000

 

 

Solution:

Books of M/s. Mohit Traders
Journal
Date Particulars L.F. Debit Amount Rs Credit Amount Rs
2017
Aug.01 Cash A/c Dr. 1,10,000
To Capital A/c 1,10,000
(Commenced business with cash)
Aug.02 Bank A/c Dr. 50,000
To Cash A/c 50,000
(Bank account opened with H.D.F.C)
Aug.03 Furniture A/c Dr. 20,000
To Cash A/c 20,000
(Furniture purchased)
Aug.07 Purchases A/c Dr. 30,000
To Cash A/c 30,000
(Goods purchased for cash)
Aug.08 Purchases A/c Dr. 42,000
To M/s. Hema Traders 42,000
(Goods purchased from M/s. Hema Traders)
Aug.10 Cash A/c Dr. 30,000
To Sales A/c 30,000
(Goods sold for cash)
Aug.14 M/s. Gupta Traders Dr. 12,000
To Sales A/c 12,000
(Goods sold to M/s. Gupta traders)
Aug.16 Rent A/c Dr. 4,000
To Cash A/c 4,000
(Rent paid in cash)
Aug.18 Trade Expenses A/c Dr. 1,000
To Cash A/c 1,000
(Trade expenses paid in cash)
Aug.20 Cash A/c Dr. 12,000
To M/s. Gupta Traders 12,000
(Cash received from M/s. Gupta Traders)
Aug.22 M/s. Hema Traders Dr. 2,000
To Purchases Return A/c 2,000
(Goods returned to Hema traders)
Aug.23 M/s. Hema Traders Dr. 40,000
To Cash A/c 40,000
(Cash paid to Hema traders)
Aug.25 Postage Stamps A/c Dr. 100
To Cash A/c 100
(Postage stamps purchased)
Aug.30 Salaries A/c Dr. 4,000
To Cash A/c 4,000
(Salaries paid in cash)
Total 3,57,100 3,57,100
Cash Account
Dr. Cr.
Date Particulars J.F. Amount 

Rs

Date Particulars J.F. Amount Rs
2017 2017
Aug.01 Capital 1,10,000 Aug.02 Bank 50,000
Aug.10 Sales 30,000 Aug.03 Furniture 20,000
Aug.20 M/s. Gupta Traders 12,000 Aug.07 Purchases 30,000
Aug.16 Rent 4,000
Aug.18 Trade Expenses 1,000
Aug.23 M/s. Hema Traders 40,000
Aug.25 Postage Stamps 100
Aug.30 Salaries 4,000
Aug.31 Balance c/d 2,900
1,52,000 1,52,000
Capital Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount

Rs

2017 2017
Aug.01 Cash 1,10,000
Aug.31 Balance c/d 1,10,000
1,10,000 1,10,000
Bank Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Aug.02 Cash 50,000
Aug.31 Balance c/d 50,000
50,000 50,000
Furniture Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Aug.03 Cash 20,000
Aug.31 Balanced c/d 20,000
20,000 20,000
Purchases Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Aug.07 Cash 30,000
Aug.08 M/s. Hema Traders 42,000 Aug.31 Balance c/d 72,000
72,000 72,000
M/s. Hema Traders Account
Dr. Cr.
Date Particulars J.F. Amount

 Rs

Date Particulars J.F. Amount

 Rs

2017 2017
Aug.22 Purchases Return 2,000 Aug.08 Purchases      42,000
Aug.23 Cash 40,000
42,000 42,000
Sales Account
Dr. Cr.
Date Particulars J.F. Amount 

Rs

Date Particulars J.F. Amount Rs
2017 2017
Aug.10 Cash 30,000
Aug.31 Balance c/d 42,000 Aug.14 M/s. Gupta Traders 12,000
42,000 42,000
M/s. Gupta Traders Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount 

Rs

2017 2017
Aug.14 Sales 12,000
Aug.20 Cash 12,000
12,000 12,000
Rent Account
Dr. Cr.
Date Particulars J.F. Amount 

Rs

Date Particulars J.F. Amount

 Rs

2017 2017
Aug.16 Cash 4,000
Aug.31 Balance c/d 4,000
4,000 4,000
Trade Expenses Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount 

Rs

2017 2017
Aug.18 Cash 1,000
Aug.31 Balance c/d 1,000
1,000 1,000
Purchases Return Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Aug.22 M/s. Hema Traders 2,000
Aug.31 Balance c/d 2,000
2,000 2,000
Postage Stamps Account
Dr. Cr.
Date Particulars J.F. Amount 

Rs

Date Particulars J.F. Amount Rs
2017 2017
Aug.25 Cash 100
Aug.31 Balance c/d 100
100 100
Salaries Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount

 Rs

2017 2017
Aug.30 Cash 4,000
Aug.31 Balance c/d 4,000
4,000 4,000

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

 

December, 2017   Rs
1 Started business with cash 92,000
2 Deposited into bank 60,000
4 Bought goods on credit from Himani 40,000
6 Purchased goods from cash 20,000
8 Returned goods to Himani 4,000
10 Sold goods for cash 20,000
14 Cheque given to Himani 36,000
17 Goods sold to M/s. Goyal TradeRs 3,50,000
19 Drew cash from bank for personal use 2,000
21 Goyal traders returned goods 3,500
22 Cash deposited into bank 20,000
26 Cheque received from Goyal Traders 31,500
28 Goods given as charity 2,000
29 Rent paid 3,000
30 Salary paid 7,000
31 Office machine purchased for cash 3,000

 

Solution:

Books of M/s. Bhanu Traders
Journal
Date Particulars L.F. Debit Amount

Rs

Credit Amount Rs
2017    
Dec.01 Cash A/c Dr. 92,000
To Capital A/c 92,000
(Started business with cash)
Dec.02 Bank A/c Dr. 60,000
To Cash A/c 60,000
(Cash deposited into bank)
Dec.04 Purchases A/c Dr. 40,000
To Himani 40,000
(Goods purchased from Himani)
Dec.06 Purchases A/c Dr. 20,000
To Cash A/c 20,000
(Goods purchased for cash)
Dec.08 Himani Dr. 4,000
To Purchases Return A/c 4,000
(Goods returned to Himani)
Dec.10 Cash A/c Dr. 20,000
To Sales A/c 20,000
(Goods sold for cash)
Dec.14 Himani Dr. 36,000
To Bank A/c 36,000
(Cheque given to Himani)
Dec.17 M/s. Goyal Traders A/c Dr. 35,000
To Sales A/c 35,000
(Goods sold to M/s. Goyal Traders)
Dec.19 Drawings A/c Dr. 2,000
To Bank A/c 2,000
(Cash withdrawn from bank for personal use)
Dec.21 Sales Return A/c Dr. 3,500
To M/s. Goyal Traders 3,500
(Goods returned by Goyal Traders)
Dec.22 Bank A/c Dr. 20,000
To Cash A/c 20,000
(Cash deposited into bank)
Dec.26 Bank A/c Dr. 31,500
To M/s. Goyal Traders 31,500
(Cheque received from M/s. Goyal Traders)
Dec.28 Charity A/c Dr. 2,000
To Purchases A/c 2,000
(Goods given as charity)
Dec.29 Rent A/c Dr. 3,000
To Bank  A/c 3,000
(Rent paid) see note
Dec.30 Salaries A/c 7,000
To Cash A/c 7,000
(Salaries paid)
Dec.31 Office Machine A/c 3,000
To Cash A/c 3,000
(Office machinery purchased)
Total 6,94,000 6,94,000
Cash Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.01 Capital 92,000 Dec.02 Bank 60,000
Dec.10 Sales 20,000 Dec.06 Purchases 20,000
Dec.22 Bank 20,000
Dec.30 Salaries 7,000
Dec.31 Office Machine 3,000
Dec.31 Balance c/d 2,000
1,12,000 1,12,000
Capital Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.01 Cash 92,000
Dec.31 Balance c/d 92,000
92,000 92,000
Bank Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount

 Rs

2017 2017
Dec.02 Cash 60,000 Dec.14 Himani 36,000
Dec.22 Cash 20,000 Dec.19 Drawings 2,000
Dec.26 Goyal Traders 31,500 Dec.29 Rent (see note) 3,000
Dec.31 Balance c/d 70,500
1,11,500 11,500

 

.

Purchases Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.04 Himani 40,000 Dec.28 Charity 2,000
Dec.06 Cash 20,000 Dec.31 Balance c/d 58,000
60,000 60,000
Himani’s Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.08 Purchases Return 4,000 Dec.04 Purchases    40,000
Dec.14 Bank 36,000
40,000 40,000
Sales Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.10 Cash 20,000
Dec.31 Balance c/d 55,000 Dec.17 M/s. Goyal Traders 35,000
55,000 55,000
M/s. Goyal Traders Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Dec.17 Sales 35,000 Dec.21 Sales Return 3,500
Dec.26 Bank 31,500
35,000 35,000
Purchases Return Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.08 Himani 4,000
Dec.31 Balance c/d 4,000
4,000 4,000

 

Drawings Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.19 Bank 2,000
Dec.31 Balance c/d 2,000
2,000 2,000

  

Sales Return Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Dec.21 M/s. Goyal Traders 3,500
Dec.31 Balance c/d 3,500
3,500 3,500

  

Charity Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.28 Purchases 2,000
Aug.31 Balance c/d 2,000
2,000 2,000

 

Rent Account
Dr. Cr.
Date Particulars J.F. Amount

 Rs

Date Particulars J.F. Amount

 Rs

2017 2017
Dec.29 Cash 3,000
Dec.31 Balance c/d 3,000
3,000 3,000
Salaries Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount

 Rs

2017 2017
Dec.30 Cash 7,000
Dec.31 Balance c/d 7,000
7,000 7,000
Office Machine Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Dec.31 Cash 3,000
Dec.31 Balance c/d 3,000
3,000 3,000

Question 20-

Journalise the following transaction in the Book of M/s. Beauti tradeRs also post them in the ledger.

 

Dec. 2017   Rs
1 Started business with cash 2,00,000
2 Bought office furniture 30,000
3 Paid into bank to open an current account 1,00,000
5 Purchased a computer and paid by cheque 2,50,000
6 Bought goods on credit from Ritika 60,000
8 Cash sales 30,000
9 Sold goods to Karishna on credit 25,000
12 Cash paid to Mansi on account 30,000
14 Goods returned to Ritika 2,000
15 Stationery purchased for cash 3,000
16 Paid wages 1,000
18 Goods returned by Karishna 2,000
20 Cheque given to Ritika 28,000
22 Cash received from Karishna on account 15,000
24 Insurance premium paid by cheque 4,000
26 Cheque received from Karishna 8,000
28 Rent paid by cheque 3,000
29 Purchased goods on credit from Meena Traders 20,000
30 Cash sales 14,000

 

Solution:

Books of Beauti Traders
Journal
Date Particulars L.F. Debit Amount Rs Credit Amount Rs
2017    
Dec.01 Cash A/c Dr. 2,00,000
To Capital A/c 2,00,000
(Started business with cash)
Dec.02 Office Furniture A/c Dr. 30,000
To Cash A/c 30,000
(Office furniture purchased)
Dec.03 Bank A/c Dr. 1,00,000
To Cash A/c 1,00,000
(Opened a current account)
Dec.05 Computer A/c Dr. 2,50,000
To Bank A/c 2,50,000
(Computer purchased and payment made through cheque)
Dec.06 Purchases A/c Dr. 60,000
To Ritika 60,000
(Goods purchased from Ritika on credit)
Dec.08 Cash A/c Dr. 30,000
To Sales A/c 30,000
(Goods sold for cash)
Dec.09 Krishna Dr. 25,000
To Sales A/c 25,000
(Goods sold to Krishna)
Dec.12 Mansi Dr. 30,000
To Cash A/c 30,000
(Cash paid to Mansi on account)
Dec.14 Ritika Dr. 2,000
To Purchases Return A/c 2,000
(Goods returned to Ritika)
Dec 15 Stationery A/c Dr. 3,000
To Cash A/c 3,000
(Stationery purchased for cash)
Dec 16 Wages A/c Dr. 1,000
To Cash A/c 1,000
(Wages paid)
Dec 18 Sales Return A/c Dr. 2,000
To Krishna 2,000
(Goods returned by Krishna)
Dec 20 Ritika Dr. 28,000
To Bank A/c 28,000
(Cheque issued to Ritika)
Dec 22 Cash A/c Dr. 15,000
To Krishna 15,000
(Cash received from Krishna on account)
Dec 24 Insurance A/c Dr. 4,000
To Bank A/c 4,000
(Insurance premium paid through cheque)
Dec 26 Bank A/c Dr. 8,000
To Krishna 8,000
(Cheque received from Krishna)
Dec 28 Rent A/c Dr. 3,000
To Bank A/c 3,000
(Rent paid through cheque)
Dec 29 Purchases A/c Dr. 20,000
To Meena Traders 20,000
(Goods purchased on credit from Meena Traders)
Dec 30 Cash A/c Dr. 14,000
To Sales A/c 14,000
(Goods sold for cash)
Total 8,25,000 8,25,000
Ledger
Cash Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Dec.01 Capital 2,00,000 Dec.02 Office Furniture 30,000
Dec.08 Sales 30,000 Dec.03 Bank 1,00,000
Dec.22 Krishna 15,000 Dec.12 Mansi 30,000
Dec.30 Sales 14,000 Dec.15 Stationery 3,000
Dec.16 Wages 1,000
Dec.31 Balance c/d 95,000
2,59,000 2,59,000
Capital Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.1 Cash 2,00,000
Dec.31 Balance c/d 2,00,000
2,00,000 2,00,000
Office Furniture Account
Dr. Cr.
Date Particulars J.F. Amount

 Rs

Date Particulars J.F. Amount Rs
2017 2017
Dec.2 Cash 30,000
Dec.31 Balance c/d 30,000
30,000 30,000
Bank Account
Dr. Cr.
Date Particulars J.F. Amount

 Rs

Date Particulars J.F. Amount

 Rs

2017 2017
Dec.03 Cash 1,00,000 Dec.05 Computer 2,50,000
Dec.26 Krishna 8,000 Dec.20 Ritika 28,000
Dec.24 Insurance 4,000
Dec.28 Rent 3,000
Dec.31 Balance c/d (over draft) 1,77,000
2,85,000 2,85,000
Computer Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Dec.05 Bank 2,50,000
Dec.31 Balance c/d
2,50,000 2,50,000
Purchases Account
Dr. Cr.
Date Particulars J.F. Amount

 Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.06 Ritika 60,000
Dec.29 Meena Traders 20,000
Dec.31 Balance c/d 80,000
80,000 80,000
Ritika’s Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.14 Purchases Return 2,000 Dec.06 Purchases 60,000
Dec.20 Bank 28,000
Dec.31 Balance c/d 30,000
60,000 60,000
Meena’s Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.29 Purchases 20,000
Dec.31 Balance c/d 20,000
20,000 20,000
Sales Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.08 Cash 30,000
Dec.09 Krishna 25,000
Dec.31 Balance c/d 69,000 Dec.30 Cash 14,000
69,000 69,000
Krishna’s Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount

Rs

2017 2017
Dec.09 Sales 25,000 Dec.18 Sales Return 2,000
Dec.22 Cash 15,000
Dec.26 Bank 8,000
25,000 25,000
Mansi’s Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Dec.12 Cash 30,000
Dec.31 Balance c/d 30,000
30,000 30,000
Purchases Return Account
Dr. Cr.
Date Particulars J.F. Amount

 Rs

Date Particulars J.F. Amount Rs
2017 2017
Dec.14 Ritika 2,000
Dec.31 Balance c/d 2,000
2,000 2,000
Stationery Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Dec.15 Cash 3,000
Dec.31 Balance c/d 3,000
3,000 3,000
Wages Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Dec.16 Cash 1,000
Dec.31 Balance c/d 1,000
1,000 1,000
Sales Return Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Dec.18 Krishna 2,000
Dec.31 Balance c/d 2,000
2,000 2,000
Insurance Account
Dr. Cr.
Date Particulars J.F. Amount

Rs

Date Particulars J.F. Amount Rs
2017 2017
Dec.24 Bank 4,000
Dec.31 Balance c/d 4,000
4,000 4,000
Rent Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Dec.28 Bank 3,000
Dec.31 Balance c/d 3,000
3,000 3,000

Question 21-

Journalise the following transaction in the books of Sanjana and post them into the ledger:

 

January, 2017   Rs
1 Cash in hand 6,000
  Cash at bank 55,000
  Stock of goods 40,000
  Due to Rohan 6,000
  Due from Tarun 10,000
3 Sold goods to Karuna 15,000
4 Cash sales 10,000
6 Goods sold to Heena  5,000
8 Purchased goods from Rupali 30,000
10 Goods returned from Karuna 2,000
14 Cash received from Karuna 13,000
15 Cheque given to Rohan 6,000
16 Cash received from Heena 3,000
20 Cheque received from Tarun 10,000
22 Cheque received from to Heena 2,000
25 Cash given to Rupali 18,000
26 Paid cartage 1,000
27 Paid salary 8,000
28 Cash sale 7,000
29 Cheque given to Rupali 12,000
30 Sanjana took goods for Personal use 4,000
31 Paid General expense 500

 

Solution:

Books of Sanjana
Journal Entries
S.No. Particulars L.F. Debit Amount Rs Credit Amount Rs
2017      
Jan.01 Cash A/c Dr. 6,000  
Bank A/c Dr. 55,000
Stock A/c Dr. 40,000
Tarun Dr. 10,000
To Rohan 6,000
To Capital A/c 1,05,000
(Balance brought from the last month)
Jan.03 Karuna Dr. 15,000
To Sales A/c 15,000
(Goods sold to Karuna)
Jan.04 Cash A/c Dr. 10,000
To Sales A/c 10,000
(Goods sold for cash)
Jan.06 Heena Dr. 5,000
To Sales A/c 5,000
(Goods sold to Henna)
Jan.08 Purchases A/c Dr. 30,000
To Rupali 30,000
(Goods purchased from Rupali)
Jan.10 Sales Return A/c Dr. 2,000
To Karuna 2,000
(Goods returned by Karuna)
Jan.14 Cash A/c Dr. 13,000  
To Karuna 13,000
(Cash received from Karuna)
Jan.15 Rohan Dr. 6,000
To Bank A/c 6,000
(Cheque issued to Rohan)
Jan.16 Cash A/c Dr. 3,000
To Heena 3,000
(Cash received from Heena)
Jan.20 Bank A/c Dr. 10,000
To Tarun 10,000
(Cheque received from Tarun)
Jan.22 Bank A/c Dr. 2,000
To Heena 2,000
(Cheque received from Heena)
Jan.25 Rupali Dr. 18,000
To Cash A/c 18,000
(Payment made to Rupali)
Jan.26 Cartage A/c Dr. 1,000
To Cash A/c 1,000
(Cartage paid)
Jan.27 Salaries A/c Dr. 8,000
To Cash A/c 8,000
(Salaries paid)
Jan.28 Cash A/c Dr. 7,000
To Sales A/c 7,000
(Goods sold for cash)  
 
Jan.29 Rupali Dr. 12,000  
To Bank A/c 12,000
(Cheque issued to Rupali)  
 
Jan.30 Drawings A/c Dr. 4,000  
To Purchases A/c 4,000
(Goods drawn for personal use)  
Jan.31 General Expenses A/c Dr. 500
To Cash A/c 500
Total 2,57,500 2,57,500

 

Ledger
Cash Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.01 Balance b/d 6,000 Jan.25 Rupali 18,000
Jan.04 Sales 10,000 Jan.26 Cartage 1,000
Jan.14 Karuna 13,000 Jan.27 Salaries 8,000
Jan.16 Heena 3,000 Jan.31 General Expenses 500
Jan.28 Sales 7,000 Jan.31 Balance c/d 11,500
39,000 39,000

 

Capital Account
Dr. Cr.
Date Particulars J.F. Amount

 Rs

Date Particulars J.F. Amount

Rs

2017 2017
Jan.01  Balance b/d 1,05,000
Jan.31 Balance c/d 1,05,000
1,05,000 1,05,000

 

Bank Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.01 Balance b/d 55,000 Jan.15 Rohan 6,000
Jan.20 Tarun 10,000 Jan.29 Rupali 12,000
Jan.22 Heena 2,000 Jan.31 Balance c/d 49,000
67,000 67,000

 

Stock Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.01 Balance b/d 40,000
Jan.31 Balance c/d 40,000
40,000 40,000

 

Rohan’s Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.15 Bank 6,000 Jan.01 Balance b/d 6,000
6,000 6,000

 

Tarun’s Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.01 Balance b/d 10,000 Jan.20 Bank 10,000
10,000 10,000

 

Sales Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.03 Karuna 15,000
Jan.04 Cash 10,000
Jan.06 Heena 5,000
Jan.31 Balance c/d 37,000 Jan.28 Cash 7,000
37,000 37,000
Karuna’s Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.03 Sales 15,000 Jan.10 Sales Return 2,000
Jan.14 Cash 13,000
15,000 15,000

 

Heena’s Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.06 Sales 5,000 Jan.16 Cash 3,000
Jan.22 Bank 2,000
5,000 5,000

 

Purchases Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.08 Rupali 30,000 Jan.30 Drawings 4,000
Jan.31 Balance c/d 26,000
30,000 30,000

 

Rupali’s Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.25 Cash 18,000 Jan.08 Purchases 30,000
Jan.29 Bank 12,000
30,000 30,000

 

Sales Return Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.10 Karuna 2,000
Jan.31 Balance c/d 2,000
2,000 2,000

 

Cartage Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.26 Cash 1,000
Jan.31 Balance c/d 1,000
1,000 1,000

 

Salaries Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.27 Cash 8,000
Jan.31 Balance c/d 8,000
8,000 8,000

 

Drawings Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.30 Purchases 4,000
Jan.31 Balance c/d 4,000
4,000 4,000

 

General Expenses Account
Dr. Cr.
Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs
2017 2017
Jan.31 Cash 500
Jan.31 Balance c/d 500
500 500

 

 

22. Record journal entries for the following transactions in the books of Anudeep of Delhi:
(a) Bought goods Rs. 2,00,000 from Kanta of Delhi (CGST @ 9%, SGST @ 9%)
(b) Bought goods Rs. 1,00,000 for cash from Rajasthan (IGST @ 12%)
(c) Sold goods Rs. 1,50,000 to Sudhir of Punjab (IGST @ 18%)
(d) Paid for Railway Transport Rs. 10,000 (CGST @ 5%, SGST @ 5%)
(e) Sold goods Rs. 1,20,000 to Sidhu of Delhi (CGST @ 9%, SGST @ 9%)
(f) Bought Air-Condition for office use Rs. 60,000 (CGST @ 9%, SGST @ 9%)
(g) Sold goods Rs. 1,50,000 for cash to Sunil to Uttar Pradesh (IGST 18%)
(h) Bought Motor Cycle for business use Rs. 50,000 (CGST 14%, SGST @ 14%)
(i) Paid for Broadband services Rs. 4,000 (CGST @ 9%, SGST @ 0%)
(j) Bought goods Rs. 50,000 from Rajesh, Delhi (CGST @ 9%, SGST @ 9%)

Solution:

Date Particulars L.F. Dr.   Rs. Cr. Rs.
(a) Purchases A/c Dr 2,00,000
Input CGST A/c Dr 18,000
Input SGST A/c     18,000
         To Kanta 2,36,000
(Being goods purchased on credit locally)
(b) Purchases A/c Dr 1,00,000
Input IGST A/c Dr     12,000
        To Cash A/c 1,12,000
(Being goods purchased in cash from Rajasthan)
(c) Sudhir A/c Dr 1,77,000
       To Sales A/c 1,50,000
       To Output IGST A/c 27,000
(Being goods supplied on credit to Punjab)
(d) Transport Charges A/c Dr 10,000
Input CGST A/c Dr     500
Input SGST A/c 500
        To Bank A/c 11,000
(e) Sidhu A/c Dr 1,41,600
To Sales A/c     1,20,000
         To Output CGST A/c    10,800
To Output SGST A/c    10,800
(Being goods sold on credit locally)
(f) Air Conditioner  A/c Dr    60,000
Input CGST A/c Dr    5,400
Input SGST A/c Dr   5,400
         To Bank A/c    70,800
(Being goods purchased locally)
(g) Cash A/c Dr 1,77,000
      To Sales A/c 1,50,000
      To Output IGST A/c 27,000
(Being goods supplied on credit to Uttar Pradesh)
(h) Motor Cycle A/c Dr    50,000
Input CGST A/c Dr   7,000
Input SGST A/c Dr   7,000
          To Bank A/c    64,000
(Being motorcycle purchased locally for office use)
(i) Internet  Charges A/c Dr   4,000
Input CGST A/c Dr 360
Input SGST A/c Dr 360
          To Bank A/c      4,720
(Being broadband charges paid)
(j) Purchases A/c Dr 50,000
Input CGST A/c Dr    4,500
Input SGST A/c Dr    4,500
         To Rajesh    59,000
(Being goods purchased on credit locally)
(k) Purchases A/c Dr 50,000
Input CGST A/c Dr   4,500
Input SGST A/c Dr   4,500
          To Rajesh    59,000
(Being goods purchased on credit locally)
(h) Output IGST A/c Dr 54,000
Output CGST A/c Dr 12,000
Output SGST A/c Dr 12,000
      To Input IGST A/c   12,000
      To Input CGST A/c   33,000
       To Input SGST A/c   33,000
(Being GST set off and excess of CGST and SGST to be claimed as a refund)

Working Note 1

Particulars IGST CGST SGST
Output 54,000 12,000 12,000
Input 12,000 35,760  35,760
Excess 42,000 -23,760 -23,760
Set off -42,000 21,000  21,000
Payable  Nil   -2,760( Refund) -2,760 (Refund)

Concepts covered in this chapter –

  • Business Transactions and Source Document
  • Preparation of Accounting Vouchers
  • Accounting Equation
  • Using Debit and Credit
  • Rules of Debit and Credit
  • Books of Original Entry
  • Journal
  • The Ledger
  • Classification of Ledger Accounts
  • Posting from Journal

Conclusion

NCERT Solutions for Class 11 Accountancy Chapter 3 provide a wide range of illustrative examples, which assists the students in comprehending and learning quickly. The above-mentioned are the illustrations for the Class 11 CBSE syllabus. For more solutions and study materials of NCERT solutions for Class 11 Accountancy, visit BYJU’S or download the app for more information.

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