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

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NCERT Solution for Class 11 commerce Accountancy Chapter 3 – Recording of Transactions – 1 furnishes us with an all-inclusive data to all the concepts. As the students would have to learn the basic fundamentals about the subject of accountancy in class 11, this curriculum for class 11 is a comprehensive study material; which explains the concepts in a great way.

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ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1
ncert sol class 11 accountancy chapter 3 recording of transactions 1

 

Access Solutions of NCERT Class 11 commerce Accountancy Chapter 3 – Recording of Transactions – 1

Short Answers

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

The fundamental steps involved in the accounting process can be diagrammatically represented below as.

fundamental steps of accounting process

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

The evidence provided by the source document is important to accounting because of the following reasons:

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

2. It provides important and relevant information of a transaction which contains details of date, amount, parties involved and other relevant details of a particular transaction.

3. In the court of law, it can act as a proof.

4. During the auditing process, it helps in verifying transactions.

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

A transaction should be first recorded in a journal because journal provides the complete details of a transaction in one entry. Further, it forms the basis for posting the transactions into their respective accounts into general ledger.

Transactions gets recorded into journal in a chronological order, i.e. in the order in which they occurred with the help of source documents. Journal is also called as ‘book of original entry’, because with the help of source document, transactions are originally recorded in books. The process of recording the transactions in the journal and then in ledger is presented is represented in the following flow chart.

transaction process

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

As per the rule of double entry system, two columns of ‘Amount’ in the journal format namely ‘Debit Amount’ and ‘Credit Amount’. The manner of recording in a journal is unlike normal recording. In Journal format, journal entry is recorded in which the ‘Debit Amount’ column is listed before the ‘Credit Amount’ column.

Credits are indented. Indentation is the process of putting a space before writing any word. Journal entry has its own set of jargons. In journalising, we can see that under the ‘Particulars’ column of journal format, debited account is written first and credited account is in the next line leaving some space also known as indentation,

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

A business acquires funds from internal as well as from external sources. According to the business entity concept, the amount borrowed from the external sources together with the internal sources like, capital invested by the proprietor, is termed as liability to the business. Business and business owner are treated separately as per business entity concept.

Owner’s capital is treated as liability to the business because the business has to repay the amount of capital to the owner, in case of closure of the business. As liability sustained is credited, in the same way, fresh capital introduced and net profit increases the owner’s capital, and so, capital is credited.

On the other hand, if the liability is paid, it results in reduction of liability, and hence, it is debited. Similarly, drawings from capital and net loss result in reducing the capital, and so, capital is debited. Thus the rules of debit and credit apply equally for both liability and capital.

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

There are some accounting systems which are called double accounting systems as under this system there are two aspects of every transaction, i.e., every transaction has dual effect. Each transaction affects two accounts simultaneously, which is represented by debiting one account and crediting the other account. It is based on the fact that if there is receiver, there must be a giver.

7. Give a specimen of an account.

The specimen of an account can be represented as:

specimen of an account

8. 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

Increase in revenue increases the capital. Hence, it is credited. Capital has credit balance and if capital increases, it is credited.

b. Decrease in expense

Decrease in expense is credited as expenses have debit balance. If expense decreases, it is credited.

c. Record drawings

Capital has credit balance; if capital increases, it is credited. If capital decreases, it is debited. Drawings are debited as they result in decreasing the capital.

d. Record of fresh capital introduced by the owner

Capital has credit balance, as capital increases, it is credited. The introduction of fresh capital also increases the balance of capital, and so, it is credited.

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

J.F. number is entered in the ledger during the time of posting entries into their respective accounts. It helps in determining if all transactions are posted properly in their accounts. It is recorded at the time of posting instead of at the time of recording the transactions.

The purpose of entering J.F. number in the ledger is because of the following benefits it offers:

  1. It helps in locating all the entries of accounts in the journal book. In other words, J.F number helps to locate the position of related journal entry and subsidiary book in the journal book.
  2. It ensures that recording in the books of original entry has been posted or not.

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?

If a transaction has a decreasing effect on an asset, then this decrease is recorded as a credit. This is because, as all assets have a debit balance and if assets decrease, then it is credited. For example, the sale of furniture results in a decrease in furniture (asset); so, the sale of furniture will be credited.

If a transaction has a decreasing effect on liability, then this decrease is recorded as a debit. This is because all liabilities have a credit balance. If the liability increases, then it should be credited and if it decreases, then it should be debited. For example, payment to the creditors results in a decrease in the creditors (liability); so, the creditor’s account will be debited.

Long Answers

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

It is beyond human capabilities to memorise each financial transaction and that is why, source documents have their own importance in accounting system. These documents are considered as an evidence of transactions and can be presented in the court of law. Transactions supported by evidence can be verified. Source documents ensures that transactions recorded in the books are free from any personal bias.

Here are few events that are supported by source document:

  1. Sale of goods worth Rs 300 on credit, supported by sales invoice/bill
  2. Purchase of goods worth Rs 1000 on credit, supported by purchase invoice/bill
  3. Cash sales worth Rs 2,000, supported by cash memo
  4. Cash purchase of goods worth Rs 800, supported by cash memo
  5. Goods worth Rs 500 returned by customer, supported by credit note
  6. Return of goods purchased on credit worth Rs 500, supported by debit note
  7. Payment worth Rs 1,500 through bank, supported by cheques
  8. Deposits into bank worth Rs 2500, supported by pay-in slips.

In the above events, only those events which can be expressed in monetary terms, gets recorded in the books of accounts. However, the non-monetary events are not recorded in accounts; for example, promotion of manger cannot be recorded but increment in salary can be recorded at the time when salary is paid or due.

Source document in accounting is important because of the following reasons.

  1. Provides evidence of transaction that has actually occurred.
  2. Provides information on date, amount and the parties involved also details of other particular transactions that have taken place.
  3. Can act as an evidence in the court of law.
  4. Helps in verifying the transactions during the auditing process.

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

Any transaction is recorded in the original book of entry (journal) in order of their occurrence; however, if we want to know that how much we have to receive from our debtors or how much to pay to the creditors, it is not possible to determine by a single instance. Hence, we need to prepare accounts to know the position of business activities for that.

For recording transactions in accounts there are some steps which needs to be followed which can be easily understood with the help of an example.

Sold goods to Mr A worth Rs 40,000 on 15th April and received payment Rs 30,000 on 28th April. The following journal entries will be recorded:

                    Particulars

          L.F.

Debit Amount

Rs

Credit Amount

Rs

Apr.15

A’s A/c                                              Dr.

22

40000

To Sales

18

40000

(Goods sold on credit to Mr A)

Apr.28

Cash A/c                                            Dr.

13

30000

To A’s A/c

30000

(Cash received from Mr A)

Step 1: Locate the account in ledger, i.e., Mr A’s Account.

Step 2: Enter the date of transaction in the date column of the debit side of Mr A’s Account.

Step 3: In the ‘Particulars’ column of the debit side of Mr A’s Account, the name of corresponding account is to be written, i.e., ‘Sales’.

Step 4: Enter the page number of the ledger in the Journal Folio (J.F.) column of Mr A’s Account.

Step 5: Enter the amount in the ‘Amount’ column.

Step 6: Same steps are to be followed to post entries in the credit side of Mr A’s Account.

Step 7: After entering all the transactions for a particular period, balance the account by totalling both sides and write the difference in shorter side, as ‘Balance c/d’.

Step 8: Total of account is to be written on either sides.

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

Debit traces its origin from the Italian word debito, which in turn is derived from the Latin word debeo, which means ‘owed to proprietor’ and credit comes from the Italian word credito, which is derived from the Latin word credo, which means belief, i.e., ‘owed by proprietor’.

According to the dual aspect concept, every business transactions that gets recorded in the books of accounts, has two aspects which is debit and credit. The dual aspect can be better understood with the help of an example; bought goods worth Rs 500 on cash. This transaction impacts two accounts with the same amount simultaneously. As goods are brought in exchange of cash, so the cash balance in the business reduce by Rs 500, so the cash account is credited. Simultaneously, the amount of goods increases by Rs 500, so the purchases account gets debited. Debit and credit, these factors depend on the nature of accounts involved; such as assets, expenses, income, liabilities and capital. There are five types of Accounts.

  1. Assets: These include all properties or legal rights owned by a firm for its operations, such as bank, land, and cash in hand, plant, machinery, building, etc. All assets have debit balance. If an asset increases, it is debited and if assets decrease, it gets credited.

For example, furniture purchased and payment made by cheque. The journal entry is:

Furniture A/c

Dr.

To Bank A/c

 

 Here, furniture and bank balance, both are assets to the firm. As furniture is purchased, so furniture account will increase, and will be debited. On the other hand, payment of furniture is being made by cheque that reduces the bank balance of the business, so bank account will be credited.

  1. Expense: It is made to run business smoothly and to carry day to day business activities.

All expenses have debit balance. If an expense is incurred, it must be debited.

For example, rent paid. The journal entry is:

Rent A/c

Dr.

To Cash A/c

 

 

Here, rent is an expense. All expenses have debit balance. Hence, rent is debited. On the other hand, as rent which is paid in cash reduces the cash balance, so cash account is credited.

  1. Liability:  Liability is an obligation for the business. Increase in liability is credited and similarly decrease in liability is debited.

For example, loan taken from bank. The journal entry is:

Bank A/c

Dr.

To Bank Loan A/c

 

 

Here, loan from bank is a liability to the firm. As all liabilities have credit balance, so loan from bank has been credited because it increases the liabilities.

  1. Income: Income refers to profit earned during an accounting period from any source. It also means excess of revenue over its cost during an accounting period. Income always has credit balance because it increases the balance of capital.

For example, rent received from tenant. The journal entry is:

Cash A/c

Dr.

To Rent A/c

 

 

Here, rent is an income; hence, rent account has been credited and cash has been debited, as rent received increases the cash balances.

  1. Capital: Capital refers to the amount invested by the proprietor in the business. Capital has credit balance. Any increase in capital is credited and any decrease in capital is debited.

For example, additional capital introduced by owner. The journal entry is:

Cash A/c

Dr.

To Capital A/c

 

 

As additional capital is introduced, so the amount of capital will increase, i.e. why, capital account is credited. On the other hand, as capital is introduced in form of cash, so the cash balances decrease, i.e. why, cash account is debited.

4. Differentiate between source documents and vouchers.

Basis of Comparison

Source Documents

Vouchers

Meaning

It refers to the documents in writing, which contains the details of events or transactions.

A source document when it is considered as evidence of an event or transaction, is called voucher.

Purpose

Used for preparing accounting vouchers.

It is used for analysing the transactions.

Recording

Acts as a basis for preparing accounting voucher that helps in recording.

Acts as a basis for recording transactions.

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

Can be used as an evidence in the court of law.

Used for assessing the authentication of transactions.

Prepared By

Gets prepared by the persons who are directly involved in the transactions, or who are authorised to prepare or approve such documents.

Prepared only by the authorised persons or by the accountants.

Examples

Cash memo, invoice, and pay-in-slip, etc.

Cash memo, pay-in-slip (if used as evidence), invoice, debit note, credit note, cash vouchers, transfer vouchers, etc.

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

As per the dual-aspect concept, every transaction simultaneously, has two effects of equal amount, i.e. debit and credit. However, the equality of assets with the claims of business (sum of capital and liabilities) is not disturbed. This equality is algebraically represented as:

Assets

Or, Liabilities = Asset − Capital

Or, Capital = Assets − Liabilities

In any circumstance the above equation cannot be changed. For example,

  1. Business started with cash Rs 1,00,000

Cash A/c

Dr.

 

To Capital A/c

 

Assets

=

Liabilities

+

Capital

Cash

 

 

 

1,00,000

(1,00,000)

 

 

 

 

  

Assets decrease, as cash is invested into the business and capital increases. Thus the equality between LHS and RHS remains intact.

  1. Goods purchased on credit Rs 20, 000

Assets

=

Liabilities

+

Capital

Cash

Stock

 

Creditors

 

 

 

 

 

 

 

 

1,00,000

20,000

=

20,000

+

100,000

  

Assets increase as well as liability increases, without disturbing the equality.

  1. Goods purchased with cash 25000

Assets

=

Liabilities

+

Capital

Cash

Stock

=

 

 

 

1,00,000

20,000

 

20,000

+

1,00,000

(25,000)

25,000

 

 

 

 

  

As goods are purchased for cash, so cash balance reduces by Rs 25,000, but on the other hand, stock balance increases by Rs 25,000. Thus the total balance of LHS remains equal to the total claims.

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

Double entry system is based on the dual aspect concept which means every transaction has two-sided effects, i.e., every debit has its credit.

This system is explained by Luca Pacioli in his book Summade Arithmetica Geometria Proportioni et Proportionalita, 1494.  If one is receiver, then the other should be the giver.

In double entry system, accounts are classified as shown below.

classification of accounts

  1. Personal Accounts: It includes individual persons, firms, companies, and other institutions, such as Mr A, M/s ABC & Co. etc.

Rule of double entry system for personal accounts:

  • Debit the receiver.
  • Credit the giver.

For example:

  1. Cash paid to Mr. A.

A’s A/c

Dr.

To Cash

  1. Cash received from Mr. X

Cash A/c

Dr.

To Mr. X

  1. Impersonal Accounts: It relates to non-living things. Impersonal accounts are further classified as real accounts and nominal accounts.
  2. Real Account− It includes all types of assets.

Assets divided into 2 types : Tangible Assets and Intangible Assets

  1. Tangible assets are assets that can be seen and touched; for example, machinery, building, etc.
  2. Intangible assets are assets that cannot be seen and touched; for example, goodwill, patent, etc.

Rule of double entry system for real accounts:

  • Debit what comes in.
  • Credit what goes out.

For example:

Furniture purchased for cash

Furniture A/c

Dr.

To Cash A/c

  1. Nominal Account: It includes all expenses, losses, incomes and gains.

Rule of double entry system for nominal accounts:

  • Debit all losses and expenses.
  • Credit all gains and incomes.

For example:

  1. Rent paid

Rent A/c

Dr.

To Cash A/c

  1. Commission received.

Cash A/c Dr.

To Commission A/c

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

Journal originated from the French word Jour, which means daily records. In this book, transactions are recorded by the order of their occurrence, i.e., in chronological order from the source document. It is known as the book of original entry and here each transaction is termed as journal entry.

Pro forma of Journal

In the books of…..

Date

Particulars

L.F.

Debit Amount Rs

Credit Amount

Rs

Date− Date of transaction is recorded based on the order of their occurrence.

Particulars− It contains details of business transactions like, name of the parties involved and the name of related accounts, which are recorded.

L.F.− Page number of ledger account when entry is posted.

Debit Amount− Amount specific to debit account is written.

Credit Amount− Amount of credit account gets written.

Recording of a Journal Entry

Date

1)

Started business with cash Rs 1,00,000

April 01

2)

Open a bank account Rs 30,000

April 03

3)

Purchase goods for cash Rs 35,000

April 04

4)

Goods sold for cash Rs 40,000

April 05

5)

Goods sold to Mr. X Rs 3,000

April 06

Books of Mr A

Journal

Date

Particulars

L.F.

Debit Amount Rs

Credit Amount

Rs

April 1

Cash A/c                                         Dr.                        

1,00,000

                      To Capital A/c

1,00,000

(Started business with cash)

April 3

Bank A/c                                          Dr.

30,000

                To Cash A/c

30,000

(Bank account opened with cash)

April 4

Purchase A/c                                   Dr.

35,000

                        To Cash

35,000

(Goods purchased for cash)

April 5

Cash A/c

40,000

                    To Sales A/c

40,000

        (Goods sold for cash)

April 6

Mr X’s A/c

3,000

                            To Sales

3,000

(Goods sold to Mr X on credit)

Total

208,000

208,000

Numerical Questions

Analysis of Transactions

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

S.No

Explanation

Cash 

+

Stock

 

Assets  

Debitors

+

=

Furniture

Liabilities

Creditors

+Capital

(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

1,60,000

+

30,000

+

12,000

=

NIL

+

2,02,000

(d)

Increase in furniture

7000

Increase in creditors

1,60,000

+

30,000

+

12,000

+

7,000

=

7000

+

2,02,000

2. Prepare accounting equation from the following:

Rs

(a) Kunal started business with cash 3, 50,000

(b) He purchased furniture for cash 40,000

(c) He paid commission 5,000

(d) He purchases goods on credit 40,000

(e) He sold goods (costing Rs 20,000) for cash 30,000

S.No

Explanation

Cash 

+

Furniture

 

Assets 

Stock

=

Liabilities

Creditors

+Capital

(a)

Increase in cash

3,50,000

Increase in capital

3,50,000

3,50,000

=

NIL

+

3,50,000

(b)

Increase in furniture

40,000

Decrease in cash

40,000

3,10,000

+

40,000

=

NIL

+

3,50,000

(c)

Decrease in capital (Expense)

(5000)

Decrease in cash

5,000

3,05,000

+

40,000

=

NIL

+

3,45,000

(d)

Increase in stock

40,000

Increase in creditors

40,000

3,05,000

+

40,000

+

40000

=

40,000

+

3,45,000

(e)

Increase in cash

30,000

Decrease in stock

20,000

Increase in capital (Profit)

10,000

3,35,000

+

40,000 +

20,000

40,000

+

3,55,000

3. Ramesh has the following transactions:

Rs

(a)Commenced business with cash 1, 50,000

(b)Purchased machinery on credit 30,000

(c) Purchased goods for cash 30,000

(d)Purchased car for personal use 70,000

(e)Paid to creditors in full settlement 30,000

(f) Sold goods for cash costing Rs 5,000 4,000

(g)Paid rent 1,000

(h)Commission received in advance 3,000

S.No

Explanation

Cash 

+

Machinery

 

Assets 

Stock

=

Liabilities

Creditors

+Capital

+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

30,000

Increase in creditors

30,000

1,50,000

+

30,000

=

30,000

+

1,50,000

(c)

Increase in stock

30,000

Decrease in cash

30,000

1,20,000

+

30,000

+

30,000

=

30,000

+

1,50,000

(d)

Decrease in cash

70000

Decrease in capital (Drawings)

70000

50,000

+

30,000

+

30,000

=

30,000

+

80,000

(e)

Decrease in creditors

30,000

Decrease in cash

30,000

Increase in capital

(Discount received)

0

20,000

+

30,000 +

30,000

NIL

+

80,000

(f)

Increase in cash

4000

Decrease in stock

5000

Decrease in capital (Loss)

1000

24000

+

30,000 +

25,000

NIL

+

79,000

(g)

Decrease in cash

1000

Decrease in capital (Expense)

1000

23,000

+

30,000 +

25,000

NIL

+

78,000

(h)

Increase in cash

3000

Increase in unaccrued income

3000

26,000

+

30,000 +

25,000

NIL

+

81,000

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

(a)Business started with cash 1, 70,000

(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 48,000

(f)Cash received from Manish 20,000

(g)Rent paid 1,000

(h) Cash withdrew for personal use 3,000

S.No

Explanation

Cash 

+

Stock +

 

 Debtors

Assets 

+Furniture

=

=

Liabilities

Creditors

+Capital

(a)

Increase in cash

1,70,000

Increase in capital

1,70,000

1,70,000

=

NIL

+

1,70,000

(b)

Increase in stock

50,000

Increase in creditors (Rohit)

50,000

1,70,000

+

50,000

=

50,000

+

1,70,000

(c)

Increase in debtors (Manish)

20,000

Decrease in stock

Increase in capital (Profit)

17,500

2500

1,70,000

+

32,500

+ 20,000

=

50,000

+

1,72,500

(d)

Increase in furniture

10,000

Decrease in cash

10,000

1,60,000

+

32,500

+20,000

+10,000

=

50,000

+

1,72,500

(e)

Decrease in creditors (Rohit)

50,000

Decrease in cash

48,000

Increase in capital

(Discount received)

2000

1,12,000

+

32,500

+20,000

+10,000

NIL

+

1, 74,500

(f)

Increase in cash

20000

Decrease in debtors (Manish)

20000

1,32,000

+

32,500

+ NIL

+10,000

NIL

+

1,74,500

(g)

Decrease in capital (Expense)

1000

Decrease in cash

1000

1000

1,31,000

+

32,500

+ NIL

+10,000

NIL

+

1,73,500

(h)

Decrease in capital (Drawings)

3000

Decrease in cash

3000

1,28,000

+

32,500

+ NIL

+10,000

NIL

+

1,70,500

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

(a) Started business with cash 1, 30,000

(b) Purchased goods for cash 15,000

(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

S.No.

Explanation

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Prepaid Expenses

 

Outstanding Expenses

 

 

(a)

Increase in cash

1,30,000

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

1,30,000

 

 

1,30,000

 

 

 

 

=

NIL

+

1,30,000

(b)

Increase in stock

 

 

15,000

 

 

 

 

 

 

 

Increase in cash

(15,000)

 

 

 

 

=

 

 

 

 

 

1,15,000

+

15,000

 

 

=

NIL

+

1,30,000

(c)

Increase in cash

5,000

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

5,000

 

 

 

 

 

 

 

 

 

 

 

 

 

1,20,000

+

15,000

 

 

=

NIL

+

1,35,000

(d)

Increase in outstanding expenses

 

 

 

 

 

2,000

 

 

 

Decrease in capital (Expense)

 

 

 

 

 

 

 

 

(2,000)

 

 

1,20,000

+

15,000

 

 

=

2,000

+

1,33,000

(e)

Increase in prepaid expenses

 

 

 

 

1,000

 

 

 

 

 

Decrease in cash

(1,000)

 

 

 

 

 

 

 

 

 

 

1,19,000

+

15,000

+

1,000

=

2,000

+

1,33,000

(f)

Increase in cash

700

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

700

 

 

1,19,700

+

15,000

+

1,000

=

2,000

+

1,33,700

(g)

Increase in cash

7,000

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

(5,000)

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

2,000

 

 

1,26,700

+

10,000

+

1,000

=

2,000

+

1,35,700

(h)

Decrease in stock

 

 

(500)

 

 

 

 

 

 

 

Decrease in capital (Loss)

 

 

 

 

 

 

 

(500)

 

 

1,26,700

+

9,500

+

1,000

=

2,000

+

1,35,200

 

 

 

 

 

 

 

 

 

 

 

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

(a)Started business with cash 1, 50,000

(b)Rent received 10,000

(c) Invested in shares 50,000

(d) Received dividend 5,000

(e) Purchase goods on credit from Ragini 40,000

(f) Paid cash for house hold Expenses 7,000

(g) Sold goods for cash (costing Rs 10,000) 14,000

(h) Cash paid to Ragini 35,000

(i) Deposited into bank 20,000

S.No.

Explanation

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Investment

+

Bank

 

Creditors

 

 

(a)

 Increase in cash

1,50,000

 

 

 

 

 

 

 

 

 

 

 

 Increase in capital

 

 

 

 

 

 

 

 

 

 

1,50,000

 

1,50,000

+

 

 

 

 

 

=

NIL

+

1,50,000

(b)

 Increase in cash

10,000

 

 

 

 

 

 

 

 

 

 

 

 Increase in capital (Income)

 

 

 

 

 

 

 

=

 

 

10,000

 

 

1,60,000

 

 

 

 

 

 

=

NIL

+

1,60,000

(c)

 Decrease in investment

 

 

 

 

50,000

 

 

 

 

 

 

 

 Decrease in cash

(50,000)

 

 

 

 

 

 

=

 

 

 

 

 

1,10,000

+

 

 

50,000

 

 

=

NIL

+

1,60,000

(d)

 Increase in cash

5,000

 

 

 

 

 

 

 

 

 

 

 

 Increase in capital (Income)

 

 

 

 

 

 

 

 

 

 

5,000

 

 

1,15,000

+

 

 

50,000

 

 

=

NIL

+

1,65,000

(e)

 Increase in stock

 

 

35,000

 

 

 

 

 

 

 

 

 

 Increase in creditor (Ragini)

 

 

 

 

 

 

 

 

35,000

 

 

 

 

1,15,000

+

35,000

+

50,000

 

 

=

35,000

+

1,65,000

(f)

 Decrease in capital

 

 

 

 

 

 

 

 

 

 

(7,000)

 

 Decrease in cash

 (7,000)

 

 

 

 

 

 

 

 

 

 

 

 

1,08,000

+

35,000

+

50,000

 

 

=

35,000

+

1,58,000

(g)

 Increase in cash

14,000

 

 

 

 

 

 

 

 

 

 

 

 Decrease in stock

 

 

(10,000)

 

 

 

 

 

 

 

 

 

 Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

4,000

 

 

1,22,000

+

25,000

+

50,000

 

 

=

35,000

+

1,62,000

(h)

 Decrease in creditors (Ragini)

 

 

 

 

 

 

 

 

(35,000)

 

 

 

 Decrease in cash

(35,000)

 

 

 

 

 

 

 

 

 

 

 

 

87,000

+

25,000

+

50,000

 

 

=

NIL

+

1,62,000

(i)

 Decrease in cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 Increase in bank

 

 

 

 

 

 

20,000

 

 

 

 

 

 

67,000

+

25,000

+

50,000

+

20,000

=

NIL

+

1,62,000

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(a) Udit started business with:

(i) Cash 6,00,000

(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) 35,000

(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

S.No.

Explanation

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Building

+

Debtors

 

Creditors + Outstanding Expenses

 

+Unaccrued Income 

(a)

 Increase in cash

Increase in stock

6,00.000

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

1,00,000

 

 

 

 

 

 

 

6,00,000

 

6,00,000

+

 1,00,000

 

 

 

 

=

NIL

+

7,00,000

(b)

 Increase in building

 

 

 

 2,00,000

 

 

 

 

 

 

 

 Decrease in cash

2,00,000 

 

 

 

 

 

 

=

 

 

 

 

4,00,000

 +

1,00,000 

 

 +2,00,000

 

 

=

NIL

+

7,00,000

(c)

 Increase in stock

 

 

 50,000

 

 

 

 

 

 

 

 

 Increase in creditors

 

 

 

 

 

 

  50,000

 

 

 

 

4,00,000

+1,50,000

 

 

+2,00,000

 

 

=

50,000

+

7,00,000

(d)

Increase in debtors

 

 25,000

 

 

 

 35,000

 

 

 

 

 

Decrease in stock

Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

10,000

 

 

4,00,000+1,25,000

+

35,000 

 

+ 2,00,000

 

 

=

50,000

+

7,10,000

(e)

Decrease in cash

3000 

 

 

 

 

 

 

 

 

 

 

Decrease in capital (Expense)

 

 

 

 

 

 

 

 

 

3000 

 

 

3,97,000 + 1,25,000

+

35,000

+

2,00,000

 

 

=

50,000

+

7,07,000

(f)

 Decrease in capital (Expense)

 

 

 

 

 

 

 

 

 

 

 

 Increase in liabilities

 

 

 

 

 

 

 

 

 

 

5000 

 

 

3,97,000 + 1,25,000

+

35,000

+

2,00,000

 

 

=

50,000 + 5,000

+

7,02,000

(g)

Decrease in building

 

 

 

 8000

 

 

 

 

 

 

 

Decrease in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8000

 

 

3,97,000 + 1,25,000

+

35,000

+

1,92,000

 

 

=

50,000 + 5000

+

6,94,000

(h)

 Decrease in cash

20000

 

 

 

 

 

 

 

 

 

 

 Decrease in capital

 

 

 

 

 

 

 

 

 

20000 

 

 

3,77,000

+

1,25,000

+

35,000 +192,000

 

 

=

50000 +5000

+

6,74,000

(i)

 Increase in cash

5,000

 

 

 

 

 

 

 

 

 

 

 

 Increase in liability

 

 

 

 

 

 

5,000 

 

 

 

3,82,000

+

1,25,000

+

35,000

+

1,92,000

=

50,000 + 5,000

+5000+

6,74,000

(j)

Decrease in creditors

Decrease in cash

20,000

20,000

3,62,000

+1,25,000

+35,000 +1,92,000

=

30,000 + 5,000 +5,000

6,74,000

(k)

Increase in cash

30,000

Decrease in debtors

30,000

 

 

 3,92,000 + 1,25,000

1,92,000 +5,000 

 

 

 

 

 

 

 = 30,000 +5,000 +5,000

 

  +6,74,000

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

a) Manoj started business with

(i) Cash 2,50,000

(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

S.No.

Explanation

Assets

 

 

=

Liabilities

+

Capital

Cash

+

Stock

+

Building

+

Debtors

+

Prepaid Expenses

 

Creditors

+

Outstanding Expenses

 

 

(a)

Increase in cash, stock and building

2,50,000

+

1,00,000

+

2,00,000

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,50,000

 

 

2,50,000

+

1,00,000

+

2,00,000

 

 

 

 

=

 

 

 

+

5,50,000

(b)

Increase in stock

 

 

 

 

50,000

 

 

 

 

 

 

 

 

 

 

 

Decrease in cash

(50,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,00,000

+

1,50,000

+

2,00,000

 

 

 

 

=

 

 

 

+

5,50,000

(c)

Increase in cash

35,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,000

 

 

2,35,000

+

1,30,000

+

2,00,000

 

 

 

 

 

 

 

 

+

5,65,000

(d)

Increase in stock

 

 

55,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in creditors

 

 

 

 

 

 

 

 

 

=

55,000

 

 

 

 

 

 

2,35,000

+

1,85,000

+

2,00,000

 

 

 

 

=

55,000

 

 

+

5,65,000

(e)

Increase in debtors

 

 

 

 

 

 

60,000

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

(52,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,000

 

 

2,35,000

+

1,33,000

+

2,00,000

+

60,000

 

 

=

55,000

 

 

+

5,73,000

(f)

Decrease in creditors

 

 

 

 

 

 

 

 

 

=

(55,000)

 

 

 

 

 

Decrease in cash

(53,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in capital (Discount received)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,000

 

 

1,82,000

+

1,33,000

+

2,00,000

+

60,000

 

 

=

NIL

 

 

+

5,75,000

(g)

Decrease in cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,000)

 

 

1,62,000

+

1,33,000

+

2,00,000

+

60,000

 

 

=

NIL

 

 

+

5,55,000

(h)

Increase in cash

59,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in capital (Discount allowed)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,000)

 

Decrease in debtors

 

 

 

 

 

 

60,000

 

 

 

 

 

 

 

 

 

 

2,21,000

+

1,33,000

+

2,00,000

+

NIL

 

 

=

NIL

+

 

+

5,54,000

(i)

Increase in outstanding Expenses

 

 

 

 

 

 

 

 

 

 

 

 

3,000

 

 

 

decrease in capital (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,000)

 

 

2,21,000

+

1,33,000

+

2,00,000

+

NIL

 

 

=

NIL

+

3,000

+

5,51,000

(j)

Decrease in prepaid expenses

 

 

 

 

 

 

 

 

2,000

 

 

 

 

 

 

 

Decrease in cash

(2,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,19,000

+

1,33,000

+

2,00,000

+

NIL

 

2,000

=

NIL

+

3,000

+

5,51,000

(k)

Increase in cash

13,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

increase in capital (Income)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,000

 

 

2,32,000

+

1,33,000

+

2,00,000

+

NIL

+

2,000

=

NIL

+

3,000

+

5,64,000

(l)

Decrease in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,000)

 

Decrease in cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,12,000

+

1,33,000

+

2,00,000

+

NIL

+

2,000

=

NIL

+

3,000

+

5,44,000

(m)

Decrease in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,000)

 

Decrease in building

 

 

 

 

(10,000)

 

 

 

 

 

 

 

 

 

 

 

 

2,12,000

+

1,33,000

+

1,90,000

+

NIL

+

2,000

=

NIL

+

3,000

+

5,34,000

(n)

Increase in cash

50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50,000

 

 

2,62,000

+

1,33,000

+

1,90,000

+

NIL

+

2,000

=

NIL

+

3,000

+

5,84,000

(o)

Increase in stock

 

 

10,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in creditors

 

 

 

 

 

 

 

 

 

 

10,000

 

 

 

 

 

 

2,62,000

+

1,43,000

+

1,90,000

+

NIL

2,000

=

10,000

+

3,000

+

5,84,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

(a)Business started with cash 1, 30,000

(b) Purchased goods for cash 40,000

(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 withdrew for personal use 3,000

S.No.

Explanation

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Furniture

+

Debtors

 

Creditors

 

 

(a)

Increase in cash

1,30,000

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

1,30,000

 

 

1,30,000

+

 

 

 

 

 

=

NIL

+

1,30,000

(b)

Increase in stock

 

 

40,000

 

 

 

 

 

 

 

 

 

Decrease in cash

(40,000)

 

 

 

 

 

 

=

 

 

 

 

 

90,000

+

40,000

 

 

 

 

=

NIL

+

1,30,000

(c)

Increase in furniture

 

 

 

 

10,000

 

 

=

 

 

 

 

Increase in creditors

 

 

 

 

 

 

 

=

10,000

 

 

 

 

90,000

+

40,000

+

10,000

 

 

=

10,000

+

1,30,000

(d)

Increase in debtors

 

 

 

 

 

 

9,000

 

 

 

 

 

Decrease in stock

 

 

(7,000)

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

2,000

 

 

90,000

+

33,000

+

10,000

+

9,000

=

10,000

+

1,32,000

(e)

Decrease in capital (Cartage Expenses)

 

 

 

 

 

 

 

 

 

 

(100)

 

Decrease in cash

(100)

 

 

 

 

 

 

 

 

 

 

 

 

89,900

+

33,000

+

10,000

+

9,000

=

10,000

+

1,31,900

(f)

Decrease in creditors

 

 

 

 

 

 

 

=

(10,000)

 

 

 

Decrease in cash

(9,700)

 

 

 

 

 

 

 

 

 

 

 

Increase in capital (Discount-received)

 

 

 

 

 

 

 

 

 

 

300

 

 

80,200

+

33,000

+

10,000

+

9,000

=

NIL

+

1,32,200

(g)

Increase in cash

12,000

 

 

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

(10,000)

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

2,000

 

 

92,200

+

23,000

+

10,000

+

9,000

=

NIL

+

1,34,200

(h)

Increase in cash

4,000

 

 

 

 

 

 

 

 

 

 

 

Increase in capital (Income)

 

 

 

 

 

 

 

 

 

 

4,000

 

 

96,200

+

23,000

+

10,000

+

9,000

=

NIL

+

1,38,200

(i)

Decrease in capital

 

 

 

 

 

 

 

 

 

 

(3,000)

 

Decrease in cash

(3,000)

 

 

 

 

 

 

 

 

 

 

 

 

93,200

+

23,000

+

10,000

+

9,000

=

NIL

+

1,35,200

 

 

 

 

 

 

 

 

 

 

 

 

 

10. 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 Ravi 5,000

Dec.12 Purchased furniture 3,000

Dec.18 Cash received from Ravi in full settlement 3,000

Dec.25 Paid rent 1,000

Dec.30 Paid salary 2,000

Books of Himanshu Journal

Date

Particulars

L.F

Debit
Amount

Credit
Amount

Dec.01

Cash A/C Dr.

To Capital A/C

(Being Business started with cash)

 

75,000

75,000

Dec.07

Purchase A/C Dr.

To Cash A/C

(Being goods Purchased goods for cash)

 

10,000

10,000

Dec.09

Ravi A/C Dr.

To Sales A/C

(Being Goods sold to Ravi)

 

4,000

4,000

Dec.12

Furniture A/C Dr.

To Cash A/C

(Being furniture purchased)

 

3,000

3,000

Dec.18

Cash A/C

 

4,000

 

 

Discount Allowed A/C Dr.

To Ravi A/C

(Being cash received from Ravi in full settlement)

 

1,000

5,000

Dec.25

Rent A/C Dr.

To Cash A/C

(Being rent paid)

 

1,000

1,000

Dec.30

Salary A/C Dr.

To Cash

(Being salary paid)

 

2,000

2,000

 

 Total c/f

 

1,00,000

1,00,000

11. Journalise the following transactions:

2017

 

Dec. 01 Rs

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

Journal

Date

Particulars

L.F

Debit
Amount

Credit
Amount

Dec.01

Cash A/C Dr.

To Capital A/C

(Hema started business with cash)

 

1,00,000

1,00,000

Dec.02

Bank A/C Dr.

To Cash A/C

(Open a bank account with SBI)

 

30,000

30,000

Dec.04

Purchases A/C Dr.

To Ashu A/C

(Purchased goods from Ashu)

 

20,000

20,000

Dec.06

Cash A/C Dr.

To Sales A/C

(Sold goods to Rahul for cash)

 

15,000

15,000

Dec.10

Purchases A/C Dr.

To Cash A/C

(Bought goods from Tara for cash)

 

40,000

40,000

Dec.13

Suman A/C Dr.

To Sales A/C

(Sold goods to Suman)

 

20,000

20,000

Dec.16

Bank A/C Dr.

 

19,500

 

 

Discount allowed A/C Dr.

To Suman

(Received cheque from Suman and discount allowed)

 

500

20,000

Dec.20

Ashu A/C Dr.

To Bank A/C

(Cheque given to Ashu on account)

 

10,000

10,000

Dec.22

Rent A/C Dr.

To Cash A/C

(Rent paid by cheque)

 

2,000

2,000

Dec.23

Bank A/C Dr.

To Cash A/C

(Deposited into Bank)

 

16,000

16,000

Dec.25

Machine A/C Dr.

To Parigya A/C

(Machine purchased from Parigya)

 

10,000

10,000

Dec.26

Trade Expenses A/C Dr.

To Cash A/C

(Trade expenses)

 

2,000

2,000

Dec.28

Parigya A/C Dr.

To Bank A/C

(Cheque issued to Parigya)

 

10,000

10,000

Dec.29

Telephone expenses A/C Dr.

To Bank A/C

(Paid telephone expenses by cheque)

 

1,200

1,200

Dec.31

Salary A/C Dr.

To Cash A/C

(Paid Salary)

 

4,500

4,500

 

 Total c/f

 

3,00,700

3,00,700

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 Raju

35,000

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 Raju

29,500

 

Discount allowed

500

Jan.14

Goods purchased for Sudip

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 Sudip

26,700

 

Discount allowed

300

Books of Mudit Journal

Date

Particulars

L.F

Debit
Amount

Credit
Amount

Jan.01

Cash A/C Dr.

 

1,75,000

 

 

Building A/C Dr.

To Capital A/C

(Business commenced with cash and building)

 

100,000

2,75,000

Jan.02

Purchases A/C Dr.

To Cash A/C

(Goods purchased for cash)

 

75,000

75,000

Jan.03

Raju A/C Dr.

To Sales A/C

(Sold goods to Raju)

 

35,000

35,000

Jan.04

Wages A/C Dr.

To Cash A/C

(Wages paid)

 

500

500

Jan.06

Cash A/C Dr.

To Sales A/C

(Sold goods for cash)

 

10,000

10,000

Jan.10

Trade Expenses A/C Dr.

To Cash A/C

(Paid for Trade Expenses)

 

700

700

Jan.12

Cash A/C Dr.

 

29,500

 

 

Discount Allowed A/C Dr.

To Raju A/C

(Cash paid by Raju for full account settlement)

 

500

30,000

Jan.14

Purchases A/C Dr.

To Sudip A/C

(Goods purchased on credit from Sudip)

 

27,000

27,000

Jan.18

Cartage A/C Dr.

To Cash A/C

(Cartage Paid)

 

1,000

1,000

Jan.20

Drawings A/C Dr.

To Cash A/C

(Drew cash for personal use)

 

5,000

5,000

Jan.22

Drawings A/C Dr.

To Purchases A/C

(Drawing of goods for household use)

 

2,000

2,000

Jan.25

Sudip A/C Dr.

To Discount Received Account

To Cash A/C

(Cash paid to Sudip and received discount)

 

27,000

300

26,700

 

 Total

 

4,88,200

4,88,200

13. 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.

Books of Harpreet Bros.

Journal

S.No

Particulars

L.F

Debit
Amount

Credit
Amount

(a)

Bad Debt A/C Dr.

To Rohit A/C

(Amount due from Rohit is now bad debt.)

 

1,000

1,000

(b)

Drawings A/C Dr.

To Purchases A/C

(Goods drawn by the proprietor)

 

2,000

2,000

(c)

Depreciation A/C Dr.

To Machine A/C

(Charge depreciation @ 10% p.a for two months on machine costing ₹30,000)

 

500

500

(d)

Interest on Capital A/C Dr.

To Capital A/C

(commission on capital of ₹1,50,000 at 6% p.a for 9 months)

 

6,750

6,750

(e)

Cash A/C Dr.

 

1,200

 

 

Bad Debt A/C Dr.

To Rahul A/C

(Rahul who owed ₹ 2,000 became insolvent. A final dividend of 60paise is received from his estate.)

 

800

2000

 

 Total

 

12,250

12,250

14. Prepare Journal from the transactions given below:

 

 

Rs

(a)

Cash paid for installation of machine

1000

(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)

Ravi 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

Journal

S.No

Particulars

L.F

Debit
Amount

Credit
Amount

(a)

Machine A/C Dr.

To Cash A/C

(Cash paid for installation of machine ₹1000)

 

1000

1000

(b)

Charity A/C Dr.

To Purchases A/C

(Goods given as charity ₹2,000)

 

2,000

2,000

(c)

Interest on Capital A/C Dr.

To Capital A/C

(Interest received on capital @7% p.a. when total capital was ₹70,000)

 

4,900

4,900

(d)

Cash A/C Dr.

To Bad Debts Recovered A/C

(Received ₹1,200 of a bad debts written-off last year)

 

1,200

1,200

(e)

Loss of Goods A/C Dr.

To Purchases A/C

(Goods destroyed by fire ₹2,000)

 

2,000

2,000

(f)

Rent A/C Dr.

To Rent Outstanding A/C

(Rent outstanding ₹1,000)

 

1,000

1,000

(g)

Drawings A/C Dr.

To Interest on Drawings A/C

(Interest on drawings ₹900)

 

900

900

(h)

Cash A/C Dr.

 

1,350

 

 

Bad Debt A/C Dr.

To Ravi Kumar A/C

(Ravi Kumar who owed me ₹3,000 has failed to pay the amount. He pays me a compensation of ₹ 45 paise in a rupee)

 

1,650

3,000

(i)

Cash A/C Dr.

To Commission in Advance A/C

(Commission received in advance ₹7,000)

 

7,000

7,000

 

 Total

 

23,000

23,000

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

2017

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

500

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

Journal

Date

Particulars

L.F

Debit
Amount

Credit
Amount

Nov.01

Cash A/C Dr.

 

1,50,000

 

 

Stock A/C Dr.

To Capital A/C

(Business started with cash and goods)

 

50,000

2,00,000

Nov.03

Purchases A/C Dr.

To Harish A/C

(Purchased goods from Harish)

 

30,000

30,000

Nov.05

Cash A/C Dr.

To Sales A/C

(Sold goods for cash)

 

12,000

12,000

Nov.08

Furniture A/C Dr.

To Cash A/C

(Purchased furniture for cash)

 

5,000

5,000

Nov.10

Harish A/C Dr.

To Cash A/C

(Cash paid to Harish on account)

 

15,000

15,000

Nov.13

Sundry Expenses A/C Dr.

To Cash A/C

(Paid sundry expenses)

 

500

500

Nov.15

Cash A/C Dr.

To Sales A/C

(Cash sales)

 

15,000

15,000

Nov.18

Bank A/C Dr.

To Cash A/C

(Deposited into bank)

 

5,000

5,000

Nov.20

Drawings A/C Dr.

To Cash A/C

(Drew cash for personal use)

 

1,000

1,000

Nov.22

Harish A/C Dr.

To Discount Received A/C

To Cash A/C

(Cash paid to Harish in full settlement of account)

 

1,000

300

14,700

Nov.25

Nitesh A/C Dr.

To Sales A/C

(Goods sold to Nitesh)

 

1,000

1,000

Nov.26

Cartage A/C Dr.

To Cash A/C

(Cartage paid)

 

200

200

Nov.27

Rent A/C Dr.

To Cash A/C

(Rent paid)

 

1,500

1,500

Nov.29

Cash A/C Dr.

 

6,800

 

Nov.29

Discount allowed A/C Dr.

To Nitesh A/C

(Cash received from Nitesh and discount is allowed to him)

 

3,000

3,000

 

 Total

 

3,17,200

3,17,200

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

 

500

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

 

1,37,900

 

 

 

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

 

 

 

 

 

 

 

 

 

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

 

500

 

 

 

 

 

 

 

 

Nov.30

Balance c/d

 

500

 

 

 

500

 

 

 

500

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

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

2017

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

Journal

Date

Particulars

L.F

Debit
Amount

Credit
Amount

2015

 

 

 

 

01 Jan

Cash A/C Dr.

To Capital A/C

(Business started with Cash)

 

1,65,000

1,65,000

02 Jan

Bank A/C Dr.

To Cash A/C

(Opened bank account in PNB)

 

80,000

80,000

04 Jan

Purchases A/C Dr.

To Tara A/C

(Purchased Goods from Tara)

 

22,000

22,000

05 Jan

Purchases A/C Dr.

To Cash A/C

(Goods purchased for cash)

 

30,000

30,000

08 Jan

Naman A/C Dr.

To Sales A/C

(Goods sold to Naman)

 

12,000

12,000

10 Jan

Tara A/C Dr.

To Sales A/C

(Cash Paid to Tara)

 

22,000

22,000

15 Jan

Cash A/C Dr.

 

11,700

 

 

Discount Allowed A/C Dr.

To Naman A/C

(Cash received from Naman)

 

300

12,000

16 Jan

Wages A/C Dr.

To Cash A/C

(Wages paid)

 

200

200

18 Jan

Furniture A/C Dr.

To Cash A/C

(Furniture purchased for office use)

 

5,000

5,000

20 Jan

Drawings A/C Dr.

To Bank A/C

(Cash withdrawn from bank for personal use)

 

4,000

4,000

22 Jan

Rent A/C Dr.

To bank A/C

(Issued cheque for rent)

 

3,000

3,000

23 Jan

Drawing A/C Dr.

To Purchases A/C

(Goods issued for household purposes)

 

2,000

2,000

24 Jan

Cash A/C Dr.

To Bank A/C

(Cash withdrawn from bank for office use)

 

6,000

6,000

26 Jan

Cash A/C Dr.

To Commission A/C

(Commission Received)

 

1,000

1,000

27 Jan

Bank Charges A/C Dr.

To Bank A/C

(Bank Charges Paid)

 

200

200

28 Jan

Insurance A/C Dr.

To Bank A/C

(Cheque given for insurance premium)

 

3,000

3,000

29 Jan

Salaries A/C Dr.

To Cash A/C

(Salaries Paid)

 

7,000

7,000

30 Jan

Cash A/C Dr.

To Sales A/C

(Goods sold for cash)

 

10,000

10,000

 

 Total

 

3,84,400

3,84,400

Dr.

Cash A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

01 Jan

To Capital A/C

 

1,65,000

02 Jan

By Bank A/C

 

80,000

15 Jan

To Naman A/C

 

11,700

05 Jan

By Purchases A/C

 

30,000

24 Jan

To Bank A/C

 

6,000

10 Jan

By Tara A/C

 

22,000

26 Jan

To Commission A/C

 

1,000

16 Jan

By Wages A/C

 

200

30 Jan

To Sales A/C

 

10,000

18 Jan

By Furniture A/C

 

5,000

 

 

 

 

29 Jan

By Salaries A/C

 

7,000

Dr.

Capital A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

 

 

 

 

2006

 

 

 

 

 

 

 

01 Jan

By Cash A/C

 

1,65,000

Dr.

Purchases A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

04 Jan

To Tara A/C

 

22,000

22 Jan

By Drawing A/C

 

2,000

05 Jan

To Cash A/C

 

30,000

 

 

 

 

Dr.

Bank A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

02 Jan

To Cash A/C

 

80,000

20 Jan

By Rent A/C

 

3,000

 

 

 

 

23 Jan

By Drawings A/C

 

4,000

 

 

 

 

24 Jan

By Cash A/C

 

6,000

 

 

 

 

27 Jan

 

By Bank Charges A/C

200

 

 

 

 

28 Jan

 

By Insurance A/C

3,000

Dr.

Tara A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

10 Jan

To Cash A/C

 

22,000

04 Jan

By Purchases A/C

 

22,000

Dr.

Sales A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

 

 

 

 

2006

 

 

 

 

 

 

 

08 Jan

By Naman

 

12,000

 

 

 

 

30 Jan

By Cash A/C

 

10,000

Dr.

Naman A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

08 Jan

To Sales A/C

 

12,000

15 Jan

By Cash A/C

 

11,700

 

 

 

 

 

By Discount Allowed A/C

 

300

Dr.

Discount Allowed A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

15 Jan

To Naman A/C

 

300

 

 

 

 

Dr.

Wages A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

16 Jan

To Cash A/C

 

200

 

 

 

 

Dr.

Furniture A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

18 Jan

To Cash A/C

 

5,000

 

 

 

 

Dr.

Rent A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

20 Jan

To Bank A/C

 

3,000

 

 

 

 

Dr.

Drawings A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

22 Jan

To Purchases A/C

 

2,000

 

 

 

 

23 Jan

To Bank A/C

 

4,000

 

 

 

 

Dr.

Commission A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

 

 

 

 

26 Jan

By Cash A/C

 

1,000

Dr.

Bank Charges A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

27 Jan

To Bank A/C

 

200

 

 

 

 

Dr.

Insurance A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

27 Jan

To Bank A/C

 

3,000

 

 

 

 

Dr.

Salaries A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2006

 

 

 

2006

 

 

 

20 Jan

To Cash A/C

 

7,000

 

 

 

 

17. 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

Journal

Date

Particulars

L.F

Debit
Amount

Credit
Amount

2005

 

 

 

 

01 Aug

Cash A/C Dr.

To Capital A/C

(Business started with Cash)

 

1,10,000

1,10,000

02 Aug

Bank A/C Dr.

To Cash A/C

(Opened back account in H.D.F.C)

 

50,000

50,000

03 Aug

Furniture A/C Dr.

To Cash A/C

(Purchased furniture)

 

20,000

20,000

07 Aug

Purchases A/C Dr.

To Cash A/C

(Goods purchased for cash from M/S Rupa Traders)

 

30,000

30,000

08 Aug

Purchases A/C Dr.

To M/S Hema Traders A/C

(Goods purchased from M/S Hema Traders)

 

42,000

42,000

10 Aug

Sales A/C Dr.

To Cash A/C

(Goods sold for cash)

 

30,000

30,000

14 Aug

Sales A/C Dr.

To M/S. Gupta Traders A/C

(Goods sold to M/S. Gupta Traders on credit)

 

12,000

12,000

16 Aug

Rent A/C Dr.

To Cash A/C

(Rent paid)

 

4,000

4,000

18 Aug

Trade Expenses A/C Dr.

To Cash A/C

(Trade expenses paid)

 

1,000

1,000

20 Aug

Cash A/C Dr.

To Gupta Traders A/C

(Cash received from Gupta Traders)

 

12,000

12,000

22 Aug

Hema Traders A/C Dr.

To Purchases Return A/C

(Goods returned to Hema Traders)

 

2,000

2,000

23 Aug

Hema Traders A/C Dr.

To Cash A/C

(Cash paid to Hema Traders)

 

40,000

40,000

26 Aug

Postage A/C Dr.

To Cash A/C

(Bought Postage Stamps)

 

100

100

30 Aug

Salaries A/C Dr.

To Cash A/C

(Salary Paid to Rishabh)

 

4,000

4,000

 

 Total

 

3,57,100

3,57,100

Dr.

Capital A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

 

 

 

 

2005

 

 

 

 

 

 

 

01 Aug

By Cash A/C

 

1,10,000

Dr.

Bank A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

 

 

 

 

02 Aug

To Cash A/C

 

1,10,000

 

 

 

 

Dr.

Furniture A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

 

 

 

 

03 Aug

To Cash A/C

 

20,000

 

 

 

 

Dr.

Purchases A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

 

 

 

 

07 Aug

To Cash A/C

 

30,000

 

 

 

 

08 Aug

To M/S Hema Traders

 

42,000

 

 

 

 

Dr.

M/S Hema Traders A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

2005

 

 

 

22 Aug

To Purchases Return A/C

 

2,000

08 Aug

By Purchases A/C

 

42,000

23 Aug

To Cash A/C

 

40,000

 

 

 

 

Dr.

Sales A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

 

 

 

 

2005

 

 

 

 

 

 

 

10 Aug

By Cash A/C

 

30,000

 

 

 

 

14 Aug

By M/S Gupta Traders

 

12,000

Dr.

M/S Gupta Traders A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

2005

 

 

 

14 Aug

To Sales A/C

 

12,000

14 Aug

By Cash A/C

 

12,000

Dr.

Cash A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

2005

 

 

 

01 Aug

To Capital A/C

 

1,10,000

02 Aug

By Bank A/C

 

50,000

10 Aug

To Sales A/C

 

30,000

03 Aug

By Furniture A/C

 

20,000

20 Aug

To Gupta Traders

 

12,000

07 Aug

By Purchases A/C

 

30,000

 

 

 

 

16 Aug

By Rent A/C

 

4,000

 

 

 

 

18 Aug

By Trade Expenses A/C

 

1,000

 

 

 

 

23 Aug

By M/S Hema Traders

 

40,000

 

 

 

 

26 Aug

By Postage A/C

 

100

 

 

 

 

30 Aug

By Salaries A/C

 

4,000

Dr.

Rent A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

 

 

 

 

16 Aug

To Cash A/C

 

4,000

 

 

 

 

Dr.

Trade Expenses A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

 

 

 

 

18 Aug

To Cash A/C

 

1,000

 

 

 

 

Dr.

Purchase Returns A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

 

 

 

 

22 Aug

To M/S Hema Traders

 

2,000

 

 

 

 

Dr.

Postage A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

 

 

 

 

26 Aug

To Cash A/C

 

100

 

 

 

 

Dr.

Salaries A/C

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2005

 

 

 

 

 

 

 

30 Aug

To Cash A/C

 

4,000

 

 

 

 

18. Journalise the following transaction in the Books of the M/s. Bharat 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

Books of M/s. Bharat 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

 

 

 

 

 

 

 

 

Note: For transaction on December 29, 2017, it has been assumed that the rent of Rs 3,000 is paid through Cheque. If instead the rent would have been paid in cash, the cash account would have shown a credit (negative) balance and that is logically not correct.

Purchases Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

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

 

 

 

 

 

 

 

 

 

19. Journalise the following transaction in the Book of M/s. Beauty Traders. Also post them in the ledger.

Dec. 2017

 

Rs

1

Started business with cash

2,00,000

2

Bought office furniture

40,000

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 Karishma 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 Karishma

2,000

20

Cheque given to Ritika

28,000

22

Cash received from Karishma on account

15,000

24

Insurance premium paid by cheque

4,000

26

Cheque received from Karishma

8,000

28

Rent paid by cheque

3,000

29

Purchased goods on credit from Meena Traders

20,000

30

Cash sales

14,000

Book of Beauty Traders

Journal

Date

Particulars

L.F

Debit
Amount

Credit
Amount

2005

 

 

 

 

01 Dec

Cash A/C Dr.

To Capital A/C

(Business started with Cash)

 

2,00,000

2,00,000

02 Dec

Office Furniture A/C Dr.

To Cash A/C

(Purchased the office furniture)

 

40,000

40,000

03 Dec

Bank A/C Dr.

To Cash A/C

(Opened bank account with cash)

 

1,00,000

1,00,000

05 Dec

Computers A/C Dr.

To Bank A/C

(Purchased computer by issuing cheque)

 

2,50,000

2,50,000

06 Dec

Purchases A/C Dr.

To Ritika A/C

(Goods purchased from Ritika)

 

60,000

60,000

08 Dec

Cash A/C Dr.

To Sales A/C

(Goods sold for cash)

 

30,000

30,000

09 Dec

Karishma A/C Dr.

To Sales A/C

(Goods sold to Karishma)

 

25,000

25,000

12 Dec

Mansi A/C Dr.

To Cash A/C

(Cash paid to Mansi on account)

 

30,000

30,000

14 Dec

Ritika A/C Dr.

To Purchases Return A/C

(Goods returned to Ritika)

 

2,000

2,000

15 Dec

Stationery A/C Dr.

To Cash A/C

(Purchased Stationery)

 

3,000

3,000

16 Dec

Wages A/C Dr.

To Cash A/C

(Wages Paid)

 

1,000

1,000

18 Dec

Sales Return A/C Dr.

To Karishma A/C

(Goods returned to Karishma)

 

2,000

2,000

20 Dec

Ritika A/C Dr.

To Bank A/C

(Paid to Ritika by cheque)

 

28,000

28,000

22 Dec

Cash A/C Dr.

To Karishma A/C

(Cash received from Karishma on account)

 

15,000

15,000

24 Dec

Insurance A/C Dr.

To Bank A/C

(Insurance Paid by cheque)

 

4,000

4,000

26 Dec

Bank A/C Dr.

To Karishma A/C

(Cheque received from Karishma)

 

8,000

8,000

28 Dec

Rent A/C Dr.

To Bank A/C

(Rent paid by cheque)

 

3,000

3,000

29 Dec

Purchases A/C Dr.

To Meena Traders A/C

(Credit purchase of goods from Meena Traders)

 

20,000

20,000

30 Dec

Cash A/C Dr.

To Sales A/C

(Goods sold for cash)

 

14,000

14,000

 

 Total

 

8,35,000

8,35,000

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

 

40,000

Dec.08

Sales

 

30,000

Dec.03

Bank

 

1,00,000

Dec.22

Karishma

 

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

 

85,000

 

 

 

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

 

40,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

40,000

 

 

 

40,000

 

 

 

40,000

 

 

 

 

 

 

 

 

 

 

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

Karishma

 

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

Karishma

 

25,000

Dec.31

Balance c/d

 

69,000

Dec.30

Cash

 

14,000

 

 

 

69,000

 

 

 

69,000

 

 

 

 

 

 

 

 

 

Karishma’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

Karishma

 

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

 

 

 

 

 

 

 

 

 

20. Record journal entries for the following transactions in the books of Anudeep of Delhi:
(a) Bought goods Rs. 2,00,000 from Raja 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 Balbir 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%)

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 Raja

 

 

 

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)

Balbir 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)

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 Raj

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 Kareena

30,000

10

Goods returned from Karuna

2,000

14

Cash received from Karuna

13,000

15

Cheque given to Raj

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 Kareena

18,000

26

Paid cartage

1,000

27

Paid salary

8,000

28

Cash sale

7,000

29

Cheque given to Kareena

12,000

30

Sanjana took goods for Personal use

4,000

31

Paid General expense

500

 

Book 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 Raj

 

 

 

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 Kareena

 

 

 

30,000

 

(Goods purchased from Kareena)

 

 

 

 

 

 

 

 

 

 

 

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

Raj

Dr.

 

6,000

 

 

 

To Bank A/c

 

 

 

6,000

 

(Cheque issued to Raj)

 

 

 

 

 

 

 

 

 

 

 

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

Kareena

Dr.

 

18,000

 

 

 

To Cash A/c

 

 

 

18,000

 

(Payment made to Kareena)

 

 

 

 

 

 

 

 

 

 

 

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

Kareena

Dr.

 

12,000

 

 

 

To Bank A/c

 

 

 

12,000

 

(Cheque issued to Kareena)

 

 

 

 

 

 

 

 

 

 

 

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

Kareena

 

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

Kareena

 

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

 

 

 

 

 

 

 

 

 

 

Raj’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

Kareena

 

30,000

Jan.30

Drawings

 

4,000

 

 

 

 

Jan.31

Balance c/d

 

26,000

 

 

 

30,000

 

 

 

30,000

 

 

 

 

 

 

 

 

 

Kareena’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

 

 

 

 

 

 

 

 

 

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. Bobby opened a consulting firm and completed these transactions during November, 2005:

(a)

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

(b)

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

(c)

Purchased office supplies on credit for Rs 12,000.

(d)

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

(e)

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

(f)

Paid Rs 7,500 salary to the office manager.

(g)

Provided services to a client and collected Rs 30,000

(h)

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

(i)

Paid supplier created in transaction (c).

(j)

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

(k)

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

(l)

Received Rs 19,000 payment from the client created in transaction (k).

(m)

Bobby withdrew Rs 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.


Analysis of this transaction: In this transaction there is cash inflow which is increasing the cash in hand and also there is addition of office equipment. This transaction increases the capital. As the increase in the assets is debited and the increase in the capital is credited, these transactions will be recorded with a debit to the cash and office equipment and a credit to the capital.

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

b. 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


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

 

Similarly the purchase of building increases the asset and hence should be debited.

Dr

Building Account

Cr

3,50,000

 

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

At the same time there is a long term note payable for ₹ 8, 00,000. This is a liability. An increase in the liability should be credited.

Dr

Long term payable Account

Cr

 

8,00,000

c. 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

 

For purchasing the office supplies, a liability is created and hence the accounts payable will be increased and an increased liability should be credited.

Dr

Accounts payable

Cr

 

12,000

d. Bobbie transferred title of 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

 

Transferring the title of the motor car will increase the capital. An increase in the capital should be credited.

Dr

Capital Account

Cr

 

4,00,000

1,50,000

90,000

e. 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

 

This office equipment is purchased on credit and hence the liability of the accounts payable account will be increased. An increase in the liability should be credited.

Dr

Accounts payable

Cr

 

12,000

30,000

f. 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

 

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

g. Provided services to a client and collected ₹ 30,000


Analysis 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

This should be credited to the capital account.

Dr

Capital Account

Cr

 

4,00,000

1,50,000

90,000

30,000

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


Analysis of the transaction: Monthly utilities is an expense and hence an increase in the expense should be debited.

Dr

Expenses Account

Cr

4,000

 

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

i. 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

As this liability is paid out through cash, it will 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

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


Analysis 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

 

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 is i.e. 93,000 – 7,000 = 86,000 is paid out in case. 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

k. 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

 

As this is a sale, the sales account should be credited.

Dr

Sales Account

Cr

 

26,000

j. 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

m. Bobby withdrew ₹ 20,000 from the business.


Analysis of the transaction: There is 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

 

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 provides a wide degree of illustrative examples; which assists the students to comprehend and learn quickly. The above mentioned are the illustrations for 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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