NCERT Solution for Class 11 Accountancy Chapter 4 - Recording of Transactions - 2

NCERT Accountancy Solutions Class 11 Chapter 4 PDF Free Download

NCERT Solutions are said to be an extremely helpful book while preparing for the CBSE Class 11 Accountancy examinations. This study material owns a deep knowledge and the Solutions collected by the subject matter wizards are no distinct.

NCERT Solution For Class 11 Commerce Accountancy Chapter 4 – Recording Of Transactions – 2 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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Access Answers For Class 11 Commerce Accountancy Chapter 4 – Recording Of Transactions – 2

Short Answers for NCERT Accountancy Solutions Class 11 Chapter 4

1. Briefly state how the cash book is both journal and a ledger?

Cash book functions as journal because it is the original book of entry where all transactions are first recorded just like a journal and it functions as a ledger as it records the credit and debit cash transactions of a company without the need of a separate cash account.

2. What are special purpose books?

Special purpose book are subsidiary books that can record business transactions. In a business, transactions become large in number and difficult to record in a single journal. Hence, journal is sub-divided for quick, efficient and accurate recording of the all the transactions. Examples of Special purpose books are cash book, sales book and purchases book.

3. What is the purpose of contra entry?

Contra entry are those entries that impact both debit and credit side in accounting based on the situation. For example if a debit entry is recorded in an account, similar credit entry must be recorded. The purpose of contra entry is to indicate the transactions that effect both cash and bank balances. These transactions have no impact on the financial position of the business and are denoted by the letter C in the L.F. column.

4. Explain the meaning of posting of journal entries?

Posting is the process of transferring the journal entries into their respective ledgers. Every transaction is first recorded in the journal and then subsequently transferred to their respective ledger accounts.

5. What is petty cash book? How it is prepared?

Petty Cash Book is used for recording payment of small expenses such as postage, stationery, conveyance, refreshment, etc. These expenses are repetitive in nature. Recording such expenses in cash book will make it cumbersome. The person who maintains petty cash book is known as a petty cashier and these small expenses are termed as petty expenses.

It is prepared by two methods:

1. Ordinary system: In this case, a lump sum amount of money is paid to petty cashier towards the payment of petty expenses and after spending the whole amount, the account is submitted by the petty cashier to the main cashier for requesting new funds.

2. Imprest system: In this case, a fixed sum of the money is given to the petty cashier for a fixed period and at the end of the period the amount spent by him is reimbursed so that he has a fixed amount at the beginning of every new period.

6. Write the difference between return inwards and return outwards.

Basis of Comparison

Return Inwards

Return Outwards

Meaning

Goods returned to business by their customers

Goods purchased by business are returned to the suppliers.

Balance

It has debit balance.

It has credit balance.

Treatment

Deducted from Sales in the Trading Account.

Deducted from Purchases in the Trading Account.

Issued

Credit note is prepared by the seller.

Debit note is prepared by the buyer.

Reduction

Reduces the payment from the Debtors.

Reduces the payment made to the Creditors.

Term

It is also known as Sales Returns.

It is also known as Purchases Returns.

7. Define the purpose of maintaining subsidiary journal.

There are many business transactions that are repetitive in nature. Due to this reason these transactions are recorded in a different type of journal which are known as subsidiary journal. The purpose of maintaining subsidiary Journal are given below.

  1. It saves time and efforts in recording.
  2. It enables division of work, leading to increase in efficiency and effectiveness, as individuals having expertise will take care of particular books.
  3. It makes each accountant more responsible and accountable for the particular books assigned to them.
  4. By recording routine and repetitive transactions at one place, it leads to easy accessibility of information and hassle-free communication.

8. What is difference between trade discount and cash discount?

Basis of Comparison

Trade Discount

Cash Discount

Meaning

Discount provided when goods are purchase or sold.

Discount provided at the time of payment.

Recording in books

It is recorded in invoice/bill but not in the books.

It is recorded in the discount column of the Cash Book’s debit side, if provided, and credit side, if received.

Purpose

Encourage increase in sale.

Encourage on time payment.

Deduction

Deducted from the price-list of the goods.

Not deducted from the price-list of the goods.

9. What do you understand by ledger folio?

Ledger folio or L.F is a column in a journal format which shows reference to the page number where the transaction is recorded. In a journal entry, ledger folio number is written with respect to the name of the account in the L.F. column. It helps in easily locating the account in the ledger book.

10. Write the process of preparing ledger from a journal.

The following example will help explain the process of preparing ledger from journal.

For e.g. Machinery is purchased from Mr. Y, so, the corresponding journal entry will be:

Machinery A/c

Dr.

 

To Mr Y Account

 

In our example, Machinery Account is debited and Mr. Y Account is credited. Let’s see the steps required for preparing ledger from journal entry

Account which is debited in the entry:

Step 1: Identify the account in ledger to be debited, i.e., ‘Machinery Account’.

Step 2: Enter date of transaction in date column on the debit side.

Step 3: Enter name of the account as ‘Mr Y Account’ (which is credited in the entry) in the ‘Particulars’ column in the debit side of the Machinery Account.

Step 4: Enter page number of the journal, where the entry is recorded in the ‘J.F.’ (journal folio) column.

Step 5: Post corresponding amount in the ‘Amount’ column, which is recorded against ‘Machinery Account’ in the journal entry.

Account which is credited in entry:

Step 1: Identify account in ledger that is to be credited, i.e., ‘Mr. Y Account’.

Step 2: Enter date in credit side of ‘Mr. Y Account’ in the ‘Date’ column.

Step 3: Enter name of the account as ‘Machinery Account’ (which is debited in the entry) in the ‘Particulars’ column in the credit side of the ‘Machinery Account’.

Step 4: Enter the page number of journal where entry is recorded in the ‘J.F.’ (journal folio) column.

Step 5: Post corresponding amount in ‘Amount’ column, which is recorded against ‘Mr. Y Account’ in the journal entry.

11. What do you understand by Imprest amount in petty cash book?

Imprest amount is a definite sum of money that is provided to petty cashier at the start of a certain period and for a certain period which can be a week or month. This amount is reimbursed to the petty cashier by head cashier at the end of the period for which it is allotted.

.

Long Answers for NCERT Accountancy Solutions Class 11 Chapter 4

1. Explain the need for drawing up the special purpose books.

Special purpose book are created for the following needs:

  1. Quick and efficient recording: It is time consuming to record all the transactions in one journal. If there are separate books, then recording of transactions is done more efficiently and in a timely manner.
  2. Repetitive nature: In every business, there are some transactions which are similar and repetitive in nature. It is more convenient to record all similar transactions at one place. For example, all purchase transactions are recorded in the Purchase Book.
  3. Economical: It is an economical option as recording through the special purpose books saves time and also enhances the efficiency of accountants and clerks.
  4. Easy to post: Posting becomes easier if similar transactions are recorded at one place.
  5. Complete information at one place: All information related to purchases, sales, cash receipts, payments can be easily accessed in one place.

2. What is contra entry? How can you deal this entry while preparing double column cash book?

Transactions that are entered in both sides of the double column or three column cash book, affecting both cash and the bank balances simultaneously are called contra entry. Such entries result in increase in cash balances and decrease in bank balances or vice versa. So a debit in bank account leads to a credit in cash account and a credit in bank account leads to a debit in cash account. Contra entry transaction increases the bank amount on one hand and reduces the cash balance on the other hand. Contra entries are denoted by ‘C’.

Some transactions that can lead to contra entry are provided below.

  1. Opening of a bank account
  2. Depositing cash into bank
  3. Withdrawal from bank

These transactions are recorded in a double column Cash Book as shown below.

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

Cash

(C)

Bank

(C)

 

3. What is cash book? Explain the types of cash book.

Cash Book is a book of original entry in which all transactions related to cash receipts and cash payments are recorded. All transactions related to receipts and payments of cash and deposits in and withdrawals from a bank are recorded in a chronological order. The cash receipts are recorded in the cash column and all deposits into bank account are recorded in the bank column of the debit side whereas all cash payments are recorded in the cash column, while all payments through cheques are recorded in the bank column in the credit side of the cash book. Generally, it is prepared on monthly basis. It also serves the purpose of principal book (i.e. cash account and bank account).

Types of Cash Book

  1. Single Column Cash Book: It contains one column of amount on both sides, i.e., one in the debit side and other in the credit side. Only cash transactions are recorded in single column cash book. All cash receipts are recorded in the debit side, while in the credit side all cash payments are recorded.
  2. Double Column Cash Book: It contains two columns of amount on each side of cash book, namely cash column and bank column on both sides. It is useful if there are large number of transactions. All cash receipts and payments are recorded in the cash column of Cash Book. All deposits received either in form of cash or through cheques into the bank account of the business are debited in the bank column and all the withdrawals related to cash and payments through cheques are credited in the bank column.

Cash Book

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

 

Cash

(C)

 

 

Bank

(C)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Triple Column Cash Book: In this type of cash book, there are three columns of amount namely, cash, bank and discount. Discount allowed and discount received get recorded in the discount column. Discount allowed is recorded along with the receipts, either in cash or through cheque in the debit side and discount received is recorded, along with the payments made either in cash or by issuing cheques in the credit side.
  2. Petty Cash Book: This book is used for recording payment of expenses which are of smaller denominations like, postage, stationery, conveyance, refreshment, etc. also known as petty expenses.

4. Describe the advantages of sub-dividing the Journal.

Sub dividing of Journal has following advantages:

  1. Division of work: The lack of sub-division of journal may lead to chaos and confusions, if large numbers of transactions are to be recorded through Journal entry by more than one accountant. There will be more less flexibility and lack of accountability among the accountants of the organisation. Division of work is facilitated by sub-division of journal into subsidiary books. It enables different accountants to work on different books of business. It will not only avoid confusions but also enhance the sense of accountability among accountants.
  2. Time saving: The act of recording in subsidiary book is more time efficient and effective as compared to recording through Journal entries.
  3. Prompt information: Transactions which are of similar nature gets recorded in a particular Subsidiary Book. In this way it acts as a source of ready to access information which is much quicker than journal entry.
  4. Creates Accountability: It gives accountants a higher degree of responsibility and accountability for maintaining subsidiary book that are entrusted to them.
  5. Easy checking: As lesser number of transactions is recorded in a Subsidiary Book than in a Journal, discrepancies or errors if any that may arise, can be easily located and rectified.
  6. Specialisation: Each accountant becomes more specialised in the particular book that is assigned to them as they perform routine and repetitive tasks related to that book only.

5. What is petty cash book? Write the advantages of petty cash book?

Petty Cash Book is used for recording payment of small expenses such as postage, stationery, conveyance, refreshment, etc. These expenses are repetitive in nature. Recording such expenses in cash book will make it cumbersome. The person who maintains petty cash book is known as a petty cashier and these small expenses are termed as petty expenses.

It can be prepared by two methods:

1. Ordinary system: In this case, a lump sum amount of money is paid to petty cashier towards the payment of petty expenses and after spending the whole amount, the account is submitted by the petty cashier to the main cashier for requesting new funds.

2. Imprest system: In this case, a fixed sum of the money is given to the petty cashier for a fixed period and at the end of the period the amount spent by him is reimbursed so that he has a fixed amount at the beginning of every new period.

The Performa of Petty Cash Book is given below.

Petty Cash Book

Dr.

Cr.

Amount Received

Date

Particulars

Voucher No.

Amount Paid

Rs

Analysis of Payments

Postage

Stationery

Conveyance

Telephone and

 Telegram

Miscellaneous

Remarks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Advantages of Petty Cash Book:

Ease of recording: Recording of transactions in a petty cash book is quite easy. In an analytical Petty Cash Book, there are separate heads for different petty expenses, which makes recording easier. Updating a Petty Cash Book does not require formal knowledge of accounting principles and techniques which means it can be used by anyone.

Time saving: It saves time and efforts of the chief cashier.

Less prone to errors:  Petty Cash Book is audited by the main cashier at the end of a period so it becomes easy to identify frauds and significant reduction in errors.

Convenient handling:  Entries in petty cash book are recorded under separate heads, which makes posting easier and quicker.

6. What do you understand by balancing of account?

Accounts are prepared on daily, weekly, fortnightly, monthly, and quarterly basis. They are balanced at the end of each period. The purpose of balancing of the accounts is to know the position of each amount on that day. It involves the following steps:

  1. The totals of the debit and credit of an account are totalled, to determine which one of them is higher.
  2. The higher figure among debit and credit side is written in the grand total cell on both debit and credit sides of the account.
  3. The next step is to determine the difference between the debit total and the credit total. This difference is referred to as ‘Closing Balance’ or ‘Balance carried down’, and is denoted by ‘Balance c/d’.
  4. The ‘Balance c/d’ will be presented either in the debit or credit side, depending on the side that totals up into lower amount.
  5. If ‘Balance c/d’ is written in the debit side, then it is called ‘Credit balance’. On the other hand, ‘Balance c/d’ when written in the credit side, then the balance is referred to as ‘Debit Balance’.
  6. On closing the account, ‘Balance c/d’ is brought forward to the subsequent period, and it is written as ‘Balance b/d’ which means balance brought down.

Usually, the closing balances of real and personal accounts are forwarded to the next period in this manner. For nominal accounts, the initial steps (1 to 3) remain same and then they are closed by transferring the closing balances either to Trading Account or to Profit and Loss Account.

Numerical Questions for NCERT Accountancy Solutions Class 11 Chapter 4

1. Enter the following transactions in a simple cash book for December 2016:

 

 

 

Rs

01

Cash in hand

12,000

05

Cash received from Bhanu

4,000

07

Rent Paid

2,000

10

Purchased goods Murari for cash

6,000

15

Sold goods for cash

9,000

18

Purchase stationery

300

22

Cash paid to Rahul on account

2,000

28

Paid salary

1,000

30

Paid rent

500

The solution for this question can be represented in a cash book format as follows:

Cash book

Dr.

Cr.

Date

Receipts

L.F.

Amount

Date

Payments

L.F.

Amount

2016

 

 

 

2016

 

 

 

01 Dec

Balance b/d

 

12,000

07 Dec

Rent

 

2,000

05 Dec

Bhanu

 

4,000

10 Dec

Purchases

 

6,000

15 Dec

Sales

 

9,000

18 Dec

Stationery

 

300

 

 

 

 

22 Dec

Rahul

 

2,000

 

 

 

 

28 Dec

Salaries

 

1,000

 

 

 

 

30 Dec

Rent

 

500

 

 

 

 

31 Dec

Balance c/d

 

13,200

 

 

 

25,000

 

 

 

25,000

 

 

 

 

 

 

 

 

2. Enter the following transaction in Simple cash book for December 2018:

2018

Rs

01

Cash in hand

7,750

06

Paid to Sonu

45

08

Purchased goods

600

15

Received cash from Parkash

960

20

Cash sales

500

25

Paid to D. Kumar

1,200

30

Paid rent

600

The solution for this question is as follows:

Cash book

Dr.

Cr.

Date

Receipts

L.F.

Amount

Date

Payments

L.F.

Amount

2018

 

 

 

2018

 

 

 

01 Dec

Balance b/d

 

7,750

06 Dec

Sonu

 

45

15 Dec

Parkash

 

960

08 Dec

Purchases

 

600

20 Dec

Sales

 

500

25 Dec

S.Kumar

 

1,200

 

 

 

 

30 Dec

Rent

 

600

 

 

 

 

31 Dec

Balance c/d

 

7,760

 

 

 

9,210

 

 

 

9,210

 

 

 

 

 

 

 

 

3. Record the following transaction in simple cash book for November 2017:

 

 

Rs

01

Cash in hand

12,500

04

Cash paid to Hari

600

07

Purchased goods

800

12

Cash received from Amit

1,960

16

Sold goods for cash

800

20

Paid to Manish

590

25

Paid cartage

100

30

Paid salary

1,000

The solution for this question is as follows:

Cash book

Dr.

Cr.

Date

Receipts

L.F.

Amount

Date

Payments

L.F.

Amount

2017

 

 

 

2017

 

 

 

01 Nov

Balance b/d

 

12,500

04 Nov

Hari

 

600

12 Nov

Amit

 

1,960

07 Nov

 

Purchases

800

16 Nov

Sales

 

800

20 Nov

Manish

 

590

 

 

 

 

25 Nov

Cartage

 

100

 

 

 

 

30 Nov

Salaries

 

1,000

 

 

 

 

30 Nov

Balance c/d

 

12,170

 

 

 

15,260

 

 

 

15,260

 

 

 

 

 

 

 

 

4. Prepare a double column cash book with the help of following information for December 2016:

 

 

 

Rs

01

Started business with cash

1,20,000

03

Cash paid into bank

50,000

05

Purchased goods from Sushmita

20,000

06

Sold goods to Dinesh and received a cheque

20,000

10

Paid to Smita cash

20,000

14

Cheque received on December 06, 2016 deposited into bank

 

18

Sold goods to Rani

12,000

20

Cartage paid in cash

500

22

Received cash from Rani

12,000

27

Commission received

5,000

30

Drew cash for personal use

2,000

The solution for the question is given below:

Cash book

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2016

 

 

 

 

2016

 

 

 

 

01 Dec

Capital

 

1,20,000

 

03 Dec

Bank

C

50,000

 

03 Dec

Cash

C

 

50,000

10 Dec

Sushmita

 

20,000

 

06 Dec

Dinesh

 

20,000

 

14 Dec

Bank

C

20,000

 

14 Dec

Cash

C

 

20,000

20 Dec

Cartage

 

500

 

22 Dec

Rani

 

12,000

 

30 Dec

Drawings

C

2,000

 

27 Dec

Commission

 

5,000

 

31 Dec

Balance c/d

 

64,500

70,000

 

 

 

1,57,000

70,000

 

 

 

1,57,000

70,000

 

 

 

 

 

 

 

 

 

 

5. Record the following transactions in a bank column cash book for December 2016:

 

 

Rs

01

Started business with cash

80,000

04

Deposited in bank

50,000

10

Received cash from Rahul

1,000

15

Bought goods for cash

8,000

22

Bought goods by cheque

10,000

25

Paid to Shyam by cash

20,000

30

Drew from Bank for office use

2,000

31

Rent paid by cheque

1,000

The transactions can be represented in the form of a bank column cash book as follows:

Cash book

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2016

 

 

 

 

2016

 

 

 

 

01 Dec

Capital

 

80,000

 

04 Dec

Bank

C

 

50,000

04 Dec

Cash

C

 

50,000

15 Dec

Purchases

 

8,000

 

10 Dec

Rahul

 

1,000

 

22 Dec

Purchases

 

 

10,000

30 Dec

Bank

C

2,000

 

25 Dec

Ram

 

20,000

 

 

 

 

 

 

30 Dec

Cash

C

 

2,000

 

 

 

 

 

31 Dec

Rent

 

 

1,000

 

 

 

 

 

31 Dec

Balance c/d

 

5,000

37,000

 

 

 

83,000

50,000

 

 

 

83,000

50,000

 

 

 

 

 

 

 

 

 

 

6. Prepare double column cash book from the following information for September 2017:

 

 

 

 Rs

01

Cash in hand

7,500

 

Bank overdraft

3,500

03

Paid wages

200

05

Cash sales

7,000

10

Cash deposited into bank

4,000

15

Goods purchased and paid by cheque

2,000

20

Paid rent

500

25

Drew from bank for personal use

400

30

Salary paid

1,000

The solution for this question is as follows:

Cash Book

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2017

 

 

 

 

2017

 

 

 

 

01 Sep

Balance b/d

 

7,500

 

01 Sep

Balance b/d (Overdraft)

 

 

3,500

05 Sep

Sales

 

7,000

 

03 Sep

Wages

 

200

 

10 Sep

Cash

C

 

4,000

10 Sep

Bank

C

4,000

 

 

 

 

 

 

15 Sep

Purchases

 

 

2,000

 

 

 

 

 

20 Sep

Rent

 

500

 

 

 

 

 

 

25 Sep

Drawings

 

 

400

 

 

 

 

 

30 Sep

Salaries

 

1,000

 

30 Sep

Balance c/d (Overdraft)

 

 

1,900

30 Sep

Balance c/d

 

8,800

 

 

 

 

14,500

5,900

 

 

 

14,500

5,900

 

 

 

 

 

 

 

 

 

 

7. Enter the following transactions in double column cash book of M/s Ambica Traders for November 2017:

 

 

Rs

01

Commenced business with cash

50,000

03

Opened bank account with ICICI

30,000

05

Purchased goods for cash

10,000

10

Purchased office machine for cash

5,000

15

Sales goods on credit from Rohan and received cheque

7,000

18

Cash sales

8,000

20

Rohan’s cheque deposited into bank

 

22

Paid cartage by cheque

500

25

Cash withdrawn for personal use

2,000

30

Paid rent by cheque

1,000

The solution for this question is as follows:

M/s. Ambica Traders
Cash Book

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2017

 

 

 

 

2017

 

 

 

 

01 Nov

Capital

 

50,000

 

03 Nov

Bank

C

30,000

 

03 Nov

Cash

C

 

30,000

05 Nov

Purchases

 

10,000

 

15 Nov

Rohan

 

7,000

 

10 Nov

Office Machine

 

5,000

 

18 Nov

Sales

 

8,000

 

20 Nov

Bank

C

7,000

 

20 Nov

Cash

C

 

7,000

22 Nov

Cartage

 

 

500

 

 

 

 

 

25 Nov

Drawings

 

2,000

 

 

 

 

 

 

30 Nov

Rent

 

 

1,000

 

 

 

 

 

30 Nov

Balance c/d

 

11,000

35,500

 

 

 

65,000

37,000

 

 

 

65,000

37,000

 

 

 

 

 

 

 

 

 

 

8. Enter the following transaction in a double column cash book of M/s Mohit Traders for January 2017:

 

 

Rs

01

Cash in hand

3,500

 

Bank overdraft

2,300

03

Goods purchased for cash

1,200

05

Paid wages

200

10

Cash sales

8,000

15

Deposited into bank

6,000

22

Sold goods for cheque which was deposited into bank same day

2,000

25

Paid rent by cheque

1,200

28

Drew from bank for personal use

1,000

31

Bought goods by cheque

1,000

The solution for this question in the form of a double column cash book is as follows:

M/s. Mohit Traders
Cash Book

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2017

 

 

 

 

2017

 

 

 

 

01 Jan

Balance b/d

 

3,500

 

01 Jan

Balance b/d (overdraft)

 

 

2,300

10 Jan

Sales

 

8,000

 

03 Jan

Purchases

 

1,200

 

15 Jan

Cash

C

 

6,000

05 Jan

Wages

 

200

 

22 Jan

Sales

 

 

2,000

15 Jan

Bank

C

6,000

 

 

 

 

 

 

25 Jan

Rent

 

 

1,200

 

 

 

 

 

28 Jan

Drawings

 

 

1,000

 

 

 

 

 

31 Jan

Purchases

 

 

1,000

 

 

 

 

 

31 Jan

Balance c/d

 

4,100

2,500

 

 

 

11,500

8,000

 

 

 

11,500

8,000

 

 

 

 

 

 

 

 

 

 

9. Prepare double column cash book from the following transactions for the year December 2017:

 

 

 

Rs

01

Cash in hand

17,500

 

Cash at bank

5,000

03

Purchased goods for cash

3,000

05

Received cheque from Jasmeet

10,000

08

Sold goods for cash

7,000

10

Jasmeet’s cheque deposited into bank

 

12

Purchased goods and paid by cheque

20,000

15

Paid establishment expenses through bank

1,000

18

Cash sales

7,000

20

Deposited into bank

10,000

24

Paid trade expenses

500

27

Received commission by cheque

6,000

29

Paid Rent

2,000

30

Withdrew cash for personal use

1,200

31

Salary paid

6,000

The solution is represented in the following table as follows:

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2017

 

 

 

 

2017

 

 

 

 

01 Dec

Balance b/d

 

17,500

5,000

03 Dec

Purchases

 

3,000

 

05 Dec

Jasmeet

 

10,000

 

10 Dec

Bank

C

10,000

 

08 Dec

Sales

 

7,000

 

12 Dec

Purchases

 

 

20,000

10 Dec

Cash

C

 

10,000

15 Dec

Establishment Expenses

 

 

1,000

18 Dec

Sales

 

7,000

 

20 Dec

Bank

C

10,000

 

20 Dec

Cash

C

 

10,000

24 Dec

Trade Expenses

 

500

 

27 Dec

Commission

 

 

6,000

29 Dec

Rent

 

2,000

 

 

 

 

 

 

30 Dec

Drawings

 

1,200

 

 

 

 

 

 

31 Dec

Salaries

 

6,000

 

 

 

 

 

 

31 Dec

Balance c/d

 

8,800

10,000

 

 

 

41,500

31,000

 

 

 

41,500

31,000

 

 

 

 

 

 

 

 

 

 

For the month of December 2017, the cash in hand is Rs.8, 800 and the cash in bank is 10,000.

10. M/s Ruchi trader started their cash book with the following balances on July 2017: cash in hand Rs 1,354 and balance in bank current account Rs 7,560. He had the following transaction in the month of July, 2017:

 

 

Rs

03

Cash sales

2,300

05

Purchased goods, paid by cheque

6,000

08

Cash sales

10,000

12

Paid trade expenses

700

15

Sales goods, received cheque (deposited same day)

20,000

18

Purchased motor car paid by cheque

15,000

20

Cheque received from Manisha (deposited same day)

10,000

22

Cash Sales

7,000

25

Manisha’s cheque returned dishonoured

 

28

Paid Rent

2,000

29

Paid telephone expenses by cheque

500

31

Cash withdrawn for personal use

2,000

 

Prepare bank column cash book

The transactions can be represented in a bank column cash book as shown below:

Books of M/s. Ruchi Trader

Cash Book

Dr.

 

 

 

 

 

 

 

 

Cr.

Date

Particulars

L.F.

Cash

 Rs

Bank

Rs

Date

Particulars

L.F.

Cash

 Rs

Bank

Rs

2017

 

 

 

 

2017

 

 

 

 

Jul.01

Balance b/d

 

1,354

7,560

Jul.05

Purchases

 

 

6,000

Jul.03

Sales

 

2,300

 

Jul.12

Trade Expenses

 

700

 

Jul.08

Sales

 

10,000

 

Jul.18

Motor Car

 

 

15,000

Jul.15

Sales

 

 

20,000

Jul.25

Manisha (Dishonour)

 

 

10,000

Jul.20

Manisha

 

 

10,000

Jul.28

Rent

 

2,000

 

Jul.22

Sales

 

7,000

 

Jul.29

Telephone Expenses

 

 

500

 

 

 

 

 

Jul.31

Drawings

 

2,000

 

 

 

 

 

 

Jul.31

Balance c/d

 

15,954

6,060

 

 

 

 

 

 

 

 

 

 

 

 

 

20,654

37,560

 

 

 

20,654

37,560

 

 

 

 

 

 

 

 

 

 

 

For month of July Cash in Hand is Rs. 15,954 and the Cash in Bank is Rs 6,060.

11. Record the following transactions during the week ending June. 30, 2017 with a weekly imprest Rs 500

 

 

 

Rs

24

Stationery

100

25

Bus fare

12

25

Cartage

40

26

Taxi fare

80

27

Wages to casual labour

90

29

Postage

80

The petty cash book can be created with the following transactions as shown below.

Petty Cash Book

Amount
Received

Date

Particulars

Voucher
No.

Amount
Paid

Analysis of Payments

Remarks

2017
Jun

 

 

Postage

Telephone
& Telegram

Conveyance

Stationery

Misc.

 

2017

 

 

 

 

 

 

 

 

 

500

24 Jun

Cash Received

 

 

 

 

 

 

 

 

 

24 Jun

Stationery

 

100

 

 

 

100

 

 

 

25 Jun

Bus Fare

 

12

 

 

12

 

 

 

 

25 Jun

Cartage

 

40

 

 

40

 

 

 

 

26 Jun

Taxi Fare

 

80

 

 

80

 

 

 

 

27 Jun

Wages

 

90

 

 

 

 

90

 

 

27 Jun

Postage

 

80

80

 

 

 

 

 

 

 

 

 

402

80

 

132

100

90

 

 

27 Jun

Balance c/d

 

98

 

 

 

 

 

 

500

 

 

 

500

 

 

 

 

 

 

98

28 Jun

Balance b/d

 

 

 

 

 

 

 

 

402

28 Jun

Cash received

 

 

 

 

 

 

 

 

12. Prepare petty cash book from the following transactions. The imprest amount is Rs 2,000.

July
2017

 

Rs

01

Paid cartage

50

02

STD charges

40

02

Bus fare

20

03

Postage

30

04

Refreshment for employees

80

06

Courier charges

30

08

Refreshment of customer

50

10

Cartage

35

15

Taxi fare to manager

70

18

Stationery

65

20

Bus fare

10

22

Fax charges

30

25

Telegrams charges

35

27

Postage stamps

200

29

Repair on furniture

105

30

Laundry expenses

115

31

Miscellaneous expenses

100

The petty cash book can be created from the following transactions as shown below

Petty Cash Book

Amount
Received

Date

Particulars

Voucher
No.

Amount
Paid

Analysis of Payments

Remarks

2017
July

 

 

Postage

Telephone
& Telegram

Conveyance

Stationery

Misc.

 

2017

 

 

 

 

 

 

 

 

 

2000

01 Jul

Cash received

 

 

 

 

 

 

 

 

 

01 Jul

Cartage

 

50

 

 

50

 

 

 

 

02 Jul

STD Charges

 

40

 

40

 

 

 

 

 

02 Jul

Bus fare

 

20

 

 

20

 

 

 

 

03 Jul

Postage

 

30

30

 

 

 

 

 

 

04 Jul

Refreshments

 

80

 

 

 

 

80

 

 

06 Jul

Courier Charges

 

30

30

 

 

 

 

 

 

08 Jul

Refreshments

 

50

 

 

 

 

50

 

 

10 Jul

Cartage

 

35

 

 

35

 

 

 

 

15 Jul

Taxi fare

 

70

 

 

70

 

 

 

 

18 Jul

Staionery

 

65

 

 

 

65

 

 

 

20 Jul

Bus fare

 

10

 

 

10

 

 

 

 

22 Jul

Fax

 

30

 

30

 

 

 

 

 

25 Jul

Telegram Charges

 

35

 

35

 

 

 

 

 

27 Jul

Postage

 

200

200

 

 

 

 

 

 

29 Jul

Furniture Repair

 

105

 

 

 

 

105

 

 

30 Jul

Laundry

 

115

 

 

 

 

115

 

 

31 Jul

Misc

 

100

 

 

 

 

100

 

 

 

 

 

1065

260

105

185

65

450

 

 

31 Jul

Balance c/d

 

935

 

 

 

 

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

935

01 Aug

Balance b/d

 

 

 

 

 

 

 

 

1,065

01 Aug

Cash received

 

 

 

 

 

 

 

 

Cash Balance at the end of the week is Rs.935

13. Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2017:

01

Bought from Rahul Traders as per invoice no. 20041

 

40 Registers @ Rs 60 each

 

80 Gel Pens @ Rs 15 each

 

50 note books @ Rs 20 each

 

Trade discount 10%.

15

Bought from Global Stationers as per invoice no. 1132

 

40 Ink Pads @ Rs 8 each

 

50 Files @ Rs 10 each

 

20 Color Books @ Rs 20 each

 

Trade Discount 5%

23

Purchased from Lamba Furniture as per invoice no. 3201

 

2 Chairs @ 600 per chair

 

1 Table @ 1,000 per table

25

Bought from Mumbai Traders as per invoice no. 1111

 

10 Paper Rim @ Rs 100 per rim

 

400 drawing Sheets @ Rs 3 each

 

20 Packet water colour @ Rs 40 per packet

From the above question we see that Gupta Traders deals with stationery. On 23rd July the purchase of furniture is toward the use of company and hence, will not be considered as an entry in purchase book.

The purchase book for the above mentioned transactions is created below.

Books of M/s Gupta Traders
Purchases Book

Date

Invoice
No.

Name of the Supplier
(Account to be credited)

L.F.

Details

Amount

2017

 

 

 

 

 

01 Jul

20041

Rahul Traders

 

 

 

 

 

40 Registers @ ₹ 60 each

 

2,400

 

 

 

80 Gel Pens @ ₹ 15 each

 

1,200

 

 

 

50 Note Books @ ₹ 20 each

 

1,000

 

 

 

 

 

4,600

 

 

 

Less: Trade Discount 10%

 

(460)

4,140

15 Jul

1132

Global Stationers

 

 

 

 

 

40 Ink Pads @ ₹ 8 each

 

320

 

 

 

50 Files @ ₹ 10 each

 

500

 

 

 

20 Colour Books @ ₹ 20 each

 

400

 

 

 

 

 

1,220

 

 

 

Less: Trade discount 5%

 

(61)

1,159

25 Jul

1111

Mumbai Traders

 

 

 

 

 

10 Paper rims @ ₹ 100 each

 

1,000

 

 

 

400 Drawing Sheets @ ₹ 3 each

 

1,200

 

 

 

20 Packets Water Colour @ ₹ 40 per pack

 

800

3,000

 

 

 

 

 

 

 

 

Purchases Account

 

 

8,299

 

 

The purchase book does not contain a details column but it is included here for helping the students understand the concept.

14. Enter the following transactions in sales (journal) book of M/s. Bansal electronics:

2014

September

01

Sold to Amit Traders as per bill no.4321

 

20 Pocket Radio @ 70 per Radio

 

2, T.V. set, B&W. (6.) @ 800 Per T.V.

10 

Sold to Arun Electronics as per bill no.4351

 

5 T.V. sets (20.) B&W @ Rs 3,000 per T.V.

 

2 T.V. sets (21.) Colour @ Rs 4,800 per T.V.

22

Sold to Handa Electronics as per bill no.4,399

 

10 Tape recorders @ Rs 600 each

 

5 Walkman @ Rs 300 each

28

Sold to Harish Trader as per bill no.4430

 

10 Mixer Juicer Grinder @ Rs 800 each.

The sales journal book of M/s. Bansal Electronics is created as shown below

Books of M/s Bansal Electronics
Sales Book

Date

Bill No.

Name of the Customer
(Account to be debited)

L.F.

Details

Amount

2014

 

 

 

 

 

Sep 01

4321

Amit Traders

 

 

 

 

 

20 Pocket Radio @ ₹ 70 Per Radio

 

1,400

 

 

 

2 T.V Set, B&W (6″) @ ₹ 800 Per T.V.

 

1,600

3,000

Sep 10

4351

Arun Electronics

 

 

 

 

 

5 T.V. sets (20″) B&W @ ₹ 3,000 per T.V.

 

15,000

 

 

 

2 T.V. sets (21″) Colour @ ₹ 4,800 per T.V

 

9,600

24,600

Sep 22

4399

Handa Electronics

 

 

 

 

 

10 Tape Recorders @ ₹ 600 each

 

6,000

 

 

 

5 Walkman @ ₹ 300 each

 

1,500

7,500

Sep 28

4430

Harish Traders

 

 

 

 

 

10 Mixer Juicer Grider @ ₹ 800 each

 

8,000

8,000

 

 

 

 

 

 

 

 

Sales Account

 

 

43,100

 

 

15. Prepare Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for August 2017:

 

 

Rs

04

M/s Gupta Traders returned the goods

1,500

10

Goods returned from M/s Harish Traders

800

18

M/s Rahul Traders returned the goods not as per specifications

1,200

28

Goods returned from Sushil Traders

1,000

Return Inward Book for M/s Bansal Electronics is as shown below:

Sales Return Book

Date

Credit Note

 No.

Name of Customer

(Account to be credited)

L.F.

Amount

Rs

2017

 

 

 

 

Aug.04

 

M/s Gupta Traders

 

1,500

Aug.10

 

M/s Harish Traders

 

800

Aug 18

 

M/s Rahul Traders

 

1,200

Aug.28

 

Sushil Traders

 

1,000

 

 

 

 

 

 

 

Sales Return Account

 

4,500

 

 

 

 

 

16. Prepare a purchases return (journal) book from the following transactions for May 2017.

 

 

Rs

05

Returned goods to M/s Kartik Traders

1,200

10

Goods returned to Sahil Pvt. Ltd.

2,500

17

Goods returned to M/s Kohinoor Traders for list price Rs 2,000 less 10% trade discount.

 

28

Return outwards to M/s Handa Traders

550

The purchase return journal for the transactions are shown below:

Purchases Return Book

Date

Debit Note No.

Name of Supplier

  (Account to be debited)

 

L.F.

Amount

Rs

2017

 

 

 

 

 

May. 05

 

M/s Kartik Traders

 

 

1,200

May. 10

 

Sahil Pvt. Ltd.

 

 

2,500

May. 17

 

M/s Kohinoor Trader

 

 

 

 

 

List Price

2,000

 

 

 

 

Less: 10% Trade discount

(200)

 

1,800

May. 28

 

M/s Handa Traders

 

 

550

 

 

 

 

 

 

 

 

Purchases Return Account

 

6,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17. Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of January 2017:

 

 

Rs

01

Goods sold to Sachin

5,000

04

Purchase from Kushal Traders

2,480

06

Sold goods to Manish Traders

2,100

07

Sachin returned goods

600

08

Returns to Kushal Traders

280

10

Sold to Mukesh

3,300

14

Purchased from Kunal Traders

5,200

15

Furniture purchased from Tarun

3,200

17

Bought of Naresh

4,060

20

Return to Kunal Traders

200

22

Return inwards from Mukesh

250

24

Purchased goods from Kirit & Co. for list price of

5,700

 

less 10% trade discount

 

25

Sold to Shri Chand goods

6,600

 

less 5% trade discount

 

26

Sold to Ramesh Brothers

4,000

28

Return outwards to Kirit and Co.

1,000

 

less 10% trade discount

 

28

Ramesh Brothers returned goods Rs 500.

 

Subsidiary book and ledger entries for the transactions are shown below:

Journal

Purchases Book

Date

Invoice

No.

Name of Supplier

 (Accounts to be credited) 

L.F.

Amount

 Rs

2017

 

 

 

 

 

Jan.04

 

Kushal Traders

 

 

2,480

Jan.14

 

Kunal Traders

 

 

5,200

Jan.17

 

Naresh

 

 

4,060

Jan.24

 

Kirit and Co.

5,700

 

 

 

 

Less: Trade Discount 10%

(570)

 

5,130

 

 

 

 

 

 

 

 

Purchases Account

 

 

16,870

 

 

 

 

 

 

Sales Book

Date

Invoice

No.

Name of Customer

(Accounts to be debited)

L.F.

Amount

 Rs

2017

 

 

 

 

 

Jan. 01

 

Sachin

 

 

5,000

Jan.06

 

Manish Traders

 

 

2,100

Jan.10

 

Mukesh

 

 

3,300

Jan.25

 

Shri Chand

6,600

 

 

 

 

Less: 5% Trade Discount

(330)

 

6,270

Jan.26

 

Ramesh Brothers

 

 

4,000

 

 

 

 

 

 

 

 

Sales Account

 

 

20,670

 

 

 

 

 

 

 

Sales Return Book

Date

Credit

Note

Name of Customer

 (Accounts to be credited)

L.F.

Amount

 Rs

2017

 

 

 

 

Jan.07

 

Sachin

 

600

Jan.22

 

Mukesh

 

250

Jan.28

 

Ramesh Brothers

 

500

 

 

 

 

 

 

 

Sales Return Account

 

1,350

 

 

 

 

 

 

Purchases Return Book

Date

Debit

Note

Name of Supplier

(Accounts to be debited) 

L.F.

Amount

Rs

2017

 

 

 

 

 

Jan.08

 

Kushal Traders

 

 

280

Jan.20

 

Kunal Traders

 

 

200

Jan.28

 

Kirit and Co.

1,000

 

 

 

 

Less: 10% Trade Discount

(100)

 

900

 

 

 

 

 

 

 

 

Sales Return A/c

 

 

1,380

 

 

 

 

 

 

Journal Proper

Date

 

Particulars

 

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

 

 

 

 

 

 

Jan.15

Furniture A/c

Dr.

 

3,200

 

 

 

To Tarun

 

 

 

3,200

 

(Furniture purchased from Tarun)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ledger

Purchases Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.28

Sundries as per Purchases

Book

 

16,870

 

 

 

 

 

 

 

 

Jan.28

Balance c/d

 

16,870

 

 

 

 

 

 

 

 

 

 

 

16,870

 

 

 

16,870

 

 

 

 

 

 

 

 

 

Sales Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Jan.28

Sundries as per Sales Book

 

20,670

Jan.28

Balance c/d

 

20,670

 

 

 

 

 

 

 

20,670

 

 

 

20,670

 

 

 

 

 

 

 

 

Sales Return Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.28

Sundries as per Sales Return Book

 

1,350

 

 

 

 

 

 

 

 

Jan.28

Balance c/d

 

1,350

 

 

 

 

 

 

 

 

 

 

 

1,350

 

 

 

1,350

 

 

 

 

 

 

 

 

Purchases Return Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Jan.28

Sundries as per Purchases Return Book

 

1,380

Jan.28

Balance c/d

 

1,380

 

 

 

 

 

 

 

1,380

 

 

 

1,380

 

 

 

 

 

 

 

 

 

Sachin’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.01

Sales

 

5,000

Jan.07

Sales Return

 

600

 

 

 

 

Jan.28

Balance c/d

 

4,400

 

 

 

 

 

 

 

 

 

 

 

5,000

 

 

 

5,000

 

 

 

 

 

 

 

 

 

 

Kushal Traders’ Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Jan.08

Purchases Return

 

280

Jan.04

Purchases

 

2,480

Jan.28

Balance c/d 

 

2,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,480

 

 

 

2,480

 

 

 

 

 

 

 

 

 

Manish Traders’ Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Jan.06

Sales

 

2,100

 

 

 

 

 

 

 

 

Jan.28

Balance c/d

 

2,100

 

 

 

2,100

 

 

 

2,100

 

 

 

 

 

 

 

 

  

Mukesh’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.10

Sales

 

3,300

Jan.22

Sales Return

 

250

 

 

 

 

Jan.28

Balance c/d

 

3,050

 

 

 

3,300

 

 

 

3,300

 

 

 

 

 

 

 

 

 

Kunal Traders’ Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.20

Purchase Return

 

200

Jan.14

 Purchases

 

5,200 

Jan.28

Balance c/d

 

5,000

 

 

 

 

 

 

 

5,200

 

 

 

5,200

 

 

 

 

 

 

 

 

Furniture Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.15

Tarun

 

3,200

 

 

 

 

 

 

 

 

Jan.28

Balance c/d

 

3,200

 

 

 

3,200

 

 

 

3,200

 

 

 

 

 

 

 

 

 

 

Tarun’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Jan.15

Furniture

 

3,200

Jan.28

Balance c/d

 

3,200

 

 

 

 

 

 

 

3,200

 

 

 

3,200

 

 

 

 

 

 

 

 

 

 

Naresh’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Jan.17

Purchases 

 

4,060

Jan.28

Balance c/d

 

4,060

 

 

 

 

 

 

 

4,060

 

 

 

4,060

 

 

 

 

 

 

 

 

  

 

 

Kirit & Co. Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Jan.28

Purchases Return

 

900

Jan.24

Purchases

 

5,130

Jan.28

Balance c/d

 

4,230

 

 

 

 

 

 

 

5,130

 

 

 

5,130

 

 

 

 

 

 

 

 

Shri Chand & Co. Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.25

Sales

 

6,270

 

 

 

 

 

 

 

 

Jan.28

Balance c/d

 

6,270

 

 

 

6,270

 

 

 

6,270

 

 

 

 

 

 

 

 

  

 

Ramesh’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.26

Sales

 

4,000

Jan.28

Sales Return

 

500

 

 

 

 

Jan.28

Balance c/d

 

3,500

 

 

 

4,000

 

 

 

4,000

 

 

 

 

 

 

 

 

 

18. The following balances of ledger of M/s Marble Traders on May 01, 2017

 

Rs

Cash in hand

6,000

Cash at bank

12,000

Bills receivable

7,000

Ramesh (Cr.)

3,000

Stock (Goods)

5,400

Bills payable

 2,000

Rahul (Dr.)

9,700

Himanshu (Dr.)

10,000

 

Transactions during the month were:

May

 

Rs

01

Goods sold to Manish

3,000

02

Purchased goods from Ramesh

8,000

03

Received cash from Rahul in full settlement

9,200

05

Cash received from Himanshu on account

4,000

06

paid to Ramesh by cheque

6,000

08

Rent paid by cheque

1,200

10

Cash received from Manish

3,000

12

Cash sales

6,000

14

Goods returned to Ramesh

1,000

15

Cash paid to Ramesh in full settlement

3,700

 

Discount received

300

18

Goods sold to Kushal

10,000

20

Paid trade expenses

200

21

Drew for personal use

1,000

22

Goods return from Kushal

1,200

24

Cash received from Kushal

6,000

26

Paid for stationery

100

27

Postage charges

60

28

Salary Paid

2,500

29

Goods purchased from Sheetal Traders

7,000

30

Sold goods to Kirit

6,000

 

Goods purchased from Handa Traders

5,000

 

Journalise the above transactions and post them to the ledger.

The above transactions are journalized and posted to ledger as shown below:

Books of M/s. Marble Traders

Journal 

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2017

Cash A/c

Dr.

 

6,000

 

May.01

Bank A/c

Dr.

 

12,000

 

 

Bills Receivable A/c

Dr.

 

7,000

 

 

Stock A/c

Dr.

 

5,400

 

 

Rahul’s A/c

Dr.

 

9,700

 

 

Himanshu A/c

Dr.

 

10,000

 

 

 

To Ramesh’s A/c

 

 

 

 3,000

 

 

To Bills Payable A/c

 

 

 

2,000

 

 

To Capital A/c (Balancing figure )

 

 

 

45,100

 

(Balance brought from last year)

 

 

 

 

 

 

 

 

 

 

 

May.01

Manish

Dr.

 

3,000

 

 

 

To Sales A/c

 

 

 

3,000

 

(Goods sold to Manish)

 

 

 

 

 

 

 

 

 

 

 

May.02

Purchases A/c

Dr.

 

8,000

 

 

 

To Ramesh

 

 

 

8,000

 

(Goods purchased from Ramesh)

 

 

 

 

 

 

 

 

 

 

 

May.03

Cash A/c

Dr.

 

9,200

 

 

Discount Allowed A/c

Dr.

 

500

 

 

 

To Rahul

 

 

 

9,700

 

(Cash received from Rahul and discount allowed)

 

 

 

 

 

 

 

 

 

 

 

May. 05

Cash A/c

Dr.

 

4,000

 

 

 

To Himanshu

 

 

 

4,000

 

(Cash received from Himanshu)

 

 

 

 

 

 

 

 

 

 

 

May.06

Ramesh

Dr.

 

6,000

 

 

 

To Bank A/c

 

 

 

6,000

 

(Cheque issued to Ramesh)

 

 

 

 

 

 

 

 

 

 

 

May. 08

Rent A/c

Dr.

 

1,200

 

 

 

To Bank A/c

 

 

 

1,200

 

(Rent paid by cheque)

 

 

 

 

 

 

 

 

 

 

 

May.10

Cash A/c

Dr.

 

3,000

 

 

 

To Manish

 

 

 

3,000

 

(Cash received from Manish)

 

 

 

 

 

 

 

 

 

 

 

May.12

Cash A/c

Dr.

 

6,000

 

 

 

To Sales A/c

 

 

 

6,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

May.14

Ramesh

Dr.

 

1,000

 

 

 

To Purchases Return A/c

 

 

 

1,000

 

(Goods returned to Ramesh)

 

 

 

 

 

 

 

 

 

 

 

May.15

Ramesh

Dr.

 

4,000

 

 

 

To Cash A/c

 

 

 

3,700

 

 

To Discount Received A/c

 

 

 

300

 

(Cash paid to Ramesh and discount received)

 

 

 

 

 

 

 

 

 

 

 

May.18

Kushal

Dr.

 

10,000

 

 

 

To Sales A/c

 

 

 

10,000

 

(Goods sold to Kushal)

 

 

 

 

 

 

 

 

 

 

 

May.20

Trade Expenses A/c

Dr.

 

200

 

 

 

To Cash A/c

 

 

 

200

 

(Trade expenses paid)

 

 

 

 

 

 

 

 

 

 

 

May.21

Drawings A/c

Dr.

 

1,000

 

 

 

To Cash A/c

 

 

 

1,000

 

(Cash withdrawn for personal use)

 

 

 

 

 

 

 

 

 

 

 

May.22

Sales Return A/c

Dr.

 

1,200

 

 

 

To Kushal

 

 

 

1,200

 

(Kushal returned goods)

 

 

 

 

 

 

 

 

 

 

 

May.24

Cash A/c

Dr.

 

6,000

 

 

 

To Kushal

 

 

 

6,000

 

(Cash received from Kushal)

 

 

 

 

 

 

 

 

 

 

 

May.26

Stationery A/c

Dr.

 

100

 

 

 

To Cash A/c

 

 

 

100

 

(Stationery paid)

 

 

 

 

 

 

 

 

 

 

 

May.27

Postages A/c

Dr.

 

60

 

 

 

To Cash A/c

 

 

 

60

 

(Postage charges paid)

 

 

 

 

 

 

 

 

 

 

 

May.28

Salaries A/c

Dr.

 

2,500

 

 

 

To Cash A/c

 

 

 

2,500

 

(Salary paid)

 

 

 

 

 

 

 

 

 

 

 

May.29

Purchases A/c

Dr.

 

7,000

 

 

 

To Sheetal Traders

 

 

 

7,000

 

(Goods purchased from Sheetal Traders)

 

 

 

 

 

 

 

 

 

 

 

May.30

Kirit

Dr.

 

6,000

 

 

 

To Sales A/c

 

 

 

6,000

 

(Goods sold to Kirit)

 

 

 

 

 

 

 

 

 

 

 

May.30

Purchases A/c

Dr.

 

5,000

 

 

 

To Handa Traders

 

 

 

5,000

 

(Goods purchased from Handa Traders)

 

 

 

 

 

Total

 

1,35,060

1,35,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ledger

Cash Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

May.01

Balance b/d

 

6,000

May.15

Ramesh

 

3,700

May.03

Rahul

 

9,200

May.20

Trade Expenses

 

200

May.05

Himanshu

 

4,000

May.21

Drawings

 

1,000

May.10

Manish

 

3,000

May.26

Stationary

 

100

May.12

Sales

 

6,000

May.27

Postage

 

60

May.24

Kushal

 

6,000

May.28

Salaries

 

2,500

 

 

 

 

May.30

Balance c/d

 

26,640

 

 

 

34,200

 

 

 

34,200

 

 

 

 

 

 

 

 

 

Bank Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

May.01

Balance b/d

 

12,000

May.06

Ramesh

 

6,000

 

 

 

 

May.08

Rent

 

1,200

 

 

 

 

May.30

Balance c/d

 

4,800

 

 

 

12,000

 

 

 

12,000

 

 

 

 

 

 

 

 

  

 

Bills Receivable Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

May.01

Balance b/d

 

7,000

 

 

 

 

 

 

 

 

May.30

Balance c/d

 

7,000

 

 

 

7,000

 

 

 

7,000

 

 

 

 

 

 

 

 

Stock Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

  Rs

Date

Particulars

J.F.

Amount 

 Rs

2017

 

 

 

2017

 

 

 

May.01

Balance b/d

 

5,400

 

 

 

 

 

 

 

 

May.30

Balance c/d

 

5,400

 

 

 

5,400

 

 

 

5,400

 

 

 

 

 

 

 

 

 

Rahul’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

May.01

Balance b/d

 

9,700

May.03

Cash

 

9,200

 

 

 

 

May.03

Discount Allowed

 

500

 

 

 

9,700

 

 

 

9,700

 

 

 

 

 

 

 

 

  

Himanshu’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

May.01

Balance b/d

 

10,000

May.05

Cash

 

4,000

 

 

 

 

May.30

Balance c/d

 

6,000

 

 

 

10,000

 

 

 

10,000

 

 

 

 

 

 

 

 

 

Ramesh’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

May.06

Bank

 

6,000

May.01

Balance b/d

 

3,000

May.14

Purchases Return

 

1,000

May.02

Purchases

 

8,000

May.15

Cash

 

3,700

 

 

 

 

May.15

Discount Received

 

300

 

 

 

 

 

 

 

11,000

 

 

 

11,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bills Payable Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

May.01

Balance b/d

 

2,000

May.30

Balance c/d

 

2,000

 

 

 

 

 

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

 

 

  

Capital Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount 

 Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

May.01

Balance b/d

 

45,100

May.30

Balance c/d

 

45,100

 

 

 

 

 

 

 

45,100

 

 

 

45,100

 

 

 

 

 

 

 

 

  

Manish’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

 Rs

Date

Particulars

J.F.

Amount 

 Rs

2017

 

 

 

2017

 

 

 

May.01

Sales

 

3,000

May.10

Cash

 

3,000

 

 

 

 

 

 

 

 

 

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

  

Sales Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

 Rs

Date

Particulars

J.F.

Amount 

 Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

May.01

Manish

 

3,000

 

 

 

 

May.12

Cash

 

6,000

 

 

 

 

May.18

Kushal

 

10,000

May.30

Balance c/d

 

25,000

May.30

Kirit

 

6,000

 

 

 

25,000

 

 

 

25,000

 

 

 

 

 

 

 

 

  

Purchases Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount 

 Rs

2017

 

 

 

2017

 

 

 

May.02

Ramesh

 

8,000

 

 

 

 

May.29

Sheetal Traders

 

7,000

 

 

 

 

May.30

Handa Traders

 

5,000

May.30

Balance c/d

 

20,000

 

 

 

20,000

 

 

 

20,000

 

 

 

 

 

 

 

 

  

Discount Allowed Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

 Rs

Date

Particulars

J.F.

Amount 

 Rs

2017

 

 

 

2017

 

 

 

May.03

Rahul

 

500

 

 

 

 

 

 

 

 

May.30

Balance c/d

 

500

 

 

 

500

 

 

 

500

 

 

 

 

 

 

 

 

  

Rent Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

May.08

Bank

 

1,200

 

 

 

 

 

 

 

 

May.30

Balance c/d

 

1,200

 

 

 

1,200

 

 

 

1,200

 

 

 

 

 

 

 

 

  

Discount Received Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

May.15

Ramesh

 

300

May.30

Balance c/d

 

300

 

 

 

 

 

 

 

300

 

 

 

300

 

 

 

 

 

 

 

 

  

Kushal’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

May.18

Sales

 

10,000

May.22

Sales Return

 

1,200

 

 

 

 

May.24

Cash

 

6,000

 

 

 

 

May.30

Balance c/d

 

2,800

 

 

 

10,000

 

 

 

10,000

 

 

 

 

 

 

 

 

  

Trade Expenses Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

May.20

Cash

 

200

 

 

 

 

 

 

 

 

May.30

Balance c/d

 

200

 

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

  

Drawing’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

May.21

Cash 

 

 

 

 

 

 

 

 

 

1,000

May.30

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

 

 

 

May.22 

Kushal 

 

1,200 

 

 

 

 

 

 

 

 

May.30

Balance c/d

 

1,200

 

 

 

1,200

 

 

 

1,200

 

 

 

 

 

 

 

 

Stationery Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

May.26

Cash

 

100

 

 

 

 

 

 

 

 

May.30

Balance c/d 

 

100 

 

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

  

Postages Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

May.27

Cash

 

60

 

 

 

 

 

 

 

 

May.30

Balance c/d

 

60

 

 

 

60

 

 

 

60

 

 

 

 

 

 

 

 

Salaries Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

May.28

Cash 

 

 2,500

 

 

 

 

 

 

 

 

May.30

Balance c/d

 

2,500

 

 

 

2,500

 

 

 

2,500

 

 

 

 

 

 

 

 

  

 

Sheetal Trader’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

May.29

Purchases

 

7,000

May.30

Balance c/d

 

7,000

 

 

 

 

 

 

 

7,000

 

 

 

7,000

 

 

 

 

 

 

 

 

 

Handa Trader’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

May.30

Purchases

 

5,000

May.30

Balance c/d

 

5,000

 

 

 

 

 

 

 

5,000

 

 

 

5,000

 

 

 

 

 

 

 

 

  

Purchases Return Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

May.14

Ramesh

 

1,000

May.30

Balance c/d

 

1,000

 

 

 

 

 

 

 

1,000

 

 

 

1,000

 

 

 

 

 

 

 

 

  

Kirit’s Account

Dr

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

May.30

Sales 

 

6,000

 

 

 

 

 

 

 

 

May.30

Balance c/d

 

6,000

 

 

 

6,000

 

 

 

6,000

 

 

 

 

 

 

 

 

 

Concepts covered in this chapter –

  • Cash Book
  • Single Column Cash Book
  • Posting of the Double Column Cash Book
  • Petty Cash Book
  • Posting from the Petty Cash Book
  • Conveyance Account
  • Balancing of Cash Book
  • Sales Account
  • Purchases Account

Conclusion

NCERT solutions for class 11 Accountancy chapter 4 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.

1 Comment

  1. Shreeshail malasidda

    I am very happy thank you byijs

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