Question

Enter the following transactions in the Journal of Arun Govil & Co. :

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

Answer 1

Journal In the Books of Sh. Arun Govil & Co.
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2016
June 01	Bank A/c	Dr.		6,00,000
	To Capital A/c				6,00,000
	(Business started with cash)
June 03	Purchases A/c	Dr.		1,80,000
	To Mukesh’s A/c				1,80,000
	(Goods purchased from Mukesh @ 10% trade discount)
June 04	Mukesh’s A/c	Dr.		45,000
	To Purchases Return A/c				45,000
	(1/4th goods returned to Mukesh)
June 06	Mukesh	Dr.		1,35,000
	To Bank A/c				1,32,300
	To Discount Received A/c				2,700
	(Cheque issued to Mukesh in full settlement)
June 07	Drawings A/c	Dr.		10,000
	Cash A/c	Dr.		2,50,000
	To Bank A/c				2,60,000
	(Cash withdrawn for office and personal use)
June 10	Machinery A/c	Dr.		1,05,000
	To Bank A/c				1,00,000
	To Cash A/c				5,000
	(Machinery purchased and paid installation charges)
June 12	Amar’s A/c	Dr.		1,00,000
	To Sales A/c				1,00,000
	(Goods sold to Amar on credit)
June 13	Bank A/c	Dr.		98,500
	Discount Allowed A/c	Dr.		1,500
	To Amar’s A/c				1,00,000
	(Cheque received from Amar in full settlement)
June 15	Drawings A/c	Dr.		3,000
	Stationery A/c	Dr.		5,000
	To Cash A/c				8,000
	(Stationery purchased for office and personal use)
June 20	Land A/c	Dr.		2,17,000
	To Bank A/c				2,17,000
	(Land purchased and brokerage paid)
June 30	Salaries A/c	Dr.		30,000
	Wages A/c	Dr.		20,000
	To Outstanding Wages A/c				20,000
	To Outstanding Salaries A/c				30,000
	(Outstanding expenses provided)
	TOTAL			18,00,000	18,00,000