Question

Following balances appeared in the books of Radhika Traders as on 1st April, 2017:−
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors : ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000.
In April, 2017, the following transaction took place:

2017			₹
April 2		Bought goods of the list price of ₹ 6,000 from Khanna Brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.
3		Received a draft from Mohan in full settlement and deposited it into Bank	9,750
5		Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque.
8		Sold goods and received a cheque	25,000
10		Deposited the above cheque into Bank
12		Sohan deposited in our Bank A/c	4,000
16		Paid Income Tax by Cheque	5,600
20		Received a cheque from Sohan and sent to Bank	7,800
		Discount allowed	200
21		Withdrew from Bank−for office	2,000
		for private use	4,000
23		Sent a cheque to X in full settlement of his A/c	4,900
27		Cheque of Sohan returned by the bank as dishonoured.
28		Dinesh was declared insolvent and a payment of 60 paise in a ₹ received from his estate by a Cheque
30		Bank allowed Interest	350
		Paid for Rent by cheque	1,500
		Paid for traveling expenses by cheque	500

Pass Journal entries for the above transactions.

Answer 1

Journal In the Books of Radhika Traders
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
April 01	Cash in Hand A/c	Dr.		8,000
	Cash at Bank A/c	Dr.		7,000
	Stock A/c	Dr.		30,000
	Mohan’s A/c	Dr.		10,000
	Sohan’s A/c	Dr.		12,000
	Dinesh’s A/c	Dr.		14,000
	Furniture A/c	Dr.		5,000
	Building A/c	Dr.		25,000
	To X’s A/c				5,000
	To Y’s A/c				6,000
	To Capital A/c (Balancing figure)				1,00,000
	(Balances of previous year brought forward)
April 02	Purchases A/c	Dr.		5,100
	To Khanna Brothers				3,060
	To Cash A/c				1,999
	To Discount Received A/c				41
	(Goods purchased and received discount on cash payment)
April 03	Bank A/c	Dr.		9,750
	Discount Allowed A/c	Dr.		250
	To Mohan				10,000
	(Draft received from Mohan deposited into bank)
April 05	Purchases A/c	Dr.		6,400
	To Bank A/c				6,400
	(Goods purchased and payment made by cheque)
April 08	Cheques-in-Hand A/c	Dr.		25,000
	To Sales A/c				25,000
	(Goods sold and received a cheque)
April 10	Bank A/c	Dr.		25,000
	To Cheques-in-Hand A/c				25,000
	(Cheque deposited into bank)
April 12	Bank A/c	Dr.		4,000
	To Sohan’s A/c				4,000
	(Amount deposited by Sohan)
April 16	Drawings A/c	Dr.		5,600
	To Cash A/c				5,600
	(Income tax paid)
April 20	Bank A/c	Dr.		7,800
	Discount Allowed A/c	Dr.		200
	To Sohan’s A/c				8,000
	(Banked cash received from Sohan in full settlement)
April 21	Drawings A/c	Dr.		4,000
	Cash A/c	Dr.		2,000
	To Bank A/c				6,000
	(Amount withdrawn for office and personal use)
April 23	X	Dr.		5,000
	To Bank A/c				4,900
	To Discount Received A/c				100
	(Cheque issued to X in full settlement of his account)
April 27	Sohan’s A/c	Dr.		8,000
	To Bank A/c				7,800
	To Discount Allowed A/c				200
	(Cheque received from Sohan gets dishonoured)
April 28	Cash A/c	Dr.		8,400
	Bad Debts A/c	Dr.		5,600
	To Dinesh’s A/c				14,000
	(Cash received and bad-debts written off)
April 30	Bank A/c	Dr.		350
	To Interest A/c				350
	(Interest allowed by bank)
April 30	Rent A/c	Dr.		1,500
	Travelling Expenses A/c	Dr.		500
	To Bank A/c				2,000
	(Expenses paid through cheque)
	TOTAL			2,35,450	2,35,450