uFollowing was the position of Harish & Co. as on 1st April, 2017 :−

Cash in Hand ₹ 10,000; Cash at Bank ₹ 16,800; Furniture ₹ 8,000; Stock ₹ 50,000; Debtors− Ram ₹ 8,000; Shyam ₹ 12,000; Creditors− Anil ₹ 4,000; Sunil ₹ 5,000.

Following transactions took place during April, 2017 :−
2017
April 2 Received a cheque from Ram in full settlement of his account after deducting 5% cash discount.
4 Deposited the above cheque into Bank.
5 Goods purchased for ₹ 20,000 at 10% trade discount and 5% cash discount. Payment made by cheque.
6 Received a cheque from Shyam for ₹ 3,860 and discount allowed to him ₹ 140. Cheque deposited into the bank on the same day.
10 Cash paid to Anil after deducting 2% cash discount.
15 Old furniture sold for ₹ 800.
16 Sold goods to Shiv Parshad of the list price of ₹ 10,000 at a trade discount of 15%.
18 Shiv Parshad returned goods of the list price of ₹ 1,000.
20 Paid for furniture repairs to Bahadur Singh ₹ 100.
25 Received a cheque from Shiv Parshad after deducting 4% cash discount. Cheque was deposited into bank.
28 Bank charged ₹ 50 for 'Bank Charges'.
30 Received Commission ₹ 200.

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Solution

Journal
In the Books of Harish & Co.
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
2017
April 01 Cash in Hand A/c Dr. 10,000
Cash at Bank A/c Dr. 16,800
Furniture A/c Dr. 8,000
Stock A/c Dr. 50,000
Ram’s A/c Dr. 8,000
Shyam’s A/c Dr. 12,000
To Anil’s A/c 4,000
To Sunil’s A/c 5,000
To Capital A/c (Balancing figure) 95,800
(Previous year’s balances brought forward)

April 02 Cheques-in-Hand A/c Dr. 7,600
Discount Allowed A/c Dr. 400
To Ram’s A/c 8,000
(Cheque received from Ram in full settlement)

April 04 Bank A/c Dr. 7,600
To Cheques-in-Hand A/c 7,600
(Cheques-in-hand sent to bank)

April 05 Purchases A/c Dr. 18,000
To Bank A/c 17,100
To Discount Received A/c 900
(Goods purchased for cash and received discount)

April 06 Bank A/c Dr. 3,860
Discount Allowed A/c Dr. 140
To Shyam’s A/c 4,000
(Cheque received from Shyam)

April 10 Anil’s A/c Dr. 4,000
To Cash A/c 3,920
To Discount Received A/c 80
(Cash paid to Anil in full settlement)

April 15 Cash A/c Dr. 800
To Furniture A/c 800
(Furniture sold for cash)

April 16 Shiv Parshad’s A/c Dr. 8,500
To Sales A/c 8,500
(Goods sold to Shiv Parshad on credit)

April 18 Sales Return A/c Dr. 850
To Shiv Parshad’s A/c 850
(Goods returned by Shiv Parshad)

April 20 Repairs A/c Dr. 100
To Cash A/c 100
(Cash paid for repair of furniture)

April 25 Bank A/c Dr. 7,344
Discount Allowed A/c Dr. 306
To Shiv Parshad’s A/c 7,650
(Cheque received in full settlement)

April 28 Bank Charges A/c Dr. 50
To Bank A/c 50
(Bank charged some charges)

April 30 Cash A/c Dr. 200
To Commission A/c 200
(Commission received)
TOTAL 1,64,550 1,64,550

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Similar questions

Q. Pass Journal entries for the following transactions:−
1. Purchased Machinery for ₹ 20,000 and paid ₹ 200 for its carriage.
2. Received a cheque fo ₹ 4,850 from X in full settlement of his account of ₹ 5,000. Cheque was immediately deposited into bank.
3. Received by cheque a first and final payment of 60 paise in a ₹ from Y who owed us ₹ 10,000.
4. Sold goods to Z for ₹ 10,000 at a trade discount of 20%. Next day a cheque was received from him after deducting 5% cash discount. Cheque was immediately deposited into Bank.
5. Goods costing ₹ 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount.

Q. Record the following transactions of M/s Mahipal Bros. in Proper Subsidiary Books, post them into the Ledger and take out a Trial Balance:

2017
Jan. 1		Commenced business with Cash ₹ 2,00,000.
2		Deposited into U.T.I Bank ₹ 1,75,000.
4		Purchased goods from Dilip for ₹ 40,000. Trade Discount 20%.
6		Gave a cheque to Dilip for ₹ 16,800 and discount allowed by him ₹ 200.
8		Goods bought from Nilesh for Cash ₹ 14,000.
10		Accepted a bill at 2 months for ₹ 15,000 drawn by Dilip.
11		Bought goods from Suresh ₹ 75,000.
13		Paid to Suresh a Cheque for ₹ 58,800 after receiving discount of 2%.
15		Cash sales made to Jyoti Parshad ₹ 8,000.
16		Sold goods to Mohinder for ₹ 20,000.
17		Goods returned by Mohinder for ₹ 1,500.
18		Received from Mohinder ₹ 7,900 after allowing a discount of 1.25%.
20		Goods sold to Banerjee ₹ 50,000.
21		Deposited into Bank ₹ 20,000.
25		Goods taken for personal use ₹ 2,000.
25		Purchased furniture ₹ 40,000 and Typewriter ₹ 10,000 for office use.
		Payment for both the items is made by Cheque.
25		Sold goods to Anubhav ₹ 30,000.
27		Goods returned by Anubhav ₹ 5,000.
27		Received full payment from Banerjee by Cheque, sent it to Bank, Discount allowed 2%.
28		Acceptance received from Anubhav at 30 days for the amount due from him.
28		Paid for stationery ₹ 400 and for Postage ₹ 200.
31		Rent of proprietor's house paid by Cheque ₹ 2,500.

Q. Journalise the following transactions in the books of Prakash:

(i) Opened a current account with Punjab National Bank ₹ 1,00,000.
(ii) Received a cheque of ₹ 12,900 from Chandradev and allowed discount ₹ 300 to him. The cheque was deposited into Bank on the same day.
(iii) Purchased machinery for ₹ 1,00,000, payment made by cheque. Installation charge of machinery ₹ 6,000 paid in cash.
(iv) Purchased a horse for business for ₹ 20,000.
(v) Sold goods to Gokul at a list price of ₹ 4,000. Trade discount 10% and cash discount 5%. He paid the amount on the same day and availed the cash discount.
(vi) Purchased goods for ₹ 10,000 and paid ₹ 400 for carriage on these goods.
(vii) Additional cash introduced by the proprietor ₹ 40,000.
(viii) Purchased stationery ₹ 800 and postal stamps ₹ 100.
(ix) Withdrawn from bank ₹ 20,000.
(x) Received an order to supply goods of ₹ 40,000 from Manu and received ₹ 10,000 as an advance together with the order.
(xi) Cash ₹ 10,000 and goods worth ₹ 4,000 were stolen.
(xii) Purchased goods from Devendra for ₹ 40,000 and the payment was made by cheque.
(xiii) Sold 1/4th of the above goods at a profit of 25% on cash.

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.

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2017
April 2		Received a cheque from Ram in full settlement of his account after deducting 5% cash discount.
4		Deposited the above cheque into Bank.
5		Goods purchased for ₹ 20,000 at 10% trade discount and 5% cash discount. Payment made by cheque.
6		Received a cheque from Shyam for ₹ 3,860 and discount allowed to him ₹ 140. Cheque deposited into the bank on the same day.
10		Cash paid to Anil after deducting 2% cash discount.
15		Old furniture sold for ₹ 800.
16		Sold goods to Shiv Parshad of the list price of ₹ 10,000 at a trade discount of 15%.
18		Shiv Parshad returned goods of the list price of ₹ 1,000.
20		Paid for furniture repairs to Bahadur Singh ₹ 100.
25		Received a cheque from Shiv Parshad after deducting 4% cash discount. Cheque was deposited into bank.
28		Bank charged ₹ 50 for 'Bank Charges'.
30		Received Commission ₹ 200.

Journal In the Books of Harish & Co.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
April 01	Cash in Hand A/c	Dr.		10,000
	Cash at Bank A/c	Dr.		16,800
	Furniture A/c	Dr.		8,000
	Stock A/c	Dr.		50,000
	Ram’s A/c	Dr.		8,000
	Shyam’s A/c	Dr.		12,000
	To Anil’s A/c				4,000
	To Sunil’s A/c				5,000
	To Capital A/c (Balancing figure)				95,800
	(Previous year’s balances brought forward)

April 02	Cheques-in-Hand A/c	Dr.		7,600
	Discount Allowed A/c	Dr.		400
	To Ram’s A/c				8,000
	(Cheque received from Ram in full settlement)

April 04	Bank A/c	Dr.		7,600
	To Cheques-in-Hand A/c				7,600
	(Cheques-in-hand sent to bank)

April 05	Purchases A/c	Dr.		18,000
	To Bank A/c				17,100
	To Discount Received A/c				900
	(Goods purchased for cash and received discount)

April 06	Bank A/c	Dr.		3,860
	Discount Allowed A/c	Dr.		140
	To Shyam’s A/c				4,000
	(Cheque received from Shyam)

April 10	Anil’s A/c	Dr.		4,000
	To Cash A/c				3,920
	To Discount Received A/c				80
	(Cash paid to Anil in full settlement)

April 15	Cash A/c	Dr.		800
	To Furniture A/c				800
	(Furniture sold for cash)

April 16	Shiv Parshad’s A/c	Dr.		8,500
	To Sales A/c				8,500
	(Goods sold to Shiv Parshad on credit)

April 18	Sales Return A/c	Dr.		850
	To Shiv Parshad’s A/c				850
	(Goods returned by Shiv Parshad)

April 20	Repairs A/c	Dr.		100
	To Cash A/c				100
	(Cash paid for repair of furniture)

April 25	Bank A/c	Dr.		7,344
	Discount Allowed A/c	Dr.		306
	To Shiv Parshad’s A/c				7,650
	(Cheque received in full settlement)

April 28	Bank Charges A/c	Dr.		50
	To Bank A/c				50
	(Bank charged some charges)

April 30	Cash A/c	Dr.		200
	To Commission A/c				200
	(Commission received)
	TOTAL			1,64,550	1,64,550