Question

Journalise the following transaction in the books of Sethi and Brothers for the month of April, 2012.

Balance on 1st April 2012

Cash at Bank Rs 2,00,000, Cash in hand Rs 2,500; Computer & Printer Rs 90,000 Land & Building Rs 1,80,000; Sundry Debtors Rs 15,000; Bills Receivable Rs 10,000; Sundry Creditors Rs 14,000; Bills Payable Rs 5,000.

Transactions during the month of April were as follows:-

2012 April	1	Purchased goods from Meeta worth Rs 40,000 at 10% trade discount and paid 1/4 amount in cash and 1/4 amount by cheque, for which 5% cash discount is allowed.
	4	Purchased shares of Reliance Company Rs 12,000 and 200 paid as brokerage.
	7	Sold goods to Sunil worth Rs 60,000 at 10% Trade Discount and 5% Cash Discount received 1/3 amount in cash and 1/3 amount by cheque and 5% cash discount is allowed.
	11	Paid Telephone Bill of Proprietor’s house Rs 700.
	14	Paid House Rent Rs 1,500.
	20	Received goods as free samples Rs 2,000.
	23	Purchased Furniture Rs 30,000.
	23	Paid carriage Rs 300 on the above furniture.
	25	Goods worth Rs 6,000 were destroyed by fire and Insurance company admitted a claim to the extent of Rs 4,000.
	27	Paid income tax Rs 6,000.
	28	Paid for printing and stationery Rs 2,000.
	29	Transferred Rs 20,000 from private bank of proprietor to business Bank of Maharashtra A/c.
	30	Salaries paid Rs 5,000 in cash and Rs 10,000 by cheque.

Answer 1

In the Books of Sethi and Brothers

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
April 2012
1	Cash in Hand A/c	Dr.		2,500
	Cash at Bank A/c	Dr.		2,00,000
	Computer and Printer A/c	Dr.		90,000
	Land and Building A/c	Dr.		1,80,000
	Sundry Debtors A/c	Dr.		15,000
	Bills Receivables A/c	Dr.		10,000
	To Sundry Creditors A/c				14,000
	To Bills Payables A/c				5,000
	To Capital A/c				4,78,500
	(Balances brought forward from last year)
1	Purchases A/c [40,000 – 4,000]	Dr.		36,000
	To Cash A/c				8,550
	To Bank A/c				8,550
	To Meeta				18,000
	To Discount Received A/c				900
	(Goods purchased at a trade discount of 10%; ¼ in cash and ¼ by cheque at a cash discount of 5%)
4	Investment in Shares of Reliance Company A/c	Dr.		12,000
	Brokerage A/c	Dr.		200
	To Cash A/c				12,200
	(Purchase of shares of Reliance)
7	Sunil	Dr.		18,000
	Cash A/c	Dr.		17,100
	Bank A/c	Dr.		17,100
	Discount Allowed A/c	Dr.		1,800
	To Sales A/c [60,000 – 6,000]				54,000
	(Goods sold to Sunil at 10% trade discount and 5% cash discount on receipt of 1/3 in cash and 1/3 by cheque)
11	Drawings A/c	Dr.		700
	To Cash in hand A/c				700
	(Telephone expenses of proprietor’s house paid)
14	Drawings A/c	Dr.		1,500
	To Cash in hand A/c				1,500
	(Paid house rent)
20	Purchases A/c	Dr.		2,000
	To Free Sample A/c				2,000
	(Goods received as free samples)
23	Furniture A/c	Dr.		30,000
	Carriage A/c	Dr.		300
	To Cash A/c				30,300
	(Furniture purchased and carriage paid)
25	Loss by Fire A/c	Dr.		2,000
	Insurance Co. A/c	Dr.		4,000
	To Purchases A/c				6,000
	(Goods lost by fire worth Rs 6,000 and claim received for Rs 4,000)
27	Drawings A/c	Dr.		6,000
	To Cash A/c				6,000
	(Income Tax paid)
28	Printing and Stationery A/c	Dr.		2,000
	To Cash A/c				2,000
	(Paid for Printing and Stationery)
29	Bank A/c	Dr.		20,000
	To Capital A/c				20,000
	(Additional capital introduced)
30	Salaries A/c	Dr.		15,000
	To Cash A/c				5,000
	To Bank A/c				10,000
	(Salaries paid)