Question

Journalise the following transactions:

2018 April 1 April 2 April 4 April 5 April 10 April 14 April 16 April 17

​Paid into bank ₹ 21,000 for opening a Current Account. Withdrew for private expenses ₹ 5,000. Withdrew from bank ₹ 3,000. Place on Fixed Deposit Account at Bank by transfer from Current Account ₹ 5,000. ​Received a cheque from Shiv & Co. to whom goods were sold for ₹ 3,000 last year. Allowed him 2% discount. Shiv & Co.'s cheque deposited into bank. Shiv & Co.'s cheque dishonoured (Bank charges ₹ 10) Shiv & Co. settled his account by means of a cheque for ₹ 3,000, ₹ 40 being interest charged.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2018
Apr 01	Bank A/c	Dr.		21,000
	To Cash A/c				21,000
	(Paid into bank for opening a Current A/c)
Apr 02	Drawings A/c	Dr.		5,000
	To Cash A/c				5,000
	(Withdrew for private expenses)
Apr 04	Cash A/c	Dr.		3,000
	To Bank A/c				3,000
	(Withdrew from bank for office use)
Apr 5	Fixed Deposit A/c	Dr.		5,000
	To Bank A/c				5,000
	(Placed on FD by transfer from Current A/c)
Apr 10	Cheques in Hand A/c	Dr.		2,940
	Discount Allowed A/c	Dr.		60
	To Shiv & Co. A/c				3,000
	(Received from Shiv & Co. and allowed 2% discount)
Apr 14	Bank A/c	Dr.		2,940
	To Cheques in Hand A/c				2,940
	(Shiv & Co.’s cheque banked)
Apr 16	Shiv & Co. A/c	Dr.		2,950
	To Bank A/c				2,950
	(Shiv & Co.’s cheque dishonoured)
Apr 17	Bank A/c	Dr.		3,000
	To Shiv & Co. A/c				2,950
	To Interest A/c				50
	(Shiv & Co. settled his account)

Note for Apr 17: Cheque of Rs 2,940 dishonoured. Bank charged Rs 10 (to be recovered from Shiv & Co.). Total due from Shiv & Co. Rs 2,950. New cheque received for Rs 3,000, so interest charged should be Rs 50 (not Rs 40, as given in the book).