Question

Journalise the following transactions in the books of Mantri.

2011 June	1	Commenced business with Cash Rs 1,20,000, Goods Rs. 60,000 and Furniture Rs 65,000.
	3	Opened a current account in Bank of Baroda by depositing Rs 75,000.
	5	Cash purchases Rs 35,000.
	9	Cash Sales Rs 55,000.
	10	Purchased goods worth Rs 20,000 from Amit & Co. subject trade discount of 2%
	14	Credit sales to Kalpana Rs 15,000.
	16	Paid cash to Amit & Co. Rs 9,500 who allowed us discount Rs 100.
	19	Goods distributed as free samples of Rs 1,500.
	21	Received Cash from Kalpana Rs 4,800 on account and allowed her cash discount Rs 200.
	24	Returned goods of Rs 750 to Amit & Co.
	26	Purchased shares of Rs 15,000 of HDFC Bank.
	29	Received goods returned by Kalpana Rs 200.
	30	Rent paid by cheque Rs 7,000.

Answer 1

In the Books of Mantri

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
June 2011
1	Cash A/c	Dr.		1,20,000
	Stock A/c	Dr.		60,000
	Furniture A/c	Dr.		65,000
	To Capital A/c				2,45,000
	(Commenced with cash, goods and furniture)
3	Bank A/c	Dr.		75,000
	To Cash A/c				75,000
	(Cash deposited in Bank of Baroda)
5	Purchases A/c	Dr.		35,000
	To Cash A/c				35,000
	(Cash purchases made)
9	Cash A/c	Dr.		55,000
	To Sales A/c				55,000
	(Goods sold for cash )
10	Purchases A/c [20,000 – 400]	Dr.		19,600
	To Amit & Co.				19,600
	(Goods purchased worth Rs 20,000 at a trade discount of 2%)
14	Kalpana	Dr.		15,000
	To Sales A/c				15,000
	(Credit sales to Kalpana)
16	Amit& Co.	Dr.		9,600
	To Cash A/c				9,500
	To Discount Received A/c				100
	(Cash paid to Amit & Co. and discount received)
19	Advertisement A/c	Dr.		1,500
	To Purchases A/c				1,500
	(Goods distributed as Free Samples)
21	Cash A/c	Dr.		4,800
	Discount Allowed A/c	Dr.		200
	To Kalpana				5,000
	(Cash received and Discount Allowed)
24	Amit & Co.	Dr.		735*
	To Purchases Return A/c				735*
	(Goods returned to Amit & Co.)
26	Investment in Shares A/c	Dr.		15,000
	To Cash A/c				15,000
	(Purchase of shares of HDFC Bank)
29	Sales Return A/c	Dr.		200
	To Kalpana				200
	(Goods returned by Kalpana)
30	Rent A/c	Dr.		7,000
	To Bank A/c				7,000
	(Rent paid through cheque)

*Goods returned to Amit of value Rs 750 will be recorded at a discount of 2% which was allowed as trade discount i.e. at Rs735 [750- 15(2% of 750)].