Question

Journalise the following transactions in the books of Mr. Bipin.

2011 July	1	Started business with Cash Rs 3,25,000 Goods worth Rs 50,000 and Laptop Rs 45, 000.
	3	Deposited in Dena Bank Rs 1,50,000.
	7	Bought goods on credit from Manish Rs 10,000 at 10% Trade discount.
	11	Sold goods to Nitin of Rs 12,000 at 5% Trade Discount.
	13	Goods worth Rs 900 burnt by fire.
	17	Received cash of Rs 11,200 from Nitin in full settlement of his account.
	20	Drew from bank Rs 4,000 for his personal purpose.
	23	Paid cash Rs 9,300 to Manish in full settlement of his account.
	25	Paid house rent Rs 2,500.
	28	Sold goods worth Rs 12,000 to Dinesh who paid us Rs 8,000 on account.
	31	Wages paid Rs 6,000.

Answer 1

In the Books of Mr. Bipin

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
July 2011
1	Cash A/c	Dr.		3,25,000
	Stock A/c	Dr.		50,000
	Laptop A/c	Dr.		45,000
	To Capital A/c				4,20,000
	(Commenced with cash, goods and furniture)
3	Bank A/c	Dr.		1,50,000
	To Cash A/c				1,50,000
	(Cash deposited into Dena Bank)
7	Purchases A/c (10,000-1,000)	Dr.		9,000
	To Manish				9,000
	(Goods purchased worth Rs 10,000 at a trade discount of 10%)
11	Nitin (12,000 – 600)	Dr.		11,400
	To Sales A/c				11,400
	(Goods sold to Nitin worth Rs 12,000 at a trade discount of 5%)
13	Loss by Fire A/c	Dr.		900
	To Purchases A/c				900
	(Goods burnt by fire)
17	Cash A/c	Dr.		11,200
	Discount Allowed A/c	Dr.		200
	To Nitin				11,400
	(Cash received and Discount Allowed)
20	Drawings A/c	Dr.		4,000
	To Bank A/c				4,000
	(Amount withdrawn from bank for personal use)
23	Manish A/c	Dr.		9,000*
	To Cash A/c				8,700
	To Discount Received A/c				300
	(Cash paid to Manish in full settlement of his account)
25	Drawings A/c	Dr.		2,500
	To Cash A/c				2,500
	(House rent paid)
28	Bank A/c	Dr.		8,000
	Dinesh	Dr.		4,000
	To Sales A/c				12,000
	(Goods sold to Dinesh and received Rs 8,000 on account)
31	Wages A/c	Dr.		6,000
	To Cash A/c				6,000
	(Wages paid)

*As per the book this entry is incorrect, Rs 9,300 cannot be paid to be Manish because he is the creditor of the business with Rs 9,000. Therefore, as per our concern Rs 8,700 should be paid to Manish in full settlement of his account. Hence, the entry has been passed according to it.