Question

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.

Answer 1

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Machinery A/c	Dr.		20,200
	To Cash A/c				20,200
	(Machinery purchased and paid for carriage)
2)	Bank A/c	Dr.		4,850
	Discount Allowed A/c	Dr.		150
	To X’s A/c				5,000
	(Cheque received from X in full settlement)
3)	Cash A/c	Dr.		6,000
	Bad Debts A/c	Dr.		4,000
	To Y’s A/c				10,000
	(Cash received and bad debts written-off)
4)	Z’s A/c	Dr.		8,000
	To Sales A/c				8,000
	(Goods sold to Z on credit)
	Bank A/c	Dr.		7,600
	Discount Allowed A/c	Dr.		400
	To Z’s A/c				8,000
	(Cheque received in full settlement)
5)	Manoj’s A/c (WN)	Dr.		21,600
	To Sales A/c				21,600
	(Goods sold to Manoj)
	TOTAL			72,800	72,800

Working Notes: Calculation of amount of goods sold to Manoj