Question

Pass Journal entries in the books of Hari Shankar & Co. from the following:

2017		₹
April 1	Commenced business with cash	50,000
2	Purchased goods from Subhash	20,000
4	Sold goods to Ramnath	15,000
6	Ramnath returned defective goods	1,000
10	Received cash from Ramnath and	13,800
	Discount allowed	200
12	Gopal sold goods to us	10,000
14	Paid to Gopal in full settlement of his account after deducting 5% discount.
15	Paid Rent	10,000
16	Paid Rent of Hari Shankar's residence	5,000
18	Purchased goods for cash from Govind for ₹ 6,000 at 20% trade discount.
20	Purchased goods from Govind for ₹ 10,000 at 20% trade discount.
24	Paid to Govind ₹ 7,850 in full settlement of his account.
25	Paid to Subhash ₹ 4,750; discount received ₹ 250.
30	Paid Wages ₹ 400; Salaries ₹ 4,000; Advertisement expenses ₹ 800 and Trade expenses ₹ 1,000.

Answer 1

Journal In the Books of Hari Shankar & Co.
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2017
Apr. 01	Cash A/c	Dr.		50,000
	To Capital A/c				50,000
	(Started business with cash)
Apr. 02	Purchases A/c	Dr.		20,000
	To Subhash’s A/c				20,000
	(Goods purchased from Subhash)
Apr. 04	Ramnath’s A/c	Dr.		15,000
	To Sales A/c				15,000
	(Goods sold to Ramnath)
Apr. 06	Sales Return A/c	Dr.		1,000
	To Ramnath’s A/c				1,000
	(Goods returned to Ramnath)
Apr. 10	Cash A/c	Dr.		13,800
	Discount Allowed A/c	Dr.		200
	To Ramnath’s A/c				14,000
	(Cash received from Ramnath and allowed discount)
Apr. 12	Purchases A/c	Dr.		10,000
	To Gopal’s A/c				10,000
	(Goods purchased from Gopal)
Apr. 14	Gopal’s A/c	Dr.		10,000
	To Cash A/c				9,500
	To Discount Received A/c				500
	(Cash paid to Gopal in full settlement of his account)
Apr. 15	Rent A/c	Dr.		10,000
	To Cash A/c				10,000
	(Rent paid)
Apr. 16	Drawings A/c	Dr.		5,000
	To Cash A/c				5,000
	(Rent paid for Hari Shankar’s residence)
Apr. 18	Purchases A/c	Dr.		4,800
	To Cash A/c				4,800
	(Goods purchased for cash at 20% trade discount)
Apr. 20	Purchases A/c	Dr.		8,000
	To Govind’s A/c				8,000
	(Goods purchased from Govind at 20% trade discount)
Apr. 24	Govind’s A/c	Dr.		8,000
	To Cash A/c				7,850
	To Discount Received A/c				150
	(Cash paid to Govind in full settlement of his account)
Apr. 25	Subhash’s A/c	Dr.		5,000
	To Cash A/c				4,750
	To Discount Received A/c				250
	(Cash paid to Subhash in full settlement of his account)
Apr. 30	Wages A/c	Dr.		400
	Salaries A/c	Dr.		4,000
	Advertisement Expenses A/c	Dr.		800
	Trade Expenses A/c	Dr.		1,000
	To Cash A/c				6,200
	(Expenses paid)
	TOTAL			1,67,000	1,67,000