1. Pass Journal entries in the books of Raghunath from the following transactions:1994 June 1 June 2 June 4 June 8 June 10 June 13 June 16 June 18 June 19 June 20 June 20 June 25 June 30 Ans 1: Date 1994 June 1
June 2
June 4 June 8
Raghunath started business with cash Rs. 80,000, Goods Rs. 40,000 and Furniture Rs. 20,000 Sold goods to Nandlal of the list price of Rs. 20,000 at trade discount of 10% Nandlal returned goods of the list price of Rs. 4,000 Received from Nanlal Rs. 14,150 in full settlement in his account. Purchased goods from Brij Mohan of the list price of Rs. 10,000 at 15% Trade discount Returned goods to Brij Mohan of the list price of Rs. 1,000 Settled the account of Brij Mohan by paying cash, under discount of 4% Purchased goods from Anil Rs. 5,000; Sunil Rs. 10,000. Paid cash to Anil Rs. 1,900 and discount received Rs. 100 Paid Rs. 9,800 to Sunil in full settlement of his account. Bought a ‘Table Fan’ for Rs. 1,200 for the domestic use of Raghunath. Sold goods for cash of the list price of Rs, 8,000 at 10% trade discount and 3% cash discount. Paid Rent Rs. 800; Trade Expense Rs. 700 and Travelling Expenses Rs. 380. JOURNAL OF RAGHUNATH Particulars L.F. Cash A/c. Dr. Purchases A/c. Dr. Furniture A/c. Dr. To Capital A/c (For business started with Cash, Goods & Furniture) Nandlal A/c. Dr. To Sales A/c (For goods sold less trade discount) Sales Return A/c. Dr. To Nandlal (For goods returned by Nandlal Rs. 4,000 less 10%) Cash A/c. Dr. Discount A/c. Dr.
Amount Dr. Rs. 80,000 40,000 20,000
Amount Cr. Rs.
1,40,000 18,000 18,000 3,600 14,150 250
3,600
June 10 June 13 June 16
June 18 June 19
June 20
June 20 June 25
To Nandlal (For cash received and discount allowed) Purchases A/c Dr. To Brij Mohan (For goods purchased on credit) Brij Mohan A/c. Dr. To Purchases Return A/c. (For goods returned to Brij Mohan Rs. 1,000 less 15%) Brij Mohan A/c. Dr. To Cash A/c. To Discount A/c. (For cash paid and discount received) Purchases A/c Dr. To Anil A/c To Sunil A/c Anil A/c. Dr. To Cash A/c To Discount A/c (For cash paid and discount received) Sunil A/c. Dr. To Cash A/c To Discount A/c (For cash paid to Sunil and discount received) Drawings A/c Dr. To Cash A/c (For table fan bought for domestic use) Cash A/c. Dr. Discount A/c. Dr. To Sales A/c. (For goods worth Rs. 8,000 sold at 10% trade discount and 3% cash discount)
14,400 8,500 8,500 850 850 7500 7344 306 15,000 5,000 10,000 2,000 1,900 100 10,000 9,800 200 1,200 1,200 6,984 216 7,200
2. The following balances appeared in the books of Vishal Stores on 1 st January 1994:Assets :- Cash Rs. 15,000; Bank Balance Rs. 5,000; Stock Rs. 40,000; Furniture Rs. 3,600; Debtors Rs. 24,000 (X Rs. 6,000; Y Rs. 8,000 and Z Rs. 10,000). Liabilities :– Bank Loan Rs. 10,000; Creditors- Rs. 12,500(Ajay Rs. 5,000, Vijay Rs. 7,500) Following transactions took place during 1994. Jan 2 Bought goods from kailash for Rs. 20,000 at a trade discount of 10% and Cash discount of 2%, Paid 60% amount immediately. Jan 4 Sold goods to X for Rs. 9,000 Jan 5 Received Rs. 14,800 from X in full settlement of his account Jan 6 Cash deposited into bank Rs. 10,000 Jan 8 Cheque received from Y for Rs. 7,850 in full settlement of his account. This cheque was immediately deposited in bank. Jan 10 Received a cheque from Z Rs. 2,000
Jan 12 Jan 15 Jan 16 Jan 16 Jan 18 Jan 20 Jan 22 Jan 24 Jan 25 Jan 31 Jan 31 Jan 31
Cheque received from Z deposited into bank Cheque received from Y dishonoured Cash sales Rs. 15,000; Out of this amount Rs. 12,000 deposited in bank Amount due to Ajay paid by cheque Old Newspaper sold Rs. 50 Old Furniture Rs. 750 Z became insolvent and 40 paise in a rupee could be received from his estate. Purchased goods from Gopal and paid by cheque Rs. 8,000 Sold half of the above goods to Chanderkant at a profit of 30% on cost. Proprietor withdrew for private use Rs. 2,000 from office and Rs. 3,000 from bank. Paid salary to Motilal by Cheque Rs. 2,000 Paid Rent by cheque Rs. 1,500 Paid trade expense Rs. 500.
Ans 2: Date 1994 Jan 1
Jan 2
Jan 4 Jan 5
Jan 6
JOURNAL OF VISHAL STORES Particulars L.F. Cash A/c. Bank A/c. Stock A/c. Furniture A/c. X Y Z To Loan from Bank To Ajay To Vijay To Capital (balancing figures) (For assets and liabilities brought forward) Purchases A/c. To Cash A/c To Discount A/c. To Kailash (For goods purchased and discount received) X To Sales A/c. (For goods sold on credit) Cash A/c. Discount A/c. To X (For cash received and discount allowed) Bank A/c To Cash A/c (For cash deposited in bank)
Dr. Dr. Dr. Dr. Dr. Dr. Dr.
Amount Dr. Rs. 15,000 5,000 40,000 3,600 6,000 8,000 10,000
Amount Cr. Rs.
10,000 5,000 7,500 65,100 Dr.
18,000
Dr.
9,000
Dr. Dr.
14,800 200
Dr.
10,000
10,584(1) 216 7,200 9,000
15,000 10,000
Jan 8
Jan 10 Jan 12 Jan 15
Jan 16
Jan 16 Jan 18
Jan 20
Jan 22 Jan 24 Jan 25
Jan 31
Jan 31
Note (1)
Brij Mohan A/c. Dr. To Purchases Return A/c. (For goods returned to Brij Mohan Rs. 1,000 less 15%) Cash A/c. Dr. To Z (For cash received) Bank A/c Dr. To Cash A/c (For cheque received from Z now deposited into Bank) Y A/c. Dr. To Bank A/c To Discount A/c (For cheque dishonoured and discount withdrawn) Bank A/c. Dr. Cash A/c. Dr. To Sales A/c (For Cash Sales) Ajay A/c. To Bank A/c (For cheque given to ajay) Cash A/c. To Miscellaneous Income A/c. To Furniture (For old newspapers and old furniture sold) Cash A/c. Bad Debts A/c. To Z (For cash received and bad debts written off. Purchases A/c. To Bank A/c. (For goods purchased by cheque) Chanderkant To Sales A/c (For goods sold on credit) Drawings A/c To Cash A/c. To Bank A/c. (For amount withdrawn for private use) Salary A/c. Rent A/c. To Bank A/c (For expenses paid by cheque) Trade Expenses A/c. To Cash A/c. (For expenses paid in cash) Total Rs.
7,850 150 8,000 2,000 2,000 2,000 2,000 8,000 7,850 150 3,000 12,000 15,000
Dr.
5,000
Dr.
6,984 216
5,000
7,200 Dr. Dr.
3,200 4,800
Dr.
8,000
Dr.
5,200
Dr.
5,000
Dr. Dr.
2,000 1,500
Dr.
8,000 8,000 5,200 5,000
3,500 500 500 2,10,600
2,10,600
Total Amount Less 10% Trade Discount
20,000 2,000 18,000
Cash Purchases 60% of 18,000 Less : Cash Discount (2% of 10,800) Amount paid Cash purchases = 40% of 18,000
10,800 216 10,584 7,200
3. Journalise the following transactions in the books of Dr. Chandan:(1) Biroo who owed Rs. 1,500 is declared Insolvent and 65 paise in a rupee is received as final dividend from his estate. (2) Sold goods to Kitty list price Rs. 2,000, Traders Discount 10% and cash discount 5%. He paid the amount on the same day and availed Cash Discount. (3) Supplied goods costing Rs. 600 to Shakuntla, issued invoice at 10% above cost less 5% trade discount. Ans 3: JOURNAL OF Dr. CHANDAN Particulars L.F.
Date S.No. (1)
(2)
(3)
Note (1)
Cash A/c. Dr. Bad-debts A/c. Dr. To Birooo (For cash received and bad debts written off) Cash A/c. , Dr. Discount A/c. Dr. To Sales A/c (For goods of the list price of Rs. 2,000 sold at 10% trade discount and 5% cash discount) Shakunla A/c Dr. To Sales A/c. (For goods sold to Shankuntla at 10% above cost and allowed 5% trade discount ) Cost of goods Add 10% of 600 Less : 660 x 5 100
600 60 660 33 ____ 627
Amount Dr. Rs. 975 525
Amount Cr. Rs. 1,500
1,710 90 1,800 627(1) 627
4. Pass Journal Entries for the following :(1) Proprietor withdrew for his personal use cash Rs. 2,000 and goods worth Rs. 1,000. (2) Goods for Rs. 5,000 were given away as Charity. (3) Goods worth Rs. 2,500 were distributed as free samples. (4) Goods worth Rs. 5,000 and cash Rs. 2,000 were stolen by an employee. (5) Goods worth Rs. 10,000 were destroyed by fire.
Ans 4: JOURNAL Date S.No. (1)
(2) (3)
Particulars Drawings A/c. To. Cash A/c To Purchases A/c (For cash and goods taken away for personal use) Charity A/c. To Purchases A/c (For goods given as a charity) Free Samples A/c To Purchases A/c. (For goods distributed as free samples. ) Loss on theft A/c. To Purchases A/c To Cash A/c (For Goods and Cash stolen by an employee) Loss by fire A/c. To Purchases A/c (For goods destroyed by fire)
L.F. Dr.
Amount Dr. Rs. 3,000
Amount Cr. Rs. 2,000 1,000
Dr.
5,000
Dr.
2,500
Dr.
7,000
Dr.
10,000
5,000 2,500 5,000 2,000 10,000
5. Pass Journal Entries for the following :1. Goods sold for cash to a customer for Rs. 5,000 and collected 8% sales tax 2. Purchased an Iron Safe for business for Rs. 10,0000. 3. Purchased filing cabinet for office use Rs. 4,000 and paid Rs. 20 as carriage on it. 4. Purchased a portable typewriter from Radha Kishan & Co. for Rs. 8,000. 5. Purchased an electric fan Rs. 2,000 6. Purchased a Horse for business for Rs. 15,000.
7. 8. 9. 10. 11. 12.
Paid Rs. 500 for expenses on goods sold to Vijay. The amount is to be realized by Vijay Purchased post cards for Rs. 25; Envelopes for Rs. 50 and Stamps for Rs. 100 Purchased office stationary for Rs. 400 Gave a Charity – Cash Rs. 200: Goods Rs. 400 and Furniture Rs. 500. Received an order of goods from Vishnu for Rs. 10,000 and received Rs. 2,000 as advance. Paid cash to Y on behalf of X Rs. 6000.
Ans 5: JOURNAL Date S.No. (1)
(2) (3)
(4) (5) (6) (7) (8)
Particulars Cash A/c. Dr. To Sales A/c To Sales Tax A/c (For goods sold for cash and sales tax collected) Office Equipment A/c Dr. To Cash A/c (For Iron Safe purchased) Office Equipment A/c Dr. To Cash A/c (For filling cabinet purchased for Rs. 4,000 and cartage paid on it Rs. 20) Office Equipment A/c Dr. To Radha Krishan & Co A/c (For portable typewriter purchased) Fixtures A/c Dr. To Cash A/c (For electric fan purchased) Live Stock A/c Dr. To Cash A/c ((For a horse purchased for business) Vijay Dr. To Cash A/c (For expenses paid on behalf of Vijay) Postage A/c Dr. To Cash A/c (For Post Cards, envelopes and stamps purchased)
L.F.
Amount Dr. Rs. 5,400
Amount Cr. Rs. 5,000 400
10,000 10,000 4,020 4,020 8,000 8,000 2,000
2,000
15,000 15,000 500 500 175
175
(9) (10)
(11) (12)
Stationery A/c To Cash A/c (For stationery purchased for office use) Charity A/c To Cash A/c To Purchases A/c To Furniture A/c (For cash, goods and furniture given as Charity) Cash A/c(1) To Advance from Vishnu (For amount received as advance) X(2) To Cash A/c (For cash paid to Y on behalf of X)
Dr.
400 400
Dr.
Dr.
1,100 200 400 500 2,000 2,000
Dr.
6,000 6,000
Note (1) In Transaction no. 11 no entry will be passed for receiving an order of Rs. 10,000. as on transaction has been taken place for it. (2) In transaction no. 12, the account of X will be debited, as the payment has been made on his behalf.
