NCERT Solutions For Class 11 Accountancy Chapter 3 Recording Of Transactions I

Class 11 Accountancy Chapter 3 Recording Of Transactions I

NCERT Solutions For Class 11 Accountancy Chapter 3 Recording Of Transactions I in this step-by-step answer guide. In some of State Boards and CBSE schools, students are taught thru NCERT books. As the chapter comes to an end, students are requested few questions in an exercising to evaluate their expertise of the chapter. Students regularly want guidance managing those NCERT Solutions.

It’s most effective natural to get stuck withinside the exercises while solving them so that you can assist students score higher marks, we’ve provided step by step NCERT answers for all exercises of Class eleven Accountancy so you can are looking for assist from them. Students should solve those exercises carefully as questions withinside the final exams are requested from those, so these exercises immediately have an impact on students’ final score. Find all NCERT Solutions for Class eleven Accountancy below and prepare in your tests easily.

NCERT Solutions For Class 11 Accountancy Chapter 3 Recording Of Transactions I

Class 11 Accountancy Chapter 3 Recording Of Transactions I

Page No 87:

Question 1:

State the three fundamental steps in the accounting process.

ANSWER:

The fundamental steps in the accounting process are diagrammatically presented below.

Page No 87:

Question 2:

Why is the evidence provided by source documents important to accounting?

ANSWER:

The evidence provided by the source document is important in the following manners:

  1. It provides evidence that a transaction has actually occurred.
  2. It provides important and relevant information about date, amount, parties involved and other details of a particular transaction.
  3. It acts as a proof in the court of law.
  4. It helps in verifying transactions during the auditing process.

Page No 87:

Question 3:

Should a transaction be first recorded in a journal or ledger? Why?

ANSWER:

A transaction should be recorded first in a journal because journal provides complete details of a transaction in one entry. Further, a journal forms the basis for posting the transactions into their respective accounts into ledger. Transactions are recorded in journal in chronological order, i.e. in the order of occurrence with the help of source documents. Journal is also known as ‘book of original entry’, because with the help of source document, transactions are originally recorded in books. The process of recording the transactions in journal and then in ledger is presented in the below-given flow chart.

Page No 87:

Question 4:

Are debits or credits listed first in journal entries? Are debits or credits indented?

ANSWER:

As per the rule of double entry system, there are two columns of ‘Amount’ in the journal format namely ‘Debit Amount’ and ‘Credit Amount’. The way of recording in a journal is quite different from normal recording. Journal entry is recorded in journal format in which the ‘Debit Amount’ column is listed before the ‘Credit Amount’ column.

Credits are indented. Indentation is leaving a space before writing any word. Journal entry has its own jargon. While journalising, in the ‘Particulars’ column of journal format, debited account is written first and credited account is in the next line leaving some space, which is indentation.

Page No 87:

Question 5:

Why are some accounting systems called double accounting systems?

ANSWER:

Some accounting systems are called double accounting systems because under this system there are two aspects of every transaction, i.e., every transaction has dual effect. Every transaction affects two accounts simultaneously, that is represented by debiting one account and crediting the other account. It is based on the fact that if there is receiver, there should be a giver.

Page No 87:

Question 6:

Give a specimen of an account.

ANSWER:

_________Account

Dr.

      

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

 J.F.

Amount Rs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        

 

Page No 88:

Question 7:

Why are the rules of debit and credit same for both liability and capital?

ANSWER:

Every business acquires funds from internal as well as from external sources. According to the business entity concept, the amount borrowed from the external sources together with the internal sources like, capital invested by the proprietor, is termed as liability to the business. Business entity concept treats business and business owner separately. Capital of the owner is treated as liability to the business because the business has to repay the amount of capital to the owner, in case of closure of the business. As liability incurred is credited, in the same way, fresh capital introduced and net profit increases the owner’s capital, and so, capital is credited. On the other hand, if liability is paid, it reduces liability, and so, it is debited. Similarly, drawings from capital and net loss reduce the capital, and so, capital is debited. Thus the rules of debit and credit are same for both liability and capital.

Page No 88:

Question 8:

What is the purpose of posting J.F numbers that are entered in the journal at the time entries are posted to the accounts?

ANSWER:

J.F. number is the number that is entered in the ledger at the time of posting entries into their respective accounts. It helps in determining whether all transactions are properly posted in their accounts. It is recorded at the time of posting and not at the time of recording the transactions.

The purpose of entering J.F. number in the ledger is because of the below given benefits.

  1. J.F. number helps in locating the entries of accounts in the journal book. In other words, J.F number helps to locate the position of the related journal entry and subsidiary book in the journal book.
  2. J.F. number in accounts ensures that recording in the books of original entry has been posted or not.

Page No 88:

Question 9:

What entry (debit or credit) would you make to: (a) increase revenue (b) decrease in expense, (c) record drawings (d) record the fresh capital introduced by the owner.

ANSWER:

  1. Increase in revenue

Increase in revenue is credited as it increases the capital. Capital has credit balance and if capital increases, then it is credited.

  1. Decrease in expense

Decrease in expense is credited as all expenses have debit balance. If expense decreases, then it is credited.

  1. Record drawings

Capital has credit balance; if the capital increases, then it is credited. If capital decreases, then it is debited. Drawings are debited as they decrease the capital.

  1. Record of fresh capital introduced by the owner− credit

Capital has credit balance, if capital increases, then it is credited. The introduction of fresh capital increases the balance of capital, and so, it is credited.

Page No 88:

Question 10:

If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or as a credit?

ANSWER:

If a transaction has a decreasing effect on an asset, then this decrease is recorded as credit. This is because, as all assets have debit balance and if assets decrease, then it is credited. For example, sale of furniture results in decrease in furniture (asset); so, the sale of furniture will be credited.

If a transaction has a decreasing effect on a liability, then this decrease is recorded as debit. This is because all liabilities have credit balance. If the liability increases, then it is credited and if the liability decreases, then it is debited. For example, payment to the creditors results in a decrease in the creditors (liability); so, the creditors account will be debited.

Page No 88:

Question 1:

Describe the events recorded in accounting systems and the importance of source documents in those systems?

ANSWER:

It is beyond human capabilities to memorise each financial transaction and that is why, source documents have their own importance in accounting system. They are considered as an evidence of transactions and can be presented in the court of law. Transactions supported by evidence can be verified. Source documents also ensure that transactions recorded in the books are free from personal biases.

A few events that are supported by source document are given below.

  1. Sale of goods worth Rs 200 on credit, supported by sales invoice/bill
  2. Purchase of goods worth Rs 500 on credit, supported by purchase invoice/bill
  3. Cash sales worth Rs 1,000, supported by cash memo
  4. Cash purchase of goods worth Rs 400, supported by cash memo
  5. Goods worth Rs 100 returned by customer, supported by credit note
  6. Return of goods purchased on credit worth Rs 200, supported by debit note
  7. Payment worth Rs 1,200 through bank, supported by cheques
  8. Deposits into bank worth Rs 500, supported by pay-in slips.

Out of the above events, only those events that can be expressed in monetary terms, are recorded in the books of accounts. However, the non-monetary events are not recorded in accounts; for example, promotion of manger cannot be recorded but increment in salary can be recorded at the time when salary is paid or due.

Source document in accounting is important because of the below given reasons.

  1. It provides evidence that transaction has actually occurred.
  2. It provides information about the date, amount and parties involved and other details of a particular transactions.
  3. It acts as an evidence in the count of law.
  4. It helps in verifying the transaction during the auditing process.

Page No 88:

Question 2:

Describe how debits and credits are used to analyse transactions.

ANSWER:

Debit originated from the Italian word debito, which in turn is derived from the Latin word debeo, which means ‘owed to proprietor’ and credit comes from the Italian word credito, which is derived from the Latin word credo, which means belief, i.e., ‘owed by proprietor’.

According to the dual aspect concept, all the business transactions that are recorded in the books of accounts, have two aspects- debit and credit. The dual aspect can be better understood by the help of an example; bought goods worth Rs 500 on cash. This transaction affects two accounts with the same amount simultaneously. As goods are brought in exchange of cash, so the cash balances in the business reduce by Rs 500, i.e. why the cash account is credited. Simultaneously, the amount of goods increases by Rs 500, so purchases account will be debited. Debit and credit depend on the nature of accounts involved; such as assets, expenses, income, liabilities and capital. There are five types of Accounts.

  1. Assets- These include all properties or legal rights owned by a firm for its operations, such as cash in hand, plant and machinery, bank, land, building, etc. All assets have debit balance. If assets increase, they are debited and if assets decrease, they are credited.

For example, furniture purchased and payment made by cheque. The journal entry is:

Furniture A/c

Dr.

To Bank A/c

 

 

Here, furniture and bank balance, both are assets to the firm. As furniture is purchased, so furniture account will increase, and will be debited. On the other hand, payment of furniture is being made by cheque that reduces the bank balance of the business, so bank account will be credited.

  1. Expense− It is made to run business smoothly and to carry day to day business activites.

All expenses have debit balance. If an expense is incurred, it must be debited.

For example, rent paid. The journal entry is:

Rent A/c

Dr.

To Cash A/c

 

 

Here, rent is an expense. All expenses have debit balance. Hence, rent is debited. On the other hand, as rent is paid in cash that reduces the cash balances, so cash account is credited.

  1. Liability− Liability is an obligation of business. Increase in liability is credited and decrease in liability is debited.

For example, loan taken from bank. The journal entry is:

Bank A/c

Dr.

To Bank Loan A/c

 

 

Here, loan from bank is a liability to the firm. As all liabilities have credit balance, so loan from bank has been credited because it increases the liabilities.

  1. Income− Income means profit earned during an accounting period from any source. Income also means excess of revenue over its cost during an accounting period. Income has credit balance because it increases the balance of capital.

For example, rent received from tenant. The journal entry is:

Cash A/c

Dr.

To Rent A/c

 

 

Here, rent is an income; hence, rent account has been credited and cash has been debited, as rent received increases the cash balances.

  1. Capital− Capital is the amount invested by the proprietor in the business. Capital has credit balance. Increase in capital is credited and decrease in capital is debited

For example, additional capital introduced by owner. The journal entry is:

Cash A/c

Dr.

To Capital A/c

 

 

As additional capital is introduced, so the amount of capital will increase, i.e. why, capital account is credited. On the other hand, as capital is introduced in form of cash, so the cash balances decrease, i.e. why, cash account is debited.

Page No 88:

Question 3:

Describe how accounts are used to record information about the effects of transactions?

ANSWER:

Every transaction is recorded in the original book of entry (journal) in order of their occurrence; however, if we want to know that how much we receive from our debtors or how much to pay to the creditors, it is not possible to determine at a single movement. Hence, we prepare accounts to know the position of business activities in the meantime.

There are some steps to record transactions in accounts; it can be easily understood with the help of an example.

Sold goods to Mr A worth Rs 50,000 on 12th April and received payment Rs 40,000 on 25th April. The following journal entries will be recorded:

 

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

Apr.12

A’s A/c

Dr.

22

50,000

 

 

 

To Sales

 

18

 

50,000

 

(Goods sold on credit to Mr. A)

 

 

 

 

 

 

 

 

 

 

 

 

Apr.25

Cash A/c

Dr.

13

40,000

 

 

 

To A’s A/c

 

22

 

40,000

 

(Cash received from Mr. A)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Step 1− Locate the account in ledger, i.e., Mr A’s Account.

Step 2− Enter the date of transaction in the date column of the debit side of Mr A’s Account.

Step 3− In the ‘Particulars’ column of the debit side of Mr A’s Account, the name of corresponding account is to be written, i.e., ‘Sales’.

Step 4− Enter the page number of the ledger in the Journal Folio (J.F.) column of Mr A’s Account.

Step 5− Enter the amount in the ‘Amount’ column.

Step 6− Same steps are to be followed to post entries in the credit side of Mr A’s Account.

Step 7− After entering all the transactions for a particular period, balance the account by totalling both sides and write the difference in shorter side, as ‘Balance c/d’.

Step 8− Total of account is to be written on either sides.

Page No 88:

Question 4:

What is a journal? Give a specimen of journal showing at least five entries.

ANSWER:

Journal is derived from the French word Jour, means daily records. In this book, transactions are recorded in order of their occurrence, i.e., in chronological order from the source document. It is also termed as the book of original entry and each transaction is termed as journal entry.

Performa of Journal

In the books of…..

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount

Rs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date− Date of transaction is recorded in the order of their occurrence.

Particulars− Details of business transactions like, name of the parties involved and the name of related accounts, are recorded.

L.F.− Page number of ledger account when entry is posted.

Debit Amount− Amount of debit account is written.

Credit Amount− Amount of credit account is written.

Recording of a Journal Entry

 

 

Date

1)

Started business with cash Rs 1,00,000

April 01

2)

Open a bank account Rs 20,000

April 03

3)

Purchase goods for cash Rs 25,000

April 04

4)

Goods sold for cash Rs 30,000

April 05

5)

Goods sold to Mr. X Rs 2,000

April 06

 

Books of Mr A

Journal

Date

Particulars

L.F.

Debit Amount Rs

Credit Amount Rs

April1

Cash A/c

Dr.

 

1,00,000

 

 

 

To Capital A/c

 

 

 

1,00,000

 

(Started business with cash)

 

 

 

 

 

 

 

 

 

 

 

 

April 3

Bank A/c

Dr.

 

20,000

 

 

 

To Cash A/c

 

 

 

20,000

 

(Bank account opened with cash)

 

 

 

 

 

 

 

 

 

 

 

April 4

Purchase A/c

Dr.

 

25,000

 

 

 

To Cash

 

 

 

25,000

 

(Goods purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

April 5

Cash A/c

Dr.

 

30,000

 

 

 

To Sales A/c

 

 

 

30,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

April 6

Mr. X’s A/c

Dr.

 

2,000

 

 

 

To Sales

 

 

 

2,000

 

(Goods sold to Mr. X on credit)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

177,000

177,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page No 88:

Question 5:

Differentiate between source documents and vouchers.

ANSWER:

Basis of Difference

Source Documents

Vouchers

Meaning

It refers to the documents in writing, containing the details of events or transactions.

When source document is considered as evidence of an event or transaction, then it is called voucher.

Purpose

It is used for preparing accounting vouchers.

It is used for analysing the transactions.

Recording

It acts as a basis for preparing accounting voucher that helps in recording.

It acts as a basis for recording transactions.

Preparation

It is prepared at the time when an event or a transaction occurs.

It can be prepared either when an event or a transaction occurs, or later on.

Legality/Validity

It can be used as evidence in the court of law.

It can be used for assessing the authentication of transactions.

Prepared By

It is prepared by the persons who are directly involved in the transactions, or who are authorised to prepare or approve these documents.

It is prepared by the authorised persons or by the accountants.

Examples

Cash memo, invoice, and pay-in-slip, etc.

Cash memo, invoice, pay-in-slip (if used as evidence), debit note, credit note, cash vouchers, transfer vouchers, etc.

 

 

Page No 88:

Question 6:

Accounting equation remains intact under all circumstances. Justify the statement with the help of an example.

ANSWER:

According to the dual-aspect concept, every transaction simultaneously, has two effects of equal amount, i.e. debit and credit. However, in any case, the equality of total assets with the total claims of business (sum of capital and liabilities) is not disturbed. This equality is algebraically represented as:

Or

or, Liabilities = Asset − Capital

or, Capital = Assets − Liabilities

In any circumstance the above equation cannot be changed. For example,

  1. Business started with cash Rs 1,00,000

Cash A/c

Dr.

 

To Capital A/c

 

Assets

=

Liabilities

+

Capital

Cash

 

 

 

1,00,000

(1,00,000)

 

 

 

 

  

Assets decrease, as cash is invested into the business and capital increases. Thus the equality between LHS and RHS remains intact.

  1. Goods purchased on credit Rs 20, 000

Assets

=

Liabilities

+

Capital

Cash

Stock

 

Creditors

 

 

 

 

 

 

 

 

1,00,000

20,000

=

20,000

+

100,000

  

Assets increase as well as liability increases, without disturbing the equality.

  1. Goods purchased with cash 25000

Assets

=

Liabilities

+

Capital

Cash

Stock

=

 

 

 

1,00,000

20,000

 

20,000

+

1,00,000

(25,000)

25,000

 

 

 

 

  

As goods are purchased for cash, so cash balance reduces by Rs 25,000, but on the other hand, stock balance increases by Rs 25,000. Thus the total balance of LHS remains equal to the total claims.

Page No 88:

Question 7:

Explain the double entry mechanism with an illustrative example.

ANSWER:

Double entry system is based on the dual aspect concept. It means every transaction has two-sided effects, i.e., every debit has its credit.

This system is explained by Luca Pacioli in his book Summade Arithmetica Geometria Proportioni et Proportionalita, 1494. He said if one is receiver, then the other should be the giver.

In double entry system, accounts are classified as shown below.

  1. Personal Accounts: It includes individual persons, firms, companies, and other institutions, such as Mr. A, M/s ABC & Co. etc.

Rule of double entry system for personal accounts:

  • Debit the receiver.
  • Credit the giver.

For example:

  1. Cash paid to Mr. A.

A’s A/c

Dr.

 
 

To Cash

  1. Cash received from Mr. X

Cash A/c

Dr.

 
 

To Mr. X

  1. Impersonal Accounts: It relates to non living things. Impersonal accounts are further classified as real accounts and nominal accounts.
  2. Real Account− It includes all types of assets.

  1. Tangible assets that can be seen and touched; for example, machinery, building, etc.
  2. Intangible assets that cannot be seen and touched; for example, goodwill, patent, etc.

Rule of double entry system for real accounts:

  • Debit what comes in.
  • Credit what goes out.

For example:

Furniture purchased for cash

Furniture A/c

Dr.

 
 

To Cash A/c

  1. Nominal Account: It includes all expenses, losses, incomes and gains.

Rule of double entry system for nominal accounts:

  • Debit all losses and expenses.
  • Credit all gains and incomes.

For example:

  1. Rent paid

Rent A/c

Dr.

 
 

To Cash A/c

  1. Commission received.

Cash A/c

Dr.

 
 

To Commission A/c

Page No 88:

Question 1:

Prepare accounting equation on the basis of the following:

(a) Harsha started business with cash Rs 2,00,000

(b) Purchased goods from Naman for cash Rs 40,000

(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000

(d) Bought furniture on credit Rs 7,000

ANSWER:

S.No.

Explanation

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Debtors

+

Furniture

Creditors

 

 

(a)

Increase in cash

2,00,000

 

 

 

 

 

 

=

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

2,00,000

 

 

2,00,000

 

 

 

 

 

 

=

NIL

+

2,00,000

(b)

Increase in stock

 

 

40,000

 

 

 

 

 

 

 

 

 

Decrease in cash

(40,000)

 

 

 

 

 

 

 

 

 

 

 

 

1,60,000

+

40,000

 

 

 

 

=

NIL

+

2,00,000

(c)

Increase in debtors

 

 

 

 

12,000

 

 

 

 

 

 

 

Decrease in stock

 

 

(10,000)

 

 

 

 

 

 

 

 

 

Profit

 

 

 

 

 

 

 

 

 

 

2,000

 

 

1,60,000

+

30,000

+

12,000

 

 

=

NIL

 

2,02,000

(d)

Increase in furniture

 

 

 

 

 

 

7,000

 

 

 

 

 

Increase in creditors

 

 

 

 

 

 

 

 

7,000

 

 

 

 

1,60,000

+

30,000

+

12,000

+

7,000

=

7,000

+

2,02,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page No 88:

Question 2:

Prepare accounting equation from the following:

 

 

Rs

(a)

Kunal started business with cash

2,50,000

(b)

He purchased furniture for cash

35,000

(c)

He paid commission

 2,000

(d)

He purchases goods on credit

40,000

(e)

He sold goods (costing Rs 20,000) for cash

26,000

 

ANSWER:

S.No.

Explanation

Assets

 

Liabilities

+

Capital

Cash

+

Furniture

+

Stock

 

 

=

Creditors

 

 

(a)

Increase in cash

2,50,000

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

2,50,000

 

 

2,50,000

 

 

 

 

 

 

=

NIL

+

2,50,000

(b)

Increase in furniture

 

 

35,000

 

 

 

 

 

 

 

 

 

Decrease in cash

(35,000)

 

 

 

 

 

 

 

 

 

 

 

 

2,15,000

+

35,000

 

 

 

 

=

NIL

+

2,50,000

(c)

Decrease in capital (Expense)

 

 

 

 

 

 

 

 

 

 

(2,000)

 

Decrease in cash

(2,000)

 

 

 

 

 

 

 

 

 

 

 

 

2,13,000

+

35,000

 

 

 

 

=

NIL

+

2,48,000

(d)

Increase in stock

 

 

 

 

40,000

 

 

 

 

 

 

 

Increase in creditors

 

 

 

 

 

 

 

 

40,000

 

 

 

 

2,13,000

+

35,000

+

40,000

 

 

=

40,000

+

2,48,000

(e)

Increase in cash

26,000

 

 

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

 

 

(20,000)

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

6,000

 

 

2,39,000

+

35,000

+

20,000

 

 

=

40,000

+

2,54,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page No 89:

Question 3:

Mohit has the following transactions, prepare accounting equation:

 

 

 

Rs

(a)

Business started with cash

1,75,000

(b)

Purchased goods from Rohit

 50,000

(c)

Sales goods on credit to Manish (Costing Rs 17,500)

20,000

(d)

Purchased furniture for office use

10,000

(e)

Cash paid to Rohit in full settlement

48,500

(f)

Cash received from Manish

20,000

(g)

Rent paid

1,000

(h)

Cash withdrew for personal use

3,000

 

 

ANSWER:

S.No.

Explanation

Assets

 

Liabilities

+

Capital

Cash

+

Stock

+

Debtors

 

Furniture

=

Creditors

 

 

(a)

Increase in cash

1,75,000

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

1,75,000

 

 

1,75,000

 

 

 

 

 

 

=

NIL

+

1,75,000

(b)

Increase in stock

 

 

50,000

 

 

 

 

 

 

 

 

 

Increase in creditors (Rohit)

 

 

 

 

 

 

 

=

50,000

+

1,75,000

 

 

1,75,000

+

50,000

 

 

 

 

=

50,000

+

1,75,000

(c)

Increase in debtors (Manish)

 

 

 

 

20,000

 

 

 

 

 

 

 

Decrease in stock

 

 

(17,500)

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

2,500

 

 

1,75,000

+

32,500

+

20,000

 

 

=

50,000

+

1,77,500

(d)

Increase in furniture

 

 

 

 

 

 

10,000

 

 

 

 

 

Decrease in cash

(10,000)

 

 

 

 

 

 

 

 

 

 

 

 

1,65,000

+

32,500

+

20,000

+

10,000

=

50,000

+

1,77,500

(e)

Decrease in creditors (Rohit)

 

 

 

 

 

 

 

 

(50,000)

 

 

 

Decrease in dash

(48,500)

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 (Discount received)

 

 

 

 

 

 

 

 

 

 

1,500

 

 

1,16,500

+

32,500

+

20,000

+

10,000

=

NIL

+

1,79,000

(f)

Increase in cash

20,000

 

 

 

 

 

 

 

 

 

 

 

Decrease in debtors (Manish)

 

 

 

 

(20,000)

 

 

 

 

 

 

 

 

1,36,500

+

32,500

+

NIL

+

10,000

=

NIL

+

1,79,000

(g)

Decrease in capital (Expense)

 

 

 

 

 

 

 

 

 

 

(1,000)

 

Decrease in cash

1,000

 

 

 

 

 

 

 

 

 

 

 

 

1,35,500

+

32,500

+

NIL

+

10,000

=

NIL

+

1,78,000

(h)

Decrease in capital (Drawings)

 

 

 

 

 

 

 

 

 

 

(3,000)

 

Decrease in cash

(3,000)

 

 

 

 

 

 

 

 

 

 

 

 

1,32,500

+

32,500

+

NIL

+

10,000

=

NIL

+

1,75,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page No 89:

Question 4:

Rohit has the following transactions:

 

 

Rs

(a)

Commenced business with cash

1,50,000

(b)

Purchased machinery on credit

 40,000

(c)

Purchased goods for cash

 20,000

(d)

Purchased car for personal use

 80,000

(e)

Paid to creditors in full settlement

38,000

(f)

Sold goods for cash costing Rs 5,000

4,500

(g)

Paid rent

 1,000

(h)

Commission received in advance

2,000

 

Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital.

 

 

ANSWER:

S.No.

Explanation

Assets

 

Liabilities

+

Capital

Cash

+

Machinery

+

Stock

=

Creditors

+

Unaccrued Income

 

 

(a)

Increase in cash

1,50,000

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

1,50,000

 

 

1,50,000

 

 

 

 

=

NIL

 

 

+

1,50,000

(b)

Increase in machinery

 

 

40,000

 

 

 

 

 

 

 

 

 

Increase in creditors

 

 

 

 

 

=

40,000

 

 

 

 

 

 

1,50,000

+

40,000

 

 

=

40,000

 

 

+

1,50,000

(c)

Increase in stock

 

 

 

 

20,000

 

 

 

 

 

 

 

Decrease in cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 

1,30,000

+

40,000

+

20,000

=

40,000

 

 

+

1,50,000

(d)

Decrease in cash

(80,000)

 

 

 

 

 

 

 

 

 

 

 

Decrease in capital (Drawings)

 

 

 

 

 

 

 

 

 

 

(80,000)

 

 

50,000

+

40,000

+

20,000

=

40,000

 

 

+

70,000

(e)

Decrease in creditors

 

 

 

 

 

 

(40,000)

 

 

 

 

 

Decrease in cash

(38,000)

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

(Discount received)

 

 

 

 

 

 

 

 

 

 

2,000

 

 

12,000

+

40,000

+

20,000

=

NIL

 

 

+

72,000

(f)

Increase in cash

4,500

 

 

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

 

 

(5,000)

 

 

 

 

 

 

 

Decrease in capital (Loss)

 

 

 

 

 

 

 

 

 

 

(500)

 

 

16,500

+

40,000

+

15,000

=

NIL

 

 

+

71,500

(g)

Decrease in cash

(1,000)

 

 

 

 

 

 

 

 

 

 

 

Decrease in capital (Expense)

 

 

 

 

 

 

 

 

 

 

(1,000)

 

 

15,500

+

40,000

+

15,000

=

NIL

 

 

+

70,500

(h)

Increase in cash

2,000

 

 

 

 

 

 

 

 

 

 

 

Increase in unaccrued income

 

 

 

 

 

=

 

 

2,000

 

 

 

 

17,500

+

40,000

+

15,000

=

NIL

+

2,000

+

70,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page No 89:

Question 5:

Use accounting equation to show the effect of the following transactions of M/s Royal Traders:

 

 

Rs

(a)

Started business with cash

1,20,000

(b)

Purchased goods for cash

 10,000

(c)

Rent received

5,000

(d)

Salary outstanding

2,000

(e)

Prepaid Insurance

1,000

(f)

Received interest

 700

(g)

Sold goods for cash (costing Rs 5,000)

 7,000

(h)

Goods destroyed by fire

 500

 

 

ANSWER:

S.No.

Explanation

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Prepaid Expenses

 

Outstanding Expenses

 

 

(a)

Increase in cash

1,20,000

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

1,20,000

 

 

1,20,000

 

 

 

 

=

NIL

+

1,20,000

(b)

Increase in stock

 

 

10,000

 

 

 

 

 

 

 

Increase in cash

(10,000)

 

 

 

 

=

 

 

 

 

 

1,10,000

+

10,000

 

 

=

NIL

+

1,20,000

(c)

Increase in cash

5,000

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

5,000

 

 

 

 

 

 

 

 

 

 

 

 

 

1,15,000

+

10,000

 

 

=

NIL

+

1,25,000

(d)

Increase in outstanding expenses

 

 

 

 

 

=

2,000

 

 

 

Decrease in capital (Expense)

 

 

 

 

 

 

 

 

(2,000)

 

 

1,15,000

+

10,000

 

 

=

2,000

+

1,23,000

(e)

Increase in prepaid expenses

 

 

 

 

1,000

 

 

 

 

 

Decrease in cash

(1,000)

 

 

 

 

 

 

 

 

 

 

1,14,000

+

10,000

+

1,000

=

2,000

+

1,23,000

(f)

Increase in cash

700

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

700

 

 

1,14,700

+

10,000

+

1,000

=

2,000

+

1,23,700

(g)

Increase in cash

7,000

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

(5,000)

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

2,000

 

 

1,21,700

+

5,000

+

1,000

=

2,000

+

1,25,700

(h)

Decrease in stock

 

 

(500)

 

 

 

 

 

 

 

Decrease in capital (Loss)

 

 

 

 

 

=

 

 

(500)

 

 

1,21,700

+

4,500

+

1,000

=

2,000

+

1,25,200

 

 

 

 

 

 

 

 

 

 

 

 

 



Page No 90:

Question 6:

Show the accounting equation on the basis of the following transaction:

 

 

 

(a)

Udit started business with:

Rs

 

(i)

Cash

5,00,000

 

(ii)

Goods

1,00,000

(b)

Purchased building for cash

2,00,000

(c)

Purchased goods from Himani

 50,000

(d)

Sold goods to Ashu (Cost Rs 25,000)

 36,000

(e)

Paid insurance premium

 3,000

(f)

Rent outstanding

 5,000

(g)

Depreciation on building

 8,000

(h)

Cash withdrawn for personal use

 20,000

(i)

Rent received in advance

 5,000

(j)

Cash paid to Himani on account

 20,000

(k)

Cash received from Ashu

 30,000

 

 

ANSWER:

S.No.

Explanation

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Building

+

Debtors

 

Creditors

+

Outstanding Expenses

+

Unaccrued Income

 

 

(a)

Increase in cash

5,00,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in stock

 

 

1,00,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,00,000

 

 

5,00,000

+

1,00,000

 

 

 

 

=

NIL

 

 

 

 

+

6,00,000

(b)

Increase in building

 

 

 

 

2,00,000

 

 

 

 

 

 

 

 

 

 

 

Decrease in cash

(2,00,000)

 

 

 

 

 

 

 

=

 

 

 

 

 

 

 

 

 

3,00,000

+

1,00,000

+

2,00,000

 

 

=

NIL

 

 

 

 

+

6,00,000

(c)

Increase in stock

 

 

50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in creditors

 

 

 

 

 

 

 

=

50,000

 

 

 

 

 

 

 

 

3,00,000

+

1,50,000 

+

2,00,000

 

 

=

50,000

 

 

 

 

+

6,00,000

(d)

Increase in debtors

 

 

 

 

 

 

 36,000

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

(25,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,000

 

 

3,00,000

+

1,25,000

+

2,00,000

+

 36,000

=

50,000

 

 

 

 

+

6,11,000

(e)

Decrease in cash

(3,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in capital (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,000)

 

 

2,97,000

+

1,25,000

+

2,00,000

+

36,000

=

50,000

+

 

 

 

+

6,08,000

(f)

Decrease in capital (Expense)

 

 

 

 

 

 

 

 

 

 

5,000

 

 

 

 

 

Increase in liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,000)

 

 

2,97,000

+

1,25,000

+

2,00,000

+

36,000

=

50,000

+

5,000

 

 

+

6,03,000

(g)

Decrease in building

 

 

 

 

(8,000)

 

 

 

 

 

 

 

 

 

 

 

Decrease in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,000)

 

 

2,97,000

+

1,25,000

+

1,92,000

+

36,000

=

50,000

+

5,000

 

 

+

5,95,000

(h)

Decrease in cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,000)

 

 

2,97,000

+

1,25,000

+

1,92,000

+

36,000

=

50,000

+

5,000

 

 

+

5,75,000

(i)

Increase in cash

5,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in liability

 

 

 

 

 

 

 

 

 

 

 

 

5,000

 

 

 

 

2,82,000

+

1,25,000

+

1,92,000

+

36,000

=

50,000

+

5,000

+

5,000

+

5,75,000

(j)

Decrease in creditors

 

 

 

 

 

 

 

 

(20,000)

 

 

 

 

 

 

 

Decrease in cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,62,000

+

1,25,000

+

1,92,000

+

36,000

=

30,000

+

5,000

+

5,000

+

5,75,000

(k)

Increase in cash

30,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in debtors

 

 

 

 

 

 

(30,000)

 

 

 

 

 

 

 

 

 

 

2,92,000

+

1,25,000

+

1,92,000

+

6,000

=

30,000

+

5,000

+

5,000

+

5,75,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page No 90:

Question 7:

Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:

 

 

Rs

(a)

Started business with cash

1,20,000

(b)

Rent received

10,000

(c)

Invested in shares

50,000

(d)

Received dividend

5,000

(e)

Purchase goods on credit from Ragani

35,000

(f)

Paid cash for house hold Expenses

7,000

(g)

Sold goods for cash (costing Rs 10,000)

14,000

(h)

(i)

Cash paid to Ragani

Deposited into bank

35,000

20,000

 

 

ANSWER:

S.No.

Explanation

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Investment

+

Bank

 

Creditors

 

 

(a)

 Increase in cash

1,20,000

 

 

 

 

 

 

 

 

 

 

 

 Increase in capital

 

 

 

 

 

 

 

 

 

 

1,20,000

­­­­­­

 

1,20,000

+

 

 

 

 

 

=

NIL

+

1,20,000

(b)

 Increase in cash

10,000

 

 

 

 

 

 

 

 

 

 

 

 Increase in capital (Income)

 

 

 

 

 

 

 

=

 

 

10,000

 

 

1,30,000

 

 

 

 

 

 

=

NIL

+

1,30,000

(c)

 Decrease in investment

 

 

 

 

50,000

 

 

 

 

 

 

 

 Decrease in cash

(50,000)

 

 

 

 

 

 

=

 

 

 

 

 

80,000

+

 

 

50,000

 

 

=

NIL

+

1,30,000

(d)

 Increase in cash

5,000

 

 

 

 

 

 

 

 

 

 

 

 Increase in capital (Income)

 

 

 

 

 

 

 

 

 

 

5,000

 

 

85,000

+

 

 

50,000

 

 

=

NIL

+

1,35,000

(e)

 Increase in stock

 

 

35,000

 

 

 

 

 

 

 

 

 

 Increase in creditor (Ragani)

 

 

 

 

 

 

 

 

35,000

 

 

 

 

85,000

+

35,000

+

50,000

 

 

=

35,000

+

1,35,000

(f)

 Decrease in capital

 

 

 

 

 

 

 

 

 

 

(7,000)

 

 Decrease in cash

 (7,000)

 

 

 

 

 

 

 

 

 

 

 

 

78,000

+

35,000

+

50,000

 

 

=

35,000

+

1,28,000

(g)

 Increase in cash

14,000

 

 

 

 

 

 

 

 

 

 

 

 Decrease in stock

 

 

(10,000)

 

 

 

 

 

 

 

 

 

 Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

4,000

 

 

92,000

+

25,000

+

50,000

 

 

=

35,000

+

1,32,000

(h)

 Decrease in creditors (Ragani)

 

 

 

 

 

 

 

 

(35,000)

 

 

 

 Decrease in cash

(35,000)

 

 

 

 

 

 

 

 

 

 

 

 

57,000

+

25,000

+

50,000

 

 

=

NIL

+

1,32,000

(i)

 Decrease in cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 Increase in bank

 

 

 

 

 

 

20,000

 

 

 

 

 

 

37,000

+

25,000

+

50,000

+

20,000

=

NIL

+

1,32,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page No 90:

Question 8:

Show the effect of following transaction on the accounting equation:
 

 

 

Rs

(a)

Manoj started business with

 

 

(i) Cash

₹2,30,000

 

(ii) Goods

₹1,00,000

 

(iii) Building

₹2,00,000

(b)

He purchased goods for cash

₹50,000

(c)

He sold goods(costing Rs 20,000)

₹35,000

(d)

He purchased goods from Rahul

₹55,000

(e)

He sold goods to Varun (Costing Rs 52,000)

₹60,000

(f)

He paid cash to Rahul in full settlement

₹53,000

(g)

Salary paid by him

₹20,000

(h)

Received cash from Varun in full settlement

₹59,000

(i)

Rent outstanding

₹3,000

(j)

Prepaid Insurance

₹2,000

(k)

Commission received by him

₹13,000

(l)

Amount withdrawn by him for personal use

₹20,000

(m)

Depreciation charge on building

₹10,000

(n)

Fresh capital invested

₹50,000

(o)

Purchased goods from Rakhi

₹10,000

ANSWER:

S.No.

Explanation

Assets

 

 

=

Liabilities

+

Capital

Cash

+

Stock

+

Building

+

Debtors

+

Prepaid Expenses

 

Creditors

+

Outstanding Expenses

 

 

(a)

Increase in cash, stock and building

2,30,000

+

1,00,000

+

2,00,000

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,30,000

 

 

2,30,000

+

1,00,000

+

2,00,000

 

 

 

 

=

 

 

 

+

5,30,000

(b)

Increase in stock

 

 

 

 

50,000

 

 

 

 

 

 

 

 

 

 

 

Decrease in cash

(50,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,80,000

+

1,50,000

+

2,00,000

 

 

 

 

=

 

 

 

+

5,30,000

(c)

Increase in cash

35,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,000

 

 

2,15,000

+

1,30,000

+

2,00,000

 

 

 

 

 

 

 

 

+

5,45,000

(d)

Increase in stock

 

 

55,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in creditors

 

 

 

 

 

 

 

 

 

=

55,000

 

 

 

 

 

 

2,15,000

+

1,85,000

+

2,00,000

 

 

 

 

=

55,000

 

 

+

5,45,000

(e)

Increase in debtors

 

 

 

 

 

 

60,000

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

(52,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,000

 

 

2,15,000

+

1,33,000

+

2,00,000

+

60,000

 

 

=

55,000

 

 

+

5,53,000

(f)

Decrease in creditors

 

 

 

 

 

 

 

 

 

=

(55,000)

 

 

 

 

 

Decrease in cash

(53,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in capital (Discount received)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,000

 

 

1,62,000

+

1,33,000

+

2,00,000

+

60,000

 

 

=

NIL

 

 

+

5,55,000

(g)

Decrease in cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,000)

 

 

1,42,000

+

1,33,000

+

2,00,000

+

60,000

 

 

=

NIL

 

 

+

5,35,000

(h)

Increase in cash

59,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in capital (Discount allowed)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,000)

 

Decrease in debtors

 

 

 

 

 

 

60,000

 

 

 

 

 

 

 

 

 

 

2,01,000

+

1,33,000

+

2,00,000

+

NIL

 

 

=

NIL

+

 

+

5,34,000

(i)

Increase in outstanding Expenses

 

 

 

 

 

 

 

 

 

 

 

 

3,000

 

 

 

decrease in capital (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,000)

 

 

2,01,000

+

1,33,000

+

2,00,000

+

NIL

 

 

=

NIL

+

3,000

+

5,31,000

(j)

Decrease in prepaid expenses

 

 

 

 

 

 

 

 

2,000

 

 

 

 

 

 

 

Decrease in cash

(2,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,99,000

+

1,33,000

+

2,00,000

+

NIL

 

2,000

=

NIL

+

3,000

+

5,31,000

(k)

Increase in cash

13,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

increase in capital (Income)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,000

 

 

2,12,000

+

1,33,000

+

2,00,000

+

NIL

+

2,000

=

NIL

+

3,000

+

5,44,000

(l)

Decrease in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,000)

 

Decrease in cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,92,000

+

1,33,000

+

1,90,000

+

NIL

+

2,000

=

NIL

+

3,000

+

5,24,000

(m)

Decrease in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,000)

 

Decrease in building

 

 

 

 

(10,000)

 

 

 

 

 

 

 

 

 

 

 

 

1,92,000

+

1,33,000

+

1,90,000

+

NIL

+

2,000

=

NIL

+

3,000

+

5,14,000

(n)

Increase in cash

50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50,000

 

 

2,42,000

+

1,33,000

+

1,90,000

+

NIL

+

2,000

=

NIL

+

3,000

+

5,64,000

(o)

Increase in stock

 

 

10,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in creditors

 

 

 

 

 

 

 

 

 

 

10,000

 

 

 

 

 

 

2,42,000

+

1,43,000

+

1,90,000

+

NIL

2,000

=

10,000

+

3,000

+

5,64,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Page No 91:

Question 9:

Transactions of M/s. Vipin Traders are given below.

Show the effects on Assets, Liabilities and Capital with the help of accounting Equation.

 

 

Rs

(a)

Business started with cash

1,25,000

(b)

Purchased goods for cash

50,000

(c)

Purchase furniture from R.K. Furniture

10,000

(d)

Sold goods to Parul Traders (costing Rs 7,000 vide bill no. 5674)

9,000

(e)

Paid cartage

100

(f)

Cash Paid to R.K. furniture in full settlement

9,700

(g)

Cash sales (costing Rs 10,000)

12,000

(h)

Rent received

4,000

(i)

Cash withdrew for personal use

3,000

 

 

ANSWER:

S.No.

Explanation

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Furniture

+

Debtors

 

Creditors

 

 

(a)

Increase in cash

1,25,000

 

 

 

 

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

 

 

 

 

1,25,000

 

 

1,25,000

+

 

 

 

 

 

=

NIL

+

1,25,000

(b)

Increase in stock

 

 

50,000

 

 

 

 

 

 

 

 

 

Decrease in cash

(50,000)

 

 

 

 

 

 

=

 

 

 

 

 

75,000

+

50,000

 

 

 

 

=

NIL

+

1,25,000

(c)

Increase in furniture

 

 

 

 

10,000

 

 

=

 

 

 

 

Increase in creditors

 

 

 

 

 

 

 

=

10,000

 

 

 

 

75,000

+

50,000

+

10,000

 

 

=

10,000

+

1,25,000

(d)

Increase in debtors

 

 

 

 

 

 

9,000

 

 

 

 

 

Decrease in stock

 

 

(7,000)

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

2,000

 

 

75,000

+

43,000

+

10,000

+

9,000

=

10,000

+

1,27,000

(e)

Decrease in capital (Cartage Expenses)

 

 

 

 

 

 

 

 

 

 

(100)

 

Decrease in cash

(100)

 

 

 

 

 

 

 

 

 

 

 

 

74,900

+

43,000

+

10,000

+

9,000

=

10,000

+

1,26,900

(f)

Decrease in creditors

 

 

 

 

 

 

 

=

(10,000)

 

 

 

Decrease in cash

(9,700)

 

 

 

 

 

 

 

 

 

 

 

Increase in capital (Discount-received)

 

 

 

 

 

 

 

 

 

 

300

 

 

65,200

+

43,000

+

10,000

+

9,000

=

NIL

+

1,27,200

(g)

Increase in cash

12,000

 

 

 

 

 

 

 

 

 

 

 

Decrease in stock

 

 

(10,000)

 

 

 

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

 

 

 

 

2,000

 

 

77,200

+

33,000

+

10,000

+

9,000

=

NIL

+

1,29,200

(h)

Increase in cash

4,000

 

 

 

 

 

 

 

 

 

 

 

Increase in capital (Income)

 

 

 

 

 

 

 

 

 

 

4,000

 

 

81,200

+

33,000

+

10,000

+

9,000

=

NIL

+

1,33,200

(i)

Decrease in capital

 

 

 

 

 

 

 

 

 

 

(3,000)

 

Decrease in cash

(3,000)

 

 

 

 

 

 

 

 

 

 

 

 

78,200

+

33,000

+

10,000

+

9,000

=

NIL

+

1,30,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page No 91:

Question 10:

Bobby opened a consulting firm and completed these transactions during November, 2005:

(a)

Invested Rs 4,00,000 cash and office equipment with Rs 1,50,000 in a business called Bobbie Consulting.

(b)

Purchased land and a small office building. The land was worth Rs 1,50,000 and the building worth Rs 3,50,000. The purchase price was paid with Rs 2,00,000 cash and a long term note payable for Rs 8,00,000.

(c)

Purchased office supplies on credit for Rs 12,000.

(d)

Bobbie transferred title of motor car to the business. The motor car was worth Rs 90,000.

(e)

Purchased for Rs 30,000 additional office equipment on credit.

(f)

Paid Rs 75,00 salary to the office manager.

(g)

Provided services to a client and collected Rs 30,000

(h)

Paid Rs 4,000 for the month’s utilities.

(i)

Paid supplier created in transaction (c).

(j)

Purchase new office equipment by paying Rs 93,000 cash and trading in old equipment with a recorded cost of Rs 7,000.

(k)

Completed services of a client for Rs 26,000. This amount is to be paid within 30 days.

(l)

Received Rs 19,000 payment from the client created in transaction (k).

(m)

Bobby withdrew Rs 20,000 from the business.

Analyse the above stated transactions and open the following T-accounts:

Cash, client, office supplies, motor car, building, land, long term payables, capital, withdrawals, salary, expense and utilities expense.

 

 

ANSWER:

a)

The transaction (a) increases assets by Rs 5,50,000 (cash Rs 4,00,000 and office equipment Rs 1,5,000) it will be debited and on the other hand it will increase the capital by Rs 5,50,000, so it will be credited in capital account.

 

Cash Account

 

Office Equipment Account

 

Capital Account

 

Dr.

Cr.

 

Dr.

Cr

.

Dr.

Cr.

(a)

Rs 4,00,000

 

 

 

(a)

Rs 1,50,000

 

 

 

 

 

(a)

Rs 4,00,000

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Rs 1,50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b)

Purchase of land and small office building are assets. On one hand, the purchase of these items will increase their individual accounts and this will increase the total amount of the assets in the business; so, both the accounts will be debited. On the other hand, payment in cash on the purchase of these assets will decrease the cash balance, so cash account will be credited to the extent of amount paid. After payment for building in cash, the balance of building account will be transferred to creditors for building account. This will increase the amount of the creditors, which in turn will increase the total liabilities of the business. Long term payables are regarded as loan to the business that will increase both cash balance (due to intake of loan) as well as liabilities of the business.

  

Land Account

 

Building Account

 

Dr.

Cr.

 

Dr.

Cr.

 

(b)

Rs 1,50,000

 

 

 

(b)

Rs 3,50,000

 

 

 

 

 

 

 

 

 

 

 

 

Cash Account

 

Long Term Payable Account

 

Dr.

Cr.

 

Dr.

Cr.

(a)

 Rs 4,00,000

(b)

Rs 1,50,000

 

 

 

(b)

Rs 3,00,000

 

(b)

 Rs 3,00,000

(b)

Rs 50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Creditors for Building Account

Dr.

 

 

Cr.

 

 

(b)

Rs 3,00,000

 

 

 

 

  

c)

Here ‘office supplies’ is an expense. So, according to the golden rule, ‘All expenses are debited’, it will be debited on one hand while on the other hand, office supplies has been purchased on credit, so it will increase the liability, on account of which, supplier’s account will be credited.

 

Office Supplies Account

 

Supplier’s Account (Creditors)

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

(c)

 Rs 12,000

 

 

 

 

 

(c)

 Rs 12,000

 

 

 

 

 

 

 

 

 

 

d)

Amount invested (motor car) by the proprietor in the business would increase both the capital and assets.

 

Motor Car Account

 

Capital Account

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

 

(d)

Rs 90,000

 

 

 

 

 

(a)

Rs 4,00,000

 

 

 

 

 

 

 

 

(a)

Rs 1,50,000

 

 

 

 

 

 

 

 

(d)

Rs 90,000

 

 

 

 

 

 

 

 

 

 

 

 

e)

Purchase of additional equipment increases the assets; hence, offices equipment account will be debited.

Further as the office equipment was purchased on credit, it increases the amount of the creditors for office equipment and the creditors account will be credited.

 

Office Equipment Account

 

Creditors for Office Equipment Account

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

(a)

Rs 1,50,000

 

 

 

 

 

(e)

Rs 30,000

(e)

Rs 30,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

f)

Salary is an expense and as all the expenses are debited, so the payment of salary to the manager will be debited to the salary account. And on the other hand the payment of the salary in cash decreases the cash balance (Assets) so the cash account would be credited (as decrease in assets is credited).

 

Salary Account

 

Cash Account

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

(f)

Rs 7,500

 

 

 

(a)

Rs 4,00,000

(b)

Rs 1,50,000

 

 

 

 

 

(b)

 Rs 8,00,000

(b)

Rs 50,000

 

 

 

 

 

 

 

(f)

Rs 7,500

 

 

 

 

 

 

 

 

 

  

g)

Amount received or receivable from services rendered to the client is revenue for the business. All revenues are to be credited so client service account will be credited.

On the other hand, cash received in exchange of services would increase the cash balance. It would be debited to the cash account.

 

Client Services Account (Revenue)

 

Cash Account

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

 

 

(g)

Rs 30,000

 

(a)

Rs 4,00,000

(b)

Rs 1,50,000

 

 

 

 

 

(b)

Rs 8,00,000

(b)

Rs 50,000

 

 

 

 

 

(g)

Rs 30,000

(f)

Rs 7,500

 

h)

The ‘utilities’ has been treated as a revenue expense. All expenses are to be debited. Amount paid for utilities would be debited to Utilities account.

Utilities have been paid in cash so the cash account will be credited (as this decreases assets).

 

Utilities Account

 

Cash Account

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

(h)

Rs 4,000

 

 

 

(a)

Rs 4,00,000

(b)

Rs 1,50,000

 

 

 

 

 

(b)

Rs 8,00,000

(b)

Rs 50,000

 

 

 

 

 

(g)

Rs 30,000

(f)

Rs 7,500

 

 

 

 

 

 

 

 (h)

Rs 4,000

 

i)

Payment to the supplier (creditors) will be debited. It results in the decrease in liabilities. Further as the payment has been made in cash, so it results in decrease in the cash balance (assets) and hence the cash account will be credited.

 

Supplier’s Account (Creditors)

 

Cash Account

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

(h)

Rs 12,000

 (c)

Rs 12,000

 

(a)

Rs 4,00,000

(b)

Rs 1,50,000

 

 

 

 

 

(b)

Rs 8,00,000

(b)

Rs 50,000

 

 

 

 

 

(g)

Rs 30,000

(f)

Rs 7,500

 

 

 

 

 

 

 

(h)

Rs 4,000

 

 

 

 

 

 

 

(i)

Rs 12,000

  

j) 

Purchase of the equipments will be debited in the Equipment Account (as there is increase in the assets). Also as the equipments of worth Rs 1,00,000 and Rs 93,000 have been purchased for cash and old equipments of worth Rs 7,000 have been exchanged so the purchase of the equipments will be debited in the Office Equipment account and equipment of Rs 7,000 will be credited in the same account.

 

Office Equipment Account

 

Cash Account

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

(a)

Rs 1,50,000

 (j)

Rs 7,000

 

(a)

Rs 4,00,000

(b)

Rs 1,50,000

(e)

Rs 30,000

 

 

 

(b)

Rs 8,00,000

(b)

Rs 50,000

(j)

Rs 1,00,000

 

 

 

(g)

Rs 30,000

(f)

Rs 7,500

 

 

 

 

 

 

 

(h)

Rs 4,000

 

 

 

 

 

 

 

(i)

Rs 12,000

 

 

 

 

 

 

 

(j)

Rs 93,000

  

k)

Receipt from ‘Client services’ is revenue. All revenues are credited. The client services account will be credited and client is considered as debtors, so the client account will be debited.

 

Client Services Account (Revenue)

 

Client’s Account (Debtor)

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

 

 

(g)

Rs 30,000

 

(k)

Rs 26,000

 

 

 

 

(k)

Rs 26,000

 

 

 

 

 

 

l)

The client has been considered as Debtors. The amount received from the client will lead to the decrease in the debtors balance and the client account will be credited. Receipts from the client will increase the cash balance (asset), and hence the cash account will be debited.

 

Client’s Account (Debtors)

 

Cash Account

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

(k)

Rs 26,000

(l)

Rs 19,000

 

(a)

Rs 4,00,000

(b)

Rs 1,50,000

 

 

 

 

 

(b)

Rs 8,00,000

(b)

Rs 50,000

 

 

 

 

 

(g)

Rs 30,000

(f)

Rs 7,500

 

 

 

 

 

(l)

Rs 19,000

(h)

Rs 4,000

 

 

 

 

 

 

 

(i)

Rs 12,000

 

 

 

 

 

 

 

(j)

Rs 93,000

  

m)

The amount withdrawn by the proprietor is considered as ‘drawings’. According to the Business Entity Concept, drawings decrease the owner’s capital,) Thus the drawings account will be debited (as decrease in capital is debited). On the other hand as drawings have been made in cash, decrease in cash means cash account will be credited with the amount of drawings.

 

Drawings Account

 

Cash Account

Dr.

 

 

Cr.

 

Dr.

 

 

Cr.

(m)

 Rs 20,000

 

 

 

(a)

Rs 4,00,000

(b)

Rs 1,50,000

 

 

 

 

 

(b)

Rs 8,00,000

(b)

Rs 50,000

 

 

 

 

 

(g)

Rs 30,000

(f)

Rs 7,500

 

 

 

 

 

(l)

Rs 19,000

(h)

Rs 4,000

 

 

 

 

 

 

 

(i)

Rs 12,000

 

 

 

 

 

 

 

(j)

Rs 93,000

 

 

 

 

 

 

 

(m)

Rs 20,000

 

T – Accounts

 

Capital Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount Rs

S. No.

Particulars

J.F.

Amount

 Rs

 

 

 

 

(a)

Cash

 

4,00,000

 

 

 

 

(a)

Office Equipment

 

1,50,000

 

 

 

 

(d)

Motor Car

 

90,000

 

 

 

 

 

 

 

 

  

Office Equipment Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount

Rs

S. No.

Particulars

J.F.

Amount Rs

(a)

Capital

 

1,50,000

 

 

 

 

(e)

Creditors for office equipment

 

30,000

 

 

 

 

(j)

Cash (1,00,000 – 7,000)

 

93,000

 

 

 

 

 

 

 

 

 

 

 

 

  

Cash Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount Rs

S. No.

Particulars

J.F.

Amount Rs

(a)

Capital

 

4,00,000

(b)

Land

 

1,50,000

(b)

Long term payable

 

3,00,000

(b)

Building

 

50,000

(g)

Client Services

 

30,000

(f)

Salaries

 

7,500

(i)

Client

 

19,000

(h)

Utilities

 

4,000

 

 

 

 

(i)

Suppliers

 

12,000

 

 

 

 

(j)

Office Equipment

 

93,000

 

 

 

 

(m)

Drawings

 

20,000

 

 

 

 

 

 

 

 

  

Land Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount Rs

S. No.

Particulars

J.F.

Amount Rs

(b)

Cash

 

1,50,000

 

 

 

 

 

 

 

 

 

 

 

 

  

Building Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount Rs

S. No.

Particulars

J.F.

Amount Rs

(b)

Cash

 

50,000

 

 

 

 

(b)

Creditors for Building

 

3,00,000

 

 

 

 

 

 

 

 

 

 

 

 

  

Office Supplies Account (Expenses)

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount Rs

S. No.

Particulars

J.F.

Amount Rs

 (c)

Supplier

 

12,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Motor Car Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount

 Rs

S. No.

Particulars

J.F.

Amount Rs

(d)

Capital

 

90,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Supplier’s Account (Creditors)

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount

Rs

S. No.

Particulars

J.F.

Amount Rs

(i)

Cash

 

12,000

(c)

Office Supplies

 

12,000

 

 

 

 

 

 

 

 

  

Creditors for Office Equipment

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount

Rs

S. No.

Particulars

J.F.

Amount Rs

 

 

 

 

(e)

Office equipment

 

30,000

 

 

 

 

 

 

 

 

  

Salaries Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount

Rs

S. No.

Particulars

J.F.

Amount Rs

(f)

Cash

 

7,500

 

 

 

 

 

 

 

 

 

 

 

 

  

Client Services Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount

Rs

S. No.

Particulars

J.F.

Amount Rs

 

 

 

 

(g)

Cash

 

30,000

 

 

 

 

(k)

Client

 

26,000

 

 

 

 

 

 

 

 

  

Utilities Account (Expenses)

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount Rs

S. No.

Particulars

J.F.

Amount Rs

(h)

Cash

 

4,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Client Accounts (Debtors)

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount Rs

S. No.

Particulars

J.F.

Amount Rs

(k)

Client Services

 

26,000

(l)

Cash

 

19,000

 

 

 

 

 

 

 

 

  

Drawings Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount Rs

S. No.

Particulars

J.F.

Amount Rs

(m)

Cash

 

20,000

 

 

 

 

 

 

 

 

 

 

 

 

  

Long Term Payable Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount Rs

S. No.

Particulars

J.F.

Amount

Rs

 

 

 

 

(b)

Cash

 

3,00,000

 

 

 

 

 

 

 

 

  

Creditors for Building Account

Dr.

 

 

 

 

 

 

Cr.

S. No.

Particulars

J.F.

Amount

Rs

S. No.

Particulars

J.F.

Amount Rs

 

 

 

 

(b)

Building

 

3,00,000

 

 

 

 

 

 

 

 

 



Page No 92:

Question 11:

Journalise the following transactions in the books of Himanshu:

2017

 

Rs

Dec.01

Business started with cash

75,000

Dec.07

Purchased goods for cash

10,000

Dec.09

Sold goods to Swati

5,000

Dec.12

Purchased furniture

3,000

Dec.18

Cash received from Swati in full settlement

 4,000

Dec.25

Paid rent

1,000

Dec.30

Paid salary

1,500

 

 

ANSWER:

Books of Himanshu

Journal

Date

Particulars

 

L.F.

Debit

Amount

 Rs

Credit Amount

 Rs

2017

 

 

 

 

 

 

Dec.01

Cash A/c

Dr.

 

75,000

 

 

 

To Capital A/c

 

 

 

75,000

 

(Started business with cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.07

Purchases A/c

Dr.

 

10,000

 

 

 

To Cash A/c

 

 

 

10,000

 

(Goods purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.09

Swati

Dr.

 

5,000

 

 

 

To Sales A/c

 

 

 

5,000

 

(Goods sold on credit)

 

 

 

 

 

 

 

 

 

 

 

Dec.12

Furniture A/c

Dr.

 

3,000

 

 

 

To Cash A/c

 

 

 

3,000

 

(Furniture purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.18

Cash A/c

Dr.

 

4,000

 

 

Discount Allowed A/c

Dr.

 

1,000

 

 

 

To Swati

 

 

 

5,000

 

(Cash received from Swati and discount allowed)

 

 

 

 

 

 

 

 

 

 

Dec.25

Rent A/c

Dr.

 

1,000

 

 

 

To Cash A/c

 

 

 

1,000

 

(Rent paid in cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.30

Salaries A/c

Dr.

 

1,500

 

 

 

To Cash A/c

 

 

 

1,500

 

(Salary paid in cash)

 

 

 

 

 

 

Total

 

 

1,00,500

1,00,500

 

 

 

 

 

 

 

 

 

Page No 92:

Question 12:

Enter the following Transactions in the Journal of Mudit :

2017

 

Rs

Jan.01

Commenced business with cash

1,75,000

Jan.01

Building

1,00,000

Jan.02

Goods purchased for cash

75,000

Jan.03

Sold goods to Ramesh

30,000

Jan.04

Paid wages

500

Jan.06

Sold goods for cash

10,000

Jan.10

Paid for trade expenses

700

Jan.12

Cash received from Ramesh

29,500

 

Discount allowed

500

Jan.14

Goods purchased for Sudhir

27,000

Jan.18

Cartage paid

1,000

Jan.20

Drew cash for personal use

5,000

Jan.22

Goods use for house hold

2,000

Jan.25

Cash paid to Sudhir

26,700

 

Discount allowed

300

 

 

ANSWER:

 

Books of Mudit

Journal

Date

Particulars

 

L.F.

Debit Amount

Rs

Credit Amount Rs

2017

 

 

 

 

 

 

Jan.01

Building A/c

 

Dr.

 

1,00,000

 

 

Cash A/c

Dr.

 

1,75,000

 

 

 

To Capital A/c

 

 

 

2,75,000

 

(Commenced business with cash and building)

 

 

 

 

 

 

 

 

 

 

Jan.02

Purchases A/c

Dr.

 

75,000

 

 

 

To Cash A/c

 

 

 

75,000

 

(Goods purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

Jan.03

Ramesh

Dr.

 

30,000

 

 

 

To Sales A/c

 

 

 

30,000

 

(Goods sold to Ramesh)

 

 

 

 

 

 

 

 

 

 

 

Jan.04

Wages A/c

Dr.

 

500

 

 

 

To Cash A/c

 

 

 

500

 

(Wages paid in cash)

 

 

 

 

 

 

 

 

 

 

 

Jan.06

Cash A/c

Dr.

 

10,000

 

 

 

To Sales A/c

 

 

 

10,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

Jan.10

Trade Expenses A/c

Dr.

 

700

 

 

 

To Cash A/c

 

 

 

700

 

(Trade expenses paid in cash)

 

 

 

 

 

 

 

 

 

 

 

Jan.12

Cash A/c

Dr.

 

29,500

 

 

Discount Allowed A/c

Dr.

 

    500

 

 

 

To Ramesh

 

 

 

30,000 

 

(Cash received from Ramesh and discount

 allowed to him)

 

 

 

 

 

 

 

 

 

 

Jan.14

Purchases A/c

Dr.

 

27,000

 

 

 

To Sudhir

 

 

 

27,000

 

(Goods purchased from Sudhir on credit)

 

 

 

 

 

 

 

 

 

 

 

Jan.18

Cartage A/c

Dr.

 

1,000

 

 

 

To Cash A/c

 

 

 

1,000

 

(Cartage paid in cash)

 

 

 

 

 

 

 

 

 

 

 

Jan.20

Drawings A/c

Dr.

 

5,000

 

 

 

To Cash A/c

 

 

 

5,000

 

(Cash drawn for personal use)

 

 

 

 

 

 

 

 

 

 

 

Jan.22

Drawings A/c

Dr.

 

2,000

 

 

 

To Purchases A/c

 

 

 

2,000

 

(Goods drawn from business for households use)

 

 

 

 

 

 

 

 

 

 

 

Jan.25

Sudhir

Dr.

 

27,000

 

 

 

To Cash A/c

 

 

 

26,700

 

 

To Discount Received A/c

 

 

 

    300

 

(Cash paid to Sudhir and discount received)

 

 

 

 

 

Total

 

 

4,83,200

4,83,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Page No 93:

Question 13:

Journalise the following transactions:

2017

 

Rs

Dec. 01

Hema started business with cash

1,00,000

Dec. 02

Open a bank account with SBI

30,000

Dec. 04

Purchased goods from Ashu

20,000

Dec.06

Sold goods to Rahul for cash

15,000

Dec.10

Bought goods from Tara for cash

40,000

Dec.13

Sold goods to Suman

20,000

Dec.16

Received cheque from Suman

19,500

 

Discount allowed

500

Dec.20

Cheque given to Ashu on account

10,000

Dec.22

Rent paid by cheque

2,000

Dec.23

Deposited into bank

16,000

Dec.25

Machine purchased from Parigya

10,000

Dec.26

Trade expenses

2,000

Dec.28

Cheque issued to Parigya

10,000

Dec.29

Paid telephone expenses by cheque

 1,200

Dec.31

Paid salary

4,500

 

 

ANSWER:

 

Books of Hema

 

Journal

Date

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2017

 

 

 

 

 

 

Dec.01

Cash A/c

Dr.

 

1,00,000

 

 

 

To Capital A/c

 

 

 

1,00,000

 

(Started business with cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.02

Bank A/c

Dr.

 

30,000

 

 

 

To Cash A/c

 

 

 

30,000

 

(Bank account opened with SBI)

 

 

 

 

 

 

 

 

 

 

 

Dec.04

Purchases A/c

Dr.

 

20,000

 

 

 

To Ashu

 

 

 

20,000

 

(Goods purchased from Ashu)

 

 

 

 

 

 

 

 

 

 

 

Dec.06

Cash A/c

Dr.

 

15,000

 

 

 

To Sales A/c

 

 

 

15,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.10

Purchases A/c

Dr.

 

40,000

 

 

 

To Cash A/c

 

 

 

40,000

 

(Goods purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.13

Suman

Dr.

 

20,000

 

 

 

To Sales A/c

 

 

 

20,000

 

(Goods goods to Suman)

 

 

 

 

 

 

 

 

 

 

 

Dec.16

Bank A/c

Dr.

 

19,500

 

 

Discount Allowed A/c

Dr.

 

     500

 

 

 

To Suman

 

 

 

20,000

 

(Cheque received from Suman and discount allowed)

 

 

 

 

 

 

 

 

 

 

 

Dec.20

Ashu

Dr.

 

10,000

 

 

 

To Bank A/c

 

 

 

10,000

 

(Cheque forwarded to Ashu)

 

 

 

 

 

 

 

 

 

 

 

Dec.22

Rent A/c

Dr.

 

2,000

 

 

 

To Bank A/c

 

 

 

2,000

 

(Rent paid by cheque)

 

 

 

 

 

 

 

 

 

 

 

Dec.23

Bank A/c

Dr.

 

16,000

 

 

 

To Cash A/c

 

 

 

16,000

 

(Cash deposited into bank)

 

 

 

 

 

 

 

 

 

 

 

Dec.25

Machinery A/c

Dr.

 

10,000

 

 

 

To Parigya

 

 

 

10,000

 

(Machinery purchased from Parigya)

 

 

 

 

 

 

 

 

 

 

 

Dec.26

Trade Expenses A/c

Dr.

 

2,000

 

 

 

To Cash A/c

 

 

 

2,000

 

(Trade expenses paid)

 

 

 

 

 

 

 

 

 

 

 

Dec.28

Parigya

Dr.

 

10,000

 

 

 

To Bank A/c

 

 

 

10,000

 

(Cheque issued to Parigya)

 

 

 

 

 

 

 

 

 

 

 

Dec.29

Telephone Expenses A/c

Dr.

 

1,200

 

 

 

To Bank A/c

 

 

 

1,200

 

(Telephone expenses paid through cheque)

 

 

 

 

 

 

 

 

 

 

 

Dec.30

Salaries A/c

Dr.

 

4,500

 

 

 

To Cash A/c

 

 

 

4,500

 

(Salary paid)

 

 

 

 

 

 

Total

 

 

3,00,700

3,00,700

 

 

 

 

 

 

 

 

 

Page No 93:

Question 14:

Jouranlise the following transactions in the books of Harpreet Bros.:

(a)

Rs 1,000 due from Rohit are now bad debts.

(b)

Goods worth Rs 2,000 were used by the proprietor.

(c)

Charge depreciation @ 10% p.a for two month on machine costing Rs 30,000.

(d)

Provide interest on capital of Rs 1,50,000 at 6% p.a. for 9 months.

(e)

Rahul become insolvent, who owed is Rs 2,000 a final dividend of 60 paise in a rupee is received from his estate.

 

ANSWER:

Books of Harpreet Bros.

Journal

S. No.

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

(a)

Bad Debt A/c

Dr.

 

1,000

 

 

 

To Rohit (Debtors)

 

 

 

1,000

 

(Due from Rohit became bad debt)

 

 

 

 

 

 

  

 

 

 

(b)

Drawings A/c

Dr.

 

2,000

 

 

 

To Purchases A/c

 

 

 

2,000

 

(Goods withdrawn by proprietor for personal use)

 

 

 

 

 

 

  

 

 

 

(c)

Depreciation A/c

Dr.

 

500

 

 

 

To Machinery A/c

 

 

 

500

 

(Depreciation charged on machinery for two

 months)

 

 

 

 

 

 

 

 

 

 

 

(d)

Interest on Capital A/c

Dr.

 

6,750

 

 

 

To Capital A/c

 

 

 

6,750

 

(Interest on capital at 6% due for 9 months)

 

 

 

 

 

 

  

 

 

 

(e)

Bad Debt A/c

Dr.

 

     800

 

 

Cash A/c

Dr.

 

    1,200

 

 

 

To Rahul (Debtor)

 

 

 

2,000 

 

(Received from Rahul 60 paise in a rupee and rest amount considered as bad debt)

 

 

  

 

 

 

 

 

 

 

 

 

Total

 

 

12,250

12,250

 

 

 

 

 

 

 

 

 

Page No 93:

Question 15:

Prepare Journal from the transactions given below :

 

 

Rs

(a)

Cash paid for installation of machine

500

(b)

Goods given as charity

2,000

(c)

Interest charge on capital @ 7% p.a. when total capital were

70,000

(d)

Received Rs 1,200 of a bad debts written-off last year.

 

(e)

Goods destroyed by fire

2,000

(f)

Rent outstanding

1,000

(g)

Interest on drawings

900

(h)

Sudhir Kumar who owed me Rs 3,000 has failed to pay the amount. He pays me a compensation of 45 paise in a rupee.

 

(i)

Commission received in advance

7,000

 

 

ANSWER:

Journal

 

S. No.

 

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

 

(a)

Machinery A/c

Dr.

 

500

 

 

 

 

To Cash A/c

 

 

 

500

 

 

(Cash paid for installation of machinery)

 

 

 

 

 

 

 

 

 

 

 

 

(b)

Charity A/c

Dr.

 

2,000

 

 

 

 

To Purchases A/c

 

 

 

2,000

 

 

(Goods given as charity)

 

 

 

 

 

 

 

 

 

 

 

 

(c)

Interest on Capital A/c

Dr.

 

4,900

 

 

 

 

To Capital A/c

 

 

 

4,900

 

 

(Interest on capital charged @ 7% p.a.)

 

 

 

 

 

 

 

 

 

 

 

 

(d)

Cash A/c

Dr.

 

1,200

 

 

 

 

To Bad Debt Recovered A/c

 

 

 

1,200

 

 

(Cash received on from debtors which was

previously written off as bad)

 

 

 

 

 

 

 

 

 

 

 

 

(e)

Goods Destroyed by Fire A/c

Dr.

 

2,000

 

 

 

 

To Purchases A/c

 

 

 

2,000

 

 

(Goods destroyed by fire)

 

 

 

 

 

 

 

 

 

 

 

 

(f)

Rent A/c

Dr.

 

1,000

 

 

 

 

To Rent Outstanding A/c

 

 

 

1,000

 

 

(Rent due but not paid)

 

 

 

 

 

 

 

 

 

 

 

 

(g)

Drawings A/c

Dr.

 

900

 

 

 

 

To Interest on Drawings A/c

 

 

 

900

 

 

(Interest allowed on drawings)

 

 

 

 

 

 

 

 

 

 

 

 

(h)

Cash A/c

Dr.

 

1,350

 

 

 

Bad Debt A/c

Dr.

 

1,650

 

 

 

 

To Sudhir Kumar

 

 

 

3,000

 

 

(Sudhir Kumar declared insolvent and cash

received from him 45 paise in a rupee in full

settlement)

 

 

 

 

 

 

 

 

 

 

 

 

(i)

Commission A/c

Dr.

 

7,000

 

 

 

 

To Commission Received in Advance A/c

 

 

 

7,000

 

 

(Commission received in advance)

 

 

 

 

 

 

(Note: If it is assumed, commission in

advance already credited as commission)

 

 

 

 

 

 

 

OR

 

 

 

 

 

 

Cash A/c

Dr.

 

7,000

 

 

 

 

To Commission Received in Advance

 

 

 

7,000

 

 

(Commission received in Advance)

 

 

 

 

 

 

(Note: If it is assumed, commission in advance

not already credited as commission)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

22,500

22,500

 

 

  

 

 

 

 

 

          
                  

 

 



Page No 94:

Question 16:

Journalise the following transactions, post to the ledger:

2017

 

Rs

Nov. 01

Business started with

(i) Cash

1,50,000

 

 

(ii) Goods

50,000

Nov. 03

Purchased goods from Harish

30,000

Nov. 05

Sold goods for cash

12,000

Nov. 08

Purchase furniture for cash

5,000

Nov. 10

Cash paid to Harish on account

15,000

Nov. 13

Paid sundry expenses

200

Nov. 15

Cash sales

15,000

Nov. 18

Deposited into bank

5,000

Nov. 20

Drew cash for personal use

1,000

Nov. 22

Cash paid to Harish in full settlement of account

14,700

Nov. 25

Good sold to Nitesh

7,000

Nov. 26

Cartage paid

200

Nov. 27

Rent paid

1,500

Nov. 29

Received cash from Nitesh

6,800

 

Discount allowed

200

Nov. 30

Salary paid 

 3,000

 

 

ANSWER:

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount

Rs

2017

 

 

 

 

 

 

Nov.01

Cash A/c

Dr.

 

1,50,000

 

 

Stock A/c

Dr.

 

    50,000

 

 

 

To Capital A/c

 

 

 

2,00,000

 

(Started business with cash and goods)

 

 

 

 

 

 

 

 

 

 

 

Nov.03

Purchases A/c

Dr.

 

30,000

 

 

 

To Harish

 

 

 

30,000

 

(Goods purchased from Harish)

 

 

 

 

 

 

 

 

 

 

 

Nov.05

Cash A/c

Dr.

 

12,000

 

 

 

To Sales A/c

 

 

 

12,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

Nov.08

Furniture A/c

Dr.

 

5,000

 

 

 

To Cash A/c

 

 

 

5,000

 

(Furniture purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

Nov.10

Harish A/c

Dr.

 

15,000

 

 

 

To Cash A/c

 

 

 

15,000

 

(Cash paid to Harish)

 

 

 

 

 

 

 

 

 

 

 

Nov.13

Sundry Expenses A/c

Dr.

 

200

 

 

 

To Cash

 

 

 

200

 

(Sundry expenses paid)

 

 

 

 

 

 

 

 

 

 

 

Nov.15

Cash A/c

Dr.

 

15,000

 

 

 

To Sales A/c

 

 

 

15,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

Nov.18

Bank A/c

Dr.

 

5,000

 

 

 

To Cash A/c

 

 

 

5,000

 

(Cash deposited into bank)

 

 

 

 

 

 

 

 

 

 

 

Nov.20

Drawings A/c

Dr.

 

1,000

 

 

 

To Cash A/c

 

 

 

1,000

 

(Cash drawn for personal use)

 

 

 

 

 

 

 

 

 

 

 

Nov.22

Harish

Dr.

 

15,000

 

 

 

To Cash A/c

 

 

 

14,700

 

 

To Discount Received A/c

 

 

 

300

 

(Payment made to Harish and discount received)

 

 

 

 

 

 

 

 

 

 

 

Nov.25

Nitesh

Dr.

 

7,000

 

 

 

To Sales A/c

 

 

 

7,000

 

(Goods sold to Nitesh)

 

 

 

 

 

 

 

 

 

 

 

Nov.26

Cartage A/c

Dr.

 

200

 

 

 

To Cash A/c

 

 

 

200

 

(Cartage paid)

 

 

 

 

 

 

 

 

 

 

 

Nov.27

Rent A/c

Dr.

 

1,500

 

 

 

To Cash A/c

 

 

 

1,500

 

(Rent paid)

 

 

 

 

 

 

 

 

 

 

 

Nov.29

Cash A/c

Dr.

 

6,800

 

 

Discount Allowed A/c  

 

 

   200

 

 

 

To Nitesh

 

 

 

7,000

 

(Cash received from Nitesh and discount allowed)

 

 

 

 

 

 

 

 

 

 

 

Nov.30

Salaries A/c

Dr.

 

3,000

 

 

 

To Cash A/c

 

 

 

3,000

 

(Salary paid)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

3,16,900

3,16,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ledger

 

Cash Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Nov.01

Capital

 

1,50,000

Nov.08

Furniture

 

5,000

Nov.05

Sales

 

12,000

Nov.10

Harish

 

15,000

Nov.15

Sales

 

15,000

Nov.13

Sundry Expenses

 

200

Nov.29

Nitesh

 

6,800

Nov.18

Bank

 

5,000

 

 

 

 

Nov.20

Drawings

 

1,000

 

 

 

 

Nov.22

Harish

 

14,700

 

 

 

 

Nov.26

Cartage

 

200

 

 

 

 

Nov.27

Rent

 

1,500

 

 

 

 

Nov.30

Salaries

 

3,000

 

 

 

 

Nov.30

Balance c/d

 

1,38,200

 

 

 

1,83,000

 

 

 

1,83,000

 

 

 

 

 

 

 

 

 

 

Capital Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Nov.01

Cash

 

1,50,000

 

 

 

 

Nov.01

Stock

 

50,000

Nov.30

Balance c/d

 

2,00,000

 

 

 

 

 

 

 

2,00,000

 

 

 

2,00,000

 

 

 

 

 

 

 

 

 

 

Stock Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Nov.01

Capital

 

50,000

 

 

 

 

 

 

 

 

Nov. 30

Balance c/d

 

50,000

 

 

 

50,000

 

 

 

50,000

 

 

 

 

 

 

 

 

 

Cartage Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Nov.26

Cash

 

200

 

 

 

 

 

 

 

 

Nov.30

Balance c/d

 

200

 

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

 

Rent Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Nov.27

Cash

 

1,500

 

 

 

 

 

 

 

 

Nov.30

Balance c/d

 

1,500

 

 

 

1,500

 

 

 

1,500

 

 

 

 

 

 

 

 

 

Salaries Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Nov.30

Cash

 

3,000

 

 

 

 

 

 

 

 

Nov.30

Balance c/d

 

 3,000

 

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

 

Furniture Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Nov.08

Cash

 

5,000

 

 

 

 

 

 

 

 

Nov.30

Balance c/d

 

 

 

 

 

5,000

 

 

 

5,000

 

 

 

 

 

 

 

 

 

Nitesh’s Account

Dr

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Nov.25

Sales

 

7,000

Nov.29

Cash

 

6,800 

 

 

 

 

Nov.29

Discount Allowed

 

200

 

 

 

 

 

 

 

 

 

 

 

7,000

 

 

 

7,000

 

 

 

 

 

 

 

 

 

Sales Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Nov.05

Cash

 

12,000

 

 

 

 

Nov.15

Cash

 

15,000

Nov.30

Balanced c/d

 

34,000

Nov.25

Nitesh

 

7,000

 

 

 

34,000

 

 

 

34,000

 

 

 

 

 

 

 

 

 

Purchases Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Nov.03

Harish

 

30,000

 

 

 

 

 

 

 

 

Nov.30

Balance c/d

 

30,000

 

 

 

30,000

 

 

 

30,000

 

 

 

 

 

 

 

 

 

Harish’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Nov.10

Cash

 

15,000

Nov.03

Purchases

 

30,000

Nov.22

Cash

 

14,700

 

 

 

 

Nov.22

Discount Received

 

300

 

 

 

 

 

 

 

30,000

 

 

 

30,000

 

 

 

 

 

 

 

 

 

Sundry Expenses Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Nov.13

Cash

 

200

 

 

 

 

 

 

 

 

Nov.30

Balance c/d

 

200

 

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

 

Bank Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Nov.18

Cash

 

5,000

 

 

 

 

 

 

 

 

Nov.30

Balance c/d

 

5,000

 

 

 

5,000

 

 

 

5,000

 

 

 

 

 

 

 

 

 

Drawings Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Nov.20

Cash

 

1,000

 

 

 

 

 

 

 

 

Nov.30

Balance c/d

 

1,000

 

 

 

1,000

 

 

 

1,000

 

 

 

 

 

 

 

 

 

Discount Received Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Nov.22

Harish

 

300

Nov.30

Balance c/d

 

300

 

 

 

 

 

 

 

300

 

 

 

3,00

 

 

 

 

 

 

 

 

 

Discount Allowed Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Nov.29

Nitesh

 

200

 

 

 

 

 

 

 

 

Nov.30

Balance c/d

 

200

 

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

 

 

Page No 94:

Question 17:

Journalise the following transactions is the journal of M/s. Goel Brothers and post them to the ledger.

2017

 

Rs

Jan. 01

Started business with cash

1,65,000

Jan. 02

Opened bank account in PNB

80,000

Jan. 04

Goods purchased from Tara

22,000

Jan.05

Goods purchased for cash

30,000

Jan.08

Goods sold to Naman

12,000

Jan.10

Cash paid to Tara

22,000

Jan.15

Cash received from Naman

11,700

 

Discount allowed

300

Jan. 16

Paid wages

200

Jan. 18

Furniture purchased for office use

5,000

Jan. 20

Withdrawn from bank for personal use

4,000

Jan. 22

Issued cheque for rent

3,000

Jan. 23

Goods issued for house hold purpose

2,000

Jan. 24

Drawn cash from bank for office use

6,000

Jan. 26

Commission received

1,000

Jan. 27

Bank charges

200

Jan. 28

Cheque given for insurance premium

3,000

Jan. 29

Paid salary

7,000

Jan. 30

Cash sales

10,000

 

 

ANSWER:

Books of M/s Goel Brothers

Journal

Date

 

Particulars

 

L.F.

Debit Amount

Rs

Credit Amount

Rs

2017

 

 

 

 

 

 

Jan.01

Cash A/c

Dr.

 

1,65,000

 

 

 

To Capital A/c

 

 

 

1,65,000

 

(Started business with cash)

 

 

 

 

 

 

 

 

 

 

 

Jan.02

Bank A/c

Dr.

 

80,000

 

 

 

To Cash A/c

 

 

 

80,000

 

(Bank account opened with PNB)

 

 

 

 

 

 

 

 

 

 

 

Jan.04

Purchases A/c

Dr.

 

22,000

 

 

 

To Tara

 

 

 

22,000

 

(Goods purchased from Tara)

 

 

 

 

 

 

 

 

 

 

 

Jan.05

Purchases A/c

Dr.

 

30,000

 

 

 

To Cash A/c

 

 

 

30,000

 

(Goods purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

Jan.08

Naman

Dr.

 

12,000

 

 

 

To Sales A/c

 

 

 

12,000

 

(Sale of goods to Naman)

 

 

 

 

 

 

 

 

 

 

 

Jan.10

Tara

Dr.

 

22,000

 

 

 

To Cash A/c

 

 

 

22,000

 

(Cash paid to Tara)

 

 

 

 

 

 

 

 

 

 

 

Jan.15

Cash A/c

Dr.

 

11,700

 

 

Discount Allowed A/c

Dr.

 

     300

 

 

 

To Naman

 

 

 

12,000

 

(Cash received from Naman and discount allowed)

 

 

 

 

 

 

 

 

 

 

 

Jan.16

Wages A/c

Dr.

 

200

 

 

 

To Cash A/c

 

 

 

200

 

(Wages paid)

 

 

 

 

 

 

 

 

 

 

 

Jan.18

Furniture A/c

Dr.

 

5,000

 

 

 

To Cash A/c

 

 

 

5,000

 

(Furniture purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

Jan.20

Drawings A/c

Dr.

 

4,000

 

 

 

To Bank A/c

 

 

 

4,000

 

(Cash drawn from bank for personal use)

 

 

 

 

 

 

 

 

 

 

 

Jan.22

Rent A/c

Dr.

 

3,000

 

 

 

To Bank A/c

 

 

 

3,000

 

(Rent paid through cheque)

 

 

 

 

 

 

 

 

 

 

 

Jan.23

Drawings A/c

Dr.

 

2,000

 

 

 

To Purchases A/c

 

 

 

2,000

 

(Goods drawn for household  purpose)

 

 

 

 

 

 

 

 

 

 

 

Jan.24

Cash A/c

Dr.

 

6,000

 

 

 

To Bank A/c

 

 

 

6,000

 

(Cash drawn from bank)

 

 

 

 

 

 

 

 

 

 

 

Jan.26

Cash A/c

Dr.

 

1,000

 

 

 

To Commission A/c

 

 

 

1,000

 

(Commission received)

 

 

 

 

 

 

 

 

 

 

 

Jan.27

Bank Charges A/c

Dr.

 

200

 

 

 

To Bank A/c

 

 

 

200

 

(Bank charged charges)

 

 

 

 

 

 

 

 

 

 

 

Jan.28

Insurance A/c

Dr.

 

3,000

 

 

 

To Bank A/c

 

 

 

3,000

 

(Insurance paid through cheque)

 

 

 

 

 

 

 

 

 

 

 

Jan.29

Salaries A/c

Dr.

 

7,000

 

 

 

To Cash A/c

 

 

 

7,000

 

(Salary paid)

 

 

 

 

 

 

 

 

 

 

 

Jan.30

Cash A/c

Dr.

 

10,000

 

 

 

To Sales A/c

 

 

 

10,000

 

(Cash received for sale of goods)

 

 

 

 

 

 

Total

 

 

3,84,400

3,84,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Ledger

 

Cash Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.01

Capital

 

1,65,000

Jan.02

Bank

 

80,000

Jan.15

Naman

 

11,700

Jan.05

Purchases

 

30,000

Jan.24

Bank

 

6,000

Jan.10

Tara

 

22,000

Jan.26

Commission

 

1,000

Jan.16

Wages

 

200

Jan.30

Sales

 

10,000

Jan.18

Furniture

 

5,000

 

 

 

 

Jan.29

Salaries

 

7,000

 

 

 

 

Jan.31

Balance c/d

 

49,500

 

 

 

 

 

 

 

 

 

 

 

1,93,700

 

 

 

1,93,700

 

 

 

 

 

 

 

 

 

Capital Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Jan.01

Cash

 

1,65,000

Jan.31

Balance c/d

 

1,65,000

 

 

 

 

 

 

 

1,65,000

 

 

 

1,65,000

 

 

 

 

 

 

 

 

 

Bank Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.02

Cash

 

80,000

Jan.20

Drawings

 

4,000

 

 

 

 

Jan.22

Rent

 

3,000

 

 

 

 

Jan.24

Cash

 

6,000

 

 

 

 

Jan.27

Bank charges

 

200

 

 

 

 

Jan.28

Insurance

 

3,000

 

 

 

 

Jan.31

Balance c/d

 

63,800

 

 

 

80,000

 

 

 

80,000

 

 

 

 

 

 

 

 

 

Tara’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.10

Cash

 

22,000

Jan.04

Purchases

 

22,000

 

 

 

 

 

 

 

 

 

 

 

22,000

 

 

 

22,000

 

 

 

 

 

 

 

 

 

Purchases Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Jan.04

Tara

 

22,000

Jan.23

Drawings

 

2,000

Jan.05

Cash

 

30,000

Jan.31

Balance c/d

 

50,000

 

 

 

 

 

 

 

 

 

 

 

52,000

 

 

 

52,000

 

 

 

 

 

 

 

 

 

Sales Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Jan.08

Naman

 

12,000

Jan.31

Balanced c/d

 

22,000 

Jan.30

Cash

 

10,000

 

 

 

 

 

 

 

 

 

 

 

22,000

 

 

 

22,000

 

 

 

 

 

 

 

 

 

Naman’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.08

Sales

 

12,000

Jan.15

Cash

 

11,700

 

 

 

 

Jan.15

Discount Allowed

 

300

 

 

 

12,000

 

 

 

12,000

 

 

 

 

 

 

 

 

 

Discount Allowed Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.15

Naman

 

300

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

300

 

 

 

300

 

 

 

300

 

 

 

 

 

 

 

 

 

Wages Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.16

Cash

 

200

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

200

 

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

 

Furniture Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.18

Cash

 

5,000

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

5,000

 

 

 

5,000

 

 

 

5,000

 

 

 

 

 

 

 

 

 

Drawings Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.20

Bank

 

4,000

 

 

 

 

Jan.23

Purchases

 

2,000

Jan.31

Balance c/d

 

6,000

 

 

 

 

 

 

 

 

 

 

 

6,000

 

 

 

6,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rent Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.22

Bank

 

3,000

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

3,000

 

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

 

Commission Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Jan.26

Cash

 

1,000

Jan.31

Balance c/d

 

1,000

 

 

 

 

 

 

 

1,000

 

 

 

1,000

 

 

 

 

 

 

 

 

 

Bank Charges Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.27

Bank

 

200

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

200

 

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

 

Insurance Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Jan.28

Bank

 

3,000

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

3,000

 

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

 

Salaries Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.29

Cash

 

7,000

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

7,000

 

 

 

7,000

 

 

 

7,000

 

 

 

 

 

 

 

 

 

 



Page No 95:

Question 18:

Give journal entries of M/s. Mohit traders; post them to the Ledger from the following transactions:

 

August, 2017

 

Rs

1

Commenced business with cash

1,10,000

2

Opened bank account with H.D.F.C.

50,000

3

Purchased furniture

20,000

7

Bought goods for cash from M/s. Rupa Traders

30,000

8

Purchased good from M/s. Hema Traders

42,000

10

Sold goods for cash

30,000

14

Sold goods on credit to M/s. Gupta Traders

12,000

16

Rent paid

4,000

18

Paid trade expenses

1,000

20

Received cash from Gupta Traders

12,000

22

Goods return to Hema Traders

2,000

23

Cash paid to Hema Traders

40,000

25

Bought postage stamps

100

30

Paid salary to Rishabh

4,000

 

 

ANSWER:

Books of M/s. Mohit Traders

Journal

Date

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2017

 

 

 

 

 

 

Aug.01

Cash A/c

Dr.

 

1,10,000

 

 

 

To Capital A/c

 

 

 

1,10,000

 

(Commenced business with cash)

 

 

 

 

 

 

 

 

 

 

 

Aug.02

Bank A/c

Dr.

 

50,000

 

 

 

To Cash A/c

 

 

 

50,000

 

(Bank account opened with H.D.F.C)

 

 

 

 

 

 

 

 

 

 

 

Aug.03

Furniture A/c

Dr.

 

20,000

 

 

 

To Cash A/c

 

 

 

20,000

 

(Furniture purchased)

 

 

 

 

 

 

 

 

 

 

 

Aug.07

Purchases A/c

Dr.

 

30,000

 

 

 

To Cash A/c

 

 

 

30,000

 

(Goods purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

Aug.08

Purchases A/c

Dr.

 

42,000

 

 

 

To M/s. Hema Traders

 

 

 

42,000

 

(Goods purchased from M/s. Hema Traders)

 

 

 

 

 

 

 

 

 

 

 

Aug.10

Cash A/c

Dr.

 

30,000

 

 

 

To Sales A/c

 

 

 

30,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

Aug.14

M/s. Gupta Traders

Dr.

 

12,000

 

 

 

To Sales A/c

 

 

 

12,000

 

(Goods sold to M/s. Gupta traders)

 

 

 

 

 

 

 

 

 

 

 

Aug.16

Rent A/c

Dr.

 

4,000

 

 

 

To Cash A/c

 

 

 

4,000

 

(Rent paid in cash)

 

 

 

 

 

 

 

 

 

 

 

Aug.18

Trade Expenses A/c

Dr.

 

1,000

 

 

 

To Cash A/c

 

 

 

1,000

 

(Trade expenses paid in cash)

 

 

 

 

 

 

 

 

 

 

 

Aug.20

Cash A/c

Dr.

 

12,000

 

 

 

To M/s. Gupta Traders

 

 

 

12,000

 

(Cash received from M/s. Gupta Traders)

 

 

 

 

 

 

 

 

 

 

 

Aug.22

M/s. Hema Traders

Dr.

 

2,000

 

 

 

To Purchases Return A/c

 

 

 

2,000

 

(Goods returned to Hema traders)

 

 

 

 

 

 

 

 

 

 

 

Aug.23

M/s. Hema Traders

Dr.

 

40,000

 

 

 

To Cash A/c

 

 

 

40,000

 

(Cash paid to Hema traders)

 

 

 

 

 

 

 

 

 

 

 

Aug.25

Postage Stamps A/c

Dr.

 

100

 

 

 

To Cash A/c

 

 

 

100

 

(Postage stamps purchased)

 

 

 

 

 

 

 

 

 

 

 

Aug.30

Salaries A/c

Dr.

 

4,000

 

 

 

To Cash A/c

 

 

 

4,000

 

(Salaries paid in cash)

 

 

 

 

 

 

Total

 

 

3,57,100

3,57,100

 

 

 

 

 

 

 

  

Cash Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Aug.01

Capital

 

1,10,000

Aug.02

Bank

 

50,000

Aug.10

Sales

 

30,000

Aug.03

Furniture

 

20,000

Aug.20

M/s. Gupta Traders

 

12,000

Aug.07

Purchases

 

30,000

 

 

 

 

Aug.16

Rent

 

4,000

 

 

 

 

Aug.18

Trade Expenses

 

1,000

 

 

 

 

Aug.23

M/s. Hema Traders

 

40,000

 

 

 

 

Aug.25

Postage Stamps

 

100

 

 

 

 

Aug.30

Salaries

 

4,000

 

 

 

 

Aug.31

Balance c/d

 

2,900

 

 

 

 

 

 

 

 

 

 

 

1,52,000

 

 

 

1,52,000

 

 

 

 

 

 

 

 

 

Capital Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Aug.01

Cash

 

1,10,000

Aug.31

Balance c/d

 

1,10,000

 

 

 

 

 

 

 

1,10,000

 

 

 

1,10,000

 

 

 

 

 

 

 

 

 

Bank Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Aug.02

Cash

 

50,000

 

 

 

 

 

 

 

 

Aug.31

Balance c/d

 

50,000

 

 

 

50,000

 

 

 

50,000

 

 

 

 

 

 

 

 

 

Furniture Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Aug.03

Cash

 

20,000

 

 

 

 

 

 

 

 

Aug.31

Balanced c/d

 

20,000

 

 

 

20,000

 

 

 

20,000

 

 

 

 

 

 

 

 

 

Purchases Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Aug.07

Cash

 

30,000

 

 

 

 

Aug.08

M/s. Hema Traders

 

42,000

Aug.31

Balance c/d

 

72,000

 

 

 

72,000

 

 

 

72,000

 

 

 

 

 

 

 

 

 

M/s. Hema Traders Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Aug.22

Purchases Return

 

2,000

Aug.08

Purchases

 

     42,000 

Aug.23

Cash

 

40,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42,000

 

 

 

42,000

 

 

 

 

 

 

 

 

 

Sales Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Aug.10

Cash

 

30,000

Aug.31

Balance c/d

 

42,000

Aug.14

M/s. Gupta Traders

 

12,000

 

 

 

 

 

 

 

 

 

 

 

42,000

 

 

 

42,000

 

 

 

 

 

 

 

 

 

M/s. Gupta Traders Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

Aug.14

Sales

 

12,000

 

 

 

 

 

 

 

 

Aug.20

Cash

 

12,000

 

 

 

 

 

 

 

 

 

 

 

12,000

 

 

 

12,000

 

 

 

 

 

 

 

 

 

Rent Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Aug.16

Cash

 

4,000

 

 

 

 

 

 

 

 

Aug.31

Balance c/d

 

4,000

 

 

 

4,000

 

 

 

4,000

 

 

 

 

 

 

 

 

 

Trade Expenses Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount 

Rs

2017

 

 

 

2017

 

 

 

Aug.18

Cash

 

1,000

 

 

 

 

 

 

 

 

Aug.31

Balance c/d

 

1,000

 

 

 

1,000

 

 

 

1,000

 

 

 

 

 

 

 

 

 

Purchases Return Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Aug.22

M/s. Hema Traders 

 

2,000

Aug.31

Balance c/d

 

2,000

 

 

 

 

 

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

 

 

 

Postage Stamps Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount 

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Aug.25

Cash

 

100

 

 

 

 

 

 

 

 

Aug.31

Balance c/d

 

100

 

 

 

 

 

 

 

 

 

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

 

Salaries Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Aug.30

Cash

 

4,000

 

 

 

 

 

 

 

 

Aug.31

Balance c/d

 

4,000

 

 

 

4,000

 

 

 

4,000

 

 

 

 

 

 

 

 

 

 

Page No 95:

Question 19:

Journalise the following transaction in the Books of the M/s. Bhanu Traders and Post them into the Ledger.

 

December, 2017

 

Rs

1

Started business with cash

92,000

2

Deposited into bank

60,000

4

Bought goods on credit from Himani

40,000

6

Purchased goods from cash

20,000

8

Returned goods to Himani

4,000

10

Sold goods for cash

20,000

14

Cheque given to Himani

36,000

17

Goods sold to M/s. Goyal TradeRs

3,50,000

19

Drew cash from bank for personal use

2,000

21

Goyal traders returned goods

3,500

22

Cash deposited into bank

20,000

26

Cheque received from Goyal Traders

31,500

28

Goods given as charity

2,000

29

Rent paid

3,000

30

Salary paid

7,000

31

Office machine purchased for cash

3,000

 

 

ANSWER:

Books of M/s. Bhanu Traders

Journal

Date

 

Particulars

 

L.F.

Debit Amount

Rs

Credit Amount Rs

2017

 

 

 

 

 

 

Dec.01

Cash A/c

Dr.

 

92,000

 

 

 

To Capital A/c

 

 

 

92,000

 

(Started business with cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.02

Bank A/c

Dr.

 

60,000

 

 

 

To Cash A/c

 

 

 

60,000

 

(Cash deposited into bank)

 

 

 

 

 

 

 

 

 

 

 

Dec.04

Purchases A/c

Dr.

 

40,000

 

 

 

To Himani

 

 

 

40,000

 

(Goods purchased from Himani)

 

 

 

 

 

 

 

 

 

 

 

Dec.06

Purchases A/c

Dr.

 

20,000

 

 

 

To Cash A/c

 

 

 

20,000

 

(Goods purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.08

Himani

Dr.

 

4,000

 

 

 

To Purchases Return A/c

 

 

 

4,000

 

(Goods returned to Himani)

 

 

 

 

 

 

 

 

 

 

 

Dec.10

Cash A/c

Dr.

 

20,000

 

 

 

To Sales A/c

 

 

 

20,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.14

Himani

Dr.

 

36,000

 

 

 

To Bank A/c

 

 

 

36,000

 

(Cheque given to Himani)

 

 

 

 

 

 

 

 

 

 

 

Dec.17

M/s. Goyal Traders A/c

Dr.

 

35,000

 

 

 

To Sales A/c

 

 

 

35,000

 

(Goods sold to M/s. Goyal Traders)

 

 

 

 

 

 

 

 

 

 

 

Dec.19

Drawings A/c

Dr.

 

2,000

 

 

 

To Bank A/c

 

 

 

2,000

 

(Cash withdrawn from bank for personal use)

 

 

 

 

 

 

 

 

 

 

 

Dec.21

Sales Return A/c

Dr.

 

3,500

 

 

 

To M/s. Goyal Traders

 

 

 

3,500

 

(Goods returned by Goyal Traders)

 

 

 

 

 

 

 

 

 

 

 

Dec.22

Bank A/c

Dr.

 

20,000

 

 

 

To Cash A/c

 

 

 

20,000

 

(Cash deposited into bank)

 

 

 

 

 

 

 

 

 

 

 

Dec.26

Bank A/c

Dr.

 

31,500

 

 

 

To M/s. Goyal Traders

 

 

 

31,500

 

(Cheque received from M/s. Goyal Traders)

 

 

 

 

 

 

 

 

 

 

 

Dec.28

Charity A/c

Dr.

 

2,000

 

 

 

To Purchases A/c

 

 

 

2,000

 

(Goods given as charity)

 

 

 

 

 

 

 

 

 

 

 

Dec.29

Rent A/c

Dr.

 

3,000

 

 

 

To Bank  A/c

 

 

 

3,000

 

(Rent paid) see note

 

 

 

 

 

 

 

 

 

 

 

Dec.30

Salaries A/c

 

 

7,000

 

 

 

To Cash A/c

 

 

 

7,000

 

(Salaries paid)

 

 

 

 

 

 

 

 

 

 

 

Dec.31

Office Machine A/c

 

 

3,000

 

 

 

To Cash A/c

 

 

 

3,000

 

(Office machinery purchased)

 

 

 

 

 

 

Total

 

 

6,94,000

6,94,000

 

 

 

 

 

 

 

  

Cash Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Dec.01

Capital

 

92,000

Dec.02

Bank

 

60,000

Dec.10

Sales

 

20,000

Dec.06

Purchases

 

20,000

 

 

 

 

Dec.22

Bank

 

20,000

 

 

 

 

Dec.30

Salaries

 

7,000

 

 

 

 

Dec.31

Office Machine

 

3,000

 

 

 

 

Dec.31

Balance c/d

 

2,000

 

 

 

 

 

 

 

 

 

 

 

1,12,000

 

 

 

1,12,000

 

 

 

 

 

 

 

 

  

Capital Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Dec.01

Cash

 

92,000

Dec.31

Balance c/d

 

92,000

 

 

 

 

 

 

 

92,000

 

 

 

92,000

 

 

 

 

 

 

 

 

  

Bank Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Dec.02

Cash

 

60,000

Dec.14

Himani

 

36,000

Dec.22

Cash

 

20,000

Dec.19

Drawings

 

2,000

Dec.26

Goyal Traders

 

31,500

Dec.29

Rent (see note)

 

3,000

 

 

 

 

Dec.31

Balance c/d

 

70,500

 

 

 

1,11,500

 

 

 

11,500

 

 

 

 

 

 

 

 

 

Note: For transaction on December 29, 2017, it has been assumed that the rent of Rs 3,000 is paid through cheque. If instead the rent would have been paid in cash, the cash account would have shown a credit (negative) balance and that is logically not correct.

 

Purchases Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Dec.04

Himani

 

40,000

Dec.28

Charity

 

2,000

Dec.06

Cash

 

20,000

Dec.31

Balance c/d

 

58,000

 

 

 

 

 

 

 

 

 

 

 

60,000

 

 

 

60,000

 

 

 

 

 

 

 

 

  

Himani’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Dec.08

Purchases Return

 

4,000

Dec.04

Purchases

 

   40,000 

Dec.14

Bank

 

36,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40,000

 

 

 

40,000

 

 

 

 

 

 

 

 

 

Sales Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Dec.10

Cash

 

20,000

Dec.31

Balance c/d

 

55,000

Dec.17

M/s. Goyal Traders

 

35,000

 

 

 

 

 

 

 

 

 

 

 

55,000

 

 

 

55,000

 

 

 

 

 

 

 

 

 

M/s. Goyal Traders Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.17

Sales

 

35,000

Dec.21

Sales Return

 

3,500

 

 

 

 

Dec.26

Bank

 

31,500

 

 

 

35,000

 

 

 

35,000

 

 

 

 

 

 

 

 

  

Purchases Return Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Dec.08

Himani

 

4,000

Dec.31

Balance c/d

 

4,000

 

 

 

 

 

 

 

4,000

 

 

 

4,000

 

 

 

 

 

 

 

 

 

Drawings Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Dec.19

Bank

 

2,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

2,000

 

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

 

 

  

Sales Return Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.21

M/s. Goyal Traders

 

3,500

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

3,500

 

 

 

3,500

 

 

 

3,500

 

 

 

 

 

 

 

 

  

Charity Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Dec.28

Purchases

 

2,000

 

 

 

 

 

 

 

 

Aug.31

Balance c/d

 

2,000

 

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

 

 

  

Rent Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Dec.29

Cash

 

3,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

3,000

 

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

 

Salaries Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Dec.30

Cash

 

7,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

7,000

 

 

 

7,000

 

 

 

7,000

 

 

 

 

 

 

 

 

 

Office Machine Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.31

Cash

 

3,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

3,000

 

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

 

 



Page No 96:

Question 20:

Journalise the following transaction in the Book of M/s. Beauti tradeRs Also post them in the ledger.

 

Dec. 2017

 

Rs

1

Started business with cash

2,00,000

2

Bought office furniture

30,000

3

Paid into bank to open an current account

1,00,000

5

Purchased a computer and paid by cheque

2,50,000

6

Bought goods on credit from Ritika

60,000

8

Cash sales

30,000

9

Sold goods to Karishna on credit

25,000

12

Cash paid to Mansi on account

30,000

14

Goods returned to Ritika

2,000

15

Stationery purchased for cash

3,000

16

Paid wages

1,000

18

Goods returned by Karishna

2,000

20

Cheque given to Ritika

28,000

22

Cash received from Karishna on account

15,000

24

Insurance premium paid by cheque

4,000

26

Cheque received from Karishna

8,000

28

Rent paid by cheque

3,000

29

Purchased goods on credit from Meena Traders

20,000

30

Cash sales

14,000

 

 

ANSWER:

Books of Beauti Traders

Journal

Date

Particulars

L.F.

Debit Amount Rs

Credit Amount Rs

2017

 

 

 

 

 

 

Dec.01

Cash A/c

Dr.

 

2,00,000

 

 

 

To Capital A/c

 

 

 

2,00,000

 

(Started business with cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.02

Office Furniture A/c

Dr.

 

30,000

 

 

 

To Cash A/c

 

 

 

30,000

 

(Office furniture purchased)

 

 

 

 

 

 

 

 

 

 

 

Dec.03

Bank A/c

Dr.

 

1,00,000

 

 

 

To Cash A/c

 

 

 

1,00,000

 

(Opened a current account)

 

 

 

 

 

 

 

 

 

 

Dec.05

Computer A/c

Dr.

 

2,50,000

 

 

 

To Bank A/c

 

 

 

2,50,000

 

(Computer purchased and payment made through cheque)

 

 

 

 

 

 

 

 

 

 

 

Dec.06

Purchases A/c

Dr.

 

60,000

 

 

 

To Ritika

 

 

 

60,000

 

(Goods purchased from Ritika on credit)

 

 

 

 

 

 

 

 

 

 

Dec.08

Cash A/c

 

Dr.

 

30,000

 

 

 

To Sales A/c

 

 

 

30,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.09

Krishna

Dr.

 

25,000

 

 

 

To Sales A/c

 

 

 

25,000

 

(Goods sold to Krishna)

 

 

 

 

 

 

 

 

 

 

 

Dec.12

Mansi

Dr.

 

30,000

 

 

 

To Cash A/c

 

 

 

30,000

 

(Cash paid to Mansi on account)

 

 

 

 

 

 

 

 

 

 

 

Dec.14

Ritika

Dr.

 

2,000

 

 

 

To Purchases Return A/c

 

 

 

2,000

 

(Goods returned to Ritika)

 

 

 

 

 

 

 

 

 

 

 

Dec.15

Stationery A/c

Dr.

 

3,000

 

 

 

To Cash A/c

 

 

 

3,000

 

(Stationery purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

Dec.16

Wages A/c

Dr.

 

1,000

 

 

 

To Cash A/c

 

 

 

1,000

 

(Wages paid)

 

 

 

 

 

 

 

 

 

 

 

Dec.18

Sales Return A/c

Dr.

 

2,000

 

 

 

To Krishna

 

 

 

2,000

 

(Goods returned by Krishna)

 

 

 

 

 

 

 

 

 

 

 

Dec.20

Ritika

Dr.

 

28,000

 

 

 

To Bank A/c

 

 

 

28,000

 

(Cheque issued to Ritika)

 

 

 

 

 

 

 

 

 

 

 

Dec.22

Cash A/c

Dr.

 

15,000

 

 

 

To Krishna

 

 

 

15,000

 

(Cash received from Krishna on account)

 

 

 

 

 

 

 

 

 

 

 

Dec.24

Insurance A/c

Dr.

 

4,000

 

 

 

To Bank A/c

 

 

 

4,000

 

(Insurance premium paid through cheque)

 

 

 

 

 

 

 

 

 

 

 

Dec.26

Bank A/c

Dr.

 

8,000

 

 

 

To Krishna

 

 

 

8,000

 

(Cheque received from Krishna)

 

 

 

 

 

 

 

 

 

 

 

Dec.28

Rent A/c

Dr.

 

3,000

 

 

 

To Bank A/c

 

 

 

3,000

 

(Rent paid through cheque)

 

 

 

 

 

 

 

 

 

 

 

Dec.29

Purchases A/c

Dr.

 

20,000

 

 

 

To Meena Traders

 

 

 

20,000

 

(Goods purchased on credit from Meena Traders)

 

 

 

 

 

 

 

 

 

 

 

Dec.30

Cash A/c

Dr.

 

14,000

 

 

 

To Sales A/c

 

 

 

14,000

 

(Goods sold for cash)

 

 

 

 

 

 

Total

 

 

8,25,000

8,25,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ledger

 

Cash Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.01

Capital

 

2,00,000

Dec.02

Office Furniture

 

30,000

Dec.08

Sales

 

30,000

Dec.03

Bank

 

1,00,000

Dec.22

Krishna

 

15,000

Dec.12

Mansi

 

30,000

Dec.30

Sales

 

14,000

Dec.15

Stationery

 

3,000

 

 

 

 

Dec.16

Wages

 

1,000

 

 

 

 

Dec.31

Balance c/d

 

95,000

 

 

 

2,59,000

 

 

 

2,59,000

 

 

 

 

 

 

 

 

 

Capital Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Dec.1

Cash

 

2,00,000

Dec.31

Balance c/d

 

2,00,000

 

 

 

 

 

 

 

2,00,000

 

 

 

2,00,000

 

 

 

 

 

 

 

 

 

Office Furniture Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.2

Cash

 

30,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

30,000

 

 

 

30,000

 

 

 

30,000

 

 

 

 

 

 

 

 

 

Bank Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

 Rs

2017

 

 

 

2017

 

 

 

Dec.03

Cash

 

1,00,000

Dec.05

Computer

 

2,50,000

Dec.26

Krishna

 

8,000

Dec.20

Ritika

 

28,000

 

 

 

 

Dec.24

Insurance

 

4,000

 

 

 

 

Dec.28

Rent

 

3,000

Dec.31

Balance c/d (over draft)

 

1,77,000

 

 

 

 

 

 

 

2,85,000

 

 

 

2,85,000

 

 

 

 

 

 

 

 

 

Computer Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.05

Bank

 

2,50,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

2,50,000

 

 

 

2,50,000

 

 

 

 

 

 

 

 

 

Purchases Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Dec.06

Ritika

 

60,000

 

 

 

 

Dec.29

Meena Traders

 

20,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

80,000

 

 

 

80,000

 

 

 

80,000

 

 

 

 

 

 

 

 

 

Ritika’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Dec.14

Purchases Return

 

2,000

Dec.06

Purchases

 

60,000

Dec.20

Bank

 

28,000

 

 

 

 

Dec.31

Balance c/d

 

30,000

 

 

 

 

 

 

 

60,000

 

 

 

60,000

 

 

 

 

 

 

 

 

 

Meena’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Dec.29

Purchases

 

20,000

Dec.31

Balance c/d

 

20,000

 

 

 

 

 

 

 

20,000

 

 

 

20,000

 

 

 

 

 

 

 

 

 

Sales Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Dec.08

Cash

 

30,000

 

 

 

 

Dec.09

Krishna

 

25,000

Dec.31

Balance c/d

 

69,000

Dec.30

Cash

 

14,000

 

 

 

69,000

 

 

 

69,000

 

 

 

 

 

 

 

 

 

Krishna’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Dec.09

Sales

 

25,000

Dec.18

Sales Return

 

2,000

 

 

 

 

Dec.22

Cash

 

15,000

 

 

 

 

Dec.26

Bank

 

8,000

 

 

 

25,000

 

 

 

25,000

 

 

 

 

 

 

 

 

 

Mansi’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.12

Cash

 

30,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

30,000

 

 

 

30,000

 

 

 

30,000

 

 

 

 

 

 

 

 

 

Purchases Return Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Dec.14

Ritika

 

2,000

Dec.31

Balance c/d

 

2,000

 

 

 

 

 

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

 

 

 

Stationery Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.15

Cash

 

3,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

3,000

 

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

 

Wages Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.16

Cash

 

1,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

1,000

 

 

 

1,000

 

 

 

1,000

 

 

 

 

 

 

 

 

 

Sales Return Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.18

Krishna

 

2,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

2,000

 

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

 

 

 

Insurance Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.24

Bank

 

4,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

4,000

 

 

 

4,000

 

 

 

4,000

 

 

 

 

 

 

 

 

 

Rent Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Dec.28

Bank

 

3,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

3,000

 

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

 

 

 

Page No 96:

Question 21:

Journalise the following transaction in the books of Sanjana and post them into the ledger:

 

January, 2017

 

Rs

1

Cash in hand

6,000

 

Cash at bank

55,000

 

Stock of goods

40,000

 

Due to Rohan

6,000

 

Due from Tarun

10,000

3

Sold goods to Karuna

15,000

4

Cash sales

10,000

6

Goods sold to Heena

 5,000

8

Purchased goods from Rupali

30,000

10

Goods returned from Karuna

2,000

14

Cash received from Karuna

13,000

15

Cheque given to Rohan

6,000

16

Cash received from Heena

3,000

20

Cheque received from Tarun

10,000

22

Cheque received from to Heena

2,000

25

Cash given to Rupali

18,000

26

Paid cartage

1,000

27

Paid salary

8,000

28

Cash sale

7,000

29

Cheque given to Rupali

12,000

30

Sanjana took goods for Personal use

4,000

31

Paid General expense

500

 

 

ANSWER:

Books of Sanjana

Journal Entries

S.No.

 

Particulars

 

L.F.

Debit Amount Rs

Credit Amount Rs

2017

 

 

 

 

 

Jan.01

Cash A/c

Dr.

 

6,000

 

 

Bank A/c

Dr.

 

55,000

 

 

Stock A/c

Dr.

 

40,000

 

 

Tarun

Dr.

 

10,000

 

 

 

To Rohan

 

 

 

6,000

 

 

To Capital A/c

 

 

 

1,05,000

 

(Balance brought from the last month)

 

 

 

 

 

 

 

 

 

 

 

Jan.03

Karuna

Dr.

 

15,000

 

 

 

To Sales A/c

 

 

 

15,000

 

(Goods sold to Karuna)

 

 

 

 

 

 

 

 

 

 

 

Jan.04

Cash A/c

Dr.

 

10,000

 

 

 

To Sales A/c

 

 

 

10,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

Jan.06

Heena

Dr.

 

5,000

 

 

 

To Sales A/c

 

 

 

5,000

 

(Goods sold to Henna)

 

 

 

 

 

 

 

 

 

 

 

Jan.08

Purchases A/c

Dr.

 

30,000

 

 

 

To Rupali

 

 

 

30,000

 

(Goods purchased from Rupali)

 

 

 

 

 

 

 

 

 

 

 

Jan.10

Sales Return A/c

Dr.

 

2,000

 

 

 

To Karuna

 

 

 

2,000

 

(Goods returned by Karuna)

 

 

 

 

 

 

 

 

 

 

 

Jan.14

Cash A/c

Dr.

 

13,000

 

 

 

To Karuna

 

 

 

13,000

 

(Cash received from Karuna)

 

 

 

 

 

 

 

 

 

 

 

Jan.15

Rohan

Dr.

 

6,000

 

 

 

To Bank A/c

 

 

 

6,000

 

(Cheque issued to Rohan)

 

 

 

 

 

 

 

 

 

 

 

Jan.16

Cash A/c

Dr.

 

3,000

 

 

 

To Heena

 

 

 

3,000

 

(Cash received from Heena)

 

 

 

 

 

 

 

 

 

 

 

Jan.20

Bank A/c

Dr.

 

10,000

 

 

 

To Tarun

 

 

 

10,000

 

(Cheque received from Tarun)

 

 

 

 

 

 

 

 

 

 

 

Jan.22

Bank A/c

Dr.

 

2,000

 

 

 

To Heena

 

 

 

2,000

 

(Cheque received from Heena)

 

 

 

 

 

 

 

 

 

 

Jan.25

Rupali

Dr.

 

18,000

 

 

 

To Cash A/c

 

 

 

18,000

 

(Payment made to Rupali)

 

 

 

 

 

 

 

 

 

 

 

Jan.26

Cartage A/c

Dr.

 

1,000

 

 

 

To Cash A/c

 

 

 

1,000

 

(Cartage paid)

 

 

 

 

 

 

 

 

 

 

 

Jan.27

Salaries A/c

Dr.

 

8,000

 

 

 

To Cash A/c

 

 

 

8,000

 

(Salaries paid)

 

 

 

 

 

 

 

 

 

 

 

Jan.28

Cash A/c

Dr.

 

7,000

 

 

 

To Sales A/c

 

 

 

7,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

Jan.29

Rupali

Dr.

 

12,000

 

 

 

To Bank A/c

 

 

 

12,000

 

(Cheque issued to Rupali)

 

 

 

 

 

 

 

 

 

 

 

Jan.30

Drawings A/c

Dr.

 

4,000

 

 

 

To Purchases A/c

 

 

 

4,000

 

(Goods drawn for personal use)

 

 

 

 

 

 

 

 

 

 

Jan.31

General Expenses A/c

Dr.

 

500

 

 

 

To Cash A/c

 

 

 

500

 

 

 

 

 

 

 

Total

 

 

2,57,500

2,57,500

 

 

 

 

 

 

 

Ledger

 

Cash Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.01

Balance b/d

 

6,000

Jan.25

Rupali

 

18,000

Jan.04

Sales

 

10,000

Jan.26

Cartage

 

1,000

Jan.14

Karuna

 

13,000

Jan.27

Salaries

 

8,000

Jan.16

Heena

 

3,000

Jan.31

General Expenses

 

500

Jan.28

Sales

 

7,000

Jan.31

Balance c/d

 

11,500

 

 

 

39,000

 

 

 

39,000

 

 

 

 

 

 

 

 

 

Capital Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

 Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Jan.01

 Balance b/d

 

1,05,000

Jan.31

Balance c/d

 

1,05,000

 

 

 

 

 

 

 

1,05,000

 

 

 

1,05,000

 

 

 

 

 

 

 

 

 

Bank Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.01

Balance b/d

 

55,000

Jan.15

Rohan

 

6,000

Jan.20

Tarun

 

10,000

Jan.29

Rupali

 

12,000

Jan.22

Heena

 

2,000

Jan.31

Balance c/d

 

49,000

 

 

 

 

 

 

 

 

 

 

 

67,000

 

 

 

67,000

 

 

 

 

 

 

 

 

 

Stock Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.01

Balance b/d

 

40,000

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

40,000

 

 

 

40,000

 

 

 

40,000

 

 

 

 

 

 

 

 

 

Rohan’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.15

Bank

 

6,000

Jan.01

Balance b/d

 

6,000

 

 

 

 

 

 

 

 

 

 

 

6,000

 

 

 

6,000

 

 

 

 

 

 

 

 

 

Tarun’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.01

Balance b/d

 

10,000

Jan.20

Bank

 

10,000

 

 

 

 

 

 

 

 

 

 

 

10,000

 

 

 

10,000

 

 

 

 

 

 

 

 

 

Sales Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

 

 

 

 

Jan.03

Karuna

 

15,000

 

 

 

 

Jan.04

Cash

 

10,000

 

 

 

 

Jan.06

Heena

 

5,000

Jan.31

Balance c/d

 

37,000

Jan.28

Cash

 

7,000

 

 

 

37,000

 

 

 

37,000

 

 

 

 

 

 

 

 

 

Karuna’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.03

Sales

 

15,000

Jan.10

Sales Return

 

2,000

 

 

 

 

Jan.14

Cash

 

13,000

 

 

 

15,000

 

 

 

15,000

 

 

 

 

 

 

 

 

 

Heena’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.06

Sales

 

5,000

Jan.16

Cash

 

3,000

 

 

 

 

Jan.22

Bank

 

2,000

 

 

 

5,000

 

 

 

5,000

 

 

 

 

 

 

 

 

 

Purchases Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.08

Rupali

 

30,000

Jan.30

Drawings

 

4,000

 

 

 

 

Jan.31

Balance c/d

 

26,000

 

 

 

30,000

 

 

 

30,000

 

 

 

 

 

 

 

 

 

Rupali’s Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.25

Cash

 

18,000

Jan.08

Purchases

 

30,000

Jan.29

Bank

 

12,000

 

 

 

 

 

 

 

30,000

 

 

 

30,000

 

 

 

 

 

 

 

 

 

Sales Return Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.10

Karuna

 

2,000

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

2,000

 

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

 

 

 

Cartage Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.26

Cash

 

1,000

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

1,000

 

 

 

1,000

 

 

 

1,000

 

 

 

 

 

 

 

 

 

Salaries Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.27

Cash

 

8,000

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

8,000

 

 

 

8,000

 

 

 

8,000

 

 

 

 

 

 

 

 

 

Drawings Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.30

Purchases

 

4,000

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

4,000

 

 

 

4,000

 

 

 

4,000

 

 

 

 

 

 

 

 

 

General Expenses Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount Rs

Date

Particulars

J.F.

Amount Rs

2017

 

 

 

2017

 

 

 

Jan.31

Cash

 

500

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

500

 

 

 

500

 

 

 

500

 

 

 

 

 

 

 

 

 

 

 



Page No 97:

Question 22:

Record journal entries for the following transactions in the books of Anudeep of Delhi:
(a) Bought goods Rs. 2,00,000 from Kanta of Delhi (CGST @ 9%, SGST @ 9%)
(b) Bought goods Rs. 1,00,000 for cash from Rajasthan (IGST @ 12%)
(c) Sold goods Rs. 1,50,000 to Sudhir of Punjab (IGST @ 18%)
(d) Paid for Railway Transport Rs. 10,000 (CGST @ 5%, SGST @ 5%)
(e) Sold goods Rs. 1,20,000 to Sidhu of Delhi (CGST @ 9%, SGST @ 9%)
(f) Bought Air-Condition for office use Rs. 60,000 (CGST @ 9%, SGST @ 9%)
(g) Sold goods Rs. 1,50,000 for cash to Sunil to Uttar Pradesh (IGST 18%)
(h) Bought Motor Cycle for business use Rs. 50,000 (CGST 14%, SGST @ 14%)
(i) Paid for Broadband services Rs. 4,000 (CGST @ 9%, SGST @ 0%)
(j) Bought goods Rs. 50,000 from Rajesh, Delhi (CGST @ 9%, SGST @ 9%)

ANSWER:

Date

Particulars

 

L.F.

Dr.   Rs.

Cr. Rs.

(a)

Purchases A/c

Dr

 

2,00,000

 

 

Input CGST A/c                 

Dr

 

18,000

 

 

Input SGST A/c       

 

 

    18,000

 

 

         To Kanta

 

 

 

2,36,000

 

(Being goods purchased on credit locally)

 

 

 

 

 

 

 

 

 

 

(b)

Purchases A/c  

Dr

 

1,00,000

 

 

Input IGST A/c                    

Dr

 

    12,000

 

 

        To Cash A/c

 

 

 

1,12,000

 

(Being goods purchased in cash from Rajasthan)

 

 

 

 

 

 

 

 

 

 

(c)

Sudhir A/c      

Dr

 

1,77,000

 

 

       To Sales A/c

 

 

 

1,50,000

 

       To Output IGST A/c

 

 

 

27,000

 

(Being goods supplied on credit to Punjab)

 

 

 

 

 

 

 

 

 

 

(d)

Transport Charges A/c

Dr

 

10,000

 

 

Input CGST A/c    

Dr

 

    500 

 

 

Input SGST A/c              

 

 

500

 

 

        To Bank A/c

 

 

 

11,000

 

 

 

 

 

 

(e)

Sidhu A/c

Dr

 

1,41,600

 

 

To Sales A/c

 

 

 

    1,20,000

 

         To Output CGST A/c    

 

 

 

   10,800

 

To Output SGST A/c  

 

 

 

   10,800

 

(Being goods sold on credit locally)

 

 

 

 

 

 

 

 

 

 

(f)

Air Conditioner  A/c

Dr

 

   60,000

 

 

Input CGST A/c

Dr

 

   5,400

 

 

Input SGST A/c

Dr

 

  5,400

 

 

         To Bank A/c

 

 

 

   70,800

 

(Being goods purchased locally)

 

 

 

 

 

 

 

 

 

 

(g)

Cash A/c      

Dr

 

1,77,000

 

 

      To Sales A/c

 

 

 

1,50,000

 

      To Output IGST A/c

 

 

 

27,000  

 

(Being goods supplied on credit to Uttar Pradesh)

 

 

 

 

 

 

 

 

 

 

(h)

Motor Cycle A/c

Dr

 

   50,000

 

 

Input CGST A/c

Dr

 

  7,000

 

 

Input SGST A/c

Dr

 

  7,000

 

 

          To Bank A/c

 

 

 

   64,000

 

(Being motorcycle purchased locally for office use)

 

 

 

 

 

 

 

 

 

 

(i)

Internet  Charges A/c

Dr

 

  4,000  

 

 

Input CGST A/c       

Dr

 

360

 

 

Input SGST A/c              

Dr

 

360

 

 

          To Bank A/c

 

 

 

     4,720

 

(Being broadband charges paid)

 

 

 

 

 

 

 

 

 

 

(j)

Purchases A/c

Dr

 

50,000

 

 

Input CGST A/c

Dr

 

   4,500

 

 

Input SGST A/c

Dr

 

   4,500

 

 

         To Rajesh

 

 

 

   59,000

 

(Being goods purchased on credit locally)

 

 

 

 

 

 

 

 

 

 

(k)

Purchases A/c    

Dr

 

50,000

   

 

Input CGST A/c

Dr

 

  4,500

 

 

Input SGST A/c

Dr

 

  4,500

 

 

          To Rajesh

 

 

 

   59,000

 

(Being goods purchased on credit locally)

 

 

 

 

 

 

 

 

 

 

(h)

Output IGST A/c

Dr

 

54,000

 

 

Output CGST A/c

Dr

 

12,000

 

 

Output SGST A/c

Dr

 

12,000

 

 

      To Input IGST A/c

 

 

 

  12,000

 

      To Input CGST A/c

 

 

 

  33,000

 

       To Input SGST A/c

 

 

 

  33,000

 

(Being GST set off and excess of CGST and SGST to be claimed as a refund)

 

 

 

 

 

 

Working Note 1

 

Particulars

IGST

CGST

SGST

Output

54,000

12,000

12,000

Input

12,000

35,760

 35,760

Excess

42,000

-23,760

-23,760

Set off

-42,000

21,000

 21,000

Payable

 Nil

  -2,760( Refund)

-2,760 (Refund)

 

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