NCERT Solutions for Class 11 Accountancy: Financial Accounting Part - I chapter 8 Recording of Transactions

Q:

What do you understand by imprest amount in petty cash book?

A:

Under Imprest system of petty cash book, the petty cashier is a given a definite sum at the beginning of a certain period. This amount is called imprest amount.

Q:

Explain the meaning of posting of journal entries?

A:

Posting is the process of transferring entries from journal or subsidiary books to the ledger. Posting is the next step in the accounting cycle after journalising.

Q:

What are special purpose books?

A:

Sub-division of the journal into various books recording transactions of similar nature are called special purpose books such as cash book, purchases book, sales book, purchases return book, sales return book and journal proper.

Q:

Briefly state how the cash book is both journal and ledger.

A:

Cash book is a journal as well as a ledger. It is a journal since cash and bank transaction are first recorded in it and a ledger since it serves the purpose of a cash account also. When a cash book is prepared, no separate cash account is opened in the ledger.

Q:

What do you understand by ledger folio?

A:

The page number or folio number of the ledger account where the posting has been made from the journal is recorded in the Ledger Folio (L.F.) column of the journal.

For example, if we make a posting in Machinery A/c which is prepared at page 30 of the ledger, we shall write 30 in the L.F. column against Machinery A/c in the Journal.

Q:

Write the difference between Returns inward and Returns outward.

A:

Returns Outward book is maintained to record the goods or materials returned to the suppliers from whom they had been purchased, whereas Returns Inward Book is maintained to record the goods or materials returned by the purchaser (customer) that had been sold on credit.

Returns Outward book is also known as Purchases Returns book, whereas Returns Inward book is also known as Sales Returns book.

Returns inward is deducted from Sales in the Trading Account, whereas Returns Outward is deducted from the Purchases in the Trading Account.

Q:

What is the purpose of contra entry?

A:

Contra entries means entries which are recorded on both sides of cash book and signified by writing ‘C’ in the ledger folio.

When cash is deposited into the bank or when cash is withdrawn from the bank for use in the office, each such transaction affects both ‘Cash Column’ as well as ‘Bank Column’ and the transaction is therefore recorded on both sides of cash book. Such entries, the double entry of which is completed in the cash book itself are called contra entries.

Q:

Write the process of preparing ledger from a journal.

A:

Posting is the process of transferring entries from journal or subsidiary books to the ledger.

The following rules should be observed while posting entries in the ledger:

All transactions relating to an account should be entered at one place.
The word ‘To’ is used before the accounts which appear on the debit side of an account. Similarly the word ‘By’ is used before the accounts which appear on the credit side of an account.
If an account has been debited in the journal entry, the posting in the ledger should also be made on the debit side of such account and If an account has been credited in the journal entry, the posting in the ledger should also be made on the credit side of such account.
Similar amount which has been posted on the debit side of an account should also be posted on the credit side of another account.

Q:

Define the purpose of maintaining subsidiary journal.

A:

The purpose of maintaining subsidiary journal are:

It saves time and efforts in recording.
It enables division of work, leading to an enhancement of efficiency, as particular accountant takes care of particular books.
It also makes each accountant more responsible and accountable for the books assigned to them.
It records routine and repetitive transactions at one place.

Q:

What is petty cash book? How it is prepared?

A:

Petty cash book is the book which is used for the purpose of recording expenses involving small amounts. Besides petty expenses, receipts from main cash are recorded.

Petty cash book is maintained by Petty Cashier and acts as the Petty Cash account.

Under Imprest system of petty cash, an estimate is made of amount required for petty expenses for a period (for a week or a month). The amount so ascertained is given to the Petty Cashier in the beginning of a period. The amount paid by him during the period. Thus he/she will again have the fixed amount in the beginning of the new period reimbursed. This amount is called imprest money and this system of paying advance in the beginning and reimbursing the amount spent from time to time is called imprest system.

Q:

Prepare Return Inward Journal (book) from the following transactions of M/s Bansal Electronics for July 2017:

Date Particulars ₹

04 M/s Gupta Traders returned the goods 1,500

10 Goods returned from M/s Harish Traders 800

18 M/s Rahul Traders returned the goods not as per specifications 1,200

28 Goods returned from Sushil Traders 1,000

A:

Sales Return Book (July 2017)
Dt.	Invoice	Name of Supplier (Account to be Debited)	L.F	₹
4		Gupta Traders		1,500
10		Harish Traders		800
18		Rahul Traders		1,200
28		Sushil Traders		1,000
		Sales Return A/c Dr.		4,500

Q:

Prepare a purchase return (journal) book from the following transactions for April 2017:

Date Particulars ₹

5 Returned goods to M/s Kartik Traders 1,200

10 Goods returned to Sahil Pvt. Ltd 2,500

17 Goods returned to M/s Kohinoor Traders for list price ₹2,000 less 10% trade discount.

28 Return outwards to M/s Handa Traders 550

A:

Purchase Return Book (April 2017)
Dt.	Invoice	Name of Supplier (Account to be Debited)		L.F	₹
5		Kartik Traders			1,200
10		Sahil Pvt. Ltd			2,500
17		Kohinoor Traders
		List Price	2000
		(-) 10% Trade Discount	(200)		1,800
28		Handa Traders			550
		Purchase Return A/c			6,050

Q:

Record the following transaction in simple cash book for November 2016:

Date Particulars ₹

01 Cash in hand 12,500

04 Cash paid to Hari 600

07 Purchased goods 800

12 Cash received from Amit 1,960

16 Sold goods for cash 800

20 Paid to Manish 590

25 Paid cartage 100

30 Paid salary 1,000

A:

Dr. Cash Book (November, 2016) Cr.
Dt.	Particulars	L.F	₹	Dt.	Particulars	L.F	₹
1	To Balance b/d		12,500	4	By Hari		600
12	To Amit		1,960	7	By Purchase		800
16	To Sales		800	20	By Manish		500
				25	By Cartage		100
				30	By Salary		1,000
				30	By Balance c/d		12,170
			15,260				15,260
	2016 (Dec 1)
	To Balance b/d		12,170

Q:

What do you understand by balancing of account?

A:

Accounts in the ledger are periodically balanced, generally at the end of the accounting period, with the object of ascertaining the net position of each amount. Balancing of an account means that the two sides are totaled and the difference between them is shown on the side, which is shorter in order to make their totals equal.

The words ‘balance c/d’ are written against the amount of the difference between the two sides. The amount of balance is brought (b/d) down in the next accounting period indicating that it is a continuing account, till finally settled or closed.

In case the debit side exceeds the credit side, the difference is written on the credit side, if the credit side exceeds the debit side, the difference between the two appears on the debit side and is called debit and credit balance respectively.

The accounts of expenses losses and gains/ revenues are not balanced but are closed by transferring to trading and profit and loss account.

Q:

What is contra entry? How can you deal this entry while preparing double column cash book?

A:

When cash is deposited into the bank or when cash is withdrawn from the bank for use in the office, each such transaction affects both ‘Cash Column’ as well as ‘Bank Column’ and the transaction is therefore recorded on both sides of the cash book. Such entries the double entry of which is complete in the Cash book itself are called ‘Contra entries’.

(a) Cash deposited into bank: When cash is deposited into the bank, it increases the bank balance and reduces the cash balance. Hence, it affects the Cash Column as well as the Bank Column. As such the same amount is recorded on the debit side as well as on the credit side. On the Dr. side ‘To Cash a/c’ is written and the amount is recorded in the bank column. On the Cr. side ‘By Bank A/c’ is written and the amount is recorded in the Cash Column.

Particulars

₹

Debit Bank A/c

(As bank is receiving the cash i.e., Debit the receiver)

Credit Cash A/c (As cash is going out)

For example, If we deposit ₹ 3,000 into the bank, it will be recorded in the cash book as follows:

Dt.	Particulars	L.F.	Cash	Bank	Dt.	Particulars	L.F.	Cash	Bank
			₹	₹				₹	₹
	To Cash	C		3,000		By Bank	C	3,000

(b) Cash withdrawn from Bank for office use: In this case, the cash balance is increased and the bank balance is reduced. On the Dr. Side ‘To Bank A/c’ is written and the amount is recorded in Cash Column. On the Cr. side ‘By Cash A/c’ is written and the amount is recorded in Bank Column.

Particulars

₹

Debit Cash A/c

(As cash is coming in)

Credit Bank A/c (As bank is giver i.e., Credit the giver)

For example, if we withdrew ₹ 1,500 from the bank, it will be recorded in the cash book as follows:

Dt.	Particulars	L.F.	Cash	Bank	Dt.	Particulars	L.F.	Cash	Bank
			₹	₹				₹	₹
	To Bank	C	1,500			By Cash	C		1,500

Cash book itself serves as the cash account and bank account. In order to indicate that these entries are not be posted to the ledger, the word “C” which stands for contra, is written on both sides in L.F. Column.

Q:

Explain the need for drawing up the special purpose books.

A:

If the size of business is small one, it may be possible to enter each and every transaction in one book only, i.e., Journal, which is generally known as the book of original entry. But when the size of the business grows and the number of transactions become very large, it is no longer possible to record all transactions in one journal only. As such the journal is sub-divided into a number of special journals.

These special journals are also known as day books or special purpose books or subsidiary books. Each subsidiary book is meant for recording all the transactions of a similar nature.

Following subsidiary books are most commonly used in a business are:

Cash Book: This book is used for recording all transactions relating to cash/bank receipts and payments.

Purchase Book: This book is used for recording the credit purchase of goods.

Sales Book: This book is used for recording the credit sales of goods.

Purchase Return Book: When the goods previously purchased on credit are returned to the suppliers, such returns are recorded in this book.

Sales Return Book: When the goods previously sold on credit are returned by the customers, such returns are recorded in this book.

Bills Receivable Book: This book is used for recording the receipts of bills receivables, promissory notes from various parties. The trader is to receive payment for these bills.

Bills Payable Book: This book is used for recording the issue of bills payables, promissory notes. The trader is to receive payment for these bills.

Journal proper: This book is used for recording the transactions which cannot be recorded in any other subsidiary books.

Q:

What is difference between trade discount and cash discount?

A:

Distinction between Trade Discount and Cash Discount:

Basis	Trade Discount	Cash Discount
Meaning	It is allowed by wholesaler or manufacturer to the retailers at a fixed percentage on the printed price list.	It is allowed if the customer makes the payment immediately or within a fixed period.
When allowed?	It is allowed when goods are purchased in a specified quantity.	It is allowed when payment is made on or before a specified date.
Object	Generally, it is allowed to the retailers to enable them to make some profit even if they sell the goods at their catalogue price.	It is allowed to encourage quick or prompt payments.
Recording	It is not recorded separately in the books of accounts.	It is recorded separately in the books of accounts.

Q:

The following balances of ledger of M/s Marble Traders on April 01, 2017

Date Particulars ₹

Cash in hand 6,000

Cash at bank 12,000

Bills receivable 7,000

Ramesh (Cr.) 3,000

Stock (Goods) 5,400

Bills payable 2,000

Rahul (Dr.) 9,700

Himanshu (Dr.) 10,000

Transactions during the month were:

Date Particulars ₹

01 Goods sold to Manish 3,000

02 Purchased goods from Ramesh 8,000

03 Received cash from Rahul in full settlement 9,200

05 Cash received from Himanshu on account 4,000

06 Paid to Ramesh by cheque 6,000

08 Rent paid by cheque 1,200

10 Cash received from Manish 3,000

12 Cash sales 6,000

14 Goods returned to Ramesh 1,000

15 Cash paid to Ramesh in full settlement 3,700

Discount received 300

18 Goods sold to Kushal 10,000

20 Paid trade expenses 200

21 Drew for personal use 1,000

22 Goods return from Kushal 1,200

24 Cash received from Kushal 6,000

26 Paid for stationery 100

27 Postage charges 60

28 Salary paid 2,500

29 Goods purchased from Sheetal Traders 7,000

30 Sold goods to Kirit 6,000

Goods purchased from Handa Traders 5,000

Journalise the above transactions and post them to the ledger.

A:

In the Books of M/s Marble Traders Journal Entries
Date	Particulars			JF	Dr. ₹	Cr. ₹
2017
Apr 1	Cash A/c		Dr.		6,000
	Cash at Bank		Dr.		12,000
	Bills Receivable		Dr.		7,000
	Stock		Dr.		5,400
	Rahul		Dr.		9,700
	Himanshu		Dr.		10,000
	To Capital (Bal. figure)					45,100
	To Bills Payable					2,000
	To Ramesh’s A/c					3,000
	(Being balance of all the assets and liabilities brought forward and difference adjusted in capital)
Apr 1	Manish		Dr.		3,000
	To Sales A/c					3,000
	(Being goods sold to Manish)
Apr 2	Purchase A/c		Dr.		8,000
	To Ramesh					8,000
	(Being goods purchased from Ramesh on credit)
Apr 3	Cash A/c		Dr.		9,200
	Discount Allowed A/c				500
	To Rahul					9,700
	(Being cash received in final settlement)
Apr 5	Cash A/c		Dr.		4,000
	To Himanshu					4,000
	(Being cash received)
Apr 6	Ramesh		Dr.		6,000
	To Bank					6,000
	(Being payment made to Ramesh)
Apr 8	Rent		Dr.		1,200
	To Bank					1,200
	(Being rent paid by cheque)
Apr 10	Cash A/c		Dr.		3,000
	To Manish					3,000
	(Being cash received)
Apr 12	Cash		Dr.		6,000
	To Sales					6,000
	(Being goods sold)
Apr 14	Ramesh		Dr.		1,000
	To Purchases Return					1,000
	(Being purchase return to Ramesh)
Apr 15	Ramesh		Dr.		4,000
	To Cash					3,700
	To Discount Received					300
	(Being payment made in full settlement and discount received)
Apr 18	Kushal		Dr.		10,000
	To Sales					10,000
	(Being goods sold to Kushal)
Apr 20	Trade Expenses		Dr.		200
	To Cash					200
	(Being trade expenses paid)
Apr 21	Drawings		Dr.		1,000
	To Cash					1,000
	(Being cash withdraw for personal use)
Apr 22	Sales Return		Dr.		1,200
	To Kushal					1,200
	(Being goods return from Kushal)
Apr 24	Cash		Dr.		6,000
	To Kushal					6,000
	(Being cash received)
Apr 26	Stationery		Dr.		100
	To Cash					100
	(Being stationery purchased)
Apr 27	Postage Charges		Dr.		60
	To Cash					60
	(Being postage charges paid)
Apr 28	Salary	Dr.			2,500
	To Cash					2,500
	(Being salary paid)
Apr 29	Purchase		Dr.		7,000
	To Sheetal Traders					7,000
	(Being goods purchased)
Apr 30	Kirit		Dr.		6,000
	To Sales					6,000
	(Being goods sold to Kirit)
Apr 30	Purchase	Dr.			5,000
	To Handa Traders					5,000
	(Being goods purchased)
					1,35,060	1,35,060

Dr.	Capital Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 30	To Balance c/d		45,100	Apr 1	By Balance b/d		45,100
			45,100				45,100
				May 1	By Balance b/d		45,100

Dr.	Cash Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 1	To Balance b/d		6,000	Apr 15	By Ramesh		3,700
Apr 3	To Rahul		9,200	Apr 20	By Trade Expenses		200
Apr 5	To Himanshu		4,000	Apr 21	By Drawings		1,000
Apr 10	To Manish		3,000	Apr 26	By Stationery		100
Apr 12	To Sales		6,000	Apr 27	By Postage Charges		60
Apr 24	To Kushal		6,000	Apr 28	By Salary		2,500
				Apr 30	By Balance c/d		26,640
			34,200				34,200
May 1	To Balance b/d		26,640

Dr.	Bank Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 1	To Balance b/d		12,000	Apr 6	By Ramesh		6,000
				Apr 8	By Rent		1,200
				Apr 30	By Balance c/d		4,800
			12,000				12,000
May 1	To Balance b/d		4,800

Dr.	Purchases Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 2	To Ramesh		8,000	Apr 31	By Balance c/d		20,000
Apr 29	To Sheetal Traders		7,000
Apr 30	To Handa Traders		5,000
			20,000				20,000

Dr.	Sales Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 30	To Balance c/d		25,000	Apr 1	By Manish		3,000
				Apr 12	By Cash		6,000
				Apr 18	By Kushal		10,000
				Apr 30	By Kirit		6,000
			25,000				25,000

Dr.	Kushai's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 18	To Sales		10,000	Apr 22	By Sales Return		1,200
				Apr 24	By Cash		6,000
				Apr 30	By Balance c/d		2,800
			10,000				10,000
May 1	To Balance b/d		2,800

Dr.	Discount Received Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 30	To Balance c/d		300	Apr 15	By Ramesh		300
			300				300

Dr.	Manish's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 1	To Sales		3,000	Apr 12	By Cash		3,000
			3,000				3,000

Dr.	Rahul's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 1	To balance b/d		9,700	Apr 3	By Cash		9,200
				Apr 3	By Discount Allowed		500
			9,700				9,700

Dr.	Humanshu's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 1	To Balance b/d		10,000	Apr 15	By Cash		4,000
				Apr 30	By Balance c/d		6,000
			10,000				10,000
May 1	To Balance b/d		6,000

Dr.		Bills Receivable Account							Cr.
Date	Particulars		J.F	₹	Date	Particulars	J.F	₹
2017					2017
Apr 1	To Balance b/d			7,000	Apr 30	By Balance c/d		7,000
				7,000				7,000

Dr.	Stock Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 1	To Balance b/d		5,400	Apr 30	By Balance c/d		5,400
			5,400				5,400
May 1	To Balance b/d		5,400

Dr.	Bills Payable Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 30	To Balance c/d		2,000	Apr 1	By Balance b/d		2,000
			2,000				2,000
				May 1	By Balance b/d		2,000

Dr.	Ramesh's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 6	To Bank		6,000	Apr 1	By Balance b/d		3,000
Apr 14	To Purchase Return		1,000	Apr 2	By Purchase		8,000
Apr 15	To Cash		3,700
Apr 18	To Discount Received		300
			11,000				11,000

Dr.	Discount Allowed Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 3	To Rahul		500	Apr 30	By Balance c/d		500
			500				500

Dr.	Rent Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 8	To Bank		1,200	Apr 30	By Balance c/d		1,200
			1,200				1,200

Dr.	Purchases Return Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 30	To Balance c/d		1,000	Apr 14	By Ramesh		1,000
			1,000				1,000

Dr.	Trade Expenses Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 20	To Cash		200	Apr 30	By Balance b/d		200
			200				200

Dr.	Drawings Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 21	To Cash		1,000	Apr 30	By Balance c/d		1,000
			1,000				1,000

Dr.	Sales Return Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 22	To Kushal		1,200	Apr 30	By Balance c/d		1,200
			1,200				1,200

Dr.	Stationery Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 26	To Cash		100	Apr 30	By Balance c/d		100
			100				100

Dr.	Postage Charges Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 27	To Cash		60	Apr 30	By Balance c/d		60
			60				60

Dr.	Salary Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 28	To Cash		2,500	Apr 30	By Balance c/d		2,500
			2,500				2,500

Dr.	Sheetal Traders' Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 30	By Balance c/d		7,000	Apr 29	By Purchase		7,000
			7,000				7,000

Dr.	Kirit's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 30	To Sales		6,000	Apr 30	By Balance c/d		6,000
			6,000				6,000
May 1	To Balance b/d		6,000

Dr.	Handa Trader's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Apr 30	To Balance c/d		5,000	Apr 30	By Purchase		5,000
			5,000				5,000
				May 1	By Balance b/d		5,000

Q:

Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of February 2017:

Date Particulars ₹

01 Goods sold to Sachin 5,000

04 Purchase from Kushal Traders 2,480

06 Sold goods to Manish Traders 2,100

07 Sachin returned goods 600

08 Returns to Kushal Traders 280

10 Sold to Mukesh 3,300

14 Purchased from Kunal Traders 5,200

15 Furniture purchased from Tarun 3,200

17 Bought of Naresh 4,060

20 Return to Kunal Traders 200

22 Return inwards from Mukesh 250

24 Purchased goods from Kirit & Co. for list price of less 10% trade discount 5,700

25 Sold to Shri Chand goods Less 5% trade discount 6,600

26 Sold to Ramesh Brothers 4,000

28 Return outwards to Kirit and Co. less 10% trade discount 1,000

28 Ramesh brothers returned goods 500

A:

Date	Particulars	L.F.	Dr. ₹	Cr. ₹
Feb 15	Furniture A/c		3,200
	To Tarun			3,200
	(Being furniture purchased from Tarun)

Purchase Book
Date	Invoice	Name of the Supplier (Account to be Credited)	L.F	₹
2017
Feb 4		Kushal Traders		2,480
Feb 14		Kunal Traders		5,200
Feb 17		Naresh		4,060
Feb 24		Kirit & Co (₹5,700 – 10% Trade Discount)		5,130
		Purchase Account		16,870

Sales Book
Date	Invoice	Name of the Customer (Account to be Debited)	L.F	₹
2017
Feb 1		Sachin		5,000
Feb 6		Manish Traders		2,100
Feb 10		Mukesh		3,300
Feb 25		Shri Chand goods (₹6,600 – 5% Trade Discount)		6,270
Feb 26		Ramesh Brothers		4,000
		Sales Account		20,670

Purchase Return Book
Date	Debit Note	Name of the Supplier (Account to be Debited)	L.F	₹
2017
Feb 8		Kushal Traders		280
Feb 20		Kunal Traders		200
Feb 28		Kirit & Co (₹1,000 – 10% Trade Discount)		900
		Purchase Return Account		1,380

Sales Return Book
Date	Credit Note	Name of the Customer (Account to be Credited)	L.F	₹
2017
Feb 07		Sachin		600
Feb 22		Mukesh		250
Feb 28		Ramesh Brothers		500
		Sales Return Account		1,350

Dr.	Sales Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 28	To Balance c/d		20,670	Feb 28	By Sundries as per Sales Book		20,670
			20,670				20,670

Dr.	Puchases Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 28	To Sundries as per Purchase Book		16,870	Feb 28	By Balance c/d		16,870
			16,870				16,870

Dr.	Sales Return Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 28	To Sundries as per Sales Return Book		1,350	Feb 28	By Balance c/d		1,350
			1,350				1,350

Dr.	Purchases Return Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 28	To Balance c/d		1,380	Feb 28	By Sundries as per Purchase Return Book		1,380
			1,380				1,380

Dr.	Kushal Traders Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 8	To Purchase Return		280	Feb 4	By Purchase		2,480
Feb 28	To Balance c/d		2,200
			2,480				2,480
				Mar 1	By Balance c/d		2,200

Dr.	Kunal Trader's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 20	To Purchase Return		200	Feb 14	By Purchase		5,200
Feb 20	To Balance c/d		5,000
			5,200				5,200
				Mar 1	By Balance b/d		5,000

Dr.	Naresh's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 28	To Balance c/d		4,060	Feb 17	By Purchase		4,060
			4,060				4,060
				Mar 1	By Balance b/d		4,060

Dr.	Kirit & Co's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 28	To Purchase Return		900	Feb 24	By Purchase		5,130
Feb 28	To Balance c/d		4,230
			5,130				5,130
				Mar 1	By Balance b/d		4,230

Dr.	Sachin's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 1	To Sales		5,000	Feb 7	By Sales Return		600
				Feb 28	By Balance c/d		4,400
			5,000				5,000
Mar 1	To Balance b/d		4,400

Dr.	Manish Traders's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 6	To Sales		2,100	Feb 28	By Balance c/d		2,100
			2,100				2,100
Mar 1	To Balance b/d		2,100

Dr.	Mukesh's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 10	To Sales		3,300	Feb 22	By Sales Return		250
				Feb 28	By Balance c/d		3,050
			3,300				3,300
Mar 1	To Balance b/d		3,050

Dr.	Shri Chand & Co's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 25	To Sales		6,270	Feb 28	By Balance c/d		6,270
			6,270				6,270
Mar 1	To Balance b/d		6,270

Dr.	Ramesh Brothers' Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 28	To Sales		4,000	Feb 28	By Sales Return		500
				Feb 28	By Balance c/d		3,500
			4,000				4,000
Mar 1	To Balance b/d		3,500

Dr.	Furniture Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 15	To Tarun		3,200	Feb 28	By Balance c/d		3,200
			3,200				3,200

Dr.	Tarun's Account						Cr.
Date	Particulars	J.F	₹	Date	Particulars	J.F	₹
2017				2017
Feb 28	To Balance c/d		3,200	Feb 15	By Furniture		3,200
			3,200				3,200

Q:

Enter the following transactions in sales (journal) book of M/s Bansal electronics of September, 2014: September 01: Sold to Amit Traders as per bill no. 4321 20 pocket Radio @ ₹70 per Radio 2, T.V. set, B&W (6”) @ ₹800 per T.V. 10 Sold to Arun Electronics as per bill no. 4351 5 T.V. sets (20’’) B&W @ ₹3000 per T.V 2 T.V. sets (21”) Colour @ ₹4,800 per T.V. September 22: Sold to Handa Electronics as per bill no. 4399 10 tape recorders @ ₹600 each 5 Walkman @ ₹300 per each September 28: Sold to Harish Trader as per bill no. 4430 10 Mixed Juicer Grinders @ ₹800 each

A:

Sales Journal Book (September 2014)
Dt.	Invoice	Name of Customer (Account to be Debited)	L.F	₹
1	4321	Amit Traders		3,000
10	4351	Arun Electronics		24,600
22	4399	Handa Electronics		7,500
28	4430	Harish Traders		8,000
				43,100

Working Notes:

(i) Computation of Sales Figure of Amit Traders
20 Pocket Radio @ ₹70 per radio	1,400
2 TV sets @ ₹800 per TV	1,600
	3,000

(i) Computation of Sales Figure of Arun Electronics
5 TV @ ₹3,000 per TV	15,000
2 TV @ ₹4,800 per TV	9,600
	24,600

(i) Computation of Sales Figure of Handa Electronics
10 Tape Recorder @ ₹600	6,000
5 Walkman @ ₹300	1,500
	7,500

(i) Computation of Sales Figure of Harish Traders
10 Mixer Juicer @ ₹800 each	8,000
	8,000

Q:

Enter the following transactions in the Purchase Journal of M/s Gupta Traders of July 2017: July 01: Bought from Rahul Traders as per invoice no. 20041 40 Registers @ ₹60 each 80 Gel pens @ ₹15 each 50 note books @ ₹20 each Trade discount 10% July 15: Bought from Global Stationers as per invoice no. 1132 40 Ink Pads @ ₹8 each 50 files @ ₹10 each 20 Color Books @ ₹20 each Trade Discount 5% July 23: Purchased from Lamba Furniture as per invoice no. 3201 2 chairs @ ₹600 per chair 1 table @ ₹1,000 per table July 25: Bought from Mumbai Traders as per invoice no. 1111 10 Paper Rim @ ₹100 per rim 400 drawing sheets @ ₹3 each 20 Packets waters colour @ ₹40 per packet

A:

Purchase Journal Book (July 2017)
Dt.	Invoice	Name of Supplier (Account to be Credited)	L.F	₹
1	20041	Rahul Traders		4,140
15	1132	Global Stationers		1,159
25	1111	Mumbai Traders		3,000
				8,299

Working Notes:

(i) Computation of purchase from Rahul Traders
40 Register @ ₹60 each = ₹2,400	4,600
80 Gel Pens @ ₹15 each = ₹1,200	-10% (Trade Discount 460)
50 Note books @ ₹20 each = ₹1,000	4,140

(ii) Computation of purchase from Global Stationers
40 Ink Pads @ ₹8 each = ₹320	1,220
50 Files @ ₹10 each = ₹500	(-) 5% (Trade Discount 61)
20 Colour Books @ ₹20 each = ₹400	1,159

(iii) Computation of purchase from Mumbai Traders
10 Paper rim @ ₹10 per Rim = ₹1,000
400 Drawing Sheets @ ₹3 each = ₹1,200	3,000
20 Packet Water Colour @ ₹40 per Packet = ₹800

Note: Purchase of Lamba Furniture will not be part of Purchase Journal as it is Purchase of Capital Goods.

Q:

Record the following transactions during the week ending Dec. 30, 2017 with a weekly imprest ₹500.

Date Particulars ₹

2017

Dec.

24 Stationery 100

25 Bus fare 12

25 Cartage 40

26 Taxi fare 80

27 Wages to casual labour 90

29 Postage 80

A:

Dr. Petty Cash Book (December, 2017) Cr.
				Analysis of Payment
₹ Received	Dt.	Particulars	₹ Paid	Stationery	Conveyance	Cartage	Postage	Misc. expenses
500	24	Cash Received
	24	Stationery	100	100
	25	Bus fare	12		12
	25	Cartage	40			40
	26	Taxi Fare	80		80
	27	Wages to Casual labour	90					90
	29	Postage	80				80
500			402	100	92	40	80	90
98	30	Balance c/d	98
402	31	Balance b/d	500

Q:

Prepare petty cash book from the following transactions. The imprest amount is ₹2,000.

Date Particulars ₹

2017

Jan

01 Paid cartage 50

02 STD charges 40

02 Bus fare 20

03 Postage 30

04 Refreshment for employees 80

06 Courier charges 30

08 Refreshment of customer 50

10 Cartage 35

15 Taxi fare to manager 70

18 Stationery 65

20 Bus fare 10

22 Fax charges 30

25 Telegrams charges 35

27 Postage stamps 200

29 Repair on furniture 105

30 Laundry expenses 115

31 Miscellaneous expenses 100

A:

Dr. Petty Cash Book (January 2017) Cr.
				Analysis of the Payment
₹ Received	Dt.	Particulars	₹ Paid	Cartage	Postage	Telephone Exp	Conveyance	Stationery	Misc.
2000	1	Cash received
	1	Paid cartage	50	50
	2	STD charges	40			40
	2	Bus fare	20				20
	3	Postage	30		30
	4	Refreshment for employee	80						80
	6	Courier charges	30		30
	8	Refreshment of customer	50						50
	10	Cartage	35	35
	15	Taxi fare to manager	70				70
	18	Stationery	65					65
	20	Bus fare	10				10
	20	Fax charges	30			30
	25	Telegram charges	35			35
	27	Postage stamps	200		200
	29	Repair of furniture	105						105
	30	Laundry expenses	115						115
	31	Misc. expenses	100						100
2000	31	Balance c/d	1065	85	260	105	100	65	450
	Feb
935	1	Balance b/d	935
1065	1	Cash	2000

Q:

M/s Ruchi Traders started their cash book with the following balances July, 2017: cash in hand ₹1,354 and balance in bank current account ₹7,560. He had the following transaction in the month of July, 2017:

Date Particulars ₹

03 Cash sales 2,300

05 Purchased goods, paid by cheque 6,000

08 Cash sales 10,000

12 Paid trade expenses 700

15 Sales goods, received cheque (deposited same day) 20,000

18 Purchased motor car paid by cheque 15,000

20 Cheque received from Manisha (deposited same day) 10,000

22 Cash sales 7,000

25 Manisha’s cheque returned dishonoured

28 Paid rent 2,000

29 Paid telephone expenses by cheque 500

31 Cash withdrawn for personal use 2,000

Prepare bank column cash book.

A:

Dr.	Cash Book (July, 2017)								Cr.
Dt.	Particulars	L.F	Cash	Bank	Dt.	Particulars	L.F	Cash	Bank
			₹	₹				₹	₹
1	To Bal. b/d		1354	7560	5	By Purchase			6000
3	To Sales		2300		12	By Trade Expenses		700
8	To Sales		10000		18	By Motor Car			15000
15	To Sales			20000	25	By Manisha (Dishonour)			10000
20	To Manisha			10000	28	By Rent		2000
22	To Sales		7000		29	By Telephone Expenses			500
					31	By Drawings		2000
					31	By Bal. c/d		15954	6080
			20,654	37,560				20,654	37,560
	2017 Aug 1
	To Bal. b/d		15954	6080

Q:

Prepare double column cash book from the following transactions for the year August 2017:

Date Particulars ₹

01 Cash in hand 17,500

Cash at bank 5,000

03 Purchased goods for cash 3,000

05 Received cheque from Jasmeet 10,000

08 Sold goods for cash 7,000

10 Jasmeet’s cheque deposited into bank

12 Purchased goods and paid by cheque 20,000

15 Paid establishment expenses through bank 1,000

18 Cash sales 7,000

20 Deposited into bank 10,000

24 Paid trade expenses 500

27 Received commission by cheque 6,000

29 Paid rent 2,000

30 Withdrew cash for personal use 1,200

31 Salary paid 6,000

A:

Dr.	Cash Book (August, 2017)								Cr.
Dt.	Particulars	L.F	Cash	Bank	Dt.	Particulars	L.F	Cash	Bank
			₹	₹				₹	₹
1	To Bal. b/d		17500	5000	3	By Purchase		3000
5	To Jasmeet		10000		10	By Bank		10000
8	To Sales		7000		12	By Purchase			20000
10	To Cash	c		10000	15	By Establishment			1000
18	To Sales		7000		20	By Bank		10000
20	To Cash			10000	24	By Trade Expenses		500
27	To Commission			6000	29	By Rent		2000
					30	By Drawings		1200
					31	By Salary		6000
					31	By Bal. c/d		8800	10000
			41,500	31,000				41,500	31,000
	2017 Sept. 1
	To Bal. b/d		8800	10000

Q:

Enter the following transaction in a double column cash book of M/s Mohit Traders for January 2017:

Date Particulars ₹

01 Cash in hand 3,500

Bank overdraft 2,300

03 Goods purchased for cash 1,200

05 Paid wages 200

10 Cash sales 8,000

15 Deposited into bank 6,000

22 Sold goods for cheque which was deposited into bank same day 2,000

25 Paid rent by cheque 1,200

28 Drew from bank for personal use 1,000

31 Bought goods by cheque 1,000

A:

Dr.	Cash Book (January, 2017)								Cr.
Dt.	Particulars	L.F	Cash	Bank	Dt.	Particulars	L.F	Cash	Bank
			₹	₹				₹	₹
1	To Balance b/d		3500		1	By Bal. b/d (overdraft)			2,300
10	To Sales		8000		3	By Purchase		1200
15	To Cash	c		6000	5	By Wages		200
22	To Sales			2000		By Bank		6000
						By Rent			1200
						By Drawings			1000
						By Purchase			1000
						By Bal. c/d		4100	2500
			11,500	8,000				11,500	8,000
	Feb. 1					Feb. 1
	To Bal. b/d		4,100	2,500

Q:

Prepare double column cash book from the following information for July 2017:

Date Particulars ₹

01 Cash in hand 7,500

Bank overdraft 3,500

03 Paid wages 200

05 Cash sales 7,000

10 Cash deposited into bank 4,000

15 Goods purchased and paid by cheque 2,000

20 Paid rent 500

25 Drew from bank for personal use 400

30 Salary paid 1,000

A:

Dr.	Cash Book (July, 2017)								Cr.
Dt.	Particulars	L.F	Cash	Bank	Dt.	Particulars	L.F	Cash	Bank
			₹	₹				₹	₹
1	To Bal. b/d		7500		1	By Bal. b/d (Overdraft)			3500
5	To Sales		7000		3	By Wages		200
10	To Cash	c		4000	10	By Bank	c	4000
31	To Bal. c/d (overdraft)			1900	15	By Purchase			2000
					20	By Rent		500
					25	By Drawings			400
					30	By Salary		1000
					31	By Bal. c/d		8800
			14,500	5,900				14,500	5,900
	2017 Aug 1					2017 Oct 1
	To Bal. b/d		8,800			By Bal. b/d			1,900

Q:

Enter the following transactions in double column cash book of M/s Ambica Traders for July 2017:

Date Particulars ₹

01 Commenced business with cash 50,000

03 Opened bank account with ICICI 30,000

05 Purchased goods for cash 10,000

10 Purchased office machine for cash 5,000

15 Sales goods on credit from Rohan and received cheque 7,000

18 Cash sales 8,000

20 Rohan’s cheque deposited into bank

22 Paid cartage by cheque 500

25 Cash withdrawn for personal use 2,000

30 Paid rent by cheque 1,000

A:

Dr.	Cash Book (July, 2017)								Cr.
Dt.	Particulars	L.F	Cash	Bank	Dt.	Particulars	L.F	Cash	Bank
			₹	₹				₹	₹
1	To Capital		50000		3	By Bank	c	30000
3	To Cash	c		30000	5	By Purchase		10000
15	To Rohan		7000		10	By Machinery		5000
18	To Sales		8000		20	By Bank	c	7000
20	To Cash	c		7000	22	By Cartage			500
					25	By Drawings		2000
					30	By Rent			1000
					30	By Balance c/d		11000	35500
			65,000	37,000				65,000	37,000
	2017 Aug 1
	To Bal. c/d		11,000	35,500

Q:

Prepare a double column cash book with the help of following information for December 2016:

Date Particulars ₹

01 Started business with cash 1,20,000

03 Cash paid into bank 50,000

05 Purchased goods from Sushmita 20,000

06 Sold goods to Dinker and received a cheque 20,000

10 Paid to Sushmita cash 20,000

14 Cheque received on December 06,2016 deposited into bank

18 Sold goods to Rani 12,000

20 Cartage paid in cash 500

22 Received cash from Rani 12,000

27 Commission received 5,000

30 Drew cash for personal use 2,000

A:

Dr.	Cash Book (December, 2016)								Cr.
Dt.	Particulars	L.F	Cash	Bank	Dt.	Particulars	L.F	Cash	Bank
			₹	₹				₹	₹
1	To Capital		120000		3	By Bank	c	50000
3	To Cash	c		50000	10	By Sushmita		20000
6	To Dinker		20000		14	By Bank	c	20000
14	To Cash	c		20000	20	By Cartage		500
22	To Rani		12000		30	By Drawings		2000
27	To Comm.		5000		31	By Balance c/d		64500	70000
			157000	70000				157000	70000
	2017 Jan 1
	To Bal. b/d		64500	70000

Q:

Record the following transactions in a bank column cash book for December 2016:

Date Particulars ₹

01 Started business with cash 80,000

04 Deposited in bank 50,000

10 Received cash from Rahul 1,000

15 Bought goods for cash 8,000

22 Bought goods by cheque 10,000

25 Paid to Shyam by cash 20,000

30 Drew from Bank for office use 2,000

31 Rent paid by cheque 1,000

A:

Dr.	Cash Book (December, 2016)								Cr.
Dt.	Particulars	L.F	Cash	Bank	Dt.	Particulars	L.F	Cash	Bank
			₹	₹				₹	₹
1	To Capital		80,000		4	By Bank	c	50,000
4	To Cash	c		50,000	15	By Purchase		8,000
10	To Rahul		1,000		22	By Purchase			10,000
30	To Bank	c	2,000		25	By Shyam		20,000
					30	By Cash	c		2,000
					31	By Rent			1,000
					31	By Balance c/d		5,000	37,000
			83,000	50,000				83,000	50,000
	2017 Jan 1
	To Bal. b/d		5,000	37,000

Note: In case when Cash and Bank both are recorded, there will be a contra entry and ‘C’ will be written in (L.F) column.

Q:

Enter the following transaction in Simple cash book for December 2017:

Date Particulars ₹

01 Cash in hand 7,750

06 Paid to Sonu 45

08 Purchased goods 600

15 Received cash from Parkash 960

20 Cash sales 500

25 Paid to S.kumar 1,200

30 Pain rent 600

A:

Dr.	Cash Book (December, 2017)						Cr.
Dt.	Particulars	L.F	₹	Dt.	Particulars	L.F	₹
1	To Balance b/d		7,750	6	By Sonu		45
15	To Prakash		960	8	By Purchase		600
20	To Sales		500	25	By S. Kumar		1,200
				30	By Rent		600
				31	By Balance c/d		6,765
			9,210				9,210
	2018 (Jan 1)
	To Balance b/d		6,765

Q:

Enter the following transactions in a simple cash book for December 2016:

Date Particulars ₹

01 Cash in hand 12,000

05 Cash received from Bhanu 4,000

07 Rent paid 2,000

10 Purchased goods Murari for cash 6,000

15 Sold goods for cash 9,000

18 Purchase stationery 300

22 Cash paid to Rahul on account 2,000

28 Paid salary 1,000

30 Paid rent 500

A:

Dr. Cash Book (December, 2016) Cr.
Dt.	Particulars	L.F	₹	Dt.	Particulars	L.F	₹
1	To Balance b/d		12,000	7	By Rent		2,000
5	To Bhanu		4,000	10	By Purchase		6,000
15	To Sales		9,000	18	By Stationery		300
				22	By Rahul		2,000
				28	By Salary		1,000
				30	By Rent		500
				31	By Balance c/d		13,200
			25,000				25,000
	2017 (Jan 1)
	To Balance b/d		13,200

Q:

Describe the advantages of sub-dividing the journal.

A:

Sub-division of the journal into various books for recording transactions of similar nature is called sub-division of journal.

Advantages of sub-division of journal:

Division of work according to ability: Since there will be eight subsidiary books in place of one journal, the accounting work can be divided among different persons according to their ability
Increase in efficiency: Because each person is entrusted the work of a particular book over a period of time, he becomes efficient in handling it. This will lead to the work being completed quickly and more accurately.
Easiness in Posting: Since all transactions of a particular nature are already collected at one place, it facilitates the posting into the ledger. For example, all credit purchase are collected in purchase book and only the total of purchase book is to be posted to the purchase account in the ledger.
Easiness in Checking: In case the trial balance does not agree, the existence of separate books helps in the detection of errors quickly.
Protection from frauds: If only one book i.e., journal is maintained; only one person will be incharge of it. In such a case it is easier to commit a fraud. By the use of subsidiary books the work is divided among various persons, as such as the possibility of forgery and manipulation is greatly reduced.
Full information at one place: By the use of subsidiary books classified information in the form of cash receipts, cash payments, cash balance, credit purchases, credit sales etc. is readily available at one place. Such information helps the management in day to day decision making.
Flexible: It is not necessary for every business firm to use all the eight books. The number of books can be increased or decreased according to the needs of the particular business.
Fixation of Responsibility: Each employee is entrusted with a particular subsidiary book and as such he can be held responsible for the errors committed in that very book.

Q:

What is petty cash book? Write the advantages of petty cash book?

A:

Petty cash book is the cash book in which expenses involving small amount like postage, stationery, bus fare, taxi fare, cartage etc. are recorded.

Advantages of Petty Cash Book:

Saving of Time and efforts of chief cashier: As petty cashier handles the work of making all petty expenses and recording them as well, a lot o time and energy of the main cashier is saved.
Easiness in Posting: Only the total of each head of expense is posted into the ledger. As such a lot of space is saved and the posting becomes very convenient.
Easiness in preparing the cash book: As the number of small payments in every business is quite large and as these are recorded in the petty cash book itself, the main cash book is not overburdened and can be more easily totaled.
Control on petty expenses: The main cashier keeps checking the petty cash book from time to time and a proper check is put on any unnecessary expenditure.
Lesser chances of fraud: Petty cashier obtains a receipt of every payment made by him and keeps a proper record of them. The receipts are duly signed by the main cashier while reimbursing the amount to the petty cashier. As such, it minimises the chances of fraud.
Simple method: The maintenance of petty cash book does not require any specialised knowledge of accounting.

Q:

What is cash book? Explain the types of cash book.

A:

Cash book is used for recording all transactions relating to cash receipts and cash payments. All banking transactions relating to receipts and payments are also recorded in this book.

Cash book may be of four types:

(1) Single column Cash Book or One column Cash Book: This book is used for recording cash transactions only. Its format is similar to an account, with one amount column on each side. The left hand side known as ‘Debit’ records of cash and the right hand side known as ‘Credit’ records payments.

Format:

Dt.

Particulars

(Receipts)

L.F.

₹

Dt.

Particulars

(Payments)

L.F.

₹

xxx

xx

xxx

xx

(2) Double Column Cash Book: This cash book which has two columns on each side of the cash book, one to record cash transactions and another to record discount allowed and discount received. In double column cash book, transactions of cash receipts and payments are recorded along with cash discount allowed or received, if any.

Double column cash book may have the following columns:

Cash and discount column; or
Bank and discount column; or
Cash and bank columns.

Format:

Dt.

Particulars

L.F.

Discount

Allowed

Cash

₹

Dt.

Particulars

L.F.

Discount Received

Cash

₹

(3) Triple Column Cash Book: This type of cash book is similar to the cash book having cash and bank columns and one additional column on each side is provided for recording discount. As discount is a nominal account discount allowed while receiving payments is written on the debit side and discount received while making payments is written on the credit side.

While balancing, cash columns and bank columns are balanced but discount columns are merely totaled but not balanced.

Format:

Dt.

Particulars

L.F.

Discount

Allowed

Cash

₹

Bank

₹

Dt.

Particulars

L.F.

Discount Received

Cash

₹

Bank

₹

(4) Petty Cash book: Petty cash book is the book which is used for the purpose of recording expenses involving small amounts. In a business besides large payments a number of small payments, such as for conveyance, stationery, cartage etc. have to be made. These payments are generally repetitive in nature. This book is prepared to make a record of petty expenses.

NCERT Solutions For Class 11 Accountancy Chapter 8 Recording of Transactions - II

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Date	Particulars	₹
04	M/s Gupta Traders returned the goods	1,500
10	Goods returned from M/s Harish Traders	800
18	M/s Rahul Traders returned the goods not as per specifications	1,200
28	Goods returned from Sushil Traders	1,000

Date	Particulars	₹
5	Returned goods to M/s Kartik Traders	1,200
10	Goods returned to Sahil Pvt. Ltd	2,500
17	Goods returned to M/s Kohinoor Traders for list price ₹2,000 less 10% trade discount.
28	Return outwards to M/s Handa Traders	550

Date	Particulars	₹
01	Cash in hand	12,500
04	Cash paid to Hari	600
07	Purchased goods	800
12	Cash received from Amit	1,960
16	Sold goods for cash	800
20	Paid to Manish	590
25	Paid cartage	100
30	Paid salary	1,000

Date	Particulars	₹
01	Goods sold to Sachin	5,000
04	Purchase from Kushal Traders	2,480
06	Sold goods to Manish Traders	2,100
07	Sachin returned goods	600
08	Returns to Kushal Traders	280
10	Sold to Mukesh	3,300
14	Purchased from Kunal Traders	5,200
15	Furniture purchased from Tarun	3,200
17	Bought of Naresh	4,060
20	Return to Kunal Traders	200
22	Return inwards from Mukesh	250
24	Purchased goods from Kirit & Co. for list price of less 10% trade discount	5,700
25	Sold to Shri Chand goods Less 5% trade discount	6,600
26	Sold to Ramesh Brothers	4,000
28	Return outwards to Kirit and Co. less 10% trade discount	1,000
28	Ramesh brothers returned goods	500

Date	Particulars	₹
03	Cash sales	2,300
05	Purchased goods, paid by cheque	6,000
08	Cash sales	10,000
12	Paid trade expenses	700
15	Sales goods, received cheque (deposited same day)	20,000
18	Purchased motor car paid by cheque	15,000
20	Cheque received from Manisha (deposited same day)	10,000
22	Cash sales	7,000
25	Manisha’s cheque returned dishonoured
28	Paid rent	2,000
29	Paid telephone expenses by cheque	500
31	Cash withdrawn for personal use	2,000

Date	Particulars	₹
01	Commenced business with cash	50,000
03	Opened bank account with ICICI	30,000
05	Purchased goods for cash	10,000
10	Purchased office machine for cash	5,000
15	Sales goods on credit from Rohan and received cheque	7,000
18	Cash sales	8,000
20	Rohan’s cheque deposited into bank
22	Paid cartage by cheque	500
25	Cash withdrawn for personal use	2,000
30	Paid rent by cheque	1,000

Date	Particulars	₹
01	Started business with cash	1,20,000
03	Cash paid into bank	50,000
05	Purchased goods from Sushmita	20,000
06	Sold goods to Dinker and received a cheque	20,000
10	Paid to Sushmita cash	20,000
14	Cheque received on December 06,2016 deposited into bank
18	Sold goods to Rani	12,000
20	Cartage paid in cash	500
22	Received cash from Rani	12,000
27	Commission received	5,000
30	Drew cash for personal use	2,000

NCERT Solutions For Class 11 Accountancy Chapter 8 Recording of Transactions - II

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What do you understand by imprest amount in petty cash book?

Explain the meaning of posting of journal entries?

What are special purpose books?

Briefly state how the cash book is both journal and ledger.

What do you understand by ledger folio?

Write the difference between Returns inward and Returns outward.

What is the purpose of contra entry?

Write the process of preparing ledger from a journal.

Define the purpose of maintaining subsidiary journal.

What is petty cash book? How it is prepared?

Record the following transaction in simple cash book for November 2016: Date Particulars ₹ 01 Cash in hand 12,500 04 Cash paid to Hari 600 07 Purchased goods 800 12 Cash received from Amit 1,960 16 Sold goods for cash 800 20 Paid to Manish 590 25 Paid cartage 100 30 Paid salary 1,000

What do you understand by balancing of account?

What is contra entry? How can you deal this entry while preparing double column cash book?

Explain the need for drawing up the special purpose books.

What is difference between trade discount and cash discount?

Record the following transactions during the week ending Dec. 30, 2017 with a weekly imprest ₹500. Date Particulars ₹ 2017 Dec. 24 Stationery 100 25 Bus fare 12 25 Cartage 40 26 Taxi fare 80 27 Wages to casual labour 90 29 Postage 80

Enter the following transaction in Simple cash book for December 2017: Date Particulars ₹ 01 Cash in hand 7,750 06 Paid to Sonu 45 08 Purchased goods 600 15 Received cash from Parkash 960 20 Cash sales 500 25 Paid to S.kumar 1,200 30 Pain rent 600

Describe the advantages of sub-dividing the journal.

What is petty cash book? Write the advantages of petty cash book?

What is cash book? Explain the types of cash book.

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Record the following transaction in simple cash book for November 2016:

Date Particulars ₹

01 Cash in hand 12,500

04 Cash paid to Hari 600

07 Purchased goods 800

12 Cash received from Amit 1,960

16 Sold goods for cash 800

20 Paid to Manish 590

25 Paid cartage 100

30 Paid salary 1,000

Record the following transactions during the week ending Dec. 30, 2017 with a weekly imprest ₹500.

Date Particulars ₹

2017

Dec.

24 Stationery 100

25 Bus fare 12

25 Cartage 40

26 Taxi fare 80

27 Wages to casual labour 90

29 Postage 80

Enter the following transaction in Simple cash book for December 2017:

Date Particulars ₹

01 Cash in hand 7,750

06 Paid to Sonu 45

08 Purchased goods 600

15 Received cash from Parkash 960

20 Cash sales 500

25 Paid to S.kumar 1,200

30 Pain rent 600