NCERT Solutions for Class 11 Accountancy Chapter 3 Recording of Transactions 1

Q.1 State the three fundamental steps in the accounting process.

Ans.

The fundamental steps in the accounting process are:

1. Identifying financial transactions.
2. Recording in the books of accounts.
3. Classifying the recorded entries.
4. Preparing financial statements
5. Communicating to internal and external users

Q.2 Why is the evidence provided by source documents important to accounting?

Ans.

A source document is of prime importance in accounting because accounting is based on factual financial information, i.e., evidence. For example, a cash memo showing cashes sales or an invoice showing sales of goods on credit.

The source documents are the information about the transaction based on which accounts are debited or credited with the transaction amount.

Source documents acts as a proof in the court of law.

Q.3 Should a transaction be first recorded in a journal or ledger? Why?

Ans.

A journal is the primary book of accounts in which transactions are first recorded in a chronological order, i.e., as they are entered into, while Ledger is a master record of all the accounts of a business firm and is prepared from Journal.

Q.4 Are debits or credits listed first in journal entries? Are debits or credits indented?

Ans.

As per the rule of double entry system,, there are two columns of ‘Amount’ in the journal format namely ‘Debit amount’ and ‘Credit amount’.

Journal entry is recorded in journal format in which the ‘Debit amount’ column is listed before the ‘Credit amount ‘column.

In the particulars column, the account title to be debited is written on the first line beginning from the left hand corner and the word ‘Dr.’ is written at the end of the column. The account title to be credited is written on the second line leaving sufficient margin on the left side with a prefix ‘To.’

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, debit amount column records the amount against the account to be debited and similarly the credit amount column records the amount against the account to be credited.

Q.5 Why some accounting systems are called double accounting systems?

Ans.

Double accounting system refers as the system which recognize and records both aspects i.e., debit and credit of a transaction. In this system, one aspect is debited and the other aspect is credited following the rules of debit and credit.The double entry system has proved to be a scientific and complete system of accounting.

Q.6 Give a specimen of an account.

Ans.

Dr. Name of the Account Cr.
Date	Particulars	J.F.		Date	Particulars	J.F.
Date of the transaction	Name of the other account	Page of reference number of the subsidiary book	Amount of the transaction	Date of transaction	Name of the other account	Page of reference number of the subsidiary book	Amount of the transaction

Q.7 Why are the rules of debit and credit same for both liability and capital?

Ans.

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.

The concept of business entity assumes that business has a distinct entity from its owners.

Types of Account	Accounts to be Debited	Accounts to be Credited
Liabilities A/c	Decrease	Increase
Capital A/c	Decrease	Increase

Q.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?

Ans.

In ledgers, Folio column is used to provide a reference back to the journal from where the posting has been made so that if accountant is not sure about the posting then he /she can go back and check it from the journals as well as he/she will not only have the amount but also the date, description and the other accounts being affected in the transaction.

Q.9 What entry (debit or credit) would you make to:

1. increase revenue.
2. decrease in expense.
3. record drawings.
4. record the fresh capital introduced by the owner.

Ans.

1. Increase revenue: Credits (Increases in revenue or income is credit and decreases are debits)
2. Decrease in expense: Credits (Increases in expenses are debits and decreases are credits)
3. Record drawings: Debit (Capital account is debited when the proprietor makes drawings)
4. Record the fresh capital introduced by the owner: Credit (Capital account is credited when the proprietor introduces further capital)

Q.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?

Ans.

• If a transaction has the effect of decreasing an asset, is credited.
• If the transaction has the effect of decreasing a liability, is debited.

Q.11 Describe the events recorded in accounting systems and the importance of source documents in those systems?

Ans.

Events that are 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 staff cannot be recorded but increment in salary can be recorded at the time when salary is paid or due.

Transactions are recorded in the books of accounts on the basis of evidence which are bills of purchases, invoices for sales, debit and credit notes, etc. These evidences being the basis of recording entry are known as source documents.

Example:

1. Purchased furniture for 10,000 vide cash memo No. 123
2. Purchased garments on credit from ABC Store for 20,000 vide bill No. 111
3. Withdrew 5,000 for personal use by cheque No. 12314

Importance of source documents:

1. It provides evidence that transaction have taken place.
2. It provides information about the date, amount and parties involved and other details of a particular transaction.
3. It acts as evidence in the count of law.
4. The most common source documents are cash memo, invoice or bill, receipt, pay-in-slip, cheque, debit and credit note.

Q.12 Describe how debits and credits are used to analyse transactions.

Ans.

Debit and credit are simply additions to or subtractions from an account. Debit refers to the left side of an account and credit refers to the right side of an account.

An item recorded on the debit side of an account is said to be debited to the account, a debit entry signifies that value has flowed to the named account, e.g., payment to a creditor signifies that payment has been made for the goods purchased from him/her.

An item recorded on the credit side of an account is said to be credited to the account. A credit entry signifies that value has flown from the source indicated by the name of the account, e.g., receipt of cash from a debtor signifies that debtor has made payment for the goods purchased by him/her.

Q.13 Describe how accounts are used to record information about the effects of transactions?

Ans.

All accounts are divided into five categories for the purpose of recording the transactions:

(a) Asset, (b) Liability, (c) Capital, (d) Expenses/Losses and (e) Revenue/Gains.

The rules of debit and credit applicable to the different kinds of accounts:

For recording changes in Assets/Expenses (Losses):

• Increase in asset is debited, and decrease in asset is credited.
• Increase in expenses/losses is debited, and the decrease in expenses/losses is credited.

For recording changes in Liabilities and Capital/Revenue (Gains):

• Increase in liabilities is credited and decrease in liabilities is debited.
• Increase in capital is credited and decrease in capital is debited.
• Increase in revenue/gain is credited and decrease in revenue/gain is debited.

Types of Account	Accounts to be Debited	Accounts to be Credited
Assets A/c	Increase	Decrease
Liabilities A/c	Decrease	Increase
Capital A/c	Decrease	Increase
Revenue A/c	Decrease	Increase
Expense A/c	Increase	Decrease

Q.14 What is journal? Give a specimen of journal showing at least five entries.

Ans.

Journal is the basic book of original entry. In this book, transactions are recorded in the chronological order, as and when they take place. Afterwards, transactions from this book are posted to the respective accounts.

Each transaction is separately recorded after determining the particular account to be debited or credited.

A journal is a record which shows complete details of a transaction in one entry.

The format of Journal is:

Date	Particulars			L.F.	Dr.	Cr.
	Cash A/c	Dr.			2,00,000
	To Capital A/c					2,00,000
	(Being business started with cash)
	Purchases A/c	Dr.			40,000
	To Samira A/c					40,000
	(Being goods purchased on credit)
	Furniture A/c	Dr.			50,000
	To Bank A/c					50,000
	(Being purchased furniture and made payment through bank)
	Stationery A/c	Dr.			600
	To Cash A/c					600
	(Being purchase of stationery for cash)
	Bank A/c	Dr.			15,000
	To Cash A/c					15,000
	(Being opened a bank account with SBI)
	Insurance Premium A/c		Dr.		2,000
	To Bank A/c					2,000
	(Being payment of insurance premium by cheque)

• The first column in a journal is Date on which the transaction took place.
• In the Particulars column, two aspects of transactions are recorded.
• In the Ledger Folio (L.F.), the number of the ledger page is written to which the amount is posted in the ledger.
• In the Debit amount column, the amount debited is written.
• In the Credit amount column, the amount credited is written.

Q.15  Differentiate between source documents and vouchers.

Ans.

Difference between source documents and vouchers:

Basis of Difference	Source Documents	Vouchers
Meaning	It refers to the documents containing the details of events or transactions.	It refers, when source document is considered as evidence of an event or transaction is called voucher.
Purpose	It is used for preparing accounting vouchers.	It is used for analysing the 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.
Prepared by	It is prepared by persons who are directly involved in the transaction or who are authorised to prepare	It is prepared by the authorised persons or by the accountants.
Recording	It acts as a basis for preparing accounting vouchers that helps in recording.	It acts as a basis for recording transactions.

Q.16 Accounting equation remains intact under all circumstances. Justify the statement with the help of an example.

Ans.

Accounting equation signifies that the assets of a business are always equal to the total of its liabilities and capital.

The equation is as follows:

Assets = Liabilities + Capital

Or

A = L + C

The above equation can also be presented in the following forms as its derivatives to enable the determination of missing figures of Capital (C) or Liabilities (L).

A – L = C

A – C = L

The accounting equation depicts the fundamental relationship among the components of the balance sheet is also called the Balance Sheet Equation.

Examples:

1. If the capital of a business is 2,00,000 and outside liabilities are 1,20,000, than the total assets of the business will be:

Assets = Liabilities + Capital

= 1,20,000 + 2,00,000

= 3,20,000

2. Goods purchased from Deepika Traders for 60,000.

Analysis of transaction: This transaction increases goods (assets) and increases liabilities (Deepika Traders as creditors) by 60,000.

3. Goods costing 10,000 sold to Mandana ltd. for 30,000.

Analysis of transaction: This transaction decreases stock of goods (assets) by 10,000 and increase assets (Mandana Ltd. as debtors 30,000) and capital (with the profit of 10,000).

Q.17 Explain the double entry mechanism with an illustrative example.

Ans.

The double entry system seeks to record every transaction in money or money’s worth in its double aspect. Every business transaction has a two-fold effect and that it affects two accounts in opposite directions and if a complete record were to be made of each such transaction, it would be necessary to debit one account and credit another account.

Double entry system is based upon the principle that ‘every debit has a credit and every credit has a debit.

For Example, Received 15,000 from Mia. This transaction affects two accounts like Cash A/c and the Mia’s A/c.

Cash account is receiving a benefit (as cash is coming in) and hence cash account will be debited, where Mia is yielding a benefit and hence her account will be credited.

Date	Particulars		L.F.	Dr.	Cr.
	Cash A/c	Dr.		15,000
	To Mia				15,000
	(Being cash received from Mia)

Q.18 Prepare accounting equation on the basis of the following:
(a) Harsha started business with cash 2,00,000.
(b) Purchased goods from Naman for Cash ` 40,000.
(c) Sold goods to Bhanu costing 10,000 at 12,000.
(d) Bought furniture on credit 7,000.

Ans.

Statements showing the effect of various transactions on accounting equation:

Assets = Liabilities + Capital
Cash + Stock+ Debtors + Furniture = Creditors + Capital
	Cash	Stock	Debtors	Furniture	Creditors	Capital
(a)	2,00,000				=	2,00,000
(b)	2,00,000				= Nil
	(40,000)	+ 40,000			=	2,00,000
(c)	1,60,000	+ 40,000			= Nil	+ 2,00,000
		+ (10,000)	+ 12,000		=	(2,000)
(d)	1,60,000	+ 30,000	+ 12,000		=	2,02,000
				7,000	= 7,000
	1,60,000	+ 30,000	+ 12,000	+7,000	= 7,000	+ 2,02,000
Total 2,09,000 = 2,09,000

Profit on sales of goods will be added to Capital (12,000 – 10,000) = 2,000

Q.19 Prepare accounting equation from the following:

1. Kunal started business with cash 2,50,000.
2. He purchased furniture for cash 35,000.
3. He paid commission 2,000.
4. He purchased goods on credit 40,000.
5. He sold goods (costing 20,000) for cash 26,000.

Ans.

Assets = Liabilities + Capital
Cash + Furniture + Stock = Creditors + Capital
	Cash	Furniture	Stock	Creditors	Capital
(a)	2,50,000			=	2,50,000
(b)	2,50,000			=	2,50,000
	(35,000)	+ 35,000		=	2,50,000
(c)	2,15,000	+ 35,000		=	2,50,000
	(2,000)			=	(2,000)
(d)	2,13,000	+ 35,000		=	2,48,000
			+ 40,000	= 40,000	+ 2,48,000
(e)	2,13,000	+ 35,000	+ 40,000	= 40,000	+ 2,48,000
	26,000		(20,000)	=	6,000
	2,39,000	+ 35,000	20,000	= 40,000	+ 2,54,000
Total 2,94,000 = 2,94,000

Q.20 Mohit has the following transactions, prepare accounting equation:

1. Business started with cash 1,75,000.
2. Purchased goods from Rohit 50,000.
3. Sales goods on credit to Manish (Costing 17,500) 20,000.
4. Purchased furniture for office use 10,000.
5. Cash paid to Rohit in full settlement 48,500.
6. Cash received from Manish 20,000.
7. Rent paid 1,000.
8. Cash withdrew for personal use 3,000.

Ans.

Assets = Liabilities + Capital
Cash + Stock+ Debtors + Furniture = Creditors + Capital
	Cash	Stock	Debtors	Furniture	Creditors	Capital
(a)	1,75,000				=	1,75,000
(b)	1,75,000				=	1,75,000
		50,000			= 50,000
(c)	1,75,000	+ 50,000			= 50,000	+ 1,75,000
		(17,500)	20,000		=	2,500
(d)	1,75,000	+ 32,500	+ 20,000		= 50,000	+ 1,77,500
	(10,000)			10,000
(e)	1,65,000	+ 32,500	+ 20,000	+ 10,000	= 50,000	+ 1,77,500
	(48,500)				= (50,000)	+ 1,500
(f)	1,16,500	+ 32,500	+ 20,000	+ 10,000	= NIL	+ 1,79,000
	20,000		(20,000)
(g)	1,36,500	+ 32,500	+ NIL	+ 10,000	= NIL	+ 1,79,000
	(1,000)				=	(1,000)
(h)	1,35,500	+ 32,500	+ NIL	+ 10,000	= NIL	+ 1,78,000
	(3,000)				=	(3,000)
	1,32,500	+ 32,500	+ NIL	+ 10,000	= NIL	+ 1,75,000
Total 1,75,000 = 1,75,000

Q.21 Rohit has the following transactions:

1. Commenced business with cash: 1,50,000
2. Purchased machinery on credit: 40,000
3. Purchased goods for cash: 20,000
4. Purchased car for personal use: 80,000
5. Paid to creditors in full settlement: 38,000
6. Sold goods for cash costing 5,000 : 4,500
7. Pain rent: 1,000
8. Commission received in advance 2,000.

Prepare the accounting equation to show the effect of the above transactions on the assets, liabilities and capital.

Ans.

Assets = Liabilities + Capital
Cash + Machinery + Stock = Creditors + U Income + Capital
	Cash	Machinery	Stock	Creditors	Unaccrued Income	Capital
(a)	1,50,000			=		1,50,000
(b)	1,50,000			=		1,50,000
		40,000		= 40,000
(c)	1,50,000	+ 40,000		= 40,000		+ 1,50,000
	(20,000)		20,000	= 40,000		+ 1,50,000
(d)	1,30,000	+ 40,000	+ 20,000	= 40,000		+ 1,50,000
	(80,000)			=		(80,000)
(e)	50,000	+ 40,000	+ 20,000	= 40,000		+ 70,000
	(38,000)			= (40,000)		+ 2,000
(f)	12,000	+ 40,000	+ 20,000	= NIL		+ 72,000
	4,500		(5,000)	=		(500)
(g)	16,500	+ 40,000	+ 15,000	= NIL		+ 71,500
	(1,000)			=		(1,000)
(h)	15,500	+ 40,000	+ 15,000	= NIL		+ 70,500
	2,000			=	2,000
	17,500	+ 40,000	+ 15,000	= NIL	+ 2,000	+ 70,500
Total 72,500 = 72,500

Q.22 Use accounting equation to show the effect of the following transactions of M/s Royal Traders:

1. Started business with cash: 1,20,000
2. Purchased goods for cash: 10,000
3. Rent received: 5,000
4. Salary outstanding: 2,000
5. Prepaid Insurance: 1,000
6. Received interest: 700
7. Sold goods for cash (Costing 5,000): 7,000
8. Goods destroyed by fire: 500

Ans.

Assets = Liabilities + Capital
Cash + Stock + Prepaid Expenses = Outs. Expenses + Capital
	Cash	Stock	Prepaid Expenses	Outstanding expenses	Capital
(a)	1,20,000			=	1,20,000
(b)	1,20,000			=	1,20,000
	(10,000)	+ 10,000
(c)	1,10,000	+ 10,000		=	1,20,000
	5,000			=	5,000
(d)	1,15,000	+ 10,000		=	1,25,000
				= 2,000	+ (2,000)
(e)	1,15,000	+ 10,000		= 2,000	+ 1,23,000
	(1,000)		+ 1,000
(f)	1,14,000	+ 10,000	+ 1,000	= 2,000	+ 1,23,000
	700			=	700
(g)	1,14,700	+ 10,000	+ 1,000	= 2,000	+ 1,23,700
	7,000	+ (5,000)		=	2,000
(h)	1,21,700	+ 5,000	+ 1,000	= 2,000	+ 1,25,700
		(500)		=	(500)
	1,21,700	+ 4,500	1,000	= 2,000	+ 1,25,200
	Total 1,27,200 = 1,27,200

Q.23 Show the accounting equation on the basis of the following transaction:
(a) Udit started business with:
Cash : 5,00,000
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 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 Himant on account: 20,000
(k) Cash received from Ashu: 30,000

Ans.

Assets = Liabilities + Capital
Cash + stock+ Building+ Debtors = Creditors+ Outstanding expenses + Unaccrued income+ Capital
	Cash	Stock	Building	Debtors	Creditors	Outstanding expenses	Unaccrued Income	Capital
(a)	500000	+ 100000			=			600000
(b)	500000	+ 100000						600000
	(200000)		200000
(c)	300000	+ 100000	+ 200000		=			600000
		50,000			= 50000
(d)	300000	+ 150000	+ 200000		= 50000			+ 600000
		(25000)		+ 36000	=			11000
(e)	300000	+ 125000	+ 200000	+ 36000	= 50000			+ 611000
	(3000)				=			3000
(f)	297000	+ 125000	+ 200000	+ 36000	= 50000			+ 608000
					=	5000		+ (5000)
(g)	297000	+ 125000	+ 200000	+ 36000	= 50000	+ 5000		+ 603000
			(8000)		=			(8000)
(h)	297000	+ 125000	+ 192000	+ 36000	= 50000	+ 5000		+ 595000
	20000				=			20000
(i)	277000	+ 125000	+ 192000	+ 36000	= 50000	+ 5000		575000
	5000				=		5000
(j)	282000	+ 125000	+ 192000	+ 36000	= 50000	+ 5000	+ 5000	+ 575000
	(20000)				= (20000)
(k)	262000	+ 125000	+ 192000	+ 36000	= 30000	+ 5000	+ 5000	+ 575000
	30000			(30000)
	292000	+ 125000	+ 192000	+ 6000	= 30000	+ 5000	+ 5000	+ 575000
Total 6,15,000 = 6,15,000

Q.24 Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:
(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 10,000): 14,000
(h) Cash paid to Ragani: 35,000
(i) Deposited into bank: 20,000

Ans.

Assets = Liabilities + Capital
Cash + Stock +Investment + Bank = Creditors + Capital
	Cash	Stock	Investment	Bank	Creditors	Capital
(a)	1,20,000				=	1,20,000
(b)	1,20,000				=	1,20,000
	10,000				=	10,000
(c)	1,30,000				=	1,30,000
	(50000)		50000
(d)	80,000		+ 50,000		=	1,30,000
	5,000				=	5,000
(e)	85,000		+ 50,000		=	1,35,000
		35,000			= 35,000
(f)	85,000	+ 35,000	+ 50,000		= 35,000	+ 1,35,000
	(7,000)				=	(7,000)
(g)	78,000	+ 35,000	+ 50,000		= 35,000	+ 1,28,000
	14,000	+ (10000)			=	4,000
(h)	92,000	+ 25,000	+ 50,000		= 35,000	+ 1,32,000
	(35,000)				= (35,000)
(i)	57,000	+ 25,000	+ 50,000		= NIL	+ 1,32,000
	(20,000)			(20,000)	=
	37,000	+ 25,000	+ 50,000	+ 20,000	= NIL	+ 1,32,000
Total 1,32,000 = 1,32,000

Q.25 p style=”margin-bottom: 13px;”>Show the effect of following transaction on the accounting equation:
(a) Manoj started business with
Cash: 2,30,000
Goods: 1,00,000
Building: 2,00,000

(b) He purchased goods for cash: 50,000
(c) He sold goods (costing 20,000): 35,000
(d) He purchased goods from Rahul: 55,000
(e) He sold goods to Varun (Costing 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: v 50,000
(o) Purchased goods from Rakhi: 60,000

Ans.

Assets = Liabilities + Capital
Cash + Stock + Building + Debtors + Prepaid Expenses = Creditors + outstanding expenses + Capital
	Cash	Stock	Building	Debtors	Prepaid Expenses	Creditors	Outstanding expenses	Capital
(a)	230000	+ 100000	+ 200000			=		530000
(b)	230000	+ 100000	+ 200000			=		530000
	(50000)	50000
(c)	180000	+ 150000	+ 200000			=		530000
	35000	(20000)				=		15000
(d)	215000	+ 130000	+ 200000			=		545000
		55000				= 55000
(e)	215000	+ 185000	+ 200000			= 55000		+ 545000
		(52000)		60000		=		8000
(f)	215000	+ 133000	+ 200000	+ 60000		= 55000		+ 553000
	(53000)					= (55000)		2000
(g)	162000	+ 133000	+ 200000	+ 60000		= NIL		+ 555000
	(20000)					=		20000
(h)	142000	+ 133000	+ 200000	+ 60000		= NIL		+ 535000
	59000			(60000)		=		(1000)
(i)	201000	+ 133000	+ 200000	+ NIL		= NIL		534000
							3000	+ (3000)
(j)	201000	+ 133000	+ 200000	+ NIL		= NIL	+ 3000	+ 531000
	(2000)				2000
	199000	+ 133000	+ 200000	+ NIL	+ 2000	= NIL	+ 3000	+ 531000
(k)	199000	+ 133000	+ 200000	+ NIL	+ 2000	= NIL	+ 3000	+ 531000
	13000					=		13000
(l)	212000	+ 133000	+ 200000	+ NIL	+ 2000	= NIL	+ 3000	+ 544000
	(20000)					=		(20000)
(m)	192000	+ 133000	+ 200000	+ NIL	+ 2000	= NIL	+ 3000	+ 524000
			(10000)			=		(10000)
(n)	192000	+ 133000	+ 190000	+ NIL	+ 2000	= NIL	+ 3000	+ 514000
	(50000)					=		50000
(o)	242000	+ 133000	+ 190000	+ NIL	+ 2000	= NIL	+ 3000	+ 564000
		10000				= 10000
	242000	+ 143000	+ 190000	+ NIL	+ 2000	= 10000	+ 3000	+ 564000
Total 5,77,000 = 5,77,000

Q.26 Transactions of M/s Vipin Traders are given below.

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

1. Business started with cash: 1,25,000
2. Purchased goods for cash: 50,000
3. Purchase furniture from R.K. Furniture: 10,000
4. Sold goods to Parul Traders (Costing 7,000 vide bill no. 5674): 9,000
5. Paid cartage: 100
6. Cash paid to R.K. Furniture in full settlement: 9,700
7. Cash sales (costing 10,000): 12,000
8. Rent received: 4,000
9. Cash withdrew for personal use: 3,000

Ans.

Assets = Liabilities + Capital
Cash + Stock + Furniture + Debtors = Creditors + Capital
	Cash	Stock	Furniture	Debtors	Creditors	Capital
(a)	1,25,000				=	1,25,000
(b)	1,25,000				=	1,25,000
	(50000)	+ 50000
(c)	75,000	50,000			=	1,25,000
			10,000		= 10,000
(d)	75,000	+ 50,000	+ 10,000		= 10,000	+ 1,25,000
		(7000)		9,000	=	2,000
(e)	75,000	+ 43,000	+ 10,000	+ 9,000	= 10,000	+ 1,27,000
	(100)				=	(100)
(f)	74,900	+ 43,000	+ 10,000	+ 9,000	= 10,000	+ 1,26,900
	(9700)				= (10000)	300
(g)	65,200	+ 43,000	+ 10,000	+ 9,000	= NIL	+ 1,27,200
	12,000	+ (10000)			=	2,000
(h)	77,200	+ 33,000	+ 10,000	+ 9,000	= NIL	+ 1,29,200
	4,000				=	4,000
(i)	81,200	+ 33,000	+ 10,000	+ 9,000	= NIL	+ 1,33,200
	(3000)				=	(3000)
	78,200	+ 33,000	+ 10,000	+ 9,000	= NIL	+ 1,30,200
Total 1,30,200 = 1,30,200

Q.27 Bobby opened a consulting firm and completed these transactions during November, 2017:
(a) Invested 4,00,000 cash and office equipment with 1,50,000 in a business called Bobble Consulting.
(b) Purchased land and a small office building. The land was worth 1,50,000 and the building worth 3,50,000. The purchase price was paid with 2,00,000 cash and a long term note payable for 3,00,000.
(c) Purchased office supplies on credit for 12,000.
(d) Bobble transferred title of motor car to the business. The motor car was worth ` 90,000.
(e) Purchased for 30,000 additional office equipment on credit.
(f) Paid 7,500 salary to the office manager.
(g) Provided services to a client and collected 30,000.
(h) Paid 4,000 for the month’s utilities.
(i) Paid supplier created in transaction C.
(j) Purchase new office equipment by paying 93,000 cash and trading in old equipment with a recorded cost of 7,000.
(k) Completed services of a client for 26,000. This amount is to be paid within 30 days.
(l) Received 19,000 payments from the client created in transaction K.
(m) Bobby withdrew 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.

Ans.

(a)

Analysis of Transaction:

The transaction increases cash and office equipments on one hand and increase capital on the other hand. Increase in assets is debited and increase in capital is credited. Hence, the transaction will be recorded with debit the cash and office equipment and credit the capital.

Cash A/c
Dr.	Cr.
4,00,000

Office Equipment A/c
Dr.	Cr.
1,50,000

Capital A/c
Dr.	Cr.
	5,50,000

(b)

Analysis of Transaction:

This transaction increases (assets) Land and Building on one hand decreases cash and increases outside liabilities on the other hand. Increases in assets are debited and decrease in assets is credited. On the other side, increase in liabilities will also be credited.

Land A/c
Dr.	Cr.
1,50,000

Building A/c
Dr.	Cr.
8,50,000

Cash A/c
Dr.	Cr.
4,00,000	2,00,000

Note Payable A/c
Dr.	Cr.
	3,00,000

(C)

Analysis of Transaction:

This transaction increases assets on one hand and increases liabilities on another hand. Increase in assets is debited and increase in liabilities is credited. The office supplies will be debited and creditors will be credited.

Office Supplies A/c
Dr.	Cr.
12,000

Creditors A/c
Dr.	Cr.
	12,000

(d)

Analysis of Transaction:

The transaction increases motor car on one hand and increases capital on the other hand. Increase in assets is debited and increase in capital is credited. The transaction will be recorded as debit the motor car and credit the increase in capital.

Motor Car A/c
Dr.	Cr.
90,000

Capital A/c
Dr.	Cr.
	5,50,000
	90,000

(e)

Analysis of Transaction:

This transaction increases office equipment assets on one side and creditors as liabilities on other side. Increase in assets is debited and increases in liabilities are credited.

Office Equipment A/c
Dr.	Cr.
1,50,000
30,000

Creditors A/c
Dr.	Cr.
	12,000
	30,000

(f)

Analysis of Transaction:

The payment of salary is an expense which decreases capital thus, are recorded as debit. Credit cash to record decreases in assets.

Salary A/c
Dr.	Cr.
75,000

Cash A/c
Dr.	Cr.
	2,00,000
	75,000

(g)

Analysis of Transaction:

The transaction will increase assets cash on one side and increase revenue on the other side. Increase in assets cash will be debited and for increase in revenue service account will be credited.

Cash A/c
Dr.	Cr.
4,00,000	2,00,000
30,000	75,000

Service A/c
Dr.	Cr.
	30,000

(h)

Analysis of Transaction:

The payment of month’s liabilities is an expense which decreases capital and recorded as debit and record cash as credit to record decreases in assets.

Cash A/c
Dr.	Cr.
4,00,000	2,00,000
30,000	75,000
	4,000

Month’s utility expenses A/c
Dr.	Cr.
4,000

(i)

Analysis of Transaction:

This transaction decreases the assets and also decreases the liabilities. Record decrease in assets case will be credited and decrease in liabilities Creditor’s account will be debited.

Cash A/c
Dr.	Cr.
4,00,000	2,00,000
30,000	75,000
	4,000
	12,000

(j)

Analysis of Transaction:

In this transaction, one asssets office equipment is increasing and decreasing. The increased cost of equipment will be recorded as debit and decreased cost of equipment is recorded as credit.

On the other hand, difference amount paid by cash will be decrease the assets and recorded in credit side.

Office Equipment A/c
Dr.	Cr.
1,50,000	7,000
30,000
1,00,000

Cash A/c
Dr.	Cr.
4,00,000	2,00,000
30,000	75,000
	4,000
	12,000
	93,000

(k)

Analysis of transaction:

This transaction increases assets on one side and increase in capital on the other side. Increase in assets Client account will be debited and to record increase in capital service account will be credited.

Client A/c
Dr.	Cr.
26,000

Services A/c
Dr.	Cr.
	26,000

(l)

Analysis of Transaction:

In this transaction, one asset cash is increasing and recorded as debit and another assets client is decreasing recorded as credit.

Cash A/c
Dr.	Cr.
4,00,000	2,00,000
30,000	75,000
19,000	4,000
	12,000
	93,000

Client A/c
Dr.	Cr.
26,000	19,000

(m)

Analysis of Transaction:

In this transaction, asset is decreasing one side cash will be credited to record the transaction and capital on the other side is decreasing will be recorded as debit side.

Cash A/c
Dr.	Cr.
4,00,000	2,00,000
30,000	75,000
	4,000
	12,000
	93,000
	20,000

Withdrawal A/c
Dr.	Cr.
20,000

Q.28 Journalise the following transactions in the books of Himanshu:

Date (2017)	Particulars
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

Ans.

Journal Entries (December, 2017)
Dt.	Particulars					L.F	Dr.	Cr.
1	Cash A/c				Dr.		75,000
	To Capital A/c							75,000
	(Being business started with cash)
7	Purchase A/c			Dr.			10,000
	To Cash A/c							10,000
	(Being goods purchased)
9	Swati	Dr.					5,000
	To Sales A/c							5,000
	(Being goods sold to Swati on credit)
12	Furniture A/c		Dr.				3,000
	To Cash A/c							3,000
	(Being furniture purchased)
18	Cash A/c			Dr.			4,000
	Discount Allowed A/c			Dr.			1,000
	To Swati							5,000
	(Being cash received from Swati in full settlement and discount allowed)
25	Rent A/c			Dr.			1,000
	To Cash A/c							1,000
	(Being rent paid)
30	Salaries A/c			Dr.			1,500
	To Cash A/c							1,500
	(Being salary paid in cash)

Q.29 Enter the following transactions in the Journal of Mudit:

Date (2017)	Particulars
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

Ans.

Journal Entries (January, 2017)
Dt.	Particulars					L.F	Dr.	Cr.
1	Cash A/c				Dr.		1,75,000
	Building A/c				Dr.		1,00,000
	To Capital A/c							2,75,000
	(Being business started with cash and building)
2	Purchase A/c			Dr.			75,000
	To Cash A/c							75,000
	(Being goods purchased)
3	Ramesh	Dr.					30,000
	To Sales A/c							30,000
	(Being goods sold to Ramesh on credit)
4	Wages A/c		Dr.				500
	To Cash A/c							500
	(Being wages paid)
6	Cash A/c			Dr.			10,000
	To Sales A/c							10,000
	(Being goods sold for cash)
10	Trade Expenses A/c			Dr.			700
	To Cash A/c							700
	(Being trade expenses paid)
12	Cash A/c			Dr.			29,500
	Discount allowed A/c			Dr.			500
	To Ramesh A/c							30,000
	(Being cash received and discount allowed)
14	Purchase A/c			Dr.			27,000
	To Sudhir							27,000
	(Being goods purchased from Sudhir)
18	Cartage A/c			Dr.			1,000
	To Cash A/c							1,000
	(Being cartage paid)
20	Drawings A/c			Dr.			5,000
	To Cash A/c							5,000
	(Being cash withdrawn for personal use)
22	Drawings A/c			Dr.			2,000
	To Purchase A/c							2,000
	(Being goods withdrawn for personal use)
25	Sudhir			Dr.			27,000
	To Cash A/c							26,700
	To Discount Received A/c							300
	(Being cash paid to Sudhir and discount received)

Q.30 Journalise the following transactions:

Date (2017)	Particulars
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

Ans.

Journal Entries (December, 2017)
Dt.	Particulars						L.F	Dr.	Cr.
1	Cash A/c					Dr.		1,00,000
	To Capital A/c								1,00,000
	(Being business started with cash)
2	Bank A/c			Dr.				30,000
	To Cash A/c								30,000
	(Being account opened with SBI)
4	Purchase A/c	Dr.						20,000
	To Ashu								20,000
	(Being goods purchased from Ashu on credit)
6	Cash A/c		Dr.					15,000
	To Sales A/c								15,000
	(Being goods sold to Rahul for cash)
10	Purchase A/c			Dr.				40,000
	To Cash A/c								40,000
	(Being goods purchased from Tara for cash)
13	Suman			Dr.				20,000
	To Sales A/c								20,000
	(Being goods sold to Suman on credit)
16	Bank A/c			Dr.				19,500
	Discount Allowed A/c			Dr.				500
	To Suman								20,000
	(Being cheque received from Suman and discount allowed)
20	Ashu			Dr.				10,000
	To Bank A/c								10,000
	(Being cheque given to Ashu)
22	Rent A/c			Dr.				2,000
	To Bank A/c								2,000
	(Being rent paid through cheque)
23	Bank A/c			Dr.				16,000
	To Cash A/c								16,000
	(Being cash deposited in bank)
25	Machinery A/c			Dr.				10,000
	To Parigya								10,000
	(Being machinery purchased from Parigya)
26	Trade Expenses A/c			Dr.				2,000
	To Cash A/c								2,000
	(Being trade expenses paid)
28	Parigya				Dr.			10,000
	To Bank A/c								10,000
	(Being cheque given to Parigya)
29	Telephone expenses			Dr.				1,200
	To Bank A/c								1,200
	(Being telephone expenses paid by cheque)
31	Salaries A/c			Dr.				4,500
	To Cash A/c								4,500
	(Being salary paid by cash)

Q.31 Journalise the following transactions in the books of Harpreet Bros.:

1. 1,000 due from Rohit are now bad debts.
2. Goods worth 2,000 were used by the proprietor.
3. Change depreciation @ 10% p.a. for two month on machine costing 30,000.
4. Provide interest on capital of 1,50,000 at 6% p.a. for 9 months.
5. Rahul become insolvent, who owed is 2,000 a final dividend of 60 paisa in a rupee is received from his estate.

Ans.

Journal Entries
Dt.	Particulars					L.F	Dr.	Cr.
(a)	Bad Debts A/c				Dr.		1,000
	To Rohit (Debtor)							1,000
	(Being 1,000 due from Rohit is bad debts now)
(b)	Drawings A/c			Dr.			2,000
	To Purchase A/c							2,000
	(Being goods worth 2,000 used by the proprietors)
(c)	Depreciation A/c	Dr.					500
	To Machinery A/c							500
	(Being depreciation @ 10% charged on machinery for two months costing 30,000)
(d)	Interest on Capital A/c		Dr.				6,750
	To Capital A/c							6,750
	(Being interest on capital 1,50,000 @ 6% is provide for 9 months)
(e)	Cash A/c			Dr.			1,200
	Bad Debts A/c			Dr.			800
	To Rahul (Debtor)							2,000
	(Being 60 paise in a rupee received from Rahul owed 2,000)

Q.32 Prepare Journal from the transactions given below:

1. Cash paid for installation of machine: 500
2. Goods given as charity: 2,000
3. Interest charge on capital @ 7% p.a. when total capital were 70,000
4. Received 1,200 of a bad debts written off last year.
5. Goods destroyed by fire: 2,000
6. Rent outstanding: 1,000
7. Interest on drawings: 900
8. Sudhir Kumar who owed me 3,000 has failed to pay the amount. He pays me a compensation of 45 paise in a rupee.
9. Commission received in advance: 7,000

Ans.

Journal Entries
Dt.	Particulars					L.F	Dr.	Cr.
(a)	Machinery A/c				Dr.		500
	To Cash A/c							500
	(Being 500 installation charges paid)
(b)	Charity A/c			Dr.			2,000
	To Purchase A/c							2,000
	(Being goods given as charity)
(c)	Interest on Capital A/c	Dr.					4,900
	To Capital A/c							4,900
	(Being interest @ 7% charge on capital of 70,000)
(d)	Cash A/c		Dr.				1,200
	To Bad Debts Recovered							1,200
	(Being 1,200 bad debts recovered)
(e)	Loss by Fire A/c			Dr.			2,000
	To Purchase A/c							2,000
	(Being goods destroyed by fire)
(f)	Rent A/c			Dr.			1,000
	To Outstanding Rent A/c							1,000
	(Being outstanding rent recorded in books)
(g)	Drawings A/c			Dr.			900
	To Int. on Drawings							900
	(Being interest on drawings charged)
(h)	Cash A/c			Dr.			1,350
	Bad Debts A/c			Dr.			1,650
	To Sudhir							3,000
	(Being 45 paise in a rupee received from Sudhir who owed 3,000)
(i)	Cash A/c			Dr.			7,000
	To Commission Received							7,000
	(Being commission received in advance)

Q.33 Journalise the following transactions, post to the ledger:

Date (2017)	Particulars
Nov. 01	Business started with Cash Goods	1,50,000 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

Ans.

Journal Entries (November, 2017)
Dt.	Particulars						L.F	Dr.	Cr.
1	Cash A/c					Dr.		1,50,000
	Stock A/c					Dr.		50,000
	To Capital A/c								2,00,000
	(Being business started with 1,50,000 cash and 50,000 goods)
3	Purchase A/c			Dr.				30,000
	To Harish								30,000
	(Being goods purchased from Harish)
5	Cash A/c	Dr.						12,000
	To Sales A/c)								12,000
	(Being goods sold for cash)
8	Furniture A/c		Dr.					5,000
	To Cash A/c								5,000
	(Being furniture purchased)
10	Harish A/c			Dr.				15,000
	To Cash A/c								15,000
	(Being cash paid to Harish)
13	Sundry Expenses A/c			Dr.				200
	To Cash A/c								200
	(Being sundry expenses paid)
15	Cash A/c			Dr.				15,000
	To Sales A/c								15,000
	(Being goods sold)
18	Bank A/c			Dr.				5,000
	To Cash A/c								5,000
	(Being cash deposited in bank)
20	Drawings A/c			Dr.				1,000
	To Cash A/c								1,000
	(Being cash withdrawal for personal use)
22	Harish A/c			Dr.				15,000
	To Cash A/c								14,700
	To Discount Received A/c								300
	(Being cash paid to Harish in full settlement and discount 300 received)
25	Nitesh			Dr.				7,000
	To Sales A/c								7,000
	(Being goods sold to Nitesh on credit)
26	Cartage A/c			Dr.				200
	To Cash A/c								200
	(Being cartage paid)
27	Rent A/c				Dr.			1,500
	To Cash A/c								1,500
	(Being rent paid)
29	Cash A/c			Dr.				6,800
	Discount Allowed A/c			Dr.				200
	To Nitesh								7,000
	(Being cash received from Nitesh and discount given)
30	Salaries A/c			Dr.				3,000
	To Cash A/c								3,000
	(Being salary paid)

Ledger (November 2017)
Dr.	Capital Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
				1	By Cash		1,50,000
30	To Bal. c/d		2,00,000	1	By Goods		50,000
			2,00,000				2,00,000

Ledger (November 2017)
Dr.	Cash Account												Cr.
Dt.	Particulars		JF				Dt.	Particulars				JF
1	To Capital			1,50,000			8	By Furniture					5,000
5	To Sales			12,000			10	By Harish					15,000
15	To Sales			15,000			13	By Sundry expenses					200
29	To Nitesh			6,800			18	By Bank					5,000
							20	By Drawings					1,000
							22	By Harish					14,700
							25	By Cartage					200
							27	By Rent					1,500
							30	By Salaries					3,000
							30	By Bal. c/d					1,38,200
				1,83,000									1,83,000
Ledger (November 2017)
Dr.		Sales Account										Cr.
Dt.		Particulars			JF				Dt.	Particulars	JF
									5	By Cash		12,000
									15	By Cash		15,000
									25	By Nitesh		7,000
30		To Balance c/d				34,000
						34,000						34,000

Ledger (November 2017)
Dr.	Purchases Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
3	To Harish		30,000	30	By Bal. c/d		30,000
			30,000				30,000

Ledger (November 2017)
Dr.	Harish Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
10	To Cash		15,000	3	By Purchase		30,000
22	To Cash		14,700
22	To Discount		300
			30,000				30,000

Ledger (November 2017)
Dr.	Furniture Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
8	To Cash		5,000		By Bal. c/d		5,000
			5,000				5,000

Ledger (November 2017)
Dr.	Sundry Expenses Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
13	To Cash		200	30	By Bal. c/d		200
			200				200

Ledger (November 2017)
Dr.	Bank Account									Cr.
Dt.	Particulars	JF			Dt.		Particulars		JF
18	To Cash		5,000		30		By Bal. c/d			5,000
			5,000							5,000
Ledger (November 2017)
Dr.	Nitesh Account								Cr.
Dt.	Particulars	JF		Dt.		Particulars		JF
25	To Sales		7,000	29		By Cash			6,800
				29		By Discount Allowed			200
			7,000						7,000

Ledger (November 2017)
Dr. Drawings Account Cr.
Dr.	Drawings Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
20	To Cash		1,000	30	By Bal. c/d		1,000
			1,000				1,000

Ledger (November 2017)
Dr.	Discount Received Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
30	To Bal. c/d		300	22	By Harish		300
			300				300

Ledger (November 2017)
Dr.	Cartage Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
26	To Cash		200	30	By Bal. c/d		200
			200				200

Ledger (November 2017)
Dr.	Rent Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
27	To Cash		1,500	30	By Bal. c/d		1,500
			1,500				1,500

Ledger (November 2017)
Dr.	Discount Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
29	To Nitesh		200	30	By Bal. c/d		200
			200				200

Q.34 Journalise the following transactions is the journal of M/s Goel Brothers and post them to the ledger.

Date (2017)	Particulars
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

Ans.

Dt.	Particulars				L.F	Dr.	Cr.
Jan 1	Cash A/c		Dr.			1,65,000
	To Capital A/c						1,65,000
	(Being business started with cash)
Jan 2	Bank A/c			Dr.		80,000
	To Cash A/c						80,000
	(Being current account open with PNB)
Jan 4	Purchase A/c			Dr.		22,000
	To Tara						22,000
	(Being goods purchased from Tara on credit)
Jan 5	Purchase A/c			Dr.		30,000
	To Cash A/c						30,000
	(Being goods purchased for cash)
Jan 8	Naman A/c			Dr.		12,000
	To Sales A/c						12,000
	(Being good sold to Naman on credit)
Jan 10	Tara			Dr.		22,000
	To Cash A/c						22,000
	(Being cash paid to Tara)
Jan 15	Cash A/c			Dr.		11,700
	Discount Allowed A/c					300
	To Naman						12,000
	(Being cash received and discount given)
Jan 16	Wages A/c			Dr.		200
	To Cash A/c						200
	(Being wages paid)
Jan 18	Furniture A/c			Dr.		5,000
	To Cash A/c						5,000
	(Being furniture purchased)
Jan 20	Drawings A/c			Dr.		4,000
	To Bank A/c						4,000
	(Being cash withdrawal from bank for personal use)
Jan 22	Rent A/c			Dr.		3,000
	To Bank A/c						3,000
	(Being rent paid through cheque)
Jan 23	Drawings A/c			Dr.		2,000
	To Purchase A/c						2,000
	(Being goods issued for household purpose)
Jan 24	Cash A/c			Dr.		6,000
	To Bank A/c						6,000
	(Being cash withdrawal from bank for office use)
Jan 26	Cash A/c			Dr.		1,000
	To Commission A/c						1,000
	(Being commission received)
Jan 27	Bank Charges A/c			Dr.		200
	To Bank A/c						200
	(Being insurance premium paid through cheque)
Jan 28	Insurance A/c			Dr.		3,000
	To Bank A/c						3,000
	(Being insurance premium paid through cheque)
Jan 28	Salaries A/c			Dr.		7,000
	To Cash A/c						7,000
	(Being salary paid)
Jan 29	Cash A/c	Dr.				10,000
	To Sales A/c						10,000
	(Being goods sold for cash)

Ledger (January 2017)
Dr.	Capital Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		1,65,000	1	By Cash A/c		1,65,000
			1,65,000				1,65,000

Ledger (January 2017)
Dr.	Cash Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
01	To Capital		1,65,000	02	By Bank		80,000
15	To Naman		11,700	05	By Purchase		30,000
24	To Bank		6,000	10	By Tara		22,000
26	To Comm.		1,000	16	By Wages		200
30	To Sales		10,000	18	By Furniture		5,000
				29	By Salary		7,000
				31	By Bal. c/d		49,500
			1,93,700				1,93,700

Ledger (January 2017)
Dr.	Sales Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
				8	By Naman A/c		12,000
31	To Bal. c/d		22,000	30	By Cash A/c		10,000
			22,000				22,000

Ledger (January 2017)
Dr.	Purchases Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
04	To Tara		22,000	23	By Drawings		2,000
	To Cash		30,000	31	By Bal. c/d		50,000
			52,000				52,000

Ledger (January 2017)
Dr.	Bank Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
02	To Cash		80,000	20	By Drawings		4,000
				22	By Rent		3,000
				24	By Cash		6,000
				27	By Bank Charges		200
				28	By Insurance		3,000
				31	By Bal. c/d		63,800
			80,000				80,000

Ledger (January 2017)
Dr.	Insurance Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
28	To Bank		3,000	31	By Bal. c/d		3,000
			3,000				3,000

Ledger (January 2017)
Dr.	Salaries Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
29	To Cash		7,000	31	By Bal. c/d		7,000
			7,000				7,000

Ledger (January 2017)
Dr.	Naman Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
08	To Sales		12,000	15	By Cash		11,700
				15	By Discount allowed		300
			12,000				12,000

Ledger (January 2017)
Dr.	Tara’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
10	To Cash		22,000	04	By Purchases		22,000
			22,000				22,000

Ledger (January 2017)
Dr.	Drawings Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
20	To Bank		4,000	31	By Bal. c/d		6,000
23	To Purchases		2,000
			6,000				6,000

Ledger (January 2017)
Dr.	Wages Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
16	To Cash		200	31	By Bal. c/d		200
			200				200

Ledger (January 2017)
Dr.	Furniture Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
18	To Cash		5,000	31	By Bal. c/d		5,000
			5,000				5,000

Ledger (January 2017)
Dr.	Commission Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		1,000	26	By Cash A/c		1,000
			1,000				1,000

Ledger (January 2017)
Dr.	Rent Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
22	To Bank		3,000	31	By Bal. c/d		3,000
			3,000				3,000

Ledger (January 2017)
Dr.	Bank Charges Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
27	To Bank		200	31	By Bal. c/d		200
			200				200

Ledger (January 2017)
Dr.	Discount Allowed Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
15	To Naman		300	31	By Bal. c/d		300
			300				300

Q.35 Give journal entries of M/s Mohit Traders; Post them to the Ledger from the following transactions:

Date (2017)	Particulars
Aug.01	Commenced business with cash	1,10,000
Aug.02	Opened bank account with H.D.F.C	50,000
Aug.03	Purchased furniture	20,000
Aug.07	Bought goods for cash from M/s Rupa Traders	30,000
Aug.08	Purchased goods from M/s Hema Traders	42,000
Aug.10	Sold goods for cash	30,000
Aug.14	Sold goods on credit to M/s Gupta Traders	12,000
Aug.16	Rent paid	4,000
Aug.18	Paid trade expenses	1,000
Aug.20	Received cash from Gupta Traders	12,000
Aug.22	Goods return to Hema Traders	2,000
Aug.23	Cash paid to Hema Traders	40,000
Aug.25	Bought postage stamps	100
Aug.30	Paid salary to Rishabh	4,000

Ans.

Dt. (August)	Particulars			L.F	Dr.	Cr.
01	Cash A/c	Dr.			1,10,000
	To Capital A/c					1,10,000
	(Being business started with cash)
02	Bank A/c		Dr.		50,000
	To Cash A/c					50,000
	(Being business open with HDFC)
03	Furniture A/c		Dr.		20,000
	To Cash A/c					20,000
	(Being furniture purchased)
07	Purchase A/c		Dr.		30,000
	To Cash A/c					30,000
	(Being goods purchased)
08	Purchase A/c		Dr.		42,000
	To Hema Traders					42,000
	(Being goods purchased from Hema Traders)
10	Cash A/c		Dr.		30,000
	To Sales A/c					30,000
	(Being goods sold for cash)
14	Gupta Traders		Dr.		12,000
	To Sales A/c					12,000
	(Being goods sold to Gupta Traders on credit)
16	Rent A/c		Dr.		4,000
	To Cash A/c					4,000
	(Being rent paid)
18	Trade Expenses A/c		Dr.		1,000
	To Cash A/c					1,000
	(Being trade expenses paid)
20	Cash A/c		Dr.		12,000
	To Gupta Traders					12,000
	(Being cash received from Gupta Traders)
22	Hema Traders		Dr.		2,000
	To Purchase Return A/c					2,000
	(Being purchase return to Hema Traders)
23	Hema Traders		Dr.		40,000
	To Cash A/c					40,000
	(Being cash paid to Hema Traders)
25	Postage Stamp A/c		Dr.		100
	To Cash A/c					100
	(Being postage stamp purchased for cash)
30	Salaries A/c		Dr.		4,000
	To Cash A/c					4,000
	(Being salary paid)

Ledger (August 2017)
Dr.	Capital Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		1,10,000	1	By Cash A/c		1,10,000
			1,10,000				1,10,000

Ledger (August 2017)
Dr.	Cash Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
01	To Capital		1,10,000	02	By Bank		50,000
10	To Sales		30,000	03	By Furniture		20,000
20	To Gupta		12,000	07	By Purchase		30,000
				16	By Rent		4,000
				18	By Trade Exp		1,000
				23	By Hema		40,000
				25	By Postage		100
				30	By Salaries		4,000
				31	By Bal. c/d		2,900
			1,52,000				1,52,000

Ledger (August 2017)
Dr.	Sales Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		42,000	10	By Cash A/c		30,000
				14	By Gupta Tr.		12,000
			42,000				42,000

Ledger (August 2017)
Dr.	Purchases Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
7	To Cash		30,000	31	By Bal. c/d		72,000
8	To Hema Traders		42,000
			72,000				72,000

Ledger (August 2017)
Dr.	Bank Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
2	To Cash		50,000	31	By Bal. c/d		50,000
			50,000				50,000

Ledger (August 2017)
Dr.	Hema Traders Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
22	To Purchase Return		2,000	8	By Purchase		42,000
22	To Cash		40,000
			42,000				42,000

Ledger (August 2017)
Dr. Furniture Account Cr.
Dr.	Furniture Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
3	To Cash		20,000	31	By Bal. c/d		20,000
			20,000				20,000

Ledger (August 2017)
Dr.	Gupta Traders Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
14	To Sales		12,000	20	By Cash		12,000
			12,000				12,000

Ledger (August 2017)
Dr.	Saleries Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
30	To Cash		12,000	31	By Bal. c/d		12,000
			12,000				12,000

Ledger (August 2017)
Dr.	Rent Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
16	To Cash		4,000	31	By Bal. c/d		4,000
			4,000				4,000

Ledger (August 2017)
Dr.	Trade Expense Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
18	To Cash		1,000	31	By Bal. c/d		1,000
			1,000				1,000

Ledger (August 2017)
Dr.	Postage Expenses A/c						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
25	To Cash		100	31	By Bal. c/d
			100				100

Ledger (August 2017)
Dr.	Purchases Return Account						Cr,.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		2,000	22	By Hema Traders		2,000
			2,000				2,000

Q.36 Journalise the following transactions in the books of the M/s Bhanu Traders and post them into the Ledger.

Date (2017)	Particulars
Dec. 01	Started business with cash	92,000
Dec. 02	Deposited into bank	60,000
Dec. 04	Bought goods on credit from Himani	40,000
Dec. 06	Purchased goods from cash	20,000
Dec. 08	Returned goods to Himani	4,000
Dec. 10	Sold goods for cash	20,000
Dec. 14	Cheque given to Himani	36,000
Dec. 17	Goods sold to M/s Goyal Traders	3,50,000
Dec. 19	Drew cash from bank for personal use	2,000
Dec. 21	Goyal traders returned goods	3,500
Dec. 22	Cash deposited into bank	20,000
Dec. 26	Cheque received from Goyal Traders	31,500
Dec. 28	Goods given as charity	2,000
Dec. 29	Rent paid	3,000
Dec. 30	Salary paid	7,000
Dec. 31	Office machine purchased for cash	3,000

Ans.

Dt. (Dec.)	Particulars			L.F	Dr.	Cr.
01	Cash A/c	Dr.			92,000
	To capital A/c					92,000
	(being business started with cash)
02	Bank A/c		Dr.		60,000
	To Cash A/c					60,000
	(Being cash deposited in bank)
04	Purchase A/c		Dr.		40,000
	To Himani A/c					40,000
	(Being goods purchased from Himani)
06	Purchase A/c		Dr.		20,000
	To Cash A/c					20,000
	(Being goods purchased)
08	Himani		Dr.		4,000
	To Purchase Return A/c					4,000
	(Being goods return to Himani)
10	Cash A/c		Dr.		20,000
	To Sales A/c					20,000
	(Being goods sold)
14	Himani		Dr.		36,000
	To Bank A/c					36,000
	(Being cheque given to Himani)
17	Goyal Traders		Dr.		35,000
	To Sales A/c					35,000
	(Being goods sold to Goyal Traders)
19	Drawings A/c		Dr.		2,000
	To Bank A/c					2,000
	(Being cash withdrawal from bank for personal use)
21	Sales Return A/c		Dr.		3,500
	To Goyal Traders					3,500
	(Being goods return by Goyal Traders)
22	Bank A/c		Dr.		20,000
	To Cash A/c					20,000
	(Being cash deposited in bank)
26	Bank A/c		Dr.		31,500
	To Goyal Traders					31,500
	(Being cheque received from Goyal Traders)
28	Charity A/c		Dr.		2,000
	To Purchase A/c					2,000
	(Being goods given as charity)
29	Rent A/c		Dr.		3,000
	To Cash A/c					3,000
	(Being rent paid)
30	Salaries A/c		Dr.		7,000
	To Cash A/c					7,000
	(Being salary paid)
31	Machinery A/c		Dr.		3,000
	To Cash A/c					3,000
	(Being machinery purchased)

Ledger (December 2017)
Dr.	Capital Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		92,000	1	By Cash		92,000
			92,000				92,000

Ledger (December 2017)
Dr.	Cash Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
01	To Capital		92,000	02	By Bank		60,000
10	To Sales		20,000	06	By Purchase		20,000
				22	By Bank		20,000
				29	By Rent		3,000
				30	By Salary		7,000
				31	By Machinery		3,000
				31	By Bal. c/d		2,000
			1,12,000				1,12,000

Ledger (December 2017)
Dr.	Purchases Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
4	To Himani		40,000	28	By Charity		2,000
6	To Cash		20,000	31	By Bal. c/d		58,000
			60,000				60,000

Ledger (December 2017)
Dr.	Sales Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		55,000	10	By Cash		20,000
				17	By Goyal Traders		35,000
			55,000				55,000

Ledger (December 2017)
Dr.	Himani’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
8	To Purchase Return		4,000	4	By Purchase		40,000
14	To Bank		36,000
			40,000				40,000

Ledger (December 2017)
Dr.	Machinery Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Cash		3,000	31	By Bal. c/d		3,000
			3,000				3,000

Ledger (December 2017)
Dr.	Drawings Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
19	To Bank		2,000	31	By Bal. c/d		2,000
			2,000				2,000

Ledger (December 2017)
Dr.	Sales Return Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
21	To Goyal Traders		3,500	31	By Bal. c/d		3,500
			3,500				3,500

Ledger (December 2017)
Dr.	Rent Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
29	To Cash		3,000	31	By Bal. c/d		3,000
			3,000				3,.000

Ledger (December 2017)
Dr.	Charity Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
28	To Purchase		2,000	31	By Bal. c/d		2,000
			2,000				2,000

Ledger (December 2017)
Dr.	Salary Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
30	To Cash		7,000	31	By Bal. c/d		7,000
			7,000				7,000

Ledger (December 2017)
Dr.	Bank Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
2	To Cash		60,000	14	By Himani		36,000
22	To Cash		20,000	19	By Drawings		2,000
26	To Goyal Traders		31,500	31	By Bal. c/d		73,500
			1,11,500				1,11,500

Ledger (December 2017)
Dr.	Purchases Return Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		4,000	8	By Himani		4,000
			4,000				4,000

Ledger (December 2017)
Dr.	Goyal Traders Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
17	To Sales		35,000	21	By Sales Return		3,500
				26	By Bank		31,500
			35,000				35,000

Q.37 Journalise the following transaction in the book of M/s Beauti Traders. Also post them in the ledger.

Date (2017)	Particulars
Dec. 01	Started business with cash	2,00,000
Dec. 02	Bought office furniture	30,000
Dec. 03	Paid into bank to open an current account	1,00,000
Dec. 05	Purchased a computer and paid by cheque	2,50,000
Dec. 06	Bought goods on credit from Ritika	60,000
Dec. 08	Cash sales	30,000
Dec. 09	Sold goods to Karishna on credit	25,000
Dec. 12	Cash paid to Mansi on account	30,000
Dec. 14	Goods returned to Ritika	2,000
Dec. 15	Stationery purchased for cash	3,000
Dec. 16	Paid wages	1,000
Dec. 18	Goods returned by Karishna	2,000
Dec. 20	Cheque given to Ritika	28,000
Dec. 22	Cash received from karishna on account	15,000
Dec. 24	Insurance premium paid by cheque	4,000
Dec. 26	Cheque received from Karishna	8,000
Dec. 28	Rent paid by cheque	3,000
Dec. 29	Purchased goods on credit from Meena Traders	20,000
Dec. 30	Cash sales	14,000

Ans.

Dt. (Dec.)	Particulars			L.F	Dr.	Cr.
1	Cash A/c	Dr.			2,00,000
	To Capital A/c					2,00,000
	(Being business started with cash)
2	Office Furniture A/c		Dr.		30,000
	To Cash A/c					30,000
	(Being Furniture purchased)
3	Bank A/c		Dr.		1,00,000
	To Cash A/c					1,00,000
	(Being current account open with bank)
5	Computer A/c		Dr.		2,50,000
	To Bank A/c					2,50,000
	(Being computer purchased and payment made through cheque)
6	Purchase A/c		Dr.		60,000
	To Ritika					60,000
	(Being goods purchased)
8	Cash A/c		Dr.		30,000
	To Sales A/c					30,000
	(Being goods sold)
9	Karishna		Dr.		25,000
	To Sales A/c					25,000
	(Being goods sold to Karishna)
12	Mansi		Dr.		30,000
	To Cash A/c					30,000
	(Being cash paid to Mansi)
14	Ritika		Dr.		2,000
	To Purchase Return A/c					2,000
	(Being goods return to Ritika)
15	Stationery A/c		Dr.		3,000
	To Cash A/c					3,000
	(Being stationery purchased)
16	Wages A/c		Dr.		1,000
	To Cash A/c					1,000
	(Being wages paid)
18	Sales Return A/c		Dr.		2,000
	To Karishna					2,000
	(Being goods return by Karishna)
20	Ritika		Dr.		28,000
	To Bank A/c					28,000
	(Being cheque given to Ritika)
22	Cash A/c		Dr.		15,000
	To karishna					15,000
	(Being cash received from Karishna)
24	Insurance A/c		Dr.		4,000
	To Bank A/c					4,000
	(Being insurance premium paid through cheque)
26	Bank A/c		Dr.		8,000
	To Karishna					8,000
	(Being cheque received from Karishna)
28	Rent A/c		Dr.		3,000
	To Bank A/c					3,000
	(Being rent paid through cheque)
29	Purchase A/c		Dr.		20,000
	To Meena Traders					20,000
	(Being goods purchased)
30	Cash A/c		Dr.		14,000
	To Sales A/c					14,000
	(Being goods sold)

Ledger (December 2017)
Dr.	Capital Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		2,00,000	1	By Cash A/c		2,00,000
			2,00,000				2,00,000

Ledger (December 2017)
Dr.	Cash Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
1	To Capital		2,00,000	2	By Furniture		30,000
8	To Sales		30,000	3	By Bank		1,00,000
22	To Karishna		15,000	12	By Mansi		30,000
30	To Sales		14,000	15	By Stationery		3,000
				16	By Wages		1,000
				31	By Bal. c/d		95,000
			2,59,000				2,59,000

Ledger (December 2017)
Dr.	Bank Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
3	To Cash		1,00,000	5	By Computer		2,50,000
26	To Karishna		8,000	20	By Ritika		28,000
31	To Bal. c.d		1,77,000	24	By Insurance		4,000
				28	By Rent		3,000
			2,85,000				2,85,000

Ledger (December 2017)
Dr.	Purchases Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
6	To Ritika		60,000	31	By Bal. c/d		80,000
29	To Meena Traders		20,000
			80,000				80,000

Ledger (December 2017)
Dr.	Sales Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		69,000	8	By Cash		30,000
				9	By karishna		25,000
				30	By Cash		14,000
			69,000				69,000

Ledger (December 2017)
Dr.	Furniture Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
2	To Cash		30,000	31	By Bal. c/d		30,000
			30,000				30,000

Ledger (December 2017)
Dr.	Computer Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
5	To Bank		2,50,000	31	By Bal. c/d		2,50,000

Ledger (December 2017)
Dr.	Mansi’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
12	To Cash		30,000	31	By Bal. c/d		30,000
			30,000				30,000

Ledger (December 2017)
Dr.	Ritika’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
14	To Purchase Return		2,000	6	By Purchase		60,000
20	To Bank		28,000
31	To Bal. c/d		30,000
			60,000				60,000

Ledger (December 2017)
Dr.	Karishna’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
9	To Sales		25,000	18	By Sales Return		2,000
				22	By Cash		15,000
				26	By Bank		8,000
			25,000				25,000

Ledger (December 2017)
Dr.	Purchases Return Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		2,000	14	By Ritika		2,000
			2,000				2,000

Ledger (December 2017)
Dr.	Stationery Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
15	To Cash		3,000	31	By Bal. c/d		3,000
			3,000				3,000

Ledger (December 2017)
Dr.	Wages Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
16	To Cash		1,000	31	By Bal. c/d		1,000
			1,000				1,000

Ledger (December 2017)
Dr.	Sales Return Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
18	To Karishna		3,000	31	By Bal. c/d		3,000
			3,000				3,000

Ledger (December 2017)
Dr.	Insurance Premium Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
24	To Bank		4,000	31	By Bal. c/d		4,000
			4,000				4,000

Ledger (December 2017)
Dr.	Rent Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
28	To Bank		3,000	31	By Bal. c/d		3,000
			3,000				3,000

Ledger (December 2017)
Dr.	Meena Trader’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		20,000	29	By Purchase		20,000
			20,000				20,000

Q.38 Journalise the following transaction in the books of Sanjana and post them into the ledger:

Date (2017)	Particulars
Jan. 01	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
Jan. 03	Sold goods to Karuna	15,000
Jan. 04	Cash sales	10,000
Jan. 06	Goods sold to Heena	5,000
Jan. 08	Purchased goods from Rupali	30,000
Jan. 10	Goods returned from Karuna	2,000
Jan. 14	Cash received from Karuna	13,000
Jan. 15	Cheque given to Rohan	6,000
Jan. 16	Cash received from Heena	3,000
Jan. 20	Cheque received from Tarun	10,000
Jan. 22	Cheque received from Heena	2,000
Jan. 25	Cash given to Rupali	18,000
Jan. 26	Paid cartage	1,000
Jan. 27	Paid salary	8,000
Jan. 28	Cash sale	7,000
Jan. 29	Cheque given to Rupali	12,000
Jan. 30	Sanjana took goods for personal use	4,000
Jan. 31	Paid General expense	500

Ans.

Dt. (Jan.)	Particulars			L.F	Dr.	Cr.
1	Cash A/c	Dr.			6,000
	Bank A/c	Dr.			55,000
	Stock A/c	Dr.			40,000
	Tarun	Dr.			10,000
	To Capital A/c					1,05,000
	To Rohan					6,000
	(Being balances of assets and liabilities of the period and excess of assets and liabilities taken as capital)
3	Karuna		Dr.		15,000
	To Sales A/c					15,000
	(Being goods sold to Karuna)
4	Cash A/c		Dr.		10,000
	To Sales A/c					10,000
	(Being goods sold)
6	Heena		Dr.		5,000
	To Sales A/c					5,000
	(Being goods sold to Heena)
8	Purchase A/c		Dr.		30,000
	To Rupali					30,000
	(Being goods purchased)
10	Sales Return A/c		Dr.		2,000
	To karuna					2,000
	(Being goods return by Karuna)
14	Cash A/c		Dr.		13,000
	To Karuna					13,000
	(Being cash received from Karuna)
15	Rohan		Dr.		6,000
	To Bank A/c					6,000
	(Being cheque given to Rohan)
16	Cash A/c		Dr.		3,000
	To Heena					3,000
	(Being cash received from Heena)
20	Bank A/c		Dr.		10,000
	To Tarun					10,000
	(Being cheque received from Tarun)
22	Bank A/c		Dr.		2,000
	To Heena					2,000
	(Being Cheque received from Heena)
25	Rupali		Dr.		18,000
	To Cash A/c					18,000
	(Being cash given to Rupali)
26	Cartage A/c		Dr.		1,000
	To Cash A/c					1,000
	(Being cartage paid)
27	Salaries A/c		Dr.		8,000
	To Cash A/c					8,000
	(Being salary paid)
28	Cash A/c		Dr.		7,000
	To Sales A/c					7,000
	(Being goods sold for cash)
29	Rupali		Dr.		12,000
	To Bank A/c					12,000
	(Being cheque given to Rupali)
30	Drawings A/c		Dr.		4,000
	To Purchases A/c					4,000
	(Being goods withdrawal for personal use by Sanjana)
31	General Expenses A/c		Dr.		500
	To Cash A/c					500
	(Being general expenses paid)

Ledger (January 2017)
Dr.	Capital Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
1	To Rohan		6,000	1	By Cash		6,000
31	To Bal. c/d		1,05,000	1	By Bank		55,000
				1	By Stock		40,000
				1	By Tarun		10,000
			1,11,000				1,11,000

Ledger (January 2017)
Dr.	Cash Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
1	To Bal. b/d		6,000	25	By Rupali		18,000
1	To Sales		10,000	26	By Cartage		1,000
14	To karuna		13,000	27	By Salary		8,000
16	To Heena		3,000	31	By General Expenses		500
28	To Sales		7,000	31	By Bal. c/d		11,500
			39,000				39,000

Ledger (January 2017)
Dr.	Bank Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
1	To Bal. b/d		55,000	1	By Rohan		6,000
20	To Tarun		10,000	29	By Rupali		12,000
22	To Heena		2,000	31	By Bal. c/d		49,000
			67,000				67,000

Ledger (January 2017)
Dr.	Karun’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
3	To Sales		15,000	10	By Sales Return		2,000
				14	By Cash		13,000
			15,000				15,000

Ledger (January 2017)
Dr.	Sales Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Bal. c/d		37,000	3	By Karuna		15,000
				4	By Cash		10,000
				6	By Heena		5,000
				28	By Cash		7,000
			37,000				37,000

Ledger (January 2017)
Dr.	Stock Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
1	To Bal. b/d		40,000	31	By Bal. c/d		40,000
			40,000				40.000

Ledger (January 2017)
Dr.	Sales Return Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
10	To karuna		2,000	31	By Bal. c/d		2,000
			2,000				2,000

Ledger (January 2017)
Dr.	Rohan’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
15	To Bank		6,000	1	By Bal. c/d		6,000
			6,000				6,000

Ledger (January 2017)
Dr.	Tarun’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
1	To Bal. b/d		10,000	20	By Bank		10,000
			10,000				10,000

Ledger (January 2017)
Dr.	Cartage Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
26	To Cash		1,000	31	By Bal. c/d		1,000
			1,000				1,000

Ledger (January 2017)
Dr.	Salary Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
27	To Cash		8,000	31	By Bal. c/d		8,000
			8,000				8,000

Ledger (January 2017)
Dr.	Heena’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
6	To Sales		5,000	16	By Cash		3,000
				22	By Bank		2,000
			5,000				5,000

Ledger (January 2017)
Dr.	Rupali’s Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
25	To Cash		18,000	8	By Purchase		30,000
29	To Bank		12,000
			30,000				30,000

Ledger (January 2017)
Dr.	Purchases Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
8	To Rupali		30,000	30	By Drawings		4,000
				31	By Bal. c/d		26,000
			30,000				30,000

Ledger (January 2017)
Dr.	Drawings Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
30	To Purchase		4,000	31	By Bal. c/d		4,000
			4,000				4,000

Ledger (January 2017)
Dr.	General Expenses Account						Cr.
Dt.	Particulars	JF		Dt.	Particulars	JF
31	To Cash		500	31	By Bal. c/d		500
			500				500

Q.39 Record journal entries for the following transactions in the books of Anudeep of Delhi:

1. Bought goods 2,00,000 from kanta of Delhi (CGST @ 9%, SGST @ 9%)
2. Bought goods 1,00,000 for cash from Rajasthan (IGST @ 12%)
3. Sold goods 1,50,000 to Sudhir of Punjab (IGST @ 18%)
4. Paid for Railway Transport 10,000 (CGST @ 5%, SGST @ 5%)
5. Sold goods 1,20,000 to Sidhu of Delhi (CGST @ 9%, SGST @ 9%)
6. Bought Air-Condition for office use 60,000 (CGST @ 9%, SGST @ 9%)
7. Sold goods 1,50,000 for cash to Sunil to Uttar Pradesh (IGST 18%)
8. Bought Motor Cycle for business use 50,000 (CGST 14%, SGST @ 14%)
9. Paid for Broadband services 4,000 (CGST @ 9%, SGST @ 0%)
10. Bought goods 50,000 from Rajesh, Delhi (CGST @ 9%, SGST @ 9%)

Ans.

In the Books of Anudeep, Delhi Journal
	Particulars		L.F.	Dr.	Cr.
a)	Purchases A/c	Dr.		2,00,000
	Input CGST A/c	Dr.		18,000
	Input SGST A/c	Dr.		18,000
	To Kanta				2,36,000
	(Being goods purchased on credit from Kanta, Delhi – (Inter-state)
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 (Intra-state)
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 (Intra-state))
d)	Transport Charges A/c	Dr.		10,000
	Input CGST A/c	Dr.		500
	Input SGST A/c	Dr.		500
	To Bank A/c				11,000
	(Being railway transport charges paid)
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 goods to Sidhu, Delhi, inter-state)
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 Air conditioner purchased locally for office use)
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 U.P. (Intra-state))
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 motor cycle purchased inter-state 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 from Rajesh, Delhi)