NCERT Solutions for Class 11 Accountancy Chapter 4 Recording of Transactions 2

NCERT Solutions for Class 11 Accountancy Chapter 4 Recording of Transactions 2 by Extramarks is a compilation of detailed solutions to questions given at the end of this Chapter in the Class 11 Accountancy textbook. The solutions are prepared by subject matter experts and include thorough explanations, examples, and illustrations wherever required. Students can use this resource for their last-minute preparations, and revisions, and also to understand the best practices of framing answers in exams.

Class 11 Accountancy NCERT Solutions Chapter 4: Recording of Transactions 2

Access NCERT Solutions for Class 11 Accountancy Chapter 4 – Recording of Transaction II

Chapter 4 of NCERT Class 11 Accountancy textbook continues where Chapter 3 left off. This chapter discusses the need for special purpose books in accounting, how to record the transactions in a cash book and later post them to a ledger, preparing the petty cash book, balancing the ledger accounts, and much more.

A detailed list of all the topics covered in this chapter is  as follows:

  • What is a Cash Book? What are the types of Cash books?
  • What is Contra Entry? What is the reason for Contra Entry?
  • How is a Petty Cash Book prepared?
  • What are the Special Purpose Books?
  • What is the purpose of maintaining a Subsidiary Journal?
  • What is Ledger Folio?
  • Differences between Return Inwards and Return Outwards
  • Differences between Trade Discounts and Cash Discounts
  • How to prepare a Ledger from a Journal?
  • How to maintain Fund Books?
  • What are the advantages of maintaining Fund Books?

What is the Importance of Recording of Transactions 2?

Recording of Business Transactions is one of the best business practices because it shows a clear status of the company and assists the company and its management in making insightful decisions based on reliable sources. The recording process needs to be precise and meticulous to make the Recorded Transaction error-free. Transactions are recorded in different books and then tallied to ensure the correctness of details. NCERT Solutions provide detailed answers which present the entire process before the students  with real-life examples. 

How Can You Avail the Best NCERT Solutions of Class 11 Accountancy with the help of Extramarks?

NCERT solutions prepared by Extramarks cover all the questions given at the end of each chapter in the NCERT textbook. Special care is given to provide accurate and detailed answers so that the students can get the best out of these resources. The solutions are prepared by subject matter experts that are experienced in their respective fields and know the best practices that need to be followed when framing solutions in exams. The solutions are written in easy to understand language and include thorough explanations along with illustrations and examples wherever required.

How Does the Team of Experts at Extramarks  Help You Improve Your Learning Skills and Study Pattern?

Extramarks hires its experts after a thorough evaluation to make sure that they have comprehensive knowledge of their respective fields. With the solutions provided by these experts, students can save a lot of their time and energy if they ever get stuck on a question. Including these resources in their preparation will help students plan and execute their study plans better. These resources will especially be useful for last-minute preparations and revisions. 

Fun Fact: Did You Know?

A calculator is an indispensable tool used for Accounting. French Mathematician Pascal invented the calculator back in 1642 . The Mathematician was born on 19th June 1623 in France. Pascal was not only a Mathematician, but he was also a Physicist, writer, philosopher, and Catholic theologian. He invented the equipment at the age of 19 and helped his father calculate Mathematical sums in no time. Initially, the calculator used to be gear-driven wheels.

Q.1 Briefly state how the cash book is both journal and ledger.

Ans.

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.2 What is the purpose of contra entry?

Ans.

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.3 What are special purpose books?

Ans.

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.4 What is petty cash book? How it is prepared?

Ans.

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.5 Explain the meaning of posting of journal entries?

Ans.

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.6 Define the purpose of maintaining subsidiary journal.

Ans.

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.7 Write the difference between Returns inward and Returns outward.

Ans.

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.8 What do you understand by ledger folio?

Ans.

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.9 What is difference between trade discount and cash discount?

Ans.

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.10 Write the process of preparing ledger from a journal.

Ans.

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

Ans.

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.12 Explain the need for drawing up the special purpose books.

Ans.

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

Ans.

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.

Q.14 What is contra entry? How can you deal this entry while preparing double column cash book?

Ans.

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

Ans.

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.16 Describe the advantages of sub-dividing the journal.

Ans.

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.17 What do you understand by balancing of account?

Ans.

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.18 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

Ans.

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.19

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

Ans.

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.20 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

Ans.

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.21

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

Ans.

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.22 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

Ans.

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.23 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

Ans.

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.24 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

Ans.

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.25 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

Ans.

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.26 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

Ans.

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.27 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.

Ans.

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.28 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

Ans.

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.29 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

Ans.

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.30 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

Ans.

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.31 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

Ans.

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.32 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

Ans.

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.33 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

Ans.

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.34 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

Ans.

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.35 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.

Ans.

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

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FAQs (Frequently Asked Questions)

You will find the chapter-wise Accountancy solutions on the Extramarks website or app.

Accounts are balanced at the end of the accounting time. The process is done to get the net position of every account. These get balanced when the two sides are added to make each one equal based on the differences between the two are shown. The balance c/d is written in contrast to the difference between the two sides.

 Journal maintains the record of the credit sales and cash sales. The entries held in the journal are the invoices or bills offered by the firm to the customers. Two or more invoice copies are prepared for each sale.

The purchase return book records the maintenance of goods that have been returned. The reasons for the return can be many, for example, a difference in quality or defective products, and many more. In such cases, a debit note is issued when there is a return. The debit process is chronologically recorded in the books.

A contra entry refers to bank transactions like withdrawals and deposits. The core reason to use contra entry is to show how the transactions affect cash and bank balance. A contra entry is indicated by ‘C’ in the ledger folio column.