Ans 1:

1. Pass Journal entries in the books of Raghunath from the following transactions:-

1994June 1Raghunath started business with cash Rs. 80,000, Goods Rs. 40,000 and Furniture Rs. 20,000June 2Sold goods to Nandlal of the list price of Rs. 20,000 at trade discount of 10%June 4Nandlal returned goods of the list price of Rs. 4,000June 8Received from Nanlal Rs. 14,150 in full settlement in his account.June 10Purchased goods from Brij Mohan of the list price of Rs. 10,000 at 15% Trade discountJune 13Returned goods to Brij Mohan of the list price of Rs. 1,000June 16Settled the account of Brij Mohan by paying cash, under discount of 4%June 18Purchased goods from Anil Rs. 5,000; Sunil Rs. 10,000.June 19Paid cash to Anil Rs. 1,900 and discount received Rs. 100June 20Paid Rs. 9,800 to Sunil in full settlement of his account.June 20Bought a Table Fan for Rs. 1,200 for the domestic use of Raghunath.June 25Sold goods for cash of the list price of Rs, 8,000 at 10% trade discount and 3% cash discount.June 30Paid Rent Rs. 800; Trade Expense Rs. 700 and Travelling Expenses Rs. 380.

Ans 1:JOURNAL OF RAGHUNATHDate

ParticularsL.F.AmountDr.AmountCr.

1994June 1

June 2

June 4

June 8

June 10

June 13

June 16

June 18

June 19

June 20

June 20

June 25Cash A/c. Dr.Purchases A/c. Dr.Furniture A/c. Dr. To Capital A/c (For business started with Cash, Goods & Furniture) Rs.80,00040,00020,000

18,000

3,600Rs.

1,40,000

Nandlal A/c. Dr. To Sales A/c(For goods sold less trade discount)18,000

Sales Return A/c. Dr. To Nandlal(For goods returned by Nandlal Rs. 4,000 less 10%)3,600

Cash A/c. Dr.Discount A/c. Dr. To Nandlal(For cash received and discount allowed)14,150250

14,400

Purchases A/c Dr. To Brij Mohan (For goods purchased on credit)8,5008,500

Brij Mohan A/c. Dr. To Purchases Return A/c.(For goods returned to Brij Mohan Rs. 1,000 less 15%)850850

Brij Mohan A/c. Dr. To Cash A/c. To Discount A/c.(For cash paid and discount received)75007344306

Purchases A/c Dr. To Anil A/c To Sunil A/c15,0005,00010,000

Anil A/c. Dr. To Cash A/c To Discount A/c(For cash paid and discount received)2,0001,900100

Sunil A/c. Dr. To Cash A/c To Discount A/c(For cash paid to Sunil and discount received)10,0009,800200

Drawings A/c Dr. To Cash A/c(For table fan bought for domestic use)1,2001,200

Cash A/c. Dr.Discount A/c. Dr. To Sales A/c.(For goods worth Rs. 8,000 sold at 10% trade discount and 3% cash discount)6,984216

7,200

2. The following balances appeared in the books of Vishal Stores on 1st January 1994:-Assets :- Cash Rs. 15,000; Bank Balance Rs. 5,000; Stock Rs. 40,000; Furniture Rs. 3,600; Debtors Rs. 24,000 (X Rs. 6,000; Y Rs. 8,000 and Z Rs. 10,000).Liabilities : Bank Loan Rs. 10,000; Creditors- Rs. 12,500(Ajay Rs. 5,000, Vijay Rs. 7,500)Following transactions took place during 1994.Jan 2Bought goods from kailash for Rs. 20,000 at a trade discount of 10% and Cash discount of 2%, Paid 60% amount immediately.Jan 4Sold goods to X for Rs. 9,000Jan 5Received Rs. 14,800 from X in full settlement of his accountJan 6Cash deposited into bank Rs. 10,000Jan 8Cheque received from Y for Rs. 7,850 in full settlement of his account. This cheque was immediately deposited in bank.Jan 10Received a cheque from Z Rs. 2,000Jan 12Cheque received from Z deposited into bankJan 15Cheque received from Y dishonouredJan 16Cash sales Rs. 15,000; Out of this amount Rs. 12,000 deposited in bankJan 16Amount due to Ajay paid by chequeJan 18Old Newspaper sold Rs. 50Old Furniture Rs. 750Jan 20Z became insolvent and 40 paise in a rupee could be received from his estate.Jan 22Purchased goods from Gopal and paid by cheque Rs. 8,000Jan 24Sold half of the above goods to Chanderkant at a profit of 30% on cost.Jan 25Proprietor withdrew for private use Rs. 2,000 from office and Rs. 3,000 from bank.Jan 31Paid salary to Motilal by Cheque Rs. 2,000Jan 31Paid Rent by cheque Rs. 1,500Jan 31Paid trade expense Rs. 500.Ans 2:JOURNAL OF VISHAL STORESDate

ParticularsL.F.AmountDr.AmountCr.

1994Jan 1

Jan 2

Jan 4

Jan 5

Jan 6

Jan 8

Jan 10

Jan 12

Jan 15

Jan 16

Jan 16

Jan 18

Jan 20

Jan 22

Jan 24

Jan 25

Jan 31

Jan 31Cash A/c. Dr.Bank A/c. Dr.Stock A/c. Dr.Furniture A/c. Dr. X Dr.Y Dr.Z Dr. To Loan from Bank To Ajay To Vijay To Capital (balancing figures) (For assets and liabilities brought forward) Rs.15,0005,00040,0003,6006,0008,00010,000

18,000

9,000

14,800200

10,000

7,850150

2,000

2,000

8,000

3,00012,000

5,000

6,984216

3,2004,800

8,000

5,200

5,000

2,0001,500

500

Rs.

10,0005,0007,50065,100

10,584(1)2167,200

9,000

15,000

10,000

8,000

2,000

2,000

7,850150

15,000

5,000

7,200

8,000

8,000

5,200

5,000

3,500

500

Purchases A/c. Dr. To Cash A/c To Discount A/c. To Kailash(For goods purchased and discount received)

X Dr. To Sales A/c.(For goods sold on credit)

Cash A/c. Dr.Discount A/c. Dr. To X(For cash received and discount allowed)

Bank A/c Dr. To Cash A/c(For cash deposited in bank)

Brij Mohan A/c. Dr. To Purchases Return A/c.(For goods returned to Brij Mohan Rs. 1,000 less 15%)

Cash A/c. Dr. To Z(For cash received)

Bank A/c Dr. To Cash A/c(For cheque received from Z now deposited into Bank)

Y A/c. Dr. To Bank A/c To Discount A/c(For cheque dishonoured and discount withdrawn)

Bank A/c. Dr.Cash A/c. Dr. To Sales A/c(For Cash Sales)

Ajay A/c. Dr. To Bank A/c(For cheque given to ajay)

Cash A/c. Dr. To Miscellaneous Income A/c. To Furniture(For old newspapers and old furniture sold)

Cash A/c. Dr.Bad Debts A/c. Dr. To Z(For cash received and bad debts written off.

Purchases A/c. Dr. To Bank A/c.(For goods purchased by cheque)

Chanderkant Dr. To Sales A/c(For goods sold on credit)

Drawings A/c Dr. To Cash A/c. To Bank A/c.(For amount withdrawn for private use)

Salary A/c. Dr.Rent A/c. Dr. To Bank A/c(For expenses paid by cheque)

Trade Expenses A/c. Dr. To Cash A/c.(For expenses paid in cash)

Total Rs.2,10,6002,10,600

Note (1)

Total Amount 20,000Less 10% Trade Discount 2,00018,000

Cash Purchases 60% of 18,00010,800Less : Cash Discount (2% of 10,800) 216Amount paid 10,584Cash purchases = 40% of 18,000 7,200

3. Journalise the following transactions in the books of Dr. Chandan:-

(1) Biroo who owed Rs. 1,500 is declared Insolvent and 65 paise in a rupee is received as final dividend from his estate.(2) Sold goods to Kitty list price Rs. 2,000, Traders Discount 10% and cash discount 5%. He paid the amount on the same day and availed Cash Discount.(3) Supplied goods costing Rs. 600 to Shakuntla, issued invoice at 10% above cost less 5% trade discount.

Ans 3:JOURNAL OF Dr. CHANDANDate

ParticularsL.F.AmountDr.AmountCr.

S.No. (1)

(2)

(3)

Cash A/c. Dr.Bad-debts A/c. Dr. To Birooo (For cash received and bad debts written off) Rs.975525

1,71090

627(1)

Rs.

1,500

1,800

627

Cash A/c. , Dr.Discount A/c. Dr. To Sales A/c(For goods of the list price of Rs. 2,000 sold at 10% trade discount and 5% cash discount)

Shakunla A/c Dr. To Sales A/c.(For goods sold to Shankuntla at 10% above cost and allowed 5% trade discount )

Note (1)Cost of goods 600Add 10% of 600 60660Less : 660 x 5 33 100____ 627

4. Pass Journal Entries for the following :-(1) Proprietor withdrew for his personal use cash Rs. 2,000 and goods worth Rs. 1,000.(2) Goods for Rs. 5,000 were given away as Charity.(3) Goods worth Rs. 2,500 were distributed as free samples.(4) Goods worth Rs. 5,000 and cash Rs. 2,000 were stolen by an employee.(5) Goods worth Rs. 10,000 were destroyed by fire.

Ans 4:JOURNAL Date

ParticularsL.F.AmountDr.AmountCr.

S.No. (1)

(2)

(3)

Drawings A/c. Dr. To. Cash A/c To Purchases A/c (For cash and goods taken away for personal use) Rs.3,000

5,000

2,500

7,000

10,000

Rs.

2,0001,000

5,000

2,500

5,0002,000

10,000

Charity A/c. Dr. To Purchases A/c(For goods given as a charity)

Free Samples A/c Dr. To Purchases A/c.(For goods distributed as free samples. )

Loss on theft A/c. Dr. To Purchases A/c To Cash A/c(For Goods and Cash stolen by an employee)

Loss by fire A/c. Dr. To Purchases A/c(For goods destroyed by fire)

5. Pass Journal Entries for the following :-1.Goods sold for cash to a customer for Rs. 5,000 and collected 8% sales tax2.Purchased an Iron Safe for business for Rs. 10,0000.3.Purchased filing cabinet for office use Rs. 4,000 and paid Rs. 20 as carriage on it.4.Purchased a portable typewriter from Radha Kishan & Co. for Rs. 8,000.5.Purchased an electric fan Rs. 2,0006.Purchased a Horse for business for Rs. 15,000.7.Paid Rs. 500 for expenses on goods sold to Vijay. The amount is to be realized by Vijay8.Purchased post cards for Rs. 25; Envelopes for Rs. 50 and Stamps for Rs. 1009.Purchased office stationary for Rs. 40010.Gave a Charity Cash Rs. 200: Goods Rs. 400 and Furniture Rs. 500.11.Received an order of goods from Vishnu for Rs. 10,000 and received Rs. 2,000 as advance.12.Paid cash to Y on behalf of X Rs. 6000.

Ans 5:JOURNAL Date

ParticularsL.F.AmountDr.AmountCr.

S.No. (1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Cash A/c. Dr. To Sales A/c To Sales Tax A/c (For goods sold for cash and sales tax collected) Rs.5,400

10,000

4,020

8,000

2,000

15,000

500

175

400

1,100

2,000

6,000Rs.

5,000400

10,000

4,020

8,000

2,000

15,000

500

175

400

200400500

2,000

6,000

Office Equipment A/c Dr. To Cash A/c(For Iron Safe purchased)

Office Equipment A/c Dr. To Cash A/c(For filling cabinet purchased for Rs. 4,000 and cartage paid on it Rs. 20)

Office Equipment A/c Dr. To Radha Krishan & Co A/c(For portable typewriter purchased)

Fixtures A/c Dr. To Cash A/c(For electric fan purchased)

Live Stock A/c Dr. To Cash A/c((For a horse purchased for business)

Vijay Dr. To Cash A/c(For expenses paid on behalf of Vijay)

Postage A/c Dr. To Cash A/c(For Post Cards, envelopes and stamps purchased)

Stationery A/c Dr. To Cash A/c(For stationery purchased for office use)

Charity A/c Dr. To Cash A/c To Purchases A/c To Furniture A/c(For cash, goods and furniture given as Charity)

Cash A/c(1) Dr. To Advance from Vishnu(For amount received as advance)

X(2) Dr. To Cash A/c(For cash paid to Y on behalf of X)

Note (1) In Transaction no. 11 no entry will be passed for receiving an order of Rs. 10,000. as on transaction has been taken place for it.(2) In transaction no. 12, the account of X will be debited, as the payment has been made on his behalf.