NOTES


CA-Foundation > Principles and Practice of Accounting > Accounting Process - Basic Accounting Procedures - Journal Entries >


Accounting Process - Basic Accounting Procedures - Journal Entries Notes

  1. Distinguish between Real Account & Nominal Account
  2. Show the classification of the following accounts under traditional and accounting equation approach:

     a

    Rent outstanding

    g

    capital

    b

    Closing inventory

    h

    Sales tax payable

    c

    sales

    i

    Trade receivables

    d

    Bank fixed deposits

    j

    Depreciation

    e

    cash

    k

    drawings

    f

    Bad debts

     

     

  3. Pass journal entries for the following transactions in the books of gamma bros.
    (i) 
    Employees had taken inventory worth Rs.1,00,000(cost price Rs.75,000) on the eve of deepawali and the same was deducted from their salaries in the subsequent month.
    (ii) Wages paid for erection of machinery Rs.18,000.
    (iii) 
    Income tax liability of proprietor Rs.1,17000 was paid out of petty cash.
    (iv)  
    Purchase of goods from naveen of the list price of Rs.2,00,000. He allowed 10% trade discount, Rs. 5000 cash discount was also allowed for quick payment.
  4. calculate the missing amount for the following.               

     

            Assets       

       Liabilities

    Capital

    (a)

          1,50,000

       2,50,000  

                     

                   ?

    (b)

                      ?

     1,50,000

          75,000

    (c)

         14,50,000  

                     ?

      13,75,000

     

    (d)

         57,00,000    

        -2,80,000 

                 ?

  5. Show the effect of increase and =(+), decrease = (-) and no change=(0) on the assets of the following transactions:

          a. Purchased office furniture, payment to be made next month.

          b. Collected cash for repair services

          c. Goods sold on credit.

          d. Withdrawal of cash by the owner for personal use.

          e.  Hired an employee as sales manager of the north wing.

          f.    Returned goods worth Rs. 50,000

          g.  One of our debtor agreed to pay his dues to Mr. C who is the creditor of the company with the same amount being due to him.

          h.   Entered into an agreement with Mehta & co. To purchase all Raw materials from their company from next year.

           Also give reasons for your answers.

  6. Following is the information provided by Mr. Gopi pertaining to year ended 31st march 2017. Find the unknowns, showing computation to support your answer:

    Particulars

              Rs.

     Particulars

              Rs.

    Machinery

     12,00,000

    Trade receivables

           B

    Accounts payable

       1,00,000

    Loans

           C

    Inventory

         60,000

    Closing capital

           D

    Total liabilities including capital

     14,15,000

    Opening capital

    10,00,000

    Cash

         A

    Loss incurred during the year

      35,000

     bank

      80,000

    Capital introduced during the year

     1,00,000

  7. 1. Asha started his business with cash  81,000, Building  1,00,000 and borrowed from friend Jitentdra  25,000.

    4. Paid cash in to Bank of India  90,000.

    5. Purchased furniture from Monika and issued him a cheque  6,000.

    7. Credit purchases from Pandey  15,000 less 4% trade discount.

    8. Returned goods to Pandey 150.

    10. Cash Sales  4,500.

    11. Credit Sales to Manish  3,000 less trade discount 2%.

    12. Manish return goods of  294.

    14. Goods taken for personal use  300.

    16. Paid postage R. 100 and electricity bill of 600.

    19. Sent a Telegram of  30 to Pandey to supply goods of  7,500 immediately.

    21. Purchased computer & Printer of  25,000 from Kewal part payment gave him cash of  15,000.

    28. Paid life insurance premium on life of Asha of  3,000.

    29. Paid Telephone Deposit for new telephone connection by cheuqes  2,000.

    31. Paid for traveling expenses  3,000.

     

  8. Journalise the following transaction in the books of Mr. Bhavya.

    1.Commenced business with Cash 50,000 and Furniture 20,000.

    2.Opened a current Account in Bank of Maharashtra by depositing 40,000.

    4.Purchased stationery of 100.

    5.Goods purchased from Sonu 10,000.

    7.Gave a cheque of 10,000 to Neha.

    9.Sold goods to Manisha of 15,000.

    12.Received a bearer cheque for 14,500 from 1 debtor Manisha in full settlement of his A/c.

    14.Gave loan to Sumit by cheque 4,000 at 12% interest p.a.

    18.Bought Computer (Laptop) of 18,000 in exchange of goods costing  20,000 at 10% trade discount from Pandit and Company.

    21.Purchased Printer of 9,000 from GP Ltd. paying half the amount in cash.

    29.Paid office rent 1,000 to landlord Ms. Sujata

    30.Uninsured goods worth 500 destroyed by fire.

    31.Paid salary to Girish by cheque 2,000.

  9. Journalise the following transaction in the books of Mr. Singh.

    1. Mr. Singh received  40,000 from his uncle as a gift and deposited the same in to State Bank of India account of Business.

                2.Purchased goods of 11,000 from Rohan

                4. Sold goods on credit to Rohan for15,000.

                8. Goods of  400 being defective returned by Sohan.

                10.Remitted cash to Mohan  10,600, and received discount 400.

    14.Bought Machinery from ABC Company  20,000 and half the amount paid

          immediately.

                18.Paid for repairs of above Machinery200.

                19.Placed an order with M/s Mahavir & sons for supply of goods 10,000.

                21.Purchased a horse for  8,000 and paid carriage charges 200.

                24.Withdrawn from bank  4,000 for personal use.

                26.Amount due from Suresh  750 is proved to be irrecoverable and has to be written off as bad debts.

                27.Execution of order placed on 19th August 2011 & amount paid in cash.

                28.Paid for sales literature  1,000.

                31.Paid for conveyance expenses  1,000.

     

  10. Enter the following transaction in the books of Mr. Rajendra
    1.Bought goods of  16,000 from sunil at 5% Trade Discount.
    2.Sold half the goods purchased from Seema to Reema at 20% profit on cost.
    5.Purchased Machinery for cash  20,000 and paid  1,000 wages for the installation of Machinery.
    9.Paid for conveyance  100.
    11.Rajendra paid  12,000 to Birla College for his daughter’s fees.
    13.Placed an order for goods  5,000 to Viru
    15.Paid to Ajay  11,000 on account
    18.Viru executed the order, which was placed on 13th Sept.
    21.Paid wages  500.
    24.Paid house rent of the proprietor  1,500.
    26.Sold remaining goods purchased 1st Sept. from Seema to Verma at 25% profit on cost.
    29.Varma become an insolvent and could pay only 50 paise in a rupee.
    30.Paid salaries in cash  2,500 to Suraj.
  11. Journalise the following transactions in the books of Mr. Jack
    Debit Balance on 1st April, 2011
    Cash at bank  75,000. Sundry Debtors  11,000, Stock  25,000, land & Building  1, 75,000.
    Credit Balance on 1st April, 2011
    Sundry Creditor-Manali  15,000 Bank Loan  25,000
          Transaction during the month of April, 2011
    1.Purchased goods worth  20,000 for cash less 25% trade discount.
    4.Sold goods to Jhill  20,000
    6.Purchased gods from Sania worth  10,000
    9.Goods costing  1,000 distributed as free samples.
    11.received an amount of  2,000 from Ajay which was previously written off as bad debts.
    15.Purchased goods, from Bhavya  20,000 at 10% trade discount.
    15.Paid to Bhavya 1/3rd amount in cash and received 5% cash discount.
    21.Received cash gift  11,000 from Mother-in-law with which purchased shares of Bata Co. for the business.
    25.Repayment of Bank loan with interest  5,000 (Interest Rs1,000)
    29.Sold goods to Manish  40,000 at 10% trade discount and received half the amount in cash for which 5% cash discount is given.
    30.Paid for printing & stationery  4,000.
    30.Withdrew cash from Bank for personal purpose  1,000.


  12. Journalise the following transaction in the books of Vijay & Company for the month of April, 2012. Balances as on April, 2012.

    Cash at bank (Bank of Maharashtra)  1,00,000, Land & Building  1,80,000. Laptop and Printer  60,000; Debtors: Priti  5,000, Damini  4,000; Stock  40,000; Bank Loan  28,000; Creditors: Meena  6,000; Jatin  9,000.

    Transaction during the month of April, 2012 were as follows:

    2012 Apr.      

    2.Purchased goods of the list price  20,000 at 10% trade discount on credit from Mr. Justin

                4.Received  3,700 cash from Damini in full and final settlement of her account.

                6.Goods costing  900 destroyed by fire.

                9.Sold goods to Mr. Verma on credit  10,000.

             11.Cash withdrawn by proprietor for personal use  4,000.

             14.Mr.Verma Paid  9,000 after getting 10% cash discount for promote payment.

             19.Interest on Bank Loan Rs .800 debited to the current account.       

             21.Paid  8,900 to Jatin in full and final settlement of his account.

             30.Cash sales at list price  8,000, trade discount allowed  400.

     

  13. Journalise the following transactions in the books of sawant Brothers for the month of April, 2011. Balances on April 1, 2011.

    Cash at bank  1,80,000 (Bank of India), Cash in Hand  2,000; Land & Building  2,00,000; Computer and printer  60,000; Sundry Debtors  10,000; Bills Receivable  5,000; Sundry Creditors  32,000; Bills Payable 10,000.

    Transaction during the month of April 2011 were as follows :

    2011 Apr.      

    2.Purchased goods from Rohan worth  20,000 at 10% trade             

    discount and    5% cash discount, paid ¼ amount in cash and ¼ amount by cheque.

    4.Purchased shares of BOI Ltd.  10,000 and  100 paid as brokerage.          

    6.Sold goods to Hetal worth  30,000 at 10% trade discount and 5% cash discount,      Received 1/3 amount in cash and 1/3 amount by cheque, 5% cash discount is allowed.

    11.Paid house rent  1,000 and telephone bill of proprietors house 500.

    22.Goods worth  4,000 were destroyed by fire and Insurance company admitted a claim to the extent of  3,000 only.

    24.Paid Personal Income tax  5,000.

    27.Purchased office furniture  20,000 and paid carriage  200 on office furniture. 

    29.Transferred  15,000 from private bank of proprietor to business Bank of India account.

    30.Salaries paid  4,000 in cash and  6,000 by cheque.

     

  14. Journalise the following transaction in the books of Mr. Gupta  Balances on 1st April, 2012.

    Cash at Bank,  2,10,000, Machinery  2,00,000; Furniture  50,000, Computer and Printers  1,00,000, Sundry Debtors  50,000, Sundry Creditors40,000.

    Transactions during the month of April, 2012 :
    2012 Apr.     
    1.Cheque received from Sonu 10,000 and the same is immediately deposited in Bank of Maharashtra.
    4.Cheque received from Ranjeet  20,000.
    6.The cheque received on 4th April deposited into Bank of Maharashtra.
    9.The cheque deposited  on 6/04 dishonoured.
    14.Cheque received from Sonali 11,000 and the same is endorsed to Smita.
    19.The Cheque received on 14th April dishonoured.
    21.Bank Charges charged by Bank  250.
    24.Telephone bill paid by cheque  1,000.

    28.Salary outstanding  10,000.

     

  15. Journalise the following transactions in the books of Mr. Salman

    2010 April

    1

    Mr. Salman started business with cash 80,000.

     

    4

    Purchased goods from Sona 28,000.

     

    7

    Deposited cash into Dena Bank  39,000.

     

    10

    Sold goods to Deepak 41,000.

     

    13

    Purchased Laptop of 30,000 in cash.

     

    17

    Paid Sonali by cheque 30,000.

     

    20

    Paid wages 500.

     

  16. Journalise the following transactions in the books of Miss. Nisha

     

    2010 May

    1

    Commenced business with cash  2,10,000.

     

    4

    Purchased goods for cash  60,000.

     

    5

    Sold goods for cash  70,000.

     

    9

    Deposited into Bank of India  1,00,000.

     

    13

    Paid for stationery  10,000.

     

    17

    Purchased computer with printer  40,000.

     

    21

    Purchased goods from Dubey for  50,000 on credit.

     

    25

    Paid for office rent  2,000.

     

    26

    Received commission  1,000.

     

    30

    Withdrew from bank for office use 50,000.

     

    31

    Paid for salaries  4,500.

     

  17. Journalise the following transactions in the books of Priyanka

    2011 June

    1

    Commenced business with cash  1,20,000, Goods  60,000 and furniture  65,000.

     

    3

    Opened a current account in Bank of Baroda by depositing  75,000.

     

    5

    Cash purchased  35,000.

     

    9

    Cash sales  55,000.

     

    10

    Purchased goods worth  20,000 from Sumit & Co. subject to trade discount of 2%.

     

    14

    Credit sales to Sushmita 15,000.

     

    16

    Paid cash to Amit & Co.  9,500 who allowed us discount  100.

     

    19

    Goods distributed as free samples of  1,500.

     

    21

    Received cash from Sushmita 4,800 on account and allowed her cash discount  200.

     

    24

    Returned goods of  750 Sumit&Co

     

    26

    Purchased shares of  15,000 of HDFC Bank.

     

    29

    Received goods returned by Sushmita  200.

     

    30

    Rent paid by cheque  7,000.

     

     

     

  18. Journalise the following transactions in the books of Mr. Rupesh

    2011 July

    1

    Started business with cash 3,25,000,Goods worth  50,000 and Laptop  45,000.

     

    3

    Deposited in Dena Bank 1,50,000.

     

    7

    Bought goods on credit from Ram 10,000 at 10% Trade Discount.

     

    11

    Sold goods to Jatin of 12,000 at 5% Trade Discount.

     

    13

    Goods worth 900 burnt by fire.

     

    17

    Received cash of 11,200 from Jatin in full settlement of his account.

     

    20

    Drawn from bank 4,000 for his personal purpose.

     

    23

    Paid cash 9,300 to Ram in full settlement of his account.

     

    25

    Paid house rent 2,500.

     

    28

    Sold goods worth 2,000 to Vijay who paid us 8,000 on account.

     

    31

    Wages paid 6,000.

     

  19. Journalise the following transactions.

    2011 Aug

     

    1

    Shri Shyam started his business with cash 90,000, Building 1,50,000 ,borrowed  from friend Nitin 40,000.

    3

    Paid cash into Bank of Maharashtra 80,000.

    6

    Purchased furniture from Sagar and issued him a cheque  10,000.

    9

    Credit purchased from Shiva 20,000 less 5% trade discount.

    10

    Returned goods to Shiva  200.

    13

    Credit sales to Sumit 6,000 less 2% trade discount.

    15

    Sumit returned goods of 588.

    17

    Goods taken by Shyam for his personal use 500.

    18

    Paid postage 200 and electricity bill 900.

    20

    Sent a telegram of 30 to Shiva to supply goods of 9,000 immediately.

    21

    Purchased Laptop & printer of 41,000 from Deepak & Co. and paid him cash  21,000.

    27

    Paid insurance premium on life of Shyam of  4,000.

    29

    Paid telephone deposit for new telephone connection by cheque 4,000.

    31

    Audit fees paid by cheque 4,500.

     

  20. Journalise the following transactions in the books of Mr. Varun

    2010 Sept.

    1

    Commenced business with cash 75,000 , goods  20,000 and furniture  30,000.

     

    2

    Opened a current account in Bank of India by depositing  50,000.

     

    5

    Purchased stationery of  200.

     

    6

    Goods purchased from Misha  15,000.

     

    9

    Gave a cheque for  15,000 to Nisha.

     

    11

    Sold goods to Seema of  20,000.

     

    14

    Received a cheque for  19,500 from our debtor Seema in full settlement of her account.

     

    16

    Gave loan to Suraj by cheque  10,000 at12% p.a. interest.

     

    19

    Bought Laptop of  36,000 in exchange of goods from Pande & Co. goods of  40,000 were given at 10% Trade discount.

     

    22

    Purchased printer of  10,000, paying half the amount in cash from ABC Ltd.

     

    28

    Uninsured goods worth  700 destroyed by fire.

     

    29

    Paid office rent  2,000 to landlord.

     

    30

    Paid for travelling expenses  5,000.

     

  21. Journalise the following transactions in the books of Mr. Sagar

    2010 Sept

     

    1

    Mr. Sagar received of 50,000 from his uncle as a gift and deposited the same into the account of business Bank of India A/c.

    3

    Purchased goods of 15,000 from Vijay.

    5

    Sold goods on credit to Rama for 18,000.

    7

    Goods of 600 being defective returned by Rama.

    11

    Remitted cash to Ramesh  14,800 and received discount 200.

    15

    Bought machinery from RR & Co.  30,000 and half the amount paid immediately

    17

    Paid for repairs to Machinery 400.

    20

    Purchased a horse for 4,800 and carriage charges  200 paid.

    25

    Withdrawn from bank  5,000 for personal use.

    27

    Amount due from Ajay 900 is proved to be irrecoverable and has to be written off as bad.

    29

    Paid for sales vouchers  1,100.

    31

    Paid Insurance premium  6,000.

     

     

  22. Journalise the following transactions in the books of Mr. PK

    2011 Nov.

     

    1

    Bought goods of  20,000 from Jhil at 5% T.D.

    4

    Sold half the goods purchased from Jhil to Jack at 20% profit on cost.

    6

    Purchased machinery for cash  25,000 and paid  1,100 wages for the installation of machinery.

    8

    Paid for travelling expenses 500.

    12

    Mr. PK paid  11,000 to Rock college for his son’s fees.

    14

    Placed an order for goods  7,000 to Veer.

    16

    Paid to Jhil  15,000 on account.

    19

    Veer executed the order which was placed on 14th Nov.

    22

    Paid wages  600.

    25

    Paid for proprietor house rent  2,000.

    28

    Sold remaining half of the goods purchased from Jhil to Shilpa at 25% profits on cost.

    29

    Taxes paid in cash  4,000.

    31

    Shilpa becomes insolvent and could pay only 50% paise in rupee.

     

  23. Journalise the following transaction in the books of Naina

    Dr. balance

    Cash in hand 5,000, Cash at bank  95,000, Land & building  2,10,000, Furniture  15,000 and debtors 10,000.

    Cr. Balance

    Creditors  10,000 and bank loan  28,000.

    2011 Nov.

    1

    Purchased goods worth  30,000 for cash less 5% trade discount.

     

    3

    Sold goods to Reema   25,000.

     

    7

    Purchased goods from Nisha worth 12,000.

     

    9

    Goods costing  1,100 distributed as free samples.

     

    12

    Received an amount of  1,500 from Atul which was previously written off as bad.

     

    14

    Purchased goods from Dinesh 30,000 at 10% Trade Discount and paid him 1/3rd amount in cash after getting 5% cash discount.

     

    20

    Received cash gift  10,000 from Father-in-law with which purchased shares of Infosis Co.

     

    24

    Payment of Bank loan with interest  6,000 (Interest amount 1,500)

     

    28

    Sold goods to Ankit  50,000 at 10% trade discount and received half the amount in cash, 5% cash discount allowed.

     

    29

    Paid for advertisement  5,000.

     

    30

    Withdrew cash from Bank for personal purpose 2,000.

     

     

  24. Record the following transactions in the books Chaman & Company for the month April,2010.

    Cash in hand  21,000, Cash at bank   3,00,000, Furniture   1,00,000 , Laptop & printer  90,000, Debtors Chetna   7,000 Dilip   9,000, Stock  25,000, Creditors Laxmi   6,000 Hema  8,000, Bank loan   30,000.

    2010 April

    1

    Purchased goods of the list price  30,000 at 10% Trade discount on credit from Mr. Kale.

     

    3

    Received  8,800 cash from Mr. more in full and final settlement of his account.

     

    5

    Rent paid to landlord  5,000.

     

    7

    Sold goods to Mr. Shrinath on credit 15,000.

     

    9

    Goods costing  250 distributed as free samples.

     

    12

    Cash withdrawn by proprietor for private purpose  5,000.

     

    15

    Mr. Shrinath pays  14,250 after getting 5% discount for prompt payment.

     

    20

    Interest on bank loan  1,000 debited to the current account of the proprietor.

     

    23

    Paid  7,900 to Mrs. Himani in full & final settlement of her account.

     

    25

    Cash purchased at list price  10,000 trade discount allowed 500.

     

    28

    Purchased Maruti Van for business  1,75,000 amount paid by cheque.

     

    30

    Commission paid by cheque  7,000.

     

     

  25. Journalise the following transaction in the books of Seth & Brothers for the month of April,2012.

    Cash at bank 2,00,000, Cash in hand 2,500, Computer & Printer 90,000 Land& Building  1,80,000; Sundry Debtors 15,000;Bills Receivable  10,000; Sundry Creditors  14,000; Bills payable  5,000.

    Transactions during the month of April were as follow:-

    2012 April

    1

    Purchased goods from Mehta worth 40,000at 10% trade discount and paid ¼ amount in cash and ¼ amount by cheque, for which 5% cash discount is allowed

     

    4

    Purchased shares of Tata Company 12,000 and 200 paid as brokerage

     

    7

    Sold goods to Anil worth 60,000 at 10% Trade Discount Received 1/3 amount in cash and 1/3 amount by cheque and 5% cash discount is allowed.

     

    11

    Paid Telephone Bills of Proprietor’s house  700

     

    14

    Paid House Rent  1,500

     

    20

    Received goods as free samples  2,000

     

    23

    Purchased Furniture  30,000

     

    23

    Paid carriage 300 on the above furniture

     

    25

    Goods worth 6,000 were destroyed by fire and Insurance company admitted a claim to the extent of  40,000.

     

    27

    Paid income tax  6,000

     

    28

    Paid for printing and stationery  2,000

     

    29

    Transferred  20,000 from private bank of proprietor to business Bank of Maharashtra A/c

     

    30

    Salaries paid  5,000 in cash and  10,000 by cheque.

     

  26. Journise the following transactions in the Journal of Smt. Bablu Mehta :
    Jan. 5  Bank account is opened by depositing 10,000 with Bank of India
            7  Smt. Bablu withdraw 1,000 cash for personal use.  
            8  Smt. Bablu brought her personal car into the business for 80,000.
            9  Smt. Bablu house rent paid  500 form office cash.
          10  Goods purchased from Mansi Ltd. of 2,000 and amount paid by cheque
          15  Goods worth 2,000 distributed as free samples among valued customers
          18  Received commission form Mr. Verma 200 for goods sold on his behalf.
           19   200 paid in cash to M/s Book printers for painting of letterheads.
  27. Journalise the following transactions in the books of M/s Badal & Co. 2012

    JAN. 1.Business commenced by proprietor with cash 2,00,000

             8.Paid wages for extension of building  75,000

           16.Paid for repairing of building   4,000 & wages 4,200

           21.Sold goods to Mehta & Co. 59,000 via cash memo no. 8.

           24.Withdrawn   6,500 from bank.

           27.Paid to Miss. Sidhi 1,000 on account

          30. Decided to buy 6 computers costing  20,000 each from Global Computers Ltd.

          31.Goods worth  2,300 withdrawn by Mr. Badal for personal use.

     

  28. Journalise the following transactions in the books of Mr. Sharma :

    Mar. 1.Mr. Sharma started business with goods worth 7,000 Building 25,000 Cash   10,000 and Furniture 13,000.

            7.Purchased office equipment of 1,000 and loose tools of  500.

            8.Bank Account opened by depositing 1,000.

            9.Goods purchased from Ram of 2,000.Half the amount paid in cash.

          10.Sold goods to Mr. Birla of 4,000 and one-fourth of the amount received in

    cash.

          12.goods purchased from Vipul worth 200 for which half the amount paid on cash

    while other half by cheque.

          13.Mr.Sharma withdrew 100 in cash and goods worth  500 for his domestic use.

          14.Purchased machinery of  5,000 for cash.

          15.Installation charges paid on above machinery 200.

          18.Placed on order for goods with Vishal for 2,000.

          31.Paid salary to clerk Shiv 300, wages to Mahesh 200 and rent to Maya 100.

     

  29. Journalise the following transaction :

    2012

    April.1. Bought goods from Mr. Krish  worth  7,000 less 10% trade discount.

            3.Sold goods to Mr. Ravi worth  3,000 at 5% trade discount and 5% cash discount terms.

            4.cash received form Ravi  2,500 in settlement of his account of  2,850.

            6.Paid to Mr. Krish  6,000 and discount received  300.

            8.Purchased goods from Mr. Manik of  7,000 at 10% cash discount on cash terms.

          10.Sold goods to Mohan of  10,000 at 10% trade discount and 10% cash discount terms on cash basis.

          12.Purchased goods for cash of  10,000 less 5% trade discount 5% cash discount terms.

          15.Purchased goods form Bala of 2,000 at 25% trade discount and half amount paid on the spot.

     

  30. Prepare the journal for M/s. Nisha Enterprises :

    2012

    Sept.1.Received 3,500 from Piyush on behalf of Mahesh

    5.Sold goods to Mr. Ravi worth 18,000 and he paid 15,000 of which  10,000 by cheque.

             7.Following expenses are paid by cheque

                (a) Advertisement 4,000

                (b) Salary 1,500

                (c) Papers worth 4,000

                (d) LIC 500.

           10.Rent received form tenant 4,000

           14.Gave a present worth 151 to a relative in his marriage

           18.Opened a saving bank account with OBC Bank Ltd. By depositing 3,900

           24.Ankit bought goods worth 10,000 from Usha Enterprises and 5,000 on account received from Him.

           27.Paid salary 2,000 and Rent 1,500 (500 rent is of resident house)

           30.Returned goods worth 1,000 by Ankit , which was purchased by him on Sept. 24 and form him, we received cash 3,500 in full settlement of  his account.

     

  31. Journalise the following in the journal of Mr. Anil Kapoor, Malad, Mumbai-64.

    2012

    Feb

     

    1

    Miss Melisa supplied goods of 10,000 to Prashant and paid transport charges  200 on our behalf.

    5

    M/s. Raj & Sons paid 10,000 to Mr. Prashant for the goods purchased by them last month.

    9

    Machinery purchased for 21,000 out of lottery prize received by Sonu

    13

    Withdraw by bearer cheque from Bank 10,000; 3/5th for personal use.

    19

    Receive insurance claim of 3,950 against loss of goods  4,000.

    23

    Purchase a new motor car costing 2,00,000 form Auto-riders on installment basis and issued a Cheque of  20,000.

    25

    Under our instruction, Salman supplied goods to Karina worth 12,000 at 50% profit on cost.

    26

    Sold private motor car for  50,000and purchased second hand delivery van for business purpose for 48,000 and immediately spent  2,000 for repairs and painting.

    28

    Karina returned 30% of goods, which was purchased on 25th Feb. 2000 from Salman

     

  32. Pass journal entries of the following transactions in the books of Bharat Joshi :

    1912

    May.1.Commenced business with cash  50,000 (includes loan taken from wife Reena

               worth 10,000) furniture of 12,000, stock worth 30,000 and   30,000 bank balance

            2.Goods worth  3,000 destroyed by fire and ashed. Insurance company admitted the claim for 2,500.

            3.Goods sold to Rohan of  5,000 at 20% trade discount and 10% cash discount terms. Half the amount Received in cash.

            4.Materials Purchased (wood, fevicol etc.) for making of furniture  2,000.

            7.Wages paid to carpenter for making furniture  1,000.   

            7.Wages paid to carpenter for repairing of existing furniture  500.

            7.Bought 100 shares of Kopran Laboratories @  97 each, brokerage paid at 2%.

            8.Received cash form insurance company in settlement of their claim for goods destroyed by fire on May02.

          10.Bought a horse for  5,000 and a carriage for  3,000 for delivering the goods to custome

          12.Paid for charity  101 and sundry expenses  50 for tea, coffee, biscuits etc.

          13.Received from travelling  salesman  2,000 for goods sold by him after deducting his travelling Expenses  200.

          15.The horse bought on May 10 died, its car case was sold for  50.

          18.Our Debtor Mr. Rohan is declared insolvent and hence the amount of  2,000 which is due from him is Irrecoverable, therefore his account should be written off.

          20.Commission due from Mr. Narayan 200.

          25.Received one note of  500 form Mr. Kumar and gave him change in the form of 5 notes of each 100 each.

          30.Paid Income tax  200.

          31.Interest due on loan taken from wife Reena at the rate of 12% p.a. for the month of May.

  33. Journalise the following transaction in the books of Mrs. Reena

    2012

    Mar.

     

    1

    Goods sold worth  8,000 to Pummy less 5% cash discount and received from him  1,900 on account By cheque.

    3

    Goods purchased form Meera worth  10,000 at 20% trade discount.

    4

    Bought a second hand Motor car worth  20,000 paying  80,000 form business and balance borrowed from bank.

    9

    Drawn goods for personal use worth  1,800 (gross) out of those bought form Meera on 3rd March.

    14

    Paid  2,100 to Rebecca as an advance against salary.

    17

    Exchange personal furniture worth  50,000 for which goods worth 40,000 and cash for the balance which is retained in business.

    20

    Fully insurance goods costing  10,500 were lost by theft and insurance company settled the claim Immediately.

    23

    Paid to Rebecca  3,900, the balance of her salary after adjusting the advance given to her.

    25

    Purchase furniture on credit  35,000 form Sam, who gave free spot delivery. They paid transportation charges  500.

    30

    Sippora’s A/c credit for  15,000 is settled 1/3rd by cheque and balance by supplying goods.

     

  34. Journalise the following transaction in the books of Mr. Hardik

    2012

    Jan.

     

    1

    Business commenced by Mr. Hardik with cash  20,000, balance with Bank  30,000, Machinery  95,000, Loan to Shalman ` 30,000, Land & Building  1,50,000.The cash is borrowed from Msr. Sammer (Hardik’s Wife).

    2

    Reemitted  10,000 to Mr. Imran for goods purchased.

    6

    Bought goods form Kajol Traders worth  40,000 at 25% T.D. & 5% C.D., 2/3rd amount paid by cheque And balance after 15 days.

    13

    Rani who owes  10,000 pays  9,500 in full settlement.

    15

    Purchased goods worth  5,000 from Mr. Girish on credit and sold them at 25% profit on cost to Mr. Kishan

    17

    According to the instruction of Miss. Ashwarya we delivered goods to Mr. Abhishek and also paid  50 For carriage on behalf of Miss. Aishwarya (our outward invoice worth  10,000 whereas that of Miss. Aishwarya  11,000).

    21

    Paid to Kajol Traders cash  7,555 and  2,000 by cheque in full settlement of her account for Purchase of goods on 6th January.

    25

    Mr. Kishan return goods worth  625 to us which are return to our supplier Mr. Girish

    30

    Furniture costing  5,000 having book value of  3,000 is sold at loss of  300.

    31

    Goods of  1,00,000 were insured for  90,000 50% of these goods were damaged by fire. Insurance Company accepted the full cliam.

    31

    Bank charged  500 being interest on overdraft the same is yet to be recorded

  35. Prepare journal of Raja :

     

    June 2012

     

    1

    Paid rent to landlord in advance 300.

    2

    Sent money order of 2,000 to credit Shri Dev and paid  30 for money order commission.

    3

    A cheque received for net amount for sale of 10 shares of ACC Ltd. At 3,000 each. These shares were Purchased at  2,000 each. Brokerage charged by share broker Shri H.M. at 1%.

    4

    Purchased goods form Ashok Shah worth 16,000 at 12.5% trade discount and 5% cash discount Terms. One-fourth of the amount is paid by cheque.

    5

    Under the instruction of Ram, goods invoiced to Sitaram worth  10,000 at 7.5% trade discount. Carriage and transport charges paid  500 on his behalf.

    7

    Received  50 from Mr. Amar, a debtor, whose account was written off as bad debts in the last year

    8

    Paid 200 LIP (Life Insurance Premium).

    9

    Purchased a secondhand typewriter for  3,000 and repair charges incurred to make it in proper Working condition 2,000.

    10

    Paid Alok  1,000 less 10% discount.

    10

    Placed an order with Kumar for goods worth  15,000 at 5% trade discount terms.

    12

    Kumar executed our order and paid carriage and octroi duty our behalf 200.

    15

    Sold good to Krishna worth 3,000 and he paid  2,000 of which   1,500 was by cheque.

    18

    Purchased goods form Virat worth  500 and received invoice form him of  450 at 10% trade Discount.

    19

    Purchased a steel cupboard from Godrej Lt. for  5,700 and received their bill for  6,000 including Transport charges.

    20

    Appointed Mr. Sevak as peon on monthly salary of 750.

    21

    Half of the goods purchased from Ashok Shah on June 4 is sold Ramesh Shah for cash at the profit of 50% on cost. The terms of trade being 10% trade discount and 10% cash discount.

     

     

  36. Journalise the following transaction in the books of Shri Kumar

    2012

    Mar. 2012

     

    1

    Received gift of  51,000 form father in law by cheque, which is deposited into business bank A/c.

    4

    Received  720 from Rupesh on behalf of Shri Ganesh.

    7

    Sold goods at the list price of  5,000 for cash at 10% Trade discount and 2% cash discount.

    12

    Gave charity, cash  101 and goods Rs 50.

    15

    Paid total salary of  500 of which  300 in cash and balance in goods

    17

    Rupa supplied goods worth  200 to Kumar for his household use.

    21

    Paid cash  150 to Patel Roadways for the carriage of goods.

    21

    Purchase a cash counter form Desai Home Furnishing Mart for  4,000

    21

    Bought machinery worth  5,000 form Atlas Cop. Co. Ltd. And Received their bill for  5,600 including railway freight.

    23

    Purchased T.V. from Sprita electronics of “LG” for household use for 13,000 and paid half of the Amount form office and the balance form private Bank Account.

    25

    Sent Money Order to Deep 180, M.O. Commission paid  5 to post office.

    27

    One of the debtors, Rukmini who owes 200 paid Rent  100 on our behalf.

    28

    Received free samples worth  200 form which were sold to Bharat & Co. for  250 on credit.

    30

    Insured goods of  8,000 for 5,000 and paid premium thereon at the rate of  6 per thousand.

    31

    Purchased  2,000 6% Govt. security at 94% including brokerage at 1%.

     

  37. Journalise the following transaction in the books of Miss Yashika.

    2012

    Aug.

    1.Balance as on August, 1.

       Cash 60,000;Building 2,50,000

       Debtors: Mr. Mukesh 25,000,Mr.Rajni 75,000

       Stock- 40,000

       Bank Loan 80,000.

       Creditors: Mr. Rohan 1,50,000,Mr.Dilip 1,00,000

    2.Debit given by bank interest 800 to be recorded.

    5.Cash burnt by fire 4,500.

    8.Purchased Machinery worth 20,000 in exchange of a personal motor car coating

       26,000 in 1999 and giving a cheque for balance for  3,000.

    13.Goods with selling price  24,500 withdrawn for personal use selling price =125% of

         cost price.

    18.Kinjal was debtor of Miss Yashika and Foram is a debtor of Miss Mansi. As per the

         Yashika’s instruction, Kinjal paid  450 (net) after deducting 10% C.D. to Miss. Mansi

         (in full settlement of her account) while Miss. Mansihad a credit balance of  495.

    21.Insured goods of  45,000 (S.P) are burnt by fire and insurance company admitted

         claim at 75% (It is our practice to charge 125% on cost).

    30.Purchased two computers ( one for office use and other for personal use) at  50,000

         each in exchange of personal computer costing  70,000. The balance amount is paid

         equally from office cash and personal cash.