1.

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

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

Ans 1: JOURNAL OF RAGHUNATH

Date Particulars L.F. Amount Amount
Dr. Cr.
1994 Rs. Rs.
June 1 Cash A/c. Dr. 80,000
Purchases A/c. Dr. 40,000
Furniture A/c. Dr. 20,000
To Capital A/c 1,40,000
(For business started with Cash, Goods & Furniture)
June 2 Nandlal A/c. Dr. 18,000
To Sales A/c 18,000
(For goods sold less trade discount)
June 4 Sales Return A/c. Dr.
To Nandlal 3,600 3,600
(For goods returned by Nandlal Rs. 4,000 less 10%)
June 8 Cash A/c. Dr. 14,150
Discount A/c. Dr. 250
To Nandlal 14,400
(For cash received and discount allowed)
June 10 Purchases A/c Dr. 8,500
To Brij Mohan 8,500
 (For goods purchased on credit)
Brij Mohan A/c. Dr. 850
June 13 To Purchases Return A/c. 850
(For goods returned to Brij Mohan Rs. 1,000 less 15%)
Brij Mohan A/c. Dr. 7500
June 16 To Cash A/c. 7344
To Discount A/c. 306
(For cash paid and discount received)
Purchases A/c Dr. 15,000
June 18 To Anil A/c 5,000
To Sunil A/c 10,000
Anil A/c. Dr. 2,000
June 19 To Cash A/c 1,900
To Discount A/c 100
(For cash paid and discount received)
Sunil A/c. Dr. 10,000
June 20 To Cash A/c 9,800
To Discount A/c 200
(For cash paid to Sunil and discount received)
Drawings A/c Dr. 1,200
June 20 To Cash A/c 1,200
(For table fan bought for domestic use)
Cash A/c. Dr. 6,984
June 25 Discount A/c. Dr. 216
To Sales A/c. 7,200
(For goods worth Rs. 8,000 sold at 10% trade discount
and 3% cash discount)
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 2 Bought goods from kailash for Rs. 20,000 at a trade discount of 10% and Cash
discount of 2%, Paid 60% amount immediately.
Jan 4 Sold goods to X for Rs. 9,000
Jan 5 Received Rs. 14,800 from X in full settlement of his account
Jan 6 Cash deposited into bank Rs. 10,000
Jan 8 Cheque received from Y for Rs. 7,850 in full settlement of his account. This
cheque was immediately deposited in bank.
Jan 10 Received a cheque from Z Rs. 2,000
Jan 12 Cheque received from Z deposited into bank
Jan 15 Cheque received from Y dishonoured
Jan 16 Cash sales Rs. 15,000; Out of this amount Rs. 12,000 deposited in bank
Jan 16 Amount due to Ajay paid by cheque
Jan 18 Old Newspaper sold Rs. 50
Old Furniture Rs. 750
Jan 20 Z became insolvent and 40 paise in a rupee could be received from his estate.
Jan 22 Purchased goods from Gopal and paid by cheque Rs. 8,000
Jan 24 Sold half of the above goods to Chanderkant at a profit of 30% on cost.
Jan 25 Proprietor withdrew for private use Rs. 2,000 from office and Rs. 3,000 from
bank.
Jan 31 Paid salary to Motilal by Cheque Rs. 2,000
Jan 31 Paid Rent by cheque Rs. 1,500
Jan 31 Paid trade expense Rs. 500.
Ans 2:
JOURNAL OF VISHAL STORES
Date Particulars L.F. Amount Amount
Dr. Cr.
1994 Rs. Rs.
Jan 1 Cash A/c. Dr. 15,000
Bank A/c. Dr. 5,000
Stock A/c. Dr. 40,000
Furniture A/c. Dr. 3,600
X Dr. 6,000
Y Dr. 8,000
Z Dr. 10,000
To Loan from Bank 10,000
To Ajay 5,000
To Vijay 7,500
To Capital (balancing figures) 65,100
(For assets and liabilities brought forward)
Jan 2 Purchases A/c. Dr. 18,000
To Cash A/c 10,584(1)
To Discount A/c. 216
To Kailash 7,200
(For goods purchased and discount received)
X Dr. 9,000
Jan 4
To Sales A/c. 9,000
(For goods sold on credit)
Cash A/c. Dr. 14,800
Jan 5
Discount A/c. Dr. 200
To X 15,000
(For cash received and discount allowed)
Bank A/c Dr. 10,000
Jan 6
To Cash A/c 10,000
(For cash deposited in bank)
Brij Mohan A/c. Dr. 7,850
Jan 8
To Purchases Return A/c. 150
(For goods returned to Brij Mohan Rs. 1,000 less 15%) 8,000
Cash A/c. Dr. 2,000
Jan 10
To Z 2,000
(For cash received)
Bank A/c Dr. 2,000
Jan 12
To Cash A/c 2,000
(For cheque received from Z now deposited into Bank)
Jan 15 Y A/c. Dr.
To Bank A/c 8,000
 To Discount A/c 7,850
(For cheque dishonoured and discount withdrawn) 150
Bank A/c. Dr. 3,000
Jan 16 Cash A/c. Dr. 12,000
To Sales A/c 15,000
(For Cash Sales)

Jan 16 Ajay A/c. Dr. 5,000

To Bank A/c 5,000
(For cheque given to ajay)
Jan 18 Cash A/c. Dr. 6,984
To Miscellaneous Income A/c. 216
To Furniture 7,200
(For old newspapers and old furniture sold)
Jan 20 Cash A/c. Dr. 3,200
Bad Debts A/c. Dr. 4,800
To Z 8,000
(For cash received and bad debts written off.
Jan 22 Purchases A/c. Dr. 8,000
To Bank A/c. 8,000
(For goods purchased by cheque)
Jan 24 Chanderkant Dr. 5,200
To Sales A/c 5,200
(For goods sold on credit)
Jan 25 Drawings A/c Dr. 5,000
To Cash A/c. 5,000
To Bank A/c.
(For amount withdrawn for private use)
Jan 31 Salary A/c. Dr. 2,000
Rent A/c. Dr. 1,500
To Bank A/c 3,500
(For expenses paid by cheque)
Jan 31 Trade Expenses A/c. Dr. 500
To Cash A/c. 500
(For expenses paid in cash)
Total Rs. 2,10,600 2,10,600

Note (1)

Total Amount 20,000

Less 10% Trade Discount 2,000
18,000

Cash Purchases 60% of 18,000 10,800

Less : Cash Discount (2% of 10,800) 216
Amount paid 10,584
Cash 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. CHANDAN
Date Particulars L.F. Amount Amount
Dr. Cr.
S.No. Rs. Rs.
(1) Cash A/c. Dr. 975
Bad-debts A/c. Dr. 525
To Birooo 1,500
(For cash received and bad debts written off)
(2) Cash A/c. , Dr. 1,710
Discount A/c. Dr. 90
To Sales A/c 1,800
(For goods of the list price of Rs. 2,000 sold at 10%
trade discount and 5% cash discount)
(3) Shakunla A/c Dr. 627(1)
To Sales A/c. 627
(For goods sold to Shankuntla at 10% above cost and
allowed 5% trade discount )

Note (1) Cost of goods 600

Add 10% of 600 60
660
Less : 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 Particulars L.F. Amount Amount
Dr. Cr.
S.No. Rs. Rs.
(1) Drawings A/c. Dr. 3,000
To. Cash A/c 2,000
To Purchases A/c 1,000
(For cash and goods taken away for personal use)
(2) Charity A/c. Dr. 5,000
To Purchases A/c 5,000
(For goods given as a charity)
(3) Free Samples A/c Dr. 2,500
To Purchases A/c. 2,500
(For goods distributed as free samples. )
Loss on theft A/c. Dr. 7,000
To Purchases A/c 5,000
To Cash A/c 2,000
(For Goods and Cash stolen by an employee)
Loss by fire A/c. Dr. 10,000
To Purchases A/c 10,000
(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 tax
2. 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. 2,000
6. 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 Vijay
8. Purchased post cards for Rs. 25; Envelopes for Rs. 50 and Stamps for Rs. 100
9. Purchased office stationary for Rs. 400
10. 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 Particulars L.F. Amount Amount
Dr. Cr.
S.No. Rs. Rs.
(1) Cash A/c. Dr. 5,400
To Sales A/c 5,000
To Sales Tax A/c 400
(For goods sold for cash and sales tax collected)
(2) Office Equipment A/c Dr. 10,000
To Cash A/c 10,000
(For Iron Safe purchased)
(3) Office Equipment A/c Dr. 4,020
To Cash A/c 4,020
(For filling cabinet purchased for Rs. 4,000 and cartage
paid on it Rs. 20)
(4) Office Equipment A/c Dr. 8,000
To Radha Krishan & Co A/c 8,000
(For portable typewriter purchased)
(5) Fixtures A/c Dr. 2,000 2,000
To Cash A/c
(For electric fan purchased)
(6) Live Stock A/c Dr. 15,000
To Cash A/c 15,000
((For a horse purchased for business)
(7) Vijay Dr. 500
To Cash A/c 500
(For expenses paid on behalf of Vijay)
(8) Postage A/c Dr. 175 175
To Cash A/c
(For Post Cards, envelopes and stamps purchased)
(9) Stationery A/c Dr. 400
To Cash A/c 400
(For stationery purchased for office use)
(10) Charity A/c Dr. 1,100
To Cash A/c 200
To Purchases A/c 400
To Furniture A/c 500
(For cash, goods and furniture given as Charity)
(11) Cash A/c(1) Dr.
To Advance from Vishnu 2,000
(For amount received as advance) 2,000
(12) X(2) Dr. 6,000
To Cash A/c 6,000
(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.