PROBLEMS ON JOURNAL

1. Give the journal entries for the following transactions in the books of Pratap Rai: 1994 March 1 Started business with cash Rs.100000 March 2 Cash purchases Rs. 48000 March 3 Sold goods to Vasudev Rs. 10000 March 6 Returned defective goods by Vasudev Rs.1000 March 8 Received cash from Vasudev Rs.8800 in full settlement March 9 Chander sold goods to Pratap Rs.20000 March 10 Pritam purchased goods from Pratap Rs.12000 March 10 Paid insurance premium Rs. 500 March 12 Paid for life insurance premium of Pratap Rai Rs. 2000 March 18 Bought goods from Pawan, list price Rs.15000 less 20% trade discount March 22 Paid to Pawan Rs.8000 March 26 Cash received from Pritam Rs.6000 March 31 Paid wages Rs.400, advertisement expenses Rs.250 and salaries Rs.1500 March 31 Received interest Rs.100 and commission Rs.600
2. Record the following transactions in the journal of Shyam Sundar: 1994 Jan 1 Shyam Sundar started business with cash Rs.75000;goods Rs.30000 and furniture Rs.5000 2 Sold goods to Bhushan of the list price of Rs.10000 at a trade discount of 10% 5 Bhushan returned goods worth Rs.1000 10 Received from Bhushan Rs.7500 in full settlement of his account 12 Purchased furniture for Rs.6000 Purchased goods from Navin Rs.25000 less trade discount 12% 15 Returned goods to Navin, goods of the list price of Rs.2000 16 Cleared the account of Navin by paying cash under a discount of 5% 17 Sold goods to Ajay Rs.10000 and Vijay Rs.16000 20 Received cash from Ajay Rs.9800 in full settlement of his account. Paid insurance premium Rs.750 21 Paid for Shyam Sundars life insurance premium Rs.1200 24 Purchased goods for Rs.8000 for cash at a trade discount of 10% and cash discount of 2% 25 Received cash from Vijay at a cash discount of 5% in full settlement of his account 31 paid rent Rs.800;advertisement Rs.1000;salaries Rs.4000 Received commission Rs.500

3. Following balances appeared in the books of Radhika Traders as on 1st January 2004:
Assets: cash Rs.8000; cash at bank Rs.7000; stock Rs.30000; Furniture Rs.5000, Building Rs.25000 Debtors: Mohan Rs.10000, Sohan Rs.12000, Dinesh Rs.14000,

Liabilities: Creditors X Rs.5000, Y Rs. 5000, Z - Rs.6000 In January, 2004, the following transactions took place: 2004 Jan 2 Bought goods of the list price Rs.6000 from Khanna Brothers less 15% trade discount and 2 % cash discount and paid 40% price at the same time. 3 Received a draft from Mohan in full settlement and deposited it into bank Rs.9750 5 Purchased goods from Suresh of the list price of Rs.8000 at 20% trade discount and paid him by cheque. 8 Sold goods and received by cheque Rs.25000 10 Deposited the above cheque into bank 12 Sohan deposited in our bank a/c Rs.4000 16 Paid income tax Rs.5600 20 Received a cheque from Sohan and sent to bank Rs.7800 Discount allowed Rs.200 21 Withdrew from bank- for office use Rs.2000 - for private use Rs.4000 23 Sent a cheque to X in full settlement of his account Rs.4900 27 Cheque of Sohan returned dishonoured by the bank 28 Dinesh was declared insolvent and a payment of 60 paisa in a rupee was received from his estate 31 Bank allowed interest Rs.350 Paid rent by cheque Rs.1500 Paid for traveling expenses by cheque Rs.500 Pass the necessary journal entries. 4. Journalise the following transactions in Rajus books: 2002 Rs. April 1 Assets : Cash in hand 860, Cash at bank 140, Leasehold premises 12000, Machinery 6000, Due from Ritu 1460, Due from Geetu 3540 Furniture 3500 Liabilities :Loan 2000, Due to Rachna 1500 April 2 Purchased goods from Kamal 4500 April 3 Goods sold to Ritu 3000 April 4 Purchased goods of the list price of Rs. 5000 less 5% trade discount and 10% cash discount April 6 Purchased goods from Ram 7000 April 7 Sold goods for cash 3000 April 8 Ritu returned goods worth Rs.500 April 11 Received cheque from Geetu in full settlement 3500 April 16 Ritu paid by cheque in full settlement 3900 April 24 Drawn from bank for personal use 450 April 27 Geetu cheque returned dishonoured by the bank April 30 Allow interest on capital @ 5% p.a. from 1st May 2001 to 30th April 2002 April 30 Salaries for the month of April unpaid 750 April 30 A fire occurred in the owners godown and Rs.500 worth of stock was destroyed April 30 Depreciate furniture by 5% and machinery by 10%

5. Pass journal entry for each of the following transactions: (a) Bought a buffalo for Rs.15000 and a carriage for Rs.6000 for delivering goods to rural areas (b) Bank charges Rs.125 (c) Purchased from Hemant goods worth Rs.55000 at 20% trade discount and 5% cash discount terms and paid him half he amount immediately (d) Sold personal van for Rs.95000 and bought a new delivery van for business plus Rs.285000 from office cash (e) Sent a cheque to Mr. Gupta for Rs.4900 after deducting discount of Rs.100 but Mr. Gupta disallows the discount (f) Old machine with the book value of Rs.4000 is exchanged for a new machine of Rs. 120000. The old machine is valued at Rs.25000 for exchange purposes by Machine Tools Ltd. (g) Customers cheque for Rs.4000 returned dishonoured for insufficient funds in his account. The customer had availed a cash discount of Rs.400 (h) Received cash Rs.6000 of a bad debt written off last year for Mr. Prakash (i) Goods worth Rs.4000 were given as charity out of business (j) Mr. Satish, the owner contracted with Jain Construction Co. for the renovation of the building at an estimated cost of Rs.125000 (k) Received cash from Rohan on behalf of Sunil Rs.2500

6. Varma Enterprises started a business on 1st April 2002 . The following are his
transactions for the month: April 1 Received cash from Varma towards his capital Rs. 225000 April 2 Opened a current account with Punjab National Bank Rs.200000 April 3 Issued a cheque for office rent Rs. 3000 April 4 Purchased a scooter for Rs.32000 from Regent Automobiles, paying Rs. 8000 as cash down payment and balance through a loan taken from HDFC Bank @ 12% p.a. interest April 5 Purchased office furniture for cash Rs.12750 April 6 Purchased office equipments. Paid by cheque Rs. 17250 April 8 Purchased 60 units of Product A from SR & Co. Issued cheque Rs.66000 April 9 Sold 20 units of product A. Received cheque. Deposited in PNB. Rs.27500 April 10 Cheque issued for advertisement in the local daily Delhi Times Rs.2500 April 11 Purchased 85 units of A from BCA & Co. on 15 days credit Rs.107525 April 12 Sold 35 units of A to LA & Co. on credit of one week Rs.55825 April 13 Sold 10 units of A for cash Rs.16100 April 15 Salary paid to office assistant in cash Rs. 3500 April 17 Received a cheque of Rs. 55750 from LA & Co. in full settlement. April 19 Varma with cash Rs. 1000 and goods worth Rs.500 for personal use April 20 Returned goods 5 units of A to BCA & Co. April 24 Gave a cheque of Rs. 101000 to BCA & Co. in full settlement. April 25 Deposited cash into bank Rs.5000 April 26 Varma purchased a TV worth Rs. 8000 for his family. April 30 Paid interest on loan for the month of April.

Journalise the above transactions in the books of Varma