Table of Contents
Problem 1:
Enter the following transactions in the Journal of Bhagwat and sons..
Year 2006 Amount (Rs)
- January 1 Tarun started business with cash 1,00,000
- January 2 Goods purchased for cash 20,000
- January 4 Machinery Purchased from Vibhu 30,000
- January 6 Rent paid in cash 10,000
- January 8 Goods purchased on credit from Anil 25,000
- January 10 Goods sold for cash 40,000
- January 15 Goods sold on credit to Gurmeet 30,000
- January 18 Salaries paid. 12,000
- January 20 Cash withdrawn for personal use 5,000
Solution
As explained above, before making the journal entries, it is essential to determine the kind of accounts to be debited or credited. This is shown in the Table :
On the basis of the above table, following entries can be made in the Journal
Problem 2:
Journalise the following transactions:
| 2005 | |
| Feb. 3 | X commenced business with a capital of $15,000 |
| 05 | Purchased good $6,000 |
| 07 | Purchased goods on credit from S & Co. $3,000 |
| 10 | Purchased furniture $2,400 |
| 11 | Sold goods $3,900 |
| 15 | Sold goods on credit to D $2,250 |
| 20 | Paid salaries $960 |
| 25 | Received commission $75 |
| 26 | Returned goods to S & Co. $600. |
| 27 | Returned goods by D $450 |
| 28 | Received from D $1,500 |
| Paid to S & Co. $1,800 X withdrew from business $900 Charged depreciation on $240 Borrowed from K $1,500 |
Solution:
Journal
Date |
Particular |
L.F |
Amount |
Amount |
2005 |
||||
Feb. 3 |
Cash A/C ………………………………………………Dr. Capital (Being capital brought in) |
15,000 |
15,000 |
|
5 |
Purchases A/C………………………………………..Dr. Cash A/C (Being goods purchased for cash) |
6,000 |
6,000 |
|
7 |
Purchases A/C………………………………………..Dr. S & Co. A/C (Being goods purchased form S & Co on credit) |
3,000 |
3,000 |
|
10 |
Furniture A/C………………………………………….Dr. Cash A/C (Being furniture purchased for cash) |
2,400 |
2,400 |
|
11 |
Cash A/C………………………………………………Dr. Sales A/C (Being goods sold for cash) |
3,900 |
3,900 |
|
15 |
D Bros. A/C…………………………………………..Dr. Sales A/C (Being goods sold on credit to D) |
2,250 |
2,250 |
|
20 |
Salaries A/C………………………………………….Dr. Cash A/C (Being salaries paid) |
960 |
960 |
|
25 |
Cash A/C………………………………………………Dr. Commission A/C (Being commission received) |
75 |
75 |
|
26 |
S & Co. A/C…………………………………………..Dr. Purchases A/C Return (Being goods returned to S & co.) |
600 |
600 |
|
27 |
Sales Return A/C………………………………….Dr. D Bros. A/C (Being goods returned by D Bros.) |
450 |
450 |
|
28 |
Cash A/C………………………………………………Dr. D Bros. A/C (Being amount received from D Bros.) |
1,500 |
1,500 |
|
“ |
S & Co. A/C…………………………………………..Dr. Cash A/C (Being amount paid to S & Co.) |
1,800 |
1,800 |
|
“ |
Drawings A/C…………………………………………Dr. Cash A/C (Being amount paid to S & Co.) |
900 |
900 |
|
“ |
Depreciation A/C…………………………………….Dr. Furniture A/C (Being depreciation charged on furniture) |
240 |
240 |
|
“ |
Cash A/C………………………………………………Dr. K A/C (Being amount borrowed from K) |
1,500 |
1,500 |
Problem 3:
Enter the following transactions in the books of Supriya, the owner of the business.
2006
- January 8 Purchased goods worth Rs.5,000 from Sarita on credit.
- January 12 Neha Purchased goods worth Rs.4,000 from Supriya on credit.
- January 18 Received a Cheque from Neha in full settlement of her account Rs.3,850. Discount allowed to her Rs.150
- January 20 Payment made to Sarita Rs.4,900. Discount allowed by him Rs.100.
- January 22 Purchased goods for cash Rs.10,000.
- January 24 Goods sold to Kavita for Rs.15,000. Trade discount @ 20% is allowed to her.
- January 29 Payment received from Kavita by Cheque.
Solution
The above transactions will be entered in the journal as follows :
