Journal and Ledger. 1. Posting of an Account debited in journal entry. The step to be followed are:

Journal and Ledger 1. What do you mean by Journal? Ans. Meaning of a journal: A journal is the primary book of accounts in which transactions are first recorded in a chronological order,they are i.e., as they are entered into. Transactions are recorded in the journal book from the accounting voucher that is prepared on the basis of source documents i.e., cash memo, invoices, purchase bill, etc. Journal makes it possible to review the effect of a transaction on the business. It shows for each transaction the transaction date, name of accounts that are to be debited or credited, ledger page number (Ledger folio ) of the accounts, the amount of debit and credit. An entry recorded in the journal is called a Journal Entry. 2. What do you mean posting? Ans. The process of recording a transaction in a journal is known as journalising the transfer of Journal entry to a ledger account is called Posting. Posting the entries The process of transferring the transactions written in the journal to the ledger Account is called Posting. In other words, the process of transferring entries from the Journal to the Ledger Accounts is termed as posting. Posting is necessary as it summarises all transactions relating to that account one place. MECHANICS OF POSTING The following procedure is followed for posting the debit and credit aspects of the transaction recorded in a Journal: 1. Posting of an Account debited in journal entry. The step to be followed are: 1. Identify in the ledger the account to be debited. 2. Enter the date of the transaction in the `Date` column on the debit side of the account. 3. Write the name of the account which has been credited in the respective entry in the `Particulars` column on the debit side of the account as To (name of account credited) Column. 4. Record the page number of journal where the entry in the `journal Folio (J.F)` 5. Enter the relevant amount in the Amount column on the debit side. 2. Posting of an Account credited in a journal entry. The steps to be followed are: 1. Identify in the Ledger the account to be credited. 2. Enter the date of the transaction in the `Date` column in the credit side. 3. Write the name of the account which has been debited in the respective entry in the `Particulars` column on the credit side of the account as `By (name of account debited)` 4. Record the page no. of the journal where the entry exists in the journal Folio(J.F) column. 5. Enter the relevant amount in the `Amount` Column on the credit side. 1

3. What do you mean by Opening Entry? Ans. Books of account are closed are the end of each year and a few set of books in the beginning of the new year started. First entry in the journal is to record the closing balances of the previous year as they become the opening balances of the new year. The entry passed to record closing balances of the previous year is called the Opening Entry. The Balance sheet prepared at the year reflects the closing balances of each asset and liability and is the basis for the opening entry. While passing an Opening Entry, all Assets Accounts are debited and liabilities Accounts are credited. The following example will make it more clear: 4. What do you mean Ledger? What are its features. Ans. Meaning of Ledger: Earlier, we discussed the term Account. In an account. In an account, transactions of one nature are posted or summarises. All the accounts put together becomes a `Ledger` may be defined as a Book which contains, in a summarised and classified form, a permanent record of all transactions. It is the most important book of accounts, since the Trial Balance is drawn from it and from the Trial Balance, Financial Statements are prepared. Hence, the Ledger is called the Principal Book. Features (1)The Ledger is a master record of all the accounts of a business firm. (2) It is prepared from Journal. (3) Ledger Account show the current balance in all accounts. (4) Trial Balance and Final Accounts are prepared from Ledger Accounts (5) Ledger Accounts summarise the effect of transactions upon assets, liabilities capital, incomes and expenditures. 5. What is Journal? Show its format. Ans. Journal: - It is that book of accounts in which transactions are originally recorded in a chronological (day by day) order. Format of Journal Date Particulars L.F. Amount(Dr.) Amount(Cr.) 6. What do you mean by Trial Balance? Explain its Objectives. Ans. Meaning of Trial Balance: After post posting the transactions in the accounts and balancing them, a statement is known as Trial Balance: The total of the debit side of Trial Balance must be equal to that of its credit side. This is based on the principle that in double entry system, for every debit there is a corresponding credit of equal amount. The agreement of Trial Balance shows arithmetical accuracy of the accounting process. If the two sides do not agree, there is definitely some error or errors. It must be remembered that equalising the 2

two sides of a Trial Balance is not the sole and conclusive proof of the complete correctness of accounting work. OBJECTIVES OF A TRIAL BALANCE A Trial Balance is a list of account showing debit balances and credit balances. If the Trial Balance agreed it proves that: (1)The accounts are arithmetically accurate; (2) Both aspects of all the transactions have been recorded and (3) Both debit and credit entries are posted in the Ledger. 7. Explain that the cash book is a journal as well as a ledger account. Ans. The cash book serves both the purposes of a subsidiary book in so far as it is a book of primary entry of all cash transactions as also the purpose of the principle book of accounts, viz., Ledger. This is on account of the fact that no separate cash account is opened in Ledger and the cash book serves the purpose of cash account. It is because of this reason that cash book is often called a subsidiary book, and the principle book of accounts. 8. Explain :- a) Cheque b) Receipt Ans. a) Cheque: - A cheque is an order in writing drawn upon a bank to pay a specified sum to the bearer or the person named in it. b) Receipt: - It provides the details of the payment received or made. 9. What are the rules of Debit and Credit? Ans. As every journal entry is passed in terms of debit and credit, therefore let us learn that what do we mean by these two terms. knowing these terms is possible through the rules used for debit and credit. the rules are as follows: Rule #1. Debit what comes in Credit what goes out. This rule is related to real accounts like assets which a business receive or give away. This rule is related to real accounts where if something is received by the business the same will be debited by the business and on the other hand anything which is given away by the business is credited. For Example : Aloo, the owner has purchased a Machinery worth Rs. 10,000 for his business Explanation: Machinery Account will be Debited by 10,000 (because business is receiving a machinery) Cash Account will be Credited by 10,000(because business is giving cash ) Entry: Machinery A/c Dr. 10,000 To Cash A/c 10,000 Example 2 Gobi, the owner has purchased a Sofa Set for the office worth Rs. 5,000/- Entry: 3

Furniture A/c Dr. 5,000 To Cash A/c 5,000 Rule # 2 Debit the receiver Credit the giver This rule is related to personal This rule is related to people who give something to business or take something from the business. As Creditor and Debtor of the business. For Example: Business purchased Machinery from Tomato on credit worth Rs. 2,000 Explanation Machinery has come into the business so according to rule # 1 it will be debited and on the other hand Tomato is giving something to the business therefore according to rule # 2 his account will be credited. Entry Machinery A/c Dr. 2,000 To Tomato A/c 2,000 Example # 2. Potato pays Rs. 2,100 to the business on account. Explanation Cash has come into the business so according to rule # 1 Cash will be debited and on the other hand Potato is giving money so he is a giver and according to rule # 2 his account will be credited. Entry Cash A/c Dr. 2,100 To Potato A/c 2,100 Rule # 3. Debit all the losses and Expenses Credit all the gains and profits This rule is related to nominal accounts like incomes and expenses which a firm earns or suffers. This is related to profits and losses where all kinds of losses to the business are debited and any profit is credited. For example Business paid a salary of Rs. 5,000 to staff 4

Explanation Cash has gone out of the business so according to rule # 1 cash will be credited and on the other hand salary a kind of expense for the business and it will be debited as per rule # 3. Entry Salary A/c Dr. 5,000 To Cash A/c 5,000 Example # 2 Business received Interest on Investments Rs. 1,900 Explanation Cash has been received by the business so according to rule #1 cash will be debited and on the other hand interest is a kind of income and should be credited as per rule # 3 Entry Cash A/c Dr. 1,900 To Interest A/c 1,900 10. Name the errors which affect the Trial Balance. Ans. There are some errors which affect the trial balance. These are the errors where dual aspect of a transaction has not been completed. These are the errors which disturb the accounting equation and also effect the trial balance. They are: i. Omission in posting of one aspect of an entry. ii. Opposite posting (Instead of debiting an account, it is credited or vice verse). iii. Errors in addition or subtraction. iv. Duplicate posting of an entry. v. Incorrect copying of figures. vi. Omissions in posting or in entering an account in Trial Balance. vii. Incorrect totalling of a page. While preparing journal one must remember that each transaction has two aspects debit and credit. Application of these rules can be understood with the following types of accounts: #1. Personal Account: This is the account relating to persons such as individual, company, firm, corporation etc. Rule applicable to this kind of account is: Debit the receiver Credit the giver #2. Real Account: This kind of account is related to assets such as machinery, stock, cash, bank etc. Rule applicable to this kind of account is: Debit what comes in 5

Credit what goes out #3. Nominal Account: This kind of account is related to expenses and incomes such as salary, rent, interest, commission, wages etc. Rule applicable to this kind of account is: Debit all expenses and losses Credit all gains and incomes Transactions relating to Capital and Drawings Capital: An amount, which is introduced by entrepreneur in the business. When he introduces this amount entry passed is: Bank A/c Dr. XXX To Capital A/c XXX Explanation Bank has been debited because the money has come into the business and on the other hand entrepreneur is the giver so his account should be credited but his account is maintained with the name of capital that is why capital Account has been credited. Drawings: An amount, which is withdrawn by entrepreneur out of the business for his personal purposes, entry for this withdrawal is as follows: Drawings A/c Dr. XXX To Bank A/c XXX Explanation Bank has been credited because the money has gone out of the business and on the other hand entrepreneur is receiving money so his account should be debited but his withdrawal account is maintained with the name of Drawings that is why Drawings account has been debited Transactions relating to Discount Trade Discount Cash Discount Discount: Amount, which is deducted from the amount of total receipt or payment, two main kinds of discount are as follows: Trade Discount: Discount which a firm receive or pays at the time of purchase or sale in bulk. This kind of discount is not shown in the books of accounts. For Example: Business purchases goods worth Rs. 25,000 at a trade discount of 10% Discount = 25,000 X 10% = 2,500 Net payment = 25,000-2,500 = 22,500 Entry Purchases A/c Dr. 22,500 discount amount has not been shown 6

To Cash A/c 22,500 Cash Discount: Discount which a firm receive or pays because of timely payment or because of cash purchase or sale of goods. This kind of discount is shown in the books of accounts. For example: Business purchases goods worth Rs. 25,000 and pays in cash after deducting cash discount of 10%. Discount = 25,000 X 10% = 2,500 Note: this discount is received at the time of purchase so this is a kind of gain for the firm and will be credited as a gain. Compound Entry Purchases A/c Dr. 25,000 To Cash A/c 22,500 discount amount has been shown To Discount A/c 2,500 Transactions relating to goods Goods Anything in which business deals Purchase of goods is called as Purchases Sale of goods is called as Sales Return of goods purchased Purchase Return Return of goods sold Sales Return As per rule Debit what comes in and Credit what goes out balances of these accounts are as follows: Debit Credit Purchases Sales Return Sales Purchase Return Bank related transactions # Opening a bank Account Bank A/c Dr. To Cash A/c # Depositing amount into Bank Bank A/c Dr. To Cash A/c # Withdrawn from bank for office use Cash A/c Dr. To Bank A/c # Withdrawn from bank for personal use Drawings A/c Dr. To Bank A/c # Receiving a cheque from a debtor and deposited on the same day Bank A/c Dr. To Debtor A/c # Receiving a cheque from a debtor and depositing other day Cash A/c Dr. 7

To debtor A/c # Depositing the cheque received from debtor Bank A/c Dr. To Cash A/c # Bank charges charged by bank Bank charges A/c Dr. To Bank A/c # Interest is allowed by bank Bank A/c Dr. To Bank Interest A/c # Cheque issued to a vendor / creditor Vendor A/c Dr. To Bank A/c What is Ledger? Show its format. Ans. Ledger :- Ledger: It refers to group of accounts having different accounts used to classify the entries in different heads. A book containing the summary and classified from of a permanent record of all transactions. Format of Ledger Dr. Name of the Account Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount PRACTICAL QUESTIONS Journal 1. Enter the following transactions in the Journal of Manohar Lal:- 2012 Rs March 1 Manohar Lal started business with cash 60,000 2 Purchased furniture for cash 10,000 4 Purchased goods for cash 25,000 5 Bought goods from Kamlesh 15,000 6 Sold goods for cash 36,000 8 Sold goods to hari 30,000 10 Paid cash to kamlesh 15,000 14 Received cash from Hari 18,000 16 Purchased goods from Sohan for cash 6,000 20 Paid rent for the office 8,000 26 Received Commission 1,000 27 Paid Salary to Gopal 750 28 Received cash from Hari 1,200 29 Withdrew cash from office from personal use 4,000 30 Wages paid 7,200 30 Bought Machinery for cash 8,000 Ans.: (Total Rs 2,57,150) 2. Enter the following transactions in the journal of sahil: 2004 Rs 8

October 1 Purchased goods from Anil for Cash 40,000 3 Purchased goods from Atul 75,000 6 Returned goods to Atul 3,000 8 Paid cash to Atul 50,000 10 Sold goods to Charu 1,00,000 12 Charu returned 20% of goods 15 Paid rent 2,000 20 Sahil withdrew for personal use 10,000 Ans.: (Total Rs 3,00,000) 3. Enter the following transactions in the journal of Ganesh: 2005 Rs March 3 Sold goods to Dev 1,00,000 5 Received from Dev in full settlement of his account 98,000 6 Sold goods to Manmohan 80,000 8 Manmohan returned goods 1,000 15 Received from Manmohan in full settlement of his account 78,200 16 Received cash from Ram 19,500 and discount allowed 500 20 Paid cash to pawan 4,700 and discount received from him 300 25 Sold goods to Varun of list price of Rs 25,000 at 20% trade discount Ans.: (Total Rs 4,05,000) 4. Pass Journal entries in the books of Hari Shankar from the following:- 2012 Rs April 1 Commenced business with cash 50,000 2 Purchased goods from Subhash 20,000 4 Sold goods to Ramnath 15,000 6 Ramnath good returned defective goods 1,000 10. Received cash from Ramnath and 13,800 Discount allowed 200 12 Gopal sold goods to us 10,000 14 Paid to Gopal in full settlement of his account after deducting 5% discount. 15 Paid rent. 1,000 16 Paid Rent of Hari Shankar`s residence 500 18 Purchased goods for cash from Govind for Rs6,000 at 20% trade discount. 20 Purchased goods from Govind for Rs10,000 at 20% trade discount. 24 Paid to Govind Rs 7,850 in full settlement of his account. 25 Paid to Subhash Rs4,750; discount received Rs 250 30 Paid wages Rs400; salaries Rs 4,000; Advertisement expenses Rs800 and trade expenses Rs1,000 Ans.: ( Total Rs1,53,500). Hint: April16: Rent of Hari Shankar`s (i.e. Proprietor`s) residence is treated as drawings. April24: Discount will be Rs150 5. Enter the following transactions in the journal of Marutinandan: 9

2005 Jan.10 Purchased goods Ghanshyam of the Journal of the list price of Rs50,000 at 15%trade discount 13 Returned goods to Ghanshyam of the list price of Rs2,000. 15 Paid cash to Ghanshyam Rs40,000 in full settlement of his account 20 Purchased goods from Raghu of the list price of Rs60,000 at 10% trade discount. 22 Returned goods to Raghu of the list price of Rs5,000. 25 Paid cash to Raghu Rs49,000 in full settlement of his account. Ans.: (Total Rs1,93,000. Cash discount on Jan. 15 Rs800 and on Jan. 25 Rs500.) 6. Pass Journal Entries for the following transactions: 2005 Jan. 6 Sold goods to Muskan of the list price of Rs2,00,000 at trade discount of 20%. 8 Muskan returned goods of the list price of Rs5,000. 15 Received from Muskan the full payment under a cash discount of 40%. Ans.: (Total Rs3,20,000; Cash Discount Rs6,240.) 7. Give Journal Entries for the following transactions in the books of Raja Ram: 2005 March 3 Bought goods for cash of the list price of 80,000 at 10% trade discount and 2½% cash discount. 5 Sold goods for cash of the list price of Rs1,00,000 at 15%trade discount and 3% cash discount. 6 Sold goods to Nagpal of the list price of Rs50,000at 20% trade discount. 8 Nagpal returned one-fourth of the above goods. 10 Nagpal settled the account by paying cash under a discount of 5%. Ans.: (Total Rs2,37,000; Cash Discount on March 3 Rs1,800; on March 5 Rs2,550 and on March 10 Rs1,500). 8. Journalise the following transactions: 2015 Jan. 6 Purchased goods from Henry for Rs50,000 on 10% trade discount and 4% cash discount and paid 60% amount by cheque. Jan.15 Bought goods from Amit for Rs 20,000 at terms 5%cash discount and 20% trade discount. Paid ¾th of the amount in cash at the time of purchase. Jan.18 Sold goods to Sherpa at the list price of Rs50,000 less 20% trade discount and 4%cash discount if the payment is made within 7days.75% payment is received by cheque on Jan.23 rd. Jan.25 Sold goods to Garima for Rs1,00,000, allowed her 20% trade discount and 5% cash discount if the payment is made within 15days.she paid 1/4 th of the amount by cheque on feb. 5 th and 60% of the remainder on Feb. 15 th in cash. Ans: (Cash Discount on Jan.6 th Rs1,080; On Jan.15 th Rs6,000; on Jan. 23 rd Rs1,200; and on Feb.5 th Rs1000.) 9. Journalise the following transactions: 2012 April 1 Shyam Sunder business with Cash Rs75,000; Goods Rs30,000 and Furniture Rs5,000. 2 Sold goods to Bhushan of the list price of Rs10,000 at trade discount of 10%. 10

5 Bhushan returned goods worth Rs1,000. 10 Received from Bhushan Rs8,000 in full settlement of his account. 12 Purchased furniture for Rs6,000. Purchased goods from Navin for Rs25,000 less trade discount 12%. 15 Returned goods to Navin goods of the list price of Rs2,000. 16 Cleared the account of Navin by paying cash, under a discount of 5%. 17 Sold goods to Ajay Rs10,000 and Vijay Rs16,000. 20 Received cash from Ajay Rs9,800 in full settlement of his account. Paid insurance premium Rs750. 22 Paid fro Shyam Sunder`s Life Insurance premium Rs1,200. 24 Purchased goods for Rs8,000 for cash at a trade discount of 10% and cash discount 2%. 25 Received cash from Vijay at trade discount of 5% in full settlement of his account. 30 Paid Rent Rs800; Advertisement Rs1,000; And salaries Rs 4,000. 30 Received Commission Rs500. Ans.: (Total Rs2,45,450). 10. Journalise the following transactions: 2008 Rs Jan. 1 Paid into bank for opening a current account 10,000 3 Goods sold for Rs50,000 and the amount was deposited into the bank 7 Amount withdrawn from bank 20,000 10 Goods sold from Cash 15,000 12 Amount deposited into bank 12,000 14 Goods purchased and payment made by cheque 25,000 11. Following balances appeared in the books of Radhika Traders as on 1 st April,2012:- Assets:- Cash Rs. 8,000; Cash at bank Rs. 7,000; Stock Rs 30,000; Debtors: Rs 36,000 (Mohan Rs. 10,000; Sohan Rs. 1,000; Dinesh Rs. 14,000); Furniture Rs. 5,000; Building Rs. 25,000. Liabilities: Creditors X Rs. 5,000; Y Rs. 6,000. In April, 2012, the following transactions took place: 2012 Rs. April 2 Bought goods of the list price of Rs. 6,000 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. 9,750 5 Purchased goods from suresh of the list price of Rs. 8,000 at 20% trade discount and paid him by cheque. 8 Sold goods and received a cheque. 25,000 10 Deposited the above cheque into bank 12 Sohan deposited in our bank a/c 4,000 16 Paid income tax 5,600 20 Received a cheque from sohan and sent to bank 700 Discount allowed 200 21 Withdrew from bank for office 2,000 For private use 4,000 23 Sent a cheque to X in full settlement of his A/c 4,900 27 Cheque of Sohan returned insolvent and a payment of his A/c 11

28 Dinesh was declared insolvent and a payment of 60 paise in a Rs.1 Received from his estate 30 Bank allowed interest 350 Paid for rent by cheque 1,500 Paid for travelling expenses by cheque 500 Pass journal entries for the above transactions. Ans. Capital Rs. 1, 00,000; total Rs. 2,35,450. 12. Pass the opening journal entry with the following information : a) Cash in hand 5,000 b) Debtors 15,000 c) Closing stock 20,000 d) Furniture 3,000 e) Building 40,000 f) Creditors 12,000 g) Bank Overdraft 8,000 h) Capital 63,000 13. Pass the opening journal entry with the following information : a) Cash at Bank 3,000 b) Debtors 7,000 c) Closing Stock 20,000 d) Machine 50,000 e) Building 1,00,000 f) Creditors 12,000 g) Bills Payable 3,000 14. Ascertain goodwill with the following information and pass the opening journal entry: a) Capital 1,00,000 b) Creditors 20,000 c) Bank overdraft 10,000 d) Building 50,000 e) Cash 5,000 f) Debtors 15,000 g) Closing Stock 25,000 h) Furniture 12,000 (Ans. Rs. 23,000) 15. Pass the opening journal entries in the following cases: a. On April 1, 2012 the position of M/s Bhartiyan was as under: Cash Rs. 20,000, Debtors Rs. 6,000, Stock Rs. 3,000, Building Rs. 5,000, Bills Receivable Rs. 3,000, Creditors Rs. 4,000 and Bills payable Rs. 2,000. b. From the following balance of a firm pass the journal entry: Capital Rs. 50,000, Debtors Rs. 4,000; Creditors Rs. 7,000, Stock Rs. 4,000, Cash in hand Rs. 4,000, Cash at bank Rs. 7,000 and furniture Rs. 4,000. Hint: a) Ascertain capital which is Total assets Liabilities 12

b) Calculate Goodwill, which will be Liability + Capital Assets. 16. Calculate closing stock from the following information: a) Opening Stock 20,000 b) Purchases 60,000 c) Sales 1,50,000 d) Wages 16,000 e) Carriage 14,000 f) Fuel 10,000 g) Gross Profit 37,000 (Ans.Rs.7,000) 17. Gyan Prakash started his business with the following assets and liabilities : Rs. Jan. 1 Cash in hand 20,000 Stock in hand 25,000 Debtors : Khanna Bros. 20,000 Nirmal & Co. 15,000 Creditors : Kripal Bros. 10,000 Mitra Sen & Co. 5,000 His transactions for the month were: Jan. 2 Sold goods to karmarkar subject to a trade 10,000 Discount of 10% plus VAT @ 12.5% Jan. 4 Received from Nirmal & Co. 14,500 Discount allowed 500 Jan. 8 Settled Mitra Sen and Co. s account deducting 5% for cash discount Jan. 10 Purchased stationery articles 100 Jan. 12 Paid rent for the month 250 Jan. 13 Bought goods from S.K. & Co. 30,000 Jan. 16 Paid Kripal Bros. in full settlement of 9,500 Account Jan. 20 Withdrew cash for personal expenses 500 Jan. 24 Issued a Credit Note to Mr. Krmarkar for 1,000 goods damaged in transit Jan. 26 Returned goods to S.K. & Co. and received 5,000 Their Credit Note Jan. 29 Paid S.K. & Co. an account 10,000 Discount allowed 250 Record the above transactions in journal. 18. Following was the position of Harish as on 1 st April, 2012:- Cash in hard Rs. 10,000; cash at bank Rs. 16,800; furniture Rs. 8,000; stock Rs. 50,000; debtors ram Rs. 8,000; Shyam Rs. 12,000; credited Anil Rs. 4,000;Sunil Rs. 5,000. Following transaction took place during April, 2012:- 13

Date Transactions April Received a cheque from ram in full settlement of his account after deducting 5% cash 2 discount. Deposited the above cheque into bank. 4 Goods purchased for Rs. 20,000 at 10% trade discount and 5% cash discount. Payment 5 made by cheque. Received a cheque from Shyam for Rs. 3,860 and discount allowed to him Rs. 140 6 cheque deposited into the bank on the same day. Cash paid to Anil after deducting 2% cash discount. 10 Old furniture sold for Rs. 800. 15 Sold goods to Shiv Parshad of the list price of Rs. 15,000 at a trade discount of 15%. 16 Shiv Parshad returned goods of the list price of Rs. 1,000. 18 Paid for furniture repairs to Bahadur Singh Rs. 100. 20 Received a cheque from Shiv Parshad after deducting 4% cash discount. Cheque was 25 deposited into bank. Bank changed Rs. 50 for Bank charges. 28 Received commission Rs. 200. 30 Ans. Capital Rs. 95,800; total Rs. 1,64,550. 19. Enter the following transactions in journal: Rs. June 1 Purchased Machinery for business use 5,000 June 2 Purchased goods from Mahajan Bros. 4,000 June 4 Standard Trading Co. cleared their account 3,610 less @5% cash discount June 6 Paid Insurance Premium 70 June 8 Paid Rent of Godown 40 June 8 Withdrew cash for private use 100 June 9 Returned goods to Mahajan Bros. 140 June 10 Purchased a Jeep for proprietor s 4,000 for private use June 11 Purchased goods from Vinay 825 Paid Cartage on above 15 June 13 Paid Mahajan Bros. on account Through bank 3,860 June 13 Sold goods to Anand & Co. 1,700 20. Prepare journal from transactions given below: Rs. a) Charge depreciation on building @ 5% for one month (building = 20,000) b) Charge depreciation on machinery 125 c) Salaries and wages due to Manager 725 d) Carriage Outstanding 100 e) Rent Outstanding 200 14

f) Kaushik compounded with his debtor. Accepted a composition of 30P. in the Rs. out of a debt of Rs. 2,000 g) Received cash for a Bad Debt written off last year 225 h) Charge depreciation on furniture @ 5% for one month ( Furniture = 2,000) 21. Journalise the following transactions: a) Ramesh is declared insolvent. I received from his official receiver a first and final dividend of 55 in a Rs. on debt of Rs. 2,500. b) Received a V.P.P. for Rs. 640. Sent a worker to take delivery of it and he paid Rs 5 for cartage. c) Received interest on Loan from the debtor Rs. 1,100. d) Provide interest on Capital (10,000) at 5 ½ % for six months. e) Received Rs. 765 from Narindra in full settlement of a debt to his account for Rs. 800. 22. Record all the transactions in journal : 2011 Rs. Feb. 1 Paid Salaries 1,200 Paid Rent 800 Feb. 3 Drew for private use 250 Feb. 4 Received Commission 100 Feb. 5 Loan taken from D. Das 4,000 Feb. 5 Received Rs. 1,900 from Babu in full settlement of his account for 2,000 2012 Feb. 6 Purchased goods for cash plus 900 VAT @ 12.5% Feb. 17 Cash Sales 500 Feb. 18 Bought goods from Verma & Co., valued at Rs. 5,200 plus VAT @ 12.5% less 10% trade Discount Feb. 20 Paid wages to workers 200 Feb. 23 Paid office-expenses 50 Feb. 28 Rent received 200 23. Give journal entries for the following: a) Goods worth Rs. 500 given as free samples. b) Received Rs. 9,975 from Sarika in full settlement of her account for 10,000. c) Received a first and final dividend of 70 paisa in a rupee from the Official Receiver of Mr. Karim who owed us Rs. 10,000. 15

24. Record the following transactions into journal: a) Commenced business with cash Rs. 30,000. b) Paid rent in advance Rs. 500. c) Purchase goods for cash 15,000 and for Credit Rs.10,000. d) Bought Motor cycle for personal use for Rs. 6,000 and payment made out of business money. e) Received cash for a bad debt written off last year Rs. 100. f) X, a debtor of the firm became insolvent. A first and final payment @ 80 paise in a rupee was received from his official receiver towards his total dues of Rs. 200. 25. Journalise the following transactions: a) Paid Rs. 25 as wages for installation of machine. b) Sold goods to Kitty. List price Rs. 2,000. Sales subject to 10% Trade discount and 5% Cash Discount at 12.5% VAT. Payment is made immediately. Kitty availed of cash discount. c) Supplied goods costing Rs. 600 to Shakuntale. Issued invoice at 10% above cost less 5% trade discount plus VAT @ 1205%. d) Goods worth Rs. 700 distributed as sample. e) Goods costing Rs. 11,000 was stolen in transit. f) Cash embezzled by Himanshu Rs. 33,000. 26. Journalise the following: a) Goods worth Rs. 400 were given as charity out of business. b) Received cash Rs. 500 of a bad debts written off last year. c) Interest charged on drawings @5%, when total drawings were Rs. 10,000. 27. At the end of an accounting year a trader finds that no entry has been passed in the books of accounts in respect of the following transaction: Rs. a) Outstanding salary at the end of the year. 200 b) Goods given as charity during the year. 300 c) Stock in-hand at the end of the year. 20,000 Journalise these transactions. 28. Pass journal entries for the following transactions:- 1. Provide depreciation on furniture Rs. 500 and on machinery Rs. 2,000. 2. Received cash Rs. 1,000 for bad-debts written off last year. 3. Ajay Singh was declared bankrupt. He owed Rs. 2,500 to us. Nothing could be recovered from his estate. 4. Rs. 20,000 for wages and Rs. 4,000 for salaries are outstanding. 5. Purchased furniture for Rs. 6,000 for the proprietor and pain the amount by cheque. 6. Provide 9% interest on capital amounting to Rs. 2, 00, 000. 7. Charge interest on drawing Rs. 1,000. (Ans. Total Rs. 55, 000.) 16

29. Pass journal entries for the following: Jan.5 Purchased goods for cash Rs10, 000 and spent Rs200 for their carriage. Jan.10 Purchases Machinery for cash Rs50, 000 and spent Rs500 for its carriage. Jan.15 Paid Rs20, 000 for cement, Rs10, 000 for timber and Rs5, 000 as wages for the construction of building. Jan.17 Purchased as old machinery for Rs 20,000 and spent Rs2, 500 on its immediate repairs. (Ans. Total Rs 1,18,700.) 30. Pass the necessary journal entry in the following cases: a) Admitted a claim of Rs. 350 made by Basu for goods damaged in transit against earlier sales made to him. b) Bank charges Rs. 600. c) Interest charged by the bank on its overdraft balance Rs. 300. d) Received claim from Bhattacharya for defects in the goods supplied to them. Claim admitted worth Rs. 150. 31. Pass necessary journal entries in the following cases : a) Paid cash to Bhavana on behalf of Sangeeta Rs. 1,100. b) Received cash from Azhar Rs. 2,000 on behalf of Sachin. c) Exchanged old EC TV for a new Sunsui TV. The old TV was valued at Rs. 5,000, the price of the new TV was Rs. 12,000. d) Contractor s bill for construction of shed in the building for 17,000 was paid by crossed cheque. e) Purchased from Shanti Swaroop goods worth Rs. 60,000 and sold on the same day 20% of the goods at a profit of 10% @ 12.5% VAT. f) Purchased stationery worth Rs. 1,000. Out of this stationery worth Rs. 200 was taken by proprietor for domestic use. g) Sent a cheque to Kumar for Rs. 1.980 after deducting discount Rs. 20 but Kumar disallows the discount. Hint : (a) Sangeeta s A/c will be debited because the payment has been made on her behalf and her liability has reduced. As far as payment of cash from us is concerned, Sangeeta s A/c will be debited and Cash A/c credited. (b) Cash A/c will be debited and Sachin s A/c credited. (c ) New TV will be debited with Rs. 12,000 old TV will be credited with Rs. 5,000 and the remaining will be credited to Bank A/c i.e., Rs, 7,000. 8800547301 (d) In addition to the first to the first entry, second entry for disallowing the discount should be made. For this Discount A/c will be debited and Kumar s A/c credited.) 32. Journalise the following items the books of Radha Kamal giving suitable narrations: a) Bought goods from Nitesh for Cash Rs. 1,500 @ 12.5% VAT. b) Paid to Sita Rs. 965 in full payment of her dues of Rs. 1,000. c) Paid Rs. 250 in cash as wages on installation of a machine. 17

2001 June 1 June 3 June 4 June 6 June 7 June 10 June 12 June13 June 15 33. Enter the following transactions in the journal of sh. Arun govil: Sh. Arun govil paid into bank as capital Rs. 6, 00,000 at 10% trade discount. Purchased goods from Mukesh of the list price of Rs. 2, 00, 000 at 10% trade discount. One-fourth of the above goods returned to mukesh for not being upto specifications. Issued a cheque to mukesh for the amount due to him after deducting 2% as cash discount. Withdrew from bank Rs. 2, 50, 000 for office use and Rs. 10, 000 for personal use. Purchased a machinery for Rs. 1, 00, 000 and spent Rs.5, 000 on its installation. Payment for machinery was made by cheque and installation expenses were paid in cash. Sold goods for Rs.1, 00, 000 to Amar. Amar clears his account by giving a cheque of Rs. 98, 500. Cheque is immediately sent to bank. Purchased stationery for personal use Rs. 200 and for office use Rs. 500. Purchased land for Rs. 2, 00, 000 and paid 1% as brokerage and Rs. 15, 000 as registration charges on it. Wages due labourers Rs. 2, 000 and salary due to the clerk Rs. 3, 000. [Ans. Total Rs. 17, 47, 700.] 34. Journalise the following transactions: a) Goods destroyed by Fire for Rs. 500. b) Paid Rs. 2,500 in cash as wages on installation of a Machinery. c) Issued a cheque in favour of M/s Parmatma Saran & Sons on account of purchase of goods Rs. 7,500. d) Goods sold costing Rs. 6,000 to M/s Kalu Sons at an invoice price 10% above cost less 5% Trade discount. 35. Journalise the following transactions : On 1st April, Mr. Mohan brings Rs. 1,00,000 as his capital. On 2 nd April, Mr. Mohan purchases land for Rs. 35,000 for cash. On 30st April, Paid Rs. 23,000 on completion of building constructed by contractor. On 3 rd May, Purchased stock for Rs. 18,000 for cash. On 8 th May, Purchased furniture for Rs. 4,000. On 10 th May, Deposited in bank account opened in the name of business Rs. 15,000. Purchased goods on 11 May from Bright & Co. on Credit for Rs.3000. 36. Journalise the following transactions : a. Goods worth Rs. 56,000 destroyed by fire. b. Paid to Sita Rs. 96,500 in full settlement of her dues of Rs. 1,00,000. c. Outstanding salary at the end of the year Rs. 2,000. 37. Pass the necessary journal entries: a. Sales worth Rs. 20,000, subject to Sales Tax @ 10%. b. Goods of the list price of Rs. 40,000 sold to, at trade discount of 20%. Sales tax charged A@ 10%. 18

c. The sales tax due was paid to the Government. 38. Pass necessary journal entries with the information given below: a) Purchased goods Rs. 1,00,000 subject to Trade Discount of 15% VAT paid @ 12%. b) Goods sold for Rs. 1,50,000 and value added tax collected @ 10%. c) The remaining goods were sold for 50,000 and VAT collected @ 10%. d) The VAT A/c was settled on due date. 39. Journalise the following transactions: i) Goods worth Rs. 500 were used by the proprietor for domestic purposes. ii) Goods uninsured worth Rs. 3,000 were destroyed by fire. iii) Paid Rs. 250 as wages on installation of new machine. iv) Supplied goods costing Rs. 600 to Mohan issued at 10% above cost less 5% trade discount. v) Goods destroyd by fire Rs. 500. vi) Paid Rs. 2,500 in cash as wages on Installation of machinery. vii) Issued a cheque in favour of M/s Parmatma Singh and Sons on account of purchase of goods Rs. 7,500. viii) Goods sold costing Rs. 6,000 to M/s Kalu Sons at an invoice price 10% above cost less 5% Trade discount. 40. Journalise: i. Goods worth Rs. 400 were given as charity out of business. ii. Received cash Rs. 500 of a bad debts written off last year. iii. Interest charged on drawings @ 5%. Total drawings were Rs. 10,000. 41. Journalise the following Opening Entry : Rs. Cash in hand 200 Plant 5,000 Furniture 2,500 Salary outstanding 300 Goodwill 2,000 Creditors 1,300 Debtors 1,800 42. Pass necessary Journal entries : 1. Paid cash to Pawan on behalf of Mukesh Rs. 2,000. 2. Received cash from Sonu Rs. 5,000 on behalf of Monu. 3. Exchanged old car for a new car. The old car was valued at Rs. 15,000, the price of the new car was Rs. 36,000. The Balance was paid through Bank. 4. Purchases from akshay goods worth Rs. 20,000 and sold on the same day 30% of the goods at a profit of 10%. 5. Rs. 30,000 was paid to the Builder for construction of a shed by a crossed cheque. 6. Purchased stationery worth Rs. 1,000. Out of this, stationery worth Rs. 200 was taken by the proprietor for domestic use. 19

7. Sent a cheque to Rahul for Rs. 2,980 after deduction discount of Rs. 20 but Rahul disallowed the discount. 43. Journalise the following transactions: 2000 Rs. Jan. 2 Sold goods to Ajay 500 Jan. 3 Employed Vikas as a cashier, received from him securtiy deposit 500 Jan. 5 Paid Gupta & Co. cash 390 Discount received 10 Jan. 12 Brightways closed their account less 5% cash discount 3,610 Jan. 15 Brought of Prakash goods 3,800 Jan. 16 Paid insurance premium 86 Jan. 21 Received from Suresh cash 212 Allowed him discount 8 Jan. 21 Goods returned to Prakash 800 Jan. 22 Sold goods to Gauri 90 Jan. 23 Paid rend to the godown 50 Jan. 24 Bought of Gupta & Co. goods 945 Jan. 29 Paid for stationery 12 Jan. 30 Rent due to landlord 100 Jan. 31 Paid Mahesh interest on the security deposit 2 44. Journalise the following: March 1 M/s Roop Narain of Mumbai commenced business as book sellers with a capital of Rs. 3,000. March 3 Bought new furniture for the shop Rs. 200. March 4 Bought books Rs. 1,000 and paper Rs. 500 in cash. March 5 Sold books and paper for cash Rs. 700. March 8 Purchased books from Rachna Sagar (P) Limited, Delhi Rs. 1,200. March 13 Sold books to the University Libarary for cash Rs. 500. March 15 Paid for wages Rs. 5 and stationery Rs. 10. March 17 Paid cash to Rachna Sagar (p) Limited Rs. 1,190 and received discount Rs. 10. March 20 Received rent for a portion of the shop sublet Rs. 15. March 22 Sold books and stationery to Hari Bros. Rs. 300 and for cash Rs. 200. March 25 Received cash from Hari Bros. Rs. 295 in full settlement, the balance of Rs. 5 has been allowed as discount. March 31 Paid rent Rs. 45 and salaries for the month Rs. 100. 45. Journalise the following transactions: a) Monica starts business with Rs. 10,000 cash and a building worth Rs. 50,000. b) Purchased goods worth Rs. 20,000 out of which goods worth Rs. 12,000 was on credit from Shyam. c) Sold goods on credit worth Rs. 16,000 to Ram. d) Received Rs. 15,600 from Ram in full settlement of his account. e) Paid Rs. 11,800 to Shyam in full settlement of Rs. 12,000 due to him. f) Paid wages Rs. 500 and salaries Rs. 2,000. g) Urchased a machinery from Mohit and Sons for Rs. 2,000 on credit. h) Depreciation of Rs. 200 was provided on the machinery at the year end. 20

i) Withrew Rs. 500 from the business for personal expenses. j) A cheque amounting to Rs. 500 deposited in the bank was returned dishonoured. 46. On 1 st january, 2001, financial positon of Atul Traders was as follows: Rs. Capital 70,000 Bank overdraft 7,500 Machinery 45,000 Goodwill 5,000 Bills payable 2,500 Cash 1,000 Furniture 5,000 Building 40,000 Loan from a suplies 20,000 Bills receivable 4,000 Give the opening Journal entry. 47. Journal the following transactions of Raj Kumar, a timber merchant:- 1. Purchased timber from Kuldeep Kumar, for cash Rs. 2,000 and credit Rs. 10,000. 2. Paid to kuldeep kumar in full settlement of his account Rs. 9, 950. 3. Paid rent in advance Rs. 480. 4. Purchased machinery for Rs. 1, 00, 000 by cheque and carriage Rs. 22,000 and installation charges Rs. 1, 000 paid in cash. 5. Purchased goods for Rs. 50, 000 from govind and sold it to Manohar for Rs. 65, 000. [Ans. Total Rs. 2, 40, 480] 48. Journalise the following transactions in the books Prakash : a) Sh. Ram who owes Rs. 1,000 pays Rs. 993 in full settlement. b) M/s Sohan Pal Singh and Co. who owes Rs. 3,000 became insolvent. Only 45% of the amount is realised. c) Issued cheque in favour of Maheswari on account of purchase of furniture for Rs. 1,500. d) Received cheque from Mr. Bansal Rs. 6,200. Allowed him discount Rs. 80. e) A sum of Rs. 300 is received from TPT and Co. against a ebt previously written off. f) Returned goods to Sigma Ltd. Of the value of Rs. 600. g) Withdrew goods for domestic use Rs. 60. h) Paid railway freight on behalf of our customer Mr X Rs. 60. i) Received interest on investment Rs. 500. j) Paid office expenses Rs. 150 from personal cash and stationery expenses Rs. 250 from office cash. k) Purchased post cards for Rs. 100, stamps for Rs. 150 and envelopes for Rs. 25. 49. Journalise the following transactions in the books of Ajay Mittal: a) Cheque Rs. 100 previously received from Puri in settlement of debt now returned dishonoured. b) Fire insurance premium of Rs. 250 paid for one year. c) Sold goods Rs. 50 to Jay Bose on credit. d) Goods returned from Heena Rs. 35. e) Rs. 50 owing by S.K. Prasad written off as bad debt. f) Paid Rs. 500/ -by cheque for purchase of office furniture. g) Purchased a cow for business use Rs. 15,000. 21

50. Journalise the following transactions in the books of Kajal: Jan. 1 Kajal having no capital of her own started business with Rs. 50,000, borrowed from her friend Sheena @ 10% p.a. Jan. 5 Purchased goods for Rs. 5,000. Jan. 12 Received invoice at 10% trade discount from Mohit and Sons and supplied these goods to Pooja, listed at Rs. 3,000. Jan. 20 Pooja is declared insolvent and the amount @ 25 paise per rupee is received from her in full settlement. Jan. 25 Purchased goods for Rs. 1,000 from Neeraj and supplied these to Harshit for Rs. 1,300. Harshit returned goods worth Rs. 390, which in turn were returned to Neeraj. Feb. 9 Boutht a horse for Rs. 1,500 and a cart for Rs. 2,000 for delivering goods to the customers. Feb. 25 The horse bought on Feb. 9 died and its carcase was sold Rs. 200. Feb. 28 Supplied goods for Rs. 300 to Kajal for domestic use. Mar. 3 Rs. 300 were paid to Mohan out of business funds for the repair of Kajal s residential house. Mar. 5 Rs. 1,000 paid for expenses on goods sold to Shankar. This amount is to be realised from Shankar. 51. Journalise the following: a) Deepak who owed me Rs. 500 failed to pay the amount. He paid compensation of 25 paise in a rupee. b) Received cash from Shyam for a bad debt written off last year Rs. 500. c) Goods worth Rs. 400 were given free as charity. d) Charge interest on drawing Rs. 500. e) Paid cash to Y on behalf of X Rs. 2,000. 52. Journalise the following transaction in Mr. Bajaj s books: Rs. April 1 Assets: Cash in hand 860 Cash at bank 140 Leasehold premises 12,000 Machinery 6,000 Due from Meetu 1,460 Due from Pooja 3,540 Furniture 3,500 Liabilities ; Loan 2,000 Due to rakesh 1,500 April 2 Purchased goods from Ajay 4,500 April 3 Goods sold 3,000 April 4 Purchased goods from Ram 3,700 April 6 Sold goods for cash 7,000 April 7 Sold goods for cash 3,000 April 8 Paid for cash purchases 4,950 Discount allowed to Mr. Bajaj 50 April 11 Received cheque from Anil on account 3,000 April 16 Meetu paid by cheque in full settlement 1,400 April 24 Drawn from bank for personal use 450 22

April 30 Allowed interest on captal @ 5% p.a. from 1 st May, 2,000 to 30 th April, 2001 450 April 30 Salaries for the month of April unpaid 750 April 30 Rent for the month of April unpaid 250 53. Journalise te following in the books of Mr. A. and make ledger A/cs. Rs. a) 1/1/97 Mr. A started business with cash 15,000 b) Paid cash for the purchase of goods on 12/1/97 2,000 c) Purchased goods on credit from Mr. B on 25/1/97 12,000 d) Rent paid 200 e) Sale of goods of cash 11,000 f) Sale of goods on credit 8,000 g) Returns inward 1,500 h) Earned commission (cash ) 6,000 i) Gave goods for charity 250 j) Cash purchases from Ram 2,000 k) Paid miscellaneour expenses 1,800 l) Salary paid 2,000 m) Salary outstanding 1,000 n) A s Life Insurance premium paid by cheque 5,000 54. Journalise the following and post to ledger: a) Shyam became insolvent, first and final dividend received 75 paise in the rupee. He owed us a debt of Rs. 1,000. b) Received cash for a bad debt written off last year Rs. 250 c) Depreciation on plant Rs. 2,000, Furniture Rs. 200 d) Salaries due to clerk Rs. 5,000 e) Rent paid to landlord Rs. 2,000 f) Cash purchases Rs. 10,000 g) Credit Purchases Rs. 5,000 h) Returns outward Rs. 2,000 i) Goods sold for cash to a customer for Rs. 10,000 and collected sales tax @ 7% on it. j) Purchased an Iron safe for business use for Rs. 5,500. 55. Pass journal entries for following transactions:- 1. Purchased machinery for Rs. 20, 00 and Rs. 200 for its carriage. 2. Received a cheque of Rs. 4, 850 from X in full settlement of his account of Rs. 5, 000. Cheque was immediately deposited into bank. 3. Received a first and final payment of 60 paisa in Rs. From Y who owed us Rs. 10,000. 4. Sold goods to Z for Rs. 10, 000 at a trade discount of 20% next day a cheque was received from him after deducting 5% cash discount. Cheque was immediately deposited into bank. 5. Goods costing Rs. 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount. [Ans. Total Rs. 72, 800] 56. Journalise the following transactions:- 1. Goods for Rs. 50, 000 were destroyed by fire. 23

2. Goods worth Rs. 18, 000 were distributed as free samples and Rs. 20, 000 were given away as charity in cash. 3. Goods worth Rs. 25, 000 and cash Rs. 40, 000 were taken away by the proprietor for his personal use. 4. Goods worth Rs. 20, 000 and cash Rs. 5,000 were the iron safe of the trader. 5. Cash Rs. 1, 00, 000 were stolen from the iron safe of the trader. [Ans. Total Rs. 2, 78, 000] 57. Journalise the following transactions:- (i) Sold goods to Brijesh of the list price of Rs. 10, 000 at trade discount of 5% received full payment in cash. (ii) Goods given away as charity Rs. 1, 000. (iii) Charge interest on capital of Rs. 5, 00, 000 @ 7% p.a. (iv) Outstanding wages Rs. 3, 000. (v) Rs. 5, 000 due from sunny are now bad debts. (vi) Rs. 50, 000 cash sales (of goods costing Rs. 40, 000). [Ans. Total Rs. 1, 03, 500] 58. Prepare journal from the transactions given below:- (a) Proprietor withdrew for private use Rs. 10, 000 from bank. (b) Goods costing Rs. 50, 000 were burnt by fire. (c) Purchased machinery for cash Rs. 1, 50, 000 and paid Rs. 2,000 on its installation. (d) Charge 5% depreciation on building costing Rs. 2, 00, 000 and 8% depreciation on furniture costing Rs. 5, 000. (e) Prepaid salary Rs. 2, 000. (f) Kapil who owed us Rs20,000 becomes insolvent and nothing is received from his estate. (Ans. Total Rs2,44,400) 59. Journalise the following transactions in the Journal of Sh. Navin Gupta:- 1. Out of Insurance premium paid this year, Rs1,500 is related to next year. 2. Credit Purchases from Ram & Co. For Rs5,000. Cash discount will be received at 5% on payment of bill within 10 days. 3. Cash paid to Ram & Co. And discount availed of. 4. Paid Income Tax Rs2,000. 5. Goods costing Rs20,000 sold for cash at a profit of Rs10% 6. Purchased iron safe for Rs20,000, filing cabinet for Rs5,000 and typewriter for Rs.10,000. (Ans.:- Total Rs 70,500). 60. Journalise the following transactions in the books of Kanishk : 1) Sold goods costing Rs1,20,000 to Charu at a profit of 33 1/3% on cost less 15% Trade Discount and charged 8% Central Sales Tax. 2) Sold goods costing Rs80,000 to Arun for cash at a profit of 25% on cost less 15% Trade Discount and charged 8% Central Sales Tax. 3) Purchased goods from Sachin for cash for Rs2,00,000 and paid Central Sales Tax @ 8%. Payment is made by cheque. 4) Paid by cheque Rs8,400 as insurance premium for a period of 12 month starting 1 st August 2010.Financial year closes on 31 st March every year. (Ans.:- Total Rs4,63,080). 24

61. Journalised the following the following transactions in the books of M/s Royal Traders : 1) Purchased goods from pawan Ltd. For Rs2,00,000 plus VAT @12%. 2) Sold ¾ of the above goods for Rs1,90,000 to Nutan Ltd.plus VAT @12%. 3) Sold the balance of goods to Rubi Ltd. for Rs60,000 and charged VAT @12%. 4) Deposited the VAT into Government Account through cheque. (Ans.:- VAT deposited into Government Account Rs.6,000). 62. Pass the journal entries in the following cases : a) Sold to Ms. Madhuri goods worth Rs. 18,000 less 6 ¼ % trade discount @ 12.5% VAT. b) Received a cheque from Ms. Madhuri for 16,500 in full settlement. The cheque was immediately deposited into the bank. c) Bought goods from Sorabji for Rs. 60,000 at 20% trade discount and 3% cash discount for immediate payment plus VAT @ 12.5%. The payment was made immediately. d) Paid Rs. 4,000 as wages for installation of machine. e) Sold goods to Yunus costing Rs. 20,000 and issued invoice at 10% above cost and allowed him a trade discount of 10% plus VAT @ 12.5%. f) Received Rs. 3,000 for a bad debt written off 3 years earlier. g) Paid for petrol for office car Rs. 150. h) Paid for drivers salary Rs. 2,000. i) Received a money order of Rs. 1,000 for supply of goods to Anil Srivastava. j) Goods used by relatives of the proprietor worth Rs. 950. 63. Journalised the following:- 2001 March 4. Purchased building for Rs1,50,000 and incurred expenses of Rs10,000 on its purchase. March 10. Satish who owed us Rs20,000 is declared insolvent and 60 paise per Rsis received from his estate. March 15 Paid Rs500 for repairing the office furniture. March 18 Proprietor withdrew for his personal use cash Rs5,000 and goods worth Rs2,000. March 20 Purchased the following items for business: Iron Safe Rs15,000; Filing Cabinet Rs5,000 ;Typewriter Rs12,000; Postage Rs200 and Stationery Rs150. March 28 Paid electricity charges Rs1,600. March 31 Charge depreciation on Machinery @10% for one year ( Machinery Rs75,000). March 31 Outstanding Wages at the end of the year Rs6,000. (Ans.:- Total Rs2,34,950). 64. Journalise the following: 1) Purchased goods for Rs25,000 for Cash and paid Rs200 for carriage to these goods. 2) Purchased goods for Rs40,000 on Credit from Sudhir and paid Rs500 for carriage on these goods. 3) Purchased machinery for Rs.20,000 and spent Rs.500 on its carriage and Rs.300 on its installation. 25