Solve this: 5 Journalise the following transactions in the books of Khanna Stores :-2012 July 1 - Accountancy - Recording of Transactions - I

Question

Solve this:

5 Journalise the following transactions in the books of Khanna
Stores :-2012
July 1 Deepak Khanna commenced business with
Rs 150, 000 out of which he contributed Rs 90 000 and borrowed Rs
60 000 from his friend Suresh

July 2 Goods of List Price Rs 20, 000 purchased from Ranjan at a
trade discount of 5%/

July 4 Sold goods to Kailash of List Price Rs 3,000 at 20% Profit
less 5% Trade Discount and Cash Discount @ 2%

July 7 Goods of List Price Rs 300 returned by Kailash
â€‹

July 10 A contract is signed with a customer Rohan for supply of
goods The customer immediatety pays Rs 15,000 as advance

July 11 Pad Office Rent of Rs 3, 000 on behalf of creditor
Rajan
July 17 Kailash became insolvent and only 60 paise in a rupee be
reabsed from him
July 22 Paid Rs 15,500 to Rajan in full settlement of his
Account
July 30 Accrued Commission Rs 1,000
July 31 Electricity bill of Rs 3,000
received today remains unpaid

Neha Chopra · Accepted Answer

Dear
Student,

Date
Particulars
LF
Amount (in
Rs)
Amount (in
Rs)

2012

Jul 1
Bank
A/c
Dr
150,000

To Capital
A/c

90,000

To Loan from Suresh
A/c

60,000

(Commenced
business)

Jul 2
Purchases A/c
(20,000*95%)
Dr
19,000

To Rajan
A/c

19,000

(Goods purchased at 10%
trade discount)

Jul 4
Kailash
A/c
Dr
3,420

To Sales A/c
(3,000*120%*95%)

3,420

(Goods sold at 20% profit
less 5% trade discount & 2 % Cash Discount; but Kailash didn't
pay cash so no discount)

Jul 7
Sales Return A/c
(300*120%*95%)
Dr
342

To Kailash
A/c

342

(Goods returned by
Kailash sold on cash discount)

Jul 10
Cash
A/c
Dr
15,000

To Advance from Customers
A/c

15,000

(Advance received from
Rohan for supply of goods)

Jul 11
Rajan
A/c
Dr
3,000

To Cash
A/c

3,000

(Paid office rent on
behalf of Rajan)

Jul 17
Bank A/c
(3,078*60%)
Dr
1,847

Bad debts
A/c
Dr
1,231

To Kailash A/c
(3,420-342)

3,078

(Kailash became insolvent
& only 60% realised from his estate)

Jul 22
Rajan
A/c
Dr
16,000

To Discount
A/c

500

To Cash
A/c

15,500

(Rajan's Account
settled)

Jul 30
Accrued commission
A/c
Dr
1,000

To Commission
A/c

1,000

(Accrued
commission)

Jul 31
Electricity
exps
Dr
3,000

To Outstanding
electricity exps A/c

3,000

(electricity bill
unpaid)

Regards,

Date	Particulars	LF	Amount (in Rs)	Amount (in Rs)
2012
Jul 1	Bank A/c	Dr	150,000
	To Capital A/c			90,000
	To Loan from Suresh A/c			60,000
	(Commenced business)

Jul 2	Purchases A/c (20,000*95%)	Dr	19,000
	To Rajan A/c			19,000
	(Goods purchased at 10% trade discount)

Jul 4	Kailash A/c	Dr	3,420
	To Sales A/c (3,000120%95%)			3,420
	(Goods sold at 20% profit less 5% trade discount & 2 % Cash Discount; but Kailash didn't pay cash so no discount)

Jul 7	Sales Return A/c (300120%95%)	Dr	342
	To Kailash A/c			342
	(Goods returned by Kailash sold on cash discount)

Jul 10	Cash A/c	Dr	15,000
	To Advance from Customers A/c			15,000
	(Advance received from Rohan for supply of goods)

Jul 11	Rajan A/c	Dr	3,000
	To Cash A/c			3,000
	(Paid office rent on behalf of Rajan)

Jul 17	Bank A/c (3,078*60%)	Dr	1,847
	Bad debts A/c	Dr	1,231
	To Kailash A/c (3,420-342)			3,078
	(Kailash became insolvent & only 60% realised from his estate)

Jul 22	Rajan A/c	Dr	16,000
	To Discount A/c			500
	To Cash A/c			15,500
	(Rajan's Account settled)

Jul 30	Accrued commission A/c	Dr	1,000
	To Commission A/c			1,000
	(Accrued commission)

Jul 31	Electricity exps	Dr	3,000
	To Outstanding electricity exps A/c			3,000
	(electricity bill unpaid)