Chapter 3 from Textbook Double Entry Book Keeping Ts Grewal (2017) for Class 11 ACCOUNTANCY

Question 1:

Answer:

Personal Account	Real Account	Nominal Account
(vii) Bank Overdraft	(i) Land	(iv) Interest Received
(viii) Debtors	(ii) Investments	(v) Salary
(ix) Creditors	(iii) Building	(vi) Excise Duty
(xii) Capital	(xv) Motor Vehicles	(x) Purchase Returns
(xiii) Drawings	(xviii) Goodwill	(xi) Bad Debts
		(xiv) Depreciation
		(xvi) Freight
		(xvii) Wages
		(xix) Return Inwards
		(xx) Repairs

Question 2:

Personal Account	Real Account	Nominal Account
(vii) Bank Overdraft	(i) Land	(iv) Interest Received
(viii) Debtors	(ii) Investments	(v) Salary
(ix) Creditors	(iii) Building	(vi) Excise Duty
(xii) Capital	(xv) Motor Vehicles	(x) Purchase Returns
(xiii) Drawings	(xviii) Goodwill	(xi) Bad Debts
		(xiv) Depreciation
		(xvi) Freight
		(xvii) Wages
		(xix) Return Inwards
		(xx) Repairs

Answer:

Assets		Liabilities		Capital		Revenue		Expenses
(i)	Plant and Machinery	(ii)	Bank Loan	(xvi)	Capital	(iii)	Sales	(iv)	Rent
(xii)	Accrued Income	(ix)	Bills Payable			(v)	Discount Received	(vi)	Carriage Inwards
(xiii)	Goodwill	(xi)	Advance Income			(xvii)	Rent Received	(vii)	Carriage Outwards
(xiv)	Furniture and Fixtures	(xv)	Outstanding Expenses					(viii)	Purchases
								(x)	Wages

Question 3:

Assets		Liabilities		Capital		Revenue		Expenses
(i)	Plant and Machinery	(ii)	Bank Loan	(xvi)	Capital	(iii)	Sales	(iv)	Rent
(xii)	Accrued Income	(ix)	Bills Payable			(v)	Discount Received	(vi)	Carriage Inwards
(xiii)	Goodwill	(xi)	Advance Income			(xvii)	Rent Received	(vii)	Carriage Outwards
(xiv)	Furniture and Fixtures	(xv)	Outstanding Expenses					(viii)	Purchases
								(x)	Wages

Answer:

Name of Accounts		Consequence of increase	Modern Approach	Traditional Approach
(i)	Furniture	Debit	Assets	Real Account
(ii)	Mohan (Proprietor )	Credit	Capital	Personal Account
(iii)	Salary	Debit	Expense	Nominal Account
(iv)	Purchases	Debit	Expense	Nominal Account
(v)	Sales	Credit	Revenue	Nominal Account
(vi)	Interest Paid	Debit	Expense	Nominal Account
(vii)	Sohan (Creditor)	Credit	Liabilities	Personal Account
(viii)	Ram (Debtor)	Debit	Assets	Personal Account

Question 4:

Name of Accounts		Consequence of increase	Modern Approach	Traditional Approach
(i)	Furniture	Debit	Assets	Real Account
(ii)	Mohan (Proprietor )	Credit	Capital	Personal Account
(iii)	Salary	Debit	Expense	Nominal Account
(iv)	Purchases	Debit	Expense	Nominal Account
(v)	Sales	Credit	Revenue	Nominal Account
(vi)	Interest Paid	Debit	Expense	Nominal Account
(vii)	Sohan (Creditor)	Credit	Liabilities	Personal Account
(viii)	Ram (Debtor)	Debit	Assets	Personal Account

Answer:

Name of Accounts		Consequence of decrease	Modern Approach	Traditional Approach
(i)	Cash	Credit	Assets	Real Account
(ii)	Bank Overdraft	Debit	Liability	Personal Account
(iii)	Outstanding Salary Paid	Debit	Liability	Personal Account
(iv)	Outstanding Rent	Debit	Liability	Personal Account
(v)	Prepaid Insurance	Credit	Asset	Personal Account
(vi)	Mohan, proprietor of the business	Debit	Capital	Real Account

Question 5:

Name of Accounts		Consequence of decrease	Modern Approach	Traditional Approach
(i)	Cash	Credit	Assets	Real Account
(ii)	Bank Overdraft	Debit	Liability	Personal Account
(iii)	Outstanding Salary Paid	Debit	Liability	Personal Account
(iv)	Outstanding Rent	Debit	Liability	Personal Account
(v)	Prepaid Insurance	Credit	Asset	Personal Account
(vi)	Mohan, proprietor of the business	Debit	Capital	Real Account

Answer:

Account Name		Account Type
(i)	Drawings	Personal
(ii)	Cash	Real
(iii)	Outstanding Salaries	Personal
(iv)	Prepaid Insurance Premium	Personal
(v)	Depreciation	Nominal
(vi)	Loan	Personal
(vii)	Capital	Personal

Question 6:

Account Name		Account Type
(i)	Drawings	Personal
(ii)	Cash	Real
(iii)	Outstanding Salaries	Personal
(iv)	Prepaid Insurance Premium	Personal
(v)	Depreciation	Nominal
(vi)	Loan	Personal
(vii)	Capital	Personal

Answer:

Account Name		Account Type
(i)	Stock	Real
(ii)	Loan	Personal
(iii)	Bank Loan	Personal
(iv)	Capital	Personal
(v)	Drawings	Personal
(vi)	Current Account of a Partner	Personal
(vii)	Furniture	Real
(viii)	Cash	Real
(ix)	Bank	Personal
(x)	Raja Ram (Purchaser)	Personal

Question 7:

Answer:

Account Name		Account Type
(i)	Machinery	Asset
(ii)	Bank	Asset
(iii)	Sales	Revenue
(iv)	Purchases	Expense
(v)	Unsold Stock	Asset
(vi)	Bank Overdraft	Liability
(vii)	Ram (Customer )	Asset
(viii)	Cash	Asset
(ix)	Interest Received	Revenue
(x)	Mohan (Proprietor)	Capital

Question 8:

Account Name		Account Type
(i)	Machinery	Asset
(ii)	Bank	Asset
(iii)	Sales	Revenue
(iv)	Purchases	Expense
(v)	Unsold Stock	Asset
(vi)	Bank Overdraft	Liability
(vii)	Ram (Customer )	Asset
(viii)	Cash	Asset
(ix)	Interest Received	Revenue
(x)	Mohan (Proprietor)	Capital

Answer:

Item		Account Type	Reason
(i)	Salary	Nominal	Expenses
(ii)	Outstanding Salary	Personal	Payable
(iii)	Accrued Rent	Personal	Receivable
(iv)	Prepaid Rent	Personal	Payment in advance
(v)	Rent Received in Advance	Personal	Income Received in Advance
(vi)	Doubtful Debts	Personal	Doubtful Receivable

Question 9:

Item		Account Type	Reason
(i)	Salary	Nominal	Expenses
(ii)	Outstanding Salary	Personal	Payable
(iii)	Accrued Rent	Personal	Receivable
(iv)	Prepaid Rent	Personal	Payment in advance
(v)	Rent Received in Advance	Personal	Income Received in Advance
(vi)	Doubtful Debts	Personal	Doubtful Receivable

Answer:

S. No.	Name of Account	Balance	Reason
(i)	Carriage	Debit	Expenses
(ii)	Machinery	Debit	Asset
(iii)	Sales	Credit	Revenue
(iv)	Cash	Debit	Asset
(v)	Ram (Customer)	Debit	Debtor
(vi)	Sale Return	Debit	Decreases in Revenue
(vii)	Purchases	Debit	Expense
(viii)	Bad Debts	Debit	Loss
(ix)	Discount Allowed	Debit	Loss
(x)	Rent	Debit	Expense
(xi)	Commission Received	Credit	Income
(xii)	Capital	Credit	Proprietor’s Liability
(xiii)	Repairs	Debit	To the Firm
(xiv)	Purchases Return	Credit	Decrease in Purchases

Question 10:

S. No.	Name of Account	Balance	Reason
(i)	Carriage	Debit	Expenses
(ii)	Machinery	Debit	Asset
(iii)	Sales	Credit	Revenue
(iv)	Cash	Debit	Asset
(v)	Ram (Customer)	Debit	Debtor
(vi)	Sale Return	Debit	Decreases in Revenue
(vii)	Purchases	Debit	Expense
(viii)	Bad Debts	Debit	Loss
(ix)	Discount Allowed	Debit	Loss
(x)	Rent	Debit	Expense
(xi)	Commission Received	Credit	Income
(xii)	Capital	Credit	Proprietor’s Liability
(xiii)	Repairs	Debit	To the Firm
(xiv)	Purchases Return	Credit	Decrease in Purchases

Answer:

S. No.	Transaction	Accounts Involved	Nature of Account	Reasons for Debit and Credit	Amount
S. No.	Transaction	Accounts Involved	Nature of Account	Reasons for Debit and Credit	Debit (Rs)	Credit (Rs)
(i)	Gaurav started business with Cash	Cash	Real	Cash is Coming in.	1,00,000
(i)	Gaurav started business with Cash	Capital	Personal	Gaurav is the Giver of Cash.		1,00,000
(ii)	He purchased furniture for business	Furniture	Real	Furniture is coming in.	20,000
(ii)	He purchased furniture for business	Cash	Real	Cash is going out.		20,000
(iii)	Purchased good on credit from Anshul	Purchases	Real	Goods are coming in.	6,000
(iii)	Purchased good on credit from Anshul	Anshul	Given	Anshul is giver of the goods.		6,000
(iv)	Paid to his Creditor, Anshul	Anshul	Personal	Anshul is Receiver.	2,000
(iv)	Paid to his Creditor, Anshul	Cash	Real	Cash is going out.		2,000
(v)	Paid salary to clerk	Salary	Nominal	Expenses	1,000
(v)	Paid salary to clerk	Cash	Real	Cash is going out.		1,000
(vi)	Paid Rent	Rent	Nominal	Expenses	500
(vi)	Paid Rent	Cash	Real	Cash is going out.		500
(vii)	Received Interest	Cash	Real	Cash is coming in.	200
(vii)	Received Interest	Interest	Nominal	Incomes		200

Question 11:

S. No.	Transaction	Accounts Involved	Nature of Account	Reasons for Debit and Credit	Amount
S. No.	Transaction	Accounts Involved	Nature of Account	Reasons for Debit and Credit	Debit (Rs)	Credit (Rs)
(i)	Gaurav started business with Cash	Cash	Real	Cash is Coming in.	1,00,000
(i)	Gaurav started business with Cash	Capital	Personal	Gaurav is the Giver of Cash.		1,00,000
(ii)	He purchased furniture for business	Furniture	Real	Furniture is coming in.	20,000
(ii)	He purchased furniture for business	Cash	Real	Cash is going out.		20,000
(iii)	Purchased good on credit from Anshul	Purchases	Real	Goods are coming in.	6,000
(iii)	Purchased good on credit from Anshul	Anshul	Given	Anshul is giver of the goods.		6,000
(iv)	Paid to his Creditor, Anshul	Anshul	Personal	Anshul is Receiver.	2,000
(iv)	Paid to his Creditor, Anshul	Cash	Real	Cash is going out.		2,000
(v)	Paid salary to clerk	Salary	Nominal	Expenses	1,000
(v)	Paid salary to clerk	Cash	Real	Cash is going out.		1,000
(vi)	Paid Rent	Rent	Nominal	Expenses	500
(vi)	Paid Rent	Cash	Real	Cash is going out.		500
(vii)	Received Interest	Cash	Real	Cash is coming in.	200
(vii)	Received Interest	Interest	Nominal	Incomes		200

Answer:

S. No.	Transaction	Accounts Involved	Nature of Account	Reasons for Debit and Credit	Amount
S. No.	Transaction	Accounts Involved	Nature of Account	Reasons for Debit and Credit	Debit (Rs)	Credit (Rs)
(i)	Lal started business with cash	Cash	Real	Cash is Coming in.	3,00,000
(i)	Lal started business with cash	Capital	Personal	Lal is the giver of the cash.		3,00,000
(ii)	Purchased Furniture from Shanti Furniture House for Cash	Furniture	Real	Furniture is coming in.	75,000
(ii)	Purchased Furniture from Shanti Furniture House for Cash	Cash	Real	Cash is going out.		75,000
(iii)	Purchased good for cash	Purchases	Nominal	Expenses	55,000
(iii)	Purchased good for cash	Cash	Real	Cash is going out		55,000
(iv)	Sold Goods for Cash to Pal	Cash	Real	Cash is coming in	35,000
(iv)	Sold Goods for Cash to Pal	Sales	Nominal	Revenue		35,000
(v)	Sold goods to Om on Credit	Om	Personal	Receiver of goods	60,000
(v)	Sold goods to Om on Credit	Sales	Nominal	Revenue		60,000
(vi)	Deposited Cash in Bank	Bank	Personal	Bank is receiver	70,000
(vi)	Deposited Cash in Bank	Cash	Real	Cash is the going out		70,000
(vii)	Received a cheque from Om	Cash	Real	Cash is coming in	20,000
(vii)	Received a cheque from Om	Om	Personal	Om is giver		20,000
(viii)	Deposited Om’s cheque on next day	Bank	Personal	Bank is the receiver	20,000
(viii)	Deposited Om’s cheque on next day	Cash	Real	Cash is going out		20,000
(ix)	Borrowed from Sohan	Cash	Real	Cash is coming in	1,00,000
(ix)	Borrowed from Sohan	Sohan	Personal	Sohan is the giver		1,00,00
(x)	Purchased furniture from Haryana Safe	Furniture	Real	Furniture is coming in	50,000
(x)	Purchased furniture from Haryana Safe	Haryana Safe	Personal	Haryana Safe is the giver		50,000
(xi)	Paid interest on loan	Interest	Nominal	Expense	10,000
(xi)	Paid interest on loan	Cash	Real	Cash is going out		10,000
(xii)	Paid rent by Cheque	Rent	Nominal	Expense	4,000
(xii)	Paid rent by Cheque	Bank	Personal	Bank is the giver		4,000
(xiii)	Paid salary to staff	Salary	Nominal	Expense	14,000
(xiii)	Paid salary to staff	Cash	Real	Cash is going out		14,000
(xiv)	Withdrew Cash for Personal use	Drawings	Personal	Proprietor is the receiver	5,000
(xiv)	Withdrew Cash for Personal use	Cash	Real	Cash is going out		5,000

Question 12:

S. No.	Transaction	Accounts Involved	Nature of Account	Reasons for Debit and Credit	Amount
S. No.	Transaction	Accounts Involved	Nature of Account	Reasons for Debit and Credit	Debit (Rs)	Credit (Rs)
(i)	Lal started business with cash	Cash	Real	Cash is Coming in.	3,00,000
(i)	Lal started business with cash	Capital	Personal	Lal is the giver of the cash.		3,00,000
(ii)	Purchased Furniture from Shanti Furniture House for Cash	Furniture	Real	Furniture is coming in.	75,000
(ii)	Purchased Furniture from Shanti Furniture House for Cash	Cash	Real	Cash is going out.		75,000
(iii)	Purchased good for cash	Purchases	Nominal	Expenses	55,000
(iii)	Purchased good for cash	Cash	Real	Cash is going out		55,000
(iv)	Sold Goods for Cash to Pal	Cash	Real	Cash is coming in	35,000
(iv)	Sold Goods for Cash to Pal	Sales	Nominal	Revenue		35,000
(v)	Sold goods to Om on Credit	Om	Personal	Receiver of goods	60,000
(v)	Sold goods to Om on Credit	Sales	Nominal	Revenue		60,000
(vi)	Deposited Cash in Bank	Bank	Personal	Bank is receiver	70,000
(vi)	Deposited Cash in Bank	Cash	Real	Cash is the going out		70,000
(vii)	Received a cheque from Om	Cash	Real	Cash is coming in	20,000
(vii)	Received a cheque from Om	Om	Personal	Om is giver		20,000
(viii)	Deposited Om’s cheque on next day	Bank	Personal	Bank is the receiver	20,000
(viii)	Deposited Om’s cheque on next day	Cash	Real	Cash is going out		20,000
(ix)	Borrowed from Sohan	Cash	Real	Cash is coming in	1,00,000
(ix)	Borrowed from Sohan	Sohan	Personal	Sohan is the giver		1,00,00
(x)	Purchased furniture from Haryana Safe	Furniture	Real	Furniture is coming in	50,000
(x)	Purchased furniture from Haryana Safe	Haryana Safe	Personal	Haryana Safe is the giver		50,000
(xi)	Paid interest on loan	Interest	Nominal	Expense	10,000
(xi)	Paid interest on loan	Cash	Real	Cash is going out		10,000
(xii)	Paid rent by Cheque	Rent	Nominal	Expense	4,000
(xii)	Paid rent by Cheque	Bank	Personal	Bank is the giver		4,000
(xiii)	Paid salary to staff	Salary	Nominal	Expense	14,000
(xiii)	Paid salary to staff	Cash	Real	Cash is going out		14,000
(xiv)	Withdrew Cash for Personal use	Drawings	Personal	Proprietor is the receiver	5,000
(xiv)	Withdrew Cash for Personal use	Cash	Real	Cash is going out		5,000

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016 June 01	Cash A/c Dr. To Capital A/c			25,000	25,000
June 03	Cash A/c	Dr.		5,000
	To Ram				5,000
	(Cash received from Ram)

June 04	Purchases A/c	Dr.		1,500
	To Cash A/c				1,500
	(Purchased goods for Cash)

June 11	Hari	Dr.		1,200
	To Sales A/c				1,200
	(Sold goods to Hari )

June 13	Ramavtar	Dr.		4,000
	To Cash				4,000
	(Paid Ramavtar)

June 17	Cash A/c	Dr.		1,000
	To Hari				1,000
	(Received from Hari)

June 20	Furniture A/c	Dr.		2,000
	To Ram				2,000
	(Bought Furniture from Ram )

June 27	Rent A/c	Dr.		2,800
	To Cash A/c				2,800
	(Paid Rent )

June 30	Salary A/c	Dr.		5,000
	To Cash A/c				5,000
	(Paid Salary)

Question 13:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016 June 01	Cash A/c Dr. To Capital A/c			25,000	25,000
June 03	Cash A/c	Dr.		5,000
	To Ram				5,000
	(Cash received from Ram)

June 04	Purchases A/c	Dr.		1,500
	To Cash A/c				1,500
	(Purchased goods for Cash)

June 11	Hari	Dr.		1,200
	To Sales A/c				1,200
	(Sold goods to Hari )

June 13	Ramavtar	Dr.		4,000
	To Cash				4,000
	(Paid Ramavtar)

June 17	Cash A/c	Dr.		1,000
	To Hari				1,000
	(Received from Hari)

June 20	Furniture A/c	Dr.		2,000
	To Ram				2,000
	(Bought Furniture from Ram )

June 27	Rent A/c	Dr.		2,800
	To Cash A/c				2,800
	(Paid Rent )

June 30	Salary A/c	Dr.		5,000
	To Cash A/c				5,000
	(Paid Salary)

Answer:

Journal In the Books of Mr. Rakesh
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 01	Cash A/c	Dr.		50,000
	To Capital A/c				50,000
	(Business started with capital)

Jan. 02	Purchases A/c	Dr.		10,000
	To Cash A/c				10,000
	(Goods purchased for cash)

Jan. 05	Purchases A/c	Dr.		6,000
	To Mohan’s A/c				6,000
	(Goods purchased on credit from Mohan)

Jan. 07	Bank A/c	Dr.		10,000
	To Cash A/c				10,000
	(Cash deposited into the bank)

Jan. 10	Furniture A/c	Dr.		2,000
	To Cash A/c				2,000
	(Purchased furniture for cash)

Jan. 15	Cash A/c	Dr.		8,000
	To Sales A/c				8,000
	(Sold goods for cash)

Jan. 20	Ram’s A/c	Dr.		5,000
	To Sales A/c				5,000
	(Sold goods on credit to Ram)

Jan. 25	Cash A/c	Dr.		3,500
	To Sales A/c				3,500
	(Sold goods for cash)

Jan. 27	Mohan’s A/c	Dr.		3,000
	To Cash A/c				3,000
	(Paid cash to Mohan against credit purchases)

Jan. 28	Sales Return A/c	Dr.		500
	To Ram’s A/c				500
	(Goods returned to Ram)

Jan. 31	Salaries A/c	Dr.		9,000
	To Cash A/c				9,000
	(Salaries paid to employees through cash)

Jan. 31	Mohan’s A/c (6,000 × 10%)	Dr.		600
	To Purchases Return A/c				600
	(10% of goods rejected and returned to Mohan)

Question 14:

Journal In the Books of Mr. Rakesh
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 01	Cash A/c	Dr.		50,000
	To Capital A/c				50,000
	(Business started with capital)

Jan. 02	Purchases A/c	Dr.		10,000
	To Cash A/c				10,000
	(Goods purchased for cash)

Jan. 05	Purchases A/c	Dr.		6,000
	To Mohan’s A/c				6,000
	(Goods purchased on credit from Mohan)

Jan. 07	Bank A/c	Dr.		10,000
	To Cash A/c				10,000
	(Cash deposited into the bank)

Jan. 10	Furniture A/c	Dr.		2,000
	To Cash A/c				2,000
	(Purchased furniture for cash)

Jan. 15	Cash A/c	Dr.		8,000
	To Sales A/c				8,000
	(Sold goods for cash)

Jan. 20	Ram’s A/c	Dr.		5,000
	To Sales A/c				5,000
	(Sold goods on credit to Ram)

Jan. 25	Cash A/c	Dr.		3,500
	To Sales A/c				3,500
	(Sold goods for cash)

Jan. 27	Mohan’s A/c	Dr.		3,000
	To Cash A/c				3,000
	(Paid cash to Mohan against credit purchases)

Jan. 28	Sales Return A/c	Dr.		500
	To Ram’s A/c				500
	(Goods returned to Ram)

Jan. 31	Salaries A/c	Dr.		9,000
	To Cash A/c				9,000
	(Salaries paid to employees through cash)

Jan. 31	Mohan’s A/c (6,000 × 10%)	Dr.		600
	To Purchases Return A/c				600
	(10% of goods rejected and returned to Mohan)

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan.01	Cash A/c	Dr.		30,000
	To Capital A/c				30,000
	(Ram Commenced business with Cash)

Jan.02	Bank A/c	Dr.		21,000
	To Cash A/c				21,000
	(Paid into Bank )

Jan.03	Purchases A/c	Dr.		15,000
	To Cash A/c				15,000
	(Purchased goods)

Jan.07	Cash A/c	Dr.		3,000
	To Bank A/c				3,000
	(Drew cash from Bank for office use )

Jan.10	Hari	Dr.		5,000
	To Sales A/c				5,000
	(Sold goods to Hari)

Jan.15	Purchases A/c	Dr.		15,000
	To Shyam				15,000
	(Purchased goods from Shyam)

Jan.20	Cash A/c	Dr.		3,000
	To Sales A/c				3,000
	(Cash Sales)

Jan.25	Shyam	Dr.		15,000
	To Cash A/c				14,750
	To Discount Received A/c				250
	(Paid to Shyam and received discount from him)

Jan.31	Salaries A/c	Dr.		10,000
	To Cash A/c				10,000
	(Paid Salaries)

Question 15:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan.01	Cash A/c	Dr.		30,000
	To Capital A/c				30,000
	(Ram Commenced business with Cash)

Jan.02	Bank A/c	Dr.		21,000
	To Cash A/c				21,000
	(Paid into Bank )

Jan.03	Purchases A/c	Dr.		15,000
	To Cash A/c				15,000
	(Purchased goods)

Jan.07	Cash A/c	Dr.		3,000
	To Bank A/c				3,000
	(Drew cash from Bank for office use )

Jan.10	Hari	Dr.		5,000
	To Sales A/c				5,000
	(Sold goods to Hari)

Jan.15	Purchases A/c	Dr.		15,000
	To Shyam				15,000
	(Purchased goods from Shyam)

Jan.20	Cash A/c	Dr.		3,000
	To Sales A/c				3,000
	(Cash Sales)

Jan.25	Shyam	Dr.		15,000
	To Cash A/c				14,750
	To Discount Received A/c				250
	(Paid to Shyam and received discount from him)

Jan.31	Salaries A/c	Dr.		10,000
	To Cash A/c				10,000
	(Paid Salaries)

Answer:

Books of Ramesh Journal
Date	Particulars		L.F	Debit Amount (Rs)	Credit Amount (Rs)
2017
April 01	Cash A/c	Dr.		1,00,000
	To Capital A/c				1,00,000
	(Ramesh started business with Cash )

April 02	Bank A/c	Dr.		70,000
	To Cash A/c				70,000
	(Cash paid into Bank)

April 03	Purchases A/c	Dr.		5,000
	To Cash A/c				5,000
	(Purchased goods for Cash )

April 13	Krishna	Dr.		1,500
	To Sales A/c				1,500
	(Sold goods to Krishna on credit)

April 20	Purchases A/c	Dr.		2,250
	To Shyam A/c				2,250
	(Bought goods from Shyam on credit)

April 24	Cash A/c	Dr.		1,450
	Discount Allowed A/c	Dr.		50
	To Krishna				1,500
	(received can from Krishna and discount allow)

April 28	Shyam	Dr.		2,250
	To Cash				2,150
	To Discount Received				100
	(Paid to Shyam and discount Received)

April 30	Cash A/c	Dr.		8,000
	To Sales A/c				8,000
	(Sold goods for cash)

April 30	Rent A/c	Dr.		500
	Salary A/c	Dr.		10,000
	To Cash A/c				10,500
	(Rent and salary were paid)

Question 16:

Books of Ramesh Journal
Date	Particulars		L.F	Debit Amount (Rs)	Credit Amount (Rs)
2017
April 01	Cash A/c	Dr.		1,00,000
	To Capital A/c				1,00,000
	(Ramesh started business with Cash )

April 02	Bank A/c	Dr.		70,000
	To Cash A/c				70,000
	(Cash paid into Bank)

April 03	Purchases A/c	Dr.		5,000
	To Cash A/c				5,000
	(Purchased goods for Cash )

April 13	Krishna	Dr.		1,500
	To Sales A/c				1,500
	(Sold goods to Krishna on credit)

April 20	Purchases A/c	Dr.		2,250
	To Shyam A/c				2,250
	(Bought goods from Shyam on credit)

April 24	Cash A/c	Dr.		1,450
	Discount Allowed A/c	Dr.		50
	To Krishna				1,500
	(received can from Krishna and discount allow)

April 28	Shyam	Dr.		2,250
	To Cash				2,150
	To Discount Received				100
	(Paid to Shyam and discount Received)

April 30	Cash A/c	Dr.		8,000
	To Sales A/c				8,000
	(Sold goods for cash)

April 30	Rent A/c	Dr.		500
	Salary A/c	Dr.		10,000
	To Cash A/c				10,500
	(Rent and salary were paid)

Answer:

Books of Satish Journal
Date	Particulars		L.F	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan.01	Cash A/c	Dr.		1,00,000
	To Capital A/c				1,00,000
	(Rahul started business with Cash )

Jan.02	Bank A/c	Dr.		60,000
	To Cash A/c				60,000
	(Paid into Bank)

Jan.03	Purchases A/c	Dr.		20,000
	To M/s. S. Singh of Co				20,000
	(Purchased goods from M/s S. Singh & Co)

Jan.04	Bank A/c	Dr.		5,000
	To Capital A/c				5,000
	(Introduced additional capital)

Jan.04	Computer A/c	Dr.		15,000
	To Bank A/c				15,000
	(Computer purchased against cheque)

Jan.06	Postage A/c	Dr.		150
	To Cash				150
	(Paid for postage)

Jan.08	Cash A/c	Dr.		4,000
	To Sales A/c				4,000
	(Sold goods for Cash)

Jan.09	M/s S. Sharda & Co.	Dr.		10,000
	To Sales A/c				10,000
	(Sold goods to M/s. S. Sharda & Co)

Jan.15	M/s S. Singh & Co.	Dr.		20,000
	To Cash A/c				19,500
	To Discount Received				500
	(Paid to M/s. S. Singh & Co and discount received)

Jan.25	M/s. Ray & Co.	Dr.		5,600
	To Sales A/c				5,600
	(Sold goods to M/s. Ray & Co)

Jan.27	Bank A/c	Dr.		9,750
	Discount Allowed A/c	Dr.		250
	To M/s. S. Sharda & Co				10,000
	(Cash received from M/s. Sharda & Co. and discount allowed )

Jan.31	Electricity Charges A/c	Dr.		1,000
	To Cash A/c				1,000
	(Paid electricity charges)

Jan.31	Rent A/c	Dr.		2,500
	Drawings A/c	Dr.		2,500
	To Bank A/c				5,000
	(Paid rent half of which related to personal use)

	Drawings A/c	Dr.		3,500
	To Cash A/c				3,500
	(Drew for private use)

Question 17:

Books of Satish Journal
Date	Particulars		L.F	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan.01	Cash A/c	Dr.		1,00,000
	To Capital A/c				1,00,000
	(Rahul started business with Cash )

Jan.02	Bank A/c	Dr.		60,000
	To Cash A/c				60,000
	(Paid into Bank)

Jan.03	Purchases A/c	Dr.		20,000
	To M/s. S. Singh of Co				20,000
	(Purchased goods from M/s S. Singh & Co)

Jan.04	Bank A/c	Dr.		5,000
	To Capital A/c				5,000
	(Introduced additional capital)

Jan.04	Computer A/c	Dr.		15,000
	To Bank A/c				15,000
	(Computer purchased against cheque)

Jan.06	Postage A/c	Dr.		150
	To Cash				150
	(Paid for postage)

Jan.08	Cash A/c	Dr.		4,000
	To Sales A/c				4,000
	(Sold goods for Cash)

Jan.09	M/s S. Sharda & Co.	Dr.		10,000
	To Sales A/c				10,000
	(Sold goods to M/s. S. Sharda & Co)

Jan.15	M/s S. Singh & Co.	Dr.		20,000
	To Cash A/c				19,500
	To Discount Received				500
	(Paid to M/s. S. Singh & Co and discount received)

Jan.25	M/s. Ray & Co.	Dr.		5,600
	To Sales A/c				5,600
	(Sold goods to M/s. Ray & Co)

Jan.27	Bank A/c	Dr.		9,750
	Discount Allowed A/c	Dr.		250
	To M/s. S. Sharda & Co				10,000
	(Cash received from M/s. Sharda & Co. and discount allowed )

Jan.31	Electricity Charges A/c	Dr.		1,000
	To Cash A/c				1,000
	(Paid electricity charges)

Jan.31	Rent A/c	Dr.		2,500
	Drawings A/c	Dr.		2,500
	To Bank A/c				5,000
	(Paid rent half of which related to personal use)

	Drawings A/c	Dr.		3,500
	To Cash A/c				3,500
	(Drew for private use)

Answer:

Books of R. Singh & Co
Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
July 01	Cash A/c	Dr.		80,000
	To Capital A/c				80,000
	(Started business with cash)

July 01	Bank A/c	Dr.		50,000
	To Cash A/c				50,000
	(Cash paid into bank )

July 01	Stationery A/c	Dr.		300
	To Cash A/c				300
	(Purchased stationery for Cash)

July 02	Purchases A/c	Dr.		21,000
	To Cash A/c				21,000
	(Bought goods for Cash)

July 05	Cash A/c	Dr.		7,500
	To Sales A/c				7,500
	(Sold Goods for Cash)

July 06	Furniture A/c	Dr.		5,000
	To Bannerjee Bros.				5,000
	(Bought office furniture from Bannerjee Bros.)

July 11	Mahendra	Dr.		10,000
	To Sales A/c				10,000
	(Good Sold to Mahendra)

July 12	Bank A/c	Dr.		10,000
	To Mahendra				10,000
	(Received cheque from Mahendra)

July 16	Ramesh & Co	Dr.		5,000
	To Sales A/c				5,000
	(Sold goods to Ramesh & co)

July 20	Purchases A/c	Dr.		7,000
	To S. Seth & Bros.				7,000
	(Bought goods from S. Seth & Bros)

July 23	Purchases A/c	Dr.		2,250
	To Cash A/c				2,250
	(Purchases of goods in cash from S. Narain & Co.)

July 26	Cash A/c	Dr.		2,500
	To Ramesh & Co				2,500
	(Cash received from Ramesh & Co)

July 28	S. Seth & Bros	Dr.		7,000
	To Bank A/c				6,850
	To Discount Received A/c				150
	(Paid to S. Seth & Bros. and discount received)

July 31	Rent A/c	Dr.		1,000
	To Rent Outstanding A/c				1,000
	(Rent due to S. Sharma)

Question 18:

Books of R. Singh & Co
Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
July 01	Cash A/c	Dr.		80,000
	To Capital A/c				80,000
	(Started business with cash)

July 01	Bank A/c	Dr.		50,000
	To Cash A/c				50,000
	(Cash paid into bank )

July 01	Stationery A/c	Dr.		300
	To Cash A/c				300
	(Purchased stationery for Cash)

July 02	Purchases A/c	Dr.		21,000
	To Cash A/c				21,000
	(Bought goods for Cash)

July 05	Cash A/c	Dr.		7,500
	To Sales A/c				7,500
	(Sold Goods for Cash)

July 06	Furniture A/c	Dr.		5,000
	To Bannerjee Bros.				5,000
	(Bought office furniture from Bannerjee Bros.)

July 11	Mahendra	Dr.		10,000
	To Sales A/c				10,000
	(Good Sold to Mahendra)

July 12	Bank A/c	Dr.		10,000
	To Mahendra				10,000
	(Received cheque from Mahendra)

July 16	Ramesh & Co	Dr.		5,000
	To Sales A/c				5,000
	(Sold goods to Ramesh & co)

July 20	Purchases A/c	Dr.		7,000
	To S. Seth & Bros.				7,000
	(Bought goods from S. Seth & Bros)

July 23	Purchases A/c	Dr.		2,250
	To Cash A/c				2,250
	(Purchases of goods in cash from S. Narain & Co.)

July 26	Cash A/c	Dr.		2,500
	To Ramesh & Co				2,500
	(Cash received from Ramesh & Co)

July 28	S. Seth & Bros	Dr.		7,000
	To Bank A/c				6,850
	To Discount Received A/c				150
	(Paid to S. Seth & Bros. and discount received)

July 31	Rent A/c	Dr.		1,000
	To Rent Outstanding A/c				1,000
	(Rent due to S. Sharma)

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan.01	Cash A/c	Dr.		50,000
	To Capital A/c				50,000
	(Business Started with cash)

Jan.02	Bank A/c	Dr.		3,50,000
	To Capital A/c				3,50,000
	(Account opened using personal cheque)

Jan.10	Machinery A/c	Dr.		1,00,000
	To Bank				1,00,000
	(Machinery purchased using cheque)

Jan.15	Machinery A/c	Dr.		2,000
	To Cash A/c				2,000
	(Expenses paid for installation of machinery)

Jan.20	Purchases A/c	Dr.		18,000
	To Singh & Co.				18,000
	(Timber purchased from Singh & Co)

Jan.25	Furniture A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Timber used in making furniture)

Jan.31	Rakesh	Dr.		9,000
	To Sales A/c				9,000
	(Furniture Sold to Rakesh)

Feb.10	Singh & Co.	Dr.		18,000
	To Bank A/c				17,500
	To Discount Received A/c				500
	(Final payment made Singh & Co and received a discount)

Feb.15	Bank A/c	Dr.		8,750
	Discount Allowed A/c	Dr.		250
	To Rakesh				9,000
	(Final payment received from Rakesh and allowed him a discount)

Feb.20	Wages A/c	Dr.		15,000
	To Cash A/c				15,000
	(Wages paid)

Feb.25	Rent A/c	Dr.		5,000
	To Bank A/c				5,000
	(Rent paid for the month of February)

Question 19:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan.01	Cash A/c	Dr.		50,000
	To Capital A/c				50,000
	(Business Started with cash)

Jan.02	Bank A/c	Dr.		3,50,000
	To Capital A/c				3,50,000
	(Account opened using personal cheque)

Jan.10	Machinery A/c	Dr.		1,00,000
	To Bank				1,00,000
	(Machinery purchased using cheque)

Jan.15	Machinery A/c	Dr.		2,000
	To Cash A/c				2,000
	(Expenses paid for installation of machinery)

Jan.20	Purchases A/c	Dr.		18,000
	To Singh & Co.				18,000
	(Timber purchased from Singh & Co)

Jan.25	Furniture A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Timber used in making furniture)

Jan.31	Rakesh	Dr.		9,000
	To Sales A/c				9,000
	(Furniture Sold to Rakesh)

Feb.10	Singh & Co.	Dr.		18,000
	To Bank A/c				17,500
	To Discount Received A/c				500
	(Final payment made Singh & Co and received a discount)

Feb.15	Bank A/c	Dr.		8,750
	Discount Allowed A/c	Dr.		250
	To Rakesh				9,000
	(Final payment received from Rakesh and allowed him a discount)

Feb.20	Wages A/c	Dr.		15,000
	To Cash A/c				15,000
	(Wages paid)

Feb.25	Rent A/c	Dr.		5,000
	To Bank A/c				5,000
	(Rent paid for the month of February)

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(a)	Cash A/c	Dr.		7,500
	Bad Debts A/c	Dr.		2,500
	To Shyam’s A/c				10,000
	(Shyam became insolvent and only 75 paise in a rupee was recovered from his estate)

(b)	Cash A/c	Dr.		5,000
	To Bad Debts Recovered A/c				5,000
	(Received cash from bad debts written-off last year)

(c )	Rent A/c	Dr		8,000
	To Outstanding Rent A/c				8,000
	(Rent due to landlord)

(d)	Depreciation A/c	Dr.		1,000
	To Office Furniture A/c				1,000
	(Depreciation charged on office furniture)

(e )	Salaries A/c	Dr.		10,000
	To Salaries Outstanding A/c				10,000
	(Salaries due to employees)

(f)	Drawings A/c	Dr.		30,000
	To Cash A/c				30,000
	(Income tax paid)

Question 20:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(a)	Cash A/c	Dr.		7,500
	Bad Debts A/c	Dr.		2,500
	To Shyam’s A/c				10,000
	(Shyam became insolvent and only 75 paise in a rupee was recovered from his estate)

(b)	Cash A/c	Dr.		5,000
	To Bad Debts Recovered A/c				5,000
	(Received cash from bad debts written-off last year)

(c )	Rent A/c	Dr		8,000
	To Outstanding Rent A/c				8,000
	(Rent due to landlord)

(d)	Depreciation A/c	Dr.		1,000
	To Office Furniture A/c				1,000
	(Depreciation charged on office furniture)

(e )	Salaries A/c	Dr.		10,000
	To Salaries Outstanding A/c				10,000
	(Salaries due to employees)

(f)	Drawings A/c	Dr.		30,000
	To Cash A/c				30,000
	(Income tax paid)

Answer:

Books of Suresh Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
April 01	Bank A/c	Dr.		60,000
	To Capital A/c				60,000
	(Paid into Bank as Capital)

April 02	Purchases A/c	Dr.		24,000
	To Bank A/c				24,000
	(Bought goods for cheque)

April 03	Mukand & Co.	Dr.		6,700
	To Sales A/c				6,700
	(Sold Goods to Mukand & Co.)

April 04	Cash A/c	Dr.		10,900
	To Sales A/c				10,900
	(Sold goods for Cash)

April 05	Sundry Expenses A/c	Dr.		3,000
	To Cash A/c				3,000
	(Paid Sundry Expenses)

April 08	Furniture A/c	Dr.		4,000
	To Bank A/c				4,000
	(Bought Office furniture by cheque)

April 09	Purchases A/c	Dr.		10,600
	To Ramesh and Bros.				10,600
	(Bought goods from Ramesh and Bros.)

April 10	Mahendra A/c	Dr.		18,700
	To Sales A/c				18,700
	(Sold goods to Mahendra)

April 11	Ramesh and Bros.	Dr.		1,500
	To Purchase Return A/c				1,500
	(Good returned to Ramesh and Bros.)

April 12	Ramesh Bros. A/c	Dr.		9,100
	To Bank A/c				9,000
	To Discount Received A/c				100
	(Cheque sent to Ramesh and Bros. and discount received)

April 14	Cash A/c	Dr.		4,900
	To Sales A/c				4,900
	(Sold goods for Cash)

April 30	Interest A/c	Dr.		200
	To Bank A/c				200
	(Bank charged Interest)

April 30	Cash A/c	Dr.		50,000
	To Loan from Ridhi				50,000
	(Borrowed from Ridhi)

April 30	Cash A/c	Dr.		6,000
	To Mahendra				6,000
	(Cash received from Mahendra)

April 30	Cash A/c	Dr.		2,000
	To Capital A/c				2,000
	(Sold household furniture and transferred money into business)

April 30	Cash A/c	Dr.		4,800
	To Sales A/c				4,800
	(Sold goods for Cash)

Question 21:

Books of Suresh Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
April 01	Bank A/c	Dr.		60,000
	To Capital A/c				60,000
	(Paid into Bank as Capital)

April 02	Purchases A/c	Dr.		24,000
	To Bank A/c				24,000
	(Bought goods for cheque)

April 03	Mukand & Co.	Dr.		6,700
	To Sales A/c				6,700
	(Sold Goods to Mukand & Co.)

April 04	Cash A/c	Dr.		10,900
	To Sales A/c				10,900
	(Sold goods for Cash)

April 05	Sundry Expenses A/c	Dr.		3,000
	To Cash A/c				3,000
	(Paid Sundry Expenses)

April 08	Furniture A/c	Dr.		4,000
	To Bank A/c				4,000
	(Bought Office furniture by cheque)

April 09	Purchases A/c	Dr.		10,600
	To Ramesh and Bros.				10,600
	(Bought goods from Ramesh and Bros.)

April 10	Mahendra A/c	Dr.		18,700
	To Sales A/c				18,700
	(Sold goods to Mahendra)

April 11	Ramesh and Bros.	Dr.		1,500
	To Purchase Return A/c				1,500
	(Good returned to Ramesh and Bros.)

April 12	Ramesh Bros. A/c	Dr.		9,100
	To Bank A/c				9,000
	To Discount Received A/c				100
	(Cheque sent to Ramesh and Bros. and discount received)

April 14	Cash A/c	Dr.		4,900
	To Sales A/c				4,900
	(Sold goods for Cash)

April 30	Interest A/c	Dr.		200
	To Bank A/c				200
	(Bank charged Interest)

April 30	Cash A/c	Dr.		50,000
	To Loan from Ridhi				50,000
	(Borrowed from Ridhi)

April 30	Cash A/c	Dr.		6,000
	To Mahendra				6,000
	(Cash received from Mahendra)

April 30	Cash A/c	Dr.		2,000
	To Capital A/c				2,000
	(Sold household furniture and transferred money into business)

April 30	Cash A/c	Dr.		4,800
	To Sales A/c				4,800
	(Sold goods for Cash)

Answer:

Journal In the Books of M/s Auto Aid
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		45,000
	To Vendor’s A/c				45,000
	(500 pieces of car horns purchased at Rs 100 each at 10% trade discount)

	Vendor’s A/c	Dr.		45,000
	To Cash A/c				45,000
	(Payment made)

The invoice value for the purchase of 500 car horns @ Rs. 100/- each less 5% trade discount will be Rs 45,000 only.

Question 22:

Journal In the Books of M/s Auto Aid
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		45,000
	To Vendor’s A/c				45,000
	(500 pieces of car horns purchased at Rs 100 each at 10% trade discount)

	Vendor’s A/c	Dr.		45,000
	To Cash A/c				45,000
	(Payment made)

The invoice value for the purchase of 500 car horns @ Rs. 100/- each less 5% trade discount will be Rs 45,000 only.

Answer:

Journal In the Books of M/s Vaish Traders
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		42,500
	To Vendor’s A/c				42,500
	(500 parker pens purchased at Rs 100 each at 15% trade discount)

	Vendor’s A/c	Dr.		42,500
	To Cash A/c				40,375
	To Discount Received A/c				2,125
	(Cash paid and 5% discount availed)

Trade Discount = Rs 7,500

Cash Discount = Rs 2,125

Question 23:

Journal In the Books of M/s Vaish Traders
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		42,500
	To Vendor’s A/c				42,500
	(500 parker pens purchased at Rs 100 each at 15% trade discount)

	Vendor’s A/c	Dr.		42,500
	To Cash A/c				40,375
	To Discount Received A/c				2,125
	(Cash paid and 5% discount availed)

Trade Discount = Rs 7,500

Cash Discount = Rs 2,125

Answer:

Journal In the Books of M/s Auto Help
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		22,500
	To Vendor’s A/c				22,500
	(500 pieces of motor cycle horns purchased at Rs 50 each at 10% trade discount)

	Vendor’s A/c	Dr.		22,500
	To Cash A/c				22,500
	(Payment made)

Notes:

1. Trade discount will be Rs 2,500

2. Cash discount will not be allowed as the payment was not made within 7 days, instead the payment was made after 30 days.

Question 24:

Journal In the Books of M/s Auto Help
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		22,500
	To Vendor’s A/c				22,500
	(500 pieces of motor cycle horns purchased at Rs 50 each at 10% trade discount)

	Vendor’s A/c	Dr.		22,500
	To Cash A/c				22,500
	(Payment made)

Notes:

1. Trade discount will be Rs 2,500

2. Cash discount will not be allowed as the payment was not made within 7 days, instead the payment was made after 30 days.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Ajay A/c	Dr.		5,000
	To Cash A/c				4,800
	To Discount Received A/c				200
	(Rs 4,800 paid to Ajay in full settlement of Rs 5,000)

So, the accounts credited here will be Cash A/c with Rs 4,800 and Discount Received A/c with Rs 200.

Question 25:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Ajay A/c	Dr.		5,000
	To Cash A/c				4,800
	To Discount Received A/c				200
	(Rs 4,800 paid to Ajay in full settlement of Rs 5,000)

So, the accounts credited here will be Cash A/c with Rs 4,800 and Discount Received A/c with Rs 200.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Jaspal A/c	Dr.		13,500
	To Sales A/c				13,500
	(Goods worth Rs 15,000 sold to Jaspal at a trade discount of 10%)

Calculation of Trade Discount

Question 26:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Jaspal A/c	Dr.		13,500
	To Sales A/c				13,500
	(Goods worth Rs 15,000 sold to Jaspal at a trade discount of 10%)

Calculation of Trade Discount

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Cash A/c	Dr.		8,820
	Discount Allowed A/c	Dr.		180
	To Sales A/c				9,000
	(Goods worth Rs 10,000 sold to Anish at 10% trade discount plus 2% cash discount and received cash)

Note: As it is given in the question that payment is received at the time of sale, therefore Cash A/c is to be debited and not Anish’s A/c. However, as per the solution given in the book, Anish’s A/c is debited.

Calculation of Trade Discount and Cash Discount

Question 27:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Cash A/c	Dr.		8,820
	Discount Allowed A/c	Dr.		180
	To Sales A/c				9,000
	(Goods worth Rs 10,000 sold to Anish at 10% trade discount plus 2% cash discount and received cash)

Note: As it is given in the question that payment is received at the time of sale, therefore Cash A/c is to be debited and not Anish’s A/c. However, as per the solution given in the book, Anish’s A/c is debited.

Calculation of Trade Discount and Cash Discount

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		21,250
	To Ayur Products A/c				21,250
	(Goods worth Rs 25,000 purchased from Ayur Products at a trade discount of 15%)

Calculation of Trade Discount

Question 28:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		21,250
	To Ayur Products A/c				21,250
	(Goods worth Rs 25,000 purchased from Ayur Products at a trade discount of 15%)

Calculation of Trade Discount

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		13,500
	To Cash A/c				12,825
	To Discount Received A/c				675
	(Goods worth Rs 15,000 purchased from Add Gel Pens at 10% trade discount plus 5% cash discount and cash paid)

Note: As it is given in the question that payment is made at the time of purchase, therefore Cash A/c is to be credited and not Add Gel Pens A/c. However, as per the solution given in the book, Add Gel Pens A/c is credited.

Calculation of Trade Discount and Cash Discount

Question 29:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		13,500
	To Cash A/c				12,825
	To Discount Received A/c				675
	(Goods worth Rs 15,000 purchased from Add Gel Pens at 10% trade discount plus 5% cash discount and cash paid)

Note: As it is given in the question that payment is made at the time of purchase, therefore Cash A/c is to be credited and not Add Gel Pens A/c. However, as per the solution given in the book, Add Gel Pens A/c is credited.

Calculation of Trade Discount and Cash Discount

Answer:

Journal In the Books of Shri Kanchan Sarkar
Date	Particulars			L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Purchases A/c		Dr.		63,000
	To Cash A/c					59,850
	To Discount Received A/c					3,150
	(1,000 pens of Rs 70 each purchased at 10% trade discount plus 5% cash discount and payment made)

(ii)	Cash A/c		Dr.		31,587
	Discount Allowed A/c		Dr.		1,663
	To Sales A/c					33,250
	(500 pens of Rs 70 each sold at 5% trade discount plus 5% cash discount and payment received)

(iii)	Duttagupta A/c	Dr.			19,950
	To Sales A/c					19,950
	(300 pens of Rs 70 each sold at 5% trade discount and payment received)

(iv)	Cash A/c	Dr.			9,900
	Discount Allowed A/c	Dr.			100
	To Rajan Mallick’s A/c					10,000
	(Received Rs 9,900 from Rajan in full settlement of Rs 10,000)

(v)	Ajay Mittal A/c	Dr.			15,000
	To Cash A/c					14,500
	To Discount Received A/c					500
	(Paid Rs 14,500 to Ajay in full settlement of Rs 15,000)

Note: In part (iii), Duttagupta’s A/c is to be debited and Sales A/c is to be credited, assuming that the entry is made on the date of sale. Also, the amount with which the entry is to be passed is Rs 19,950 (i.e. 21,000 less 5% trade discount). However, in the book the entry is passed with Rs 66,500.

Question 30:

Journal In the Books of Shri Kanchan Sarkar
Date	Particulars			L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Purchases A/c		Dr.		63,000
	To Cash A/c					59,850
	To Discount Received A/c					3,150
	(1,000 pens of Rs 70 each purchased at 10% trade discount plus 5% cash discount and payment made)

(ii)	Cash A/c		Dr.		31,587
	Discount Allowed A/c		Dr.		1,663
	To Sales A/c					33,250
	(500 pens of Rs 70 each sold at 5% trade discount plus 5% cash discount and payment received)

(iii)	Duttagupta A/c	Dr.			19,950
	To Sales A/c					19,950
	(300 pens of Rs 70 each sold at 5% trade discount and payment received)

(iv)	Cash A/c	Dr.			9,900
	Discount Allowed A/c	Dr.			100
	To Rajan Mallick’s A/c					10,000
	(Received Rs 9,900 from Rajan in full settlement of Rs 10,000)

(v)	Ajay Mittal A/c	Dr.			15,000
	To Cash A/c					14,500
	To Discount Received A/c					500
	(Paid Rs 14,500 to Ajay in full settlement of Rs 15,000)

Note: In part (iii), Duttagupta’s A/c is to be debited and Sales A/c is to be credited, assuming that the entry is made on the date of sale. Also, the amount with which the entry is to be passed is Rs 19,950 (i.e. 21,000 less 5% trade discount). However, in the book the entry is passed with Rs 66,500.

Answer:

Journal In the Books of Mittal Cycles
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		1,08,000
	To Hero Cycles A/c				1,08,000
	(100 cycles of Rs 1,200 each purchased at 10% trade discount)

	Hero Cycles A/c	Dr.		10,800
	To Purchases Return A/c				10,800
	(10 cycles damaged in transit and returned)

	Hero Cycles A/c	Dr.		97,200
	To Cash A/c				94,284
	To Discount Received A/c				2,916
	(Cash paid to Hero Cycles)

Question 31:

Journal In the Books of Mittal Cycles
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Purchases A/c	Dr.		1,08,000
	To Hero Cycles A/c				1,08,000
	(100 cycles of Rs 1,200 each purchased at 10% trade discount)

	Hero Cycles A/c	Dr.		10,800
	To Purchases Return A/c				10,800
	(10 cycles damaged in transit and returned)

	Hero Cycles A/c	Dr.		97,200
	To Cash A/c				94,284
	To Discount Received A/c				2,916
	(Cash paid to Hero Cycles)

Answer:

Journal In the Books of Oswal Woollens
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2012
Jan. 04	Gupta Shawls A/c	Dr.		15,000
	To Sales A/c				15,000
	(Being goods sold)

Jan. 14	Cash A/c	Dr.		7,500
	To Gupta Shawls A/c				7,500
	(50% of the amount due received)

Feb. 10	Cash A/c	Dr.		7,500
	To Gupta Shawls A/c				7,500
	(Balance 50% payment received)

Question 32:

Journal In the Books of Oswal Woollens
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2012
Jan. 04	Gupta Shawls A/c	Dr.		15,000
	To Sales A/c				15,000
	(Being goods sold)

Jan. 14	Cash A/c	Dr.		7,500
	To Gupta Shawls A/c				7,500
	(50% of the amount due received)

Feb. 10	Cash A/c	Dr.		7,500
	To Gupta Shawls A/c				7,500
	(Balance 50% payment received)

Answer:

Journal In the Books of Jaspal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2015
Feb. 01	Ayub’s A/c	Dr.		8,000
	To Sales A/c				8,000
	(100 calculators of Rs 100 each sold at 20% trade discount)

Feb. 05	Sales Return A/c	Dr.		560
	To Ayub’s A/c				560
	(10 calculators returned by Ayub)

Feb. 17	Ayub’s A/c	Dr.		4,000
	To Sales A/c				4,000
	(10 keyboards of Rs 500 each sold at 20% trade discount)

Feb. 20	Bank A/c	Dr.		10,000
	To Ayub’s A/c				10,000
	(Cheque received from Ayub)

Feb. 29	Bank A/c	Dr.		1,411
	Discount Allowed A/c	Dr.		29
	To Ayub’s A/c				1,440
	(Balance payment received from Ayub through cheque and allowed 2% cash discount)

Question 33:

Journal In the Books of Jaspal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2015
Feb. 01	Ayub’s A/c	Dr.		8,000
	To Sales A/c				8,000
	(100 calculators of Rs 100 each sold at 20% trade discount)

Feb. 05	Sales Return A/c	Dr.		560
	To Ayub’s A/c				560
	(10 calculators returned by Ayub)

Feb. 17	Ayub’s A/c	Dr.		4,000
	To Sales A/c				4,000
	(10 keyboards of Rs 500 each sold at 20% trade discount)

Feb. 20	Bank A/c	Dr.		10,000
	To Ayub’s A/c				10,000
	(Cheque received from Ayub)

Feb. 29	Bank A/c	Dr.		1,411
	Discount Allowed A/c	Dr.		29
	To Ayub’s A/c				1,440
	(Balance payment received from Ayub through cheque and allowed 2% cash discount)

Answer:

Journal In the Books of Amit Saini
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Drawings A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Goods used for domestic purpose)

(ii)	Bad Debts A/c	Dr.		2,000
	To Sohan				2,000
	(Bad debts written-off)

(iii)	Loss by Fire A/c	Dr.		6,000
	To Purchases A/c				6,000
	(Goods lost by fire, not insured)

(iv)	Machinery A/c	Dr.		4,000
	To Cash A/c				4,000
	(Wages paid for installation of machine)

(v)	Cash A/c	Dr.		17,100
	Discount Allowed A/c	Dr.		900
	To Sales A/c				18,000
	(Goods sold to Arjun at a cash discount of 5%)

(vi)	Cash A/c	Dr.		2,000
	To Bad Debts Recovered A/c				2,000
	(Amount received from bad debts written-off)

(vii)	Charity A/c	Dr.		1,000
	To Purchases A/c				1,000
	(Goods given away as charity)

(viii)	Cash A/c	Dr.		9,750
	Bad Debts A/c	Dr.		250
	To Ramesh				10,000
	(Cash received from Ramesh in full settlement)

(ix)	Prepaid Rent A/c	Dr.		4,000
	To Cash A/c				4,000
	(Payment of rent is made in advance)
				52,000	52,000

Question 34:

Journal In the Books of Amit Saini
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Drawings A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Goods used for domestic purpose)

(ii)	Bad Debts A/c	Dr.		2,000
	To Sohan				2,000
	(Bad debts written-off)

(iii)	Loss by Fire A/c	Dr.		6,000
	To Purchases A/c				6,000
	(Goods lost by fire, not insured)

(iv)	Machinery A/c	Dr.		4,000
	To Cash A/c				4,000
	(Wages paid for installation of machine)

(v)	Cash A/c	Dr.		17,100
	Discount Allowed A/c	Dr.		900
	To Sales A/c				18,000
	(Goods sold to Arjun at a cash discount of 5%)

(vi)	Cash A/c	Dr.		2,000
	To Bad Debts Recovered A/c				2,000
	(Amount received from bad debts written-off)

(vii)	Charity A/c	Dr.		1,000
	To Purchases A/c				1,000
	(Goods given away as charity)

(viii)	Cash A/c	Dr.		9,750
	Bad Debts A/c	Dr.		250
	To Ramesh				10,000
	(Cash received from Ramesh in full settlement)

(ix)	Prepaid Rent A/c	Dr.		4,000
	To Cash A/c				4,000
	(Payment of rent is made in advance)
				52,000	52,000

Answer:

Journal In the Books of Mohan Singh
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Cash A/c	Dr.		15,000
	Bad Debts A/c	Dr.		10,000
	To Raj				25,000
	(Raj became insolvent and 60 paise received in full and final settlement)

(ii)	Rent A/c	Dr.		10,000
	To Rent Outstanding A/c				10,000
	(Rent owed by Mohan Singh)

(iii)	Depreciation A/c	Dr.		5,000
	To Furniture A/c				5,000
	(Depreciation charged on furniture)

(iv)	Salaries A/c	Dr.		20,000
	To Salaries Outstanding A/c				20,000
	(Salaries due to employees)

(v)	Cash A/c	Dr.		8,500
	Discount Allowed A/c	Dr.		500
	To Sales A/c				9,000
	(Goods sold to Sunil and amount received in full settlement)

(vi)	Interest on Capital A/c	Dr.		10,000
	To Capital A/c				10,000
	(Provided interest on capital)

(vii)	Insurance Claim A/c	Dr.		12,000
	Loss by Fire A/c	Dr.		3,000
	To Purchases A/c				15,000
	(Insured stock was lost in fire and insurance company admitted claim of Rs 12,000)

(viii)	Loss by Theft A/c	Dr.		7,000
	To Cash A/c				2,000
	To Purchases A/c				5,000
	(Cash and goods lost by theft)
				1,01,000	1,01,000

Question 35:

Journal In the Books of Mohan Singh
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Cash A/c	Dr.		15,000
	Bad Debts A/c	Dr.		10,000
	To Raj				25,000
	(Raj became insolvent and 60 paise received in full and final settlement)

(ii)	Rent A/c	Dr.		10,000
	To Rent Outstanding A/c				10,000
	(Rent owed by Mohan Singh)

(iii)	Depreciation A/c	Dr.		5,000
	To Furniture A/c				5,000
	(Depreciation charged on furniture)

(iv)	Salaries A/c	Dr.		20,000
	To Salaries Outstanding A/c				20,000
	(Salaries due to employees)

(v)	Cash A/c	Dr.		8,500
	Discount Allowed A/c	Dr.		500
	To Sales A/c				9,000
	(Goods sold to Sunil and amount received in full settlement)

(vi)	Interest on Capital A/c	Dr.		10,000
	To Capital A/c				10,000
	(Provided interest on capital)

(vii)	Insurance Claim A/c	Dr.		12,000
	Loss by Fire A/c	Dr.		3,000
	To Purchases A/c				15,000
	(Insured stock was lost in fire and insurance company admitted claim of Rs 12,000)

(viii)	Loss by Theft A/c	Dr.		7,000
	To Cash A/c				2,000
	To Purchases A/c				5,000
	(Cash and goods lost by theft)
				1,01,000	1,01,000

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

1.	No Entry ( W.N. 1)

2.	Bank A/c	Dr.		25,000
	To Advance from AK & CO.				25,000
	(Advance Received from AK & Co.)

3.	Outstanding Salary A/c	Dr.		40,000
	To Bank A/c				40,000
	(Outstanding Salary paid)

4.	Sales Return A/c	Dr.		2,000
	To Bharat				2,000
	(Goods returned from Bharat)

5.	Feroz	Dr.		20,000
	To Bank A/c				20,000
	(Cheque dishonoured issued by Feroz)

6.	Cash A/c	Dr.		8,000
	Bad debts A/c	Dr.		12,000
	To Feroz				20,000
	(Final payment of 40% received from Feroz)

7.	Cheque-in-Hand A/c	Dr.		25,000
	To Mohan				25,000
	(Cheque received from Mohan)

8.	Purchases A/c	Dr.		10,000
	To Barun				10,000
	(Goods purchased from Barun)

	Arun	Dr.		20,000
	To Sales A/c				20,000
	(Goods Sold to Arun)

9.	Sales Returns A/c	Dr.		5,000
	To Arun				5,000
	(Goods returned from Arun)

	Barun	Dr.		2,500
	To Purchase Return A/c				2,500
	(Goods returned to Barun)

10.	Purchases A/c	Dr.		2,00,000
	VAT Paid A/c	Dr.		20,000
	To Cash A/c				20,000
	(TV sets purchased and VAT @ 10% paid)

	Cash A/c	Dr.		2,75,000
	To Sales A/c				2,50,000
	To VAT Collected A/c				25,000
	(TV sets Sold and VAT @ 10% collected)

	VAT Collected A/c	Dr.		5,000
	To Bank A/c				5,000
	(VAT Collected paid to Govt.)

	VAT Collected A/c	Dr.		20,000
	To VAT Paid A/c				20,000
	(VAT set off of Rs 20,000)

11.	Insurance A/c	Dr.		9,000
	Prepaid Insurance A/c	Dr.		3,000
	To Cash A/c				12,000
	(Insurance paid along with prepaid insurance of Rs 3,000)

12.	Cash A/c	Dr.		1,00,000
	To Capital A/c				1,00,000
	(Amount invested in business by selling Car)

13.	Loss by Fire a/c	Dr.		25,000
	Insurance Co.	Dr.		75,000
	To Purchases A/c				1,00,000
	(Goods destroyed)

14.	Machinery A/c	Dr.		65,000
	To Cash A/c				65,000
	(Machinery purchased and Expenses paid)

15.	Bank A/c (W.N 2)	Dr.		44,100
	Discount Allowed A/c	Dr.		900
	To Sales A/c				45,000
	(Goods Sold and Cash Discount of 2% allowed)

Working Notes:

WN 1: No entry will be passed because only an order has been received from Karan & Co.

Entry will be passed if we receive an advance along with the order

WN2: Cost = Rs 40,000, Profit = Rs 10,000 (20% of Selling price)

Selling Price = 40,000+10,000 = 50,000

Trade Discount = 10% of 50,000 = Rs 5,000

Bank = Rs 50,000 – Rs 5,000 – 2% of Rs 45,000= Rs 44,100

Question 36:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

1.	No Entry ( W.N. 1)

2.	Bank A/c	Dr.		25,000
	To Advance from AK & CO.				25,000
	(Advance Received from AK & Co.)

3.	Outstanding Salary A/c	Dr.		40,000
	To Bank A/c				40,000
	(Outstanding Salary paid)

4.	Sales Return A/c	Dr.		2,000
	To Bharat				2,000
	(Goods returned from Bharat)

5.	Feroz	Dr.		20,000
	To Bank A/c				20,000
	(Cheque dishonoured issued by Feroz)

6.	Cash A/c	Dr.		8,000
	Bad debts A/c	Dr.		12,000
	To Feroz				20,000
	(Final payment of 40% received from Feroz)

7.	Cheque-in-Hand A/c	Dr.		25,000
	To Mohan				25,000
	(Cheque received from Mohan)

8.	Purchases A/c	Dr.		10,000
	To Barun				10,000
	(Goods purchased from Barun)

	Arun	Dr.		20,000
	To Sales A/c				20,000
	(Goods Sold to Arun)

9.	Sales Returns A/c	Dr.		5,000
	To Arun				5,000
	(Goods returned from Arun)

	Barun	Dr.		2,500
	To Purchase Return A/c				2,500
	(Goods returned to Barun)

10.	Purchases A/c	Dr.		2,00,000
	VAT Paid A/c	Dr.		20,000
	To Cash A/c				20,000
	(TV sets purchased and VAT @ 10% paid)

	Cash A/c	Dr.		2,75,000
	To Sales A/c				2,50,000
	To VAT Collected A/c				25,000
	(TV sets Sold and VAT @ 10% collected)

	VAT Collected A/c	Dr.		5,000
	To Bank A/c				5,000
	(VAT Collected paid to Govt.)

	VAT Collected A/c	Dr.		20,000
	To VAT Paid A/c				20,000
	(VAT set off of Rs 20,000)

11.	Insurance A/c	Dr.		9,000
	Prepaid Insurance A/c	Dr.		3,000
	To Cash A/c				12,000
	(Insurance paid along with prepaid insurance of Rs 3,000)

12.	Cash A/c	Dr.		1,00,000
	To Capital A/c				1,00,000
	(Amount invested in business by selling Car)

13.	Loss by Fire a/c	Dr.		25,000
	Insurance Co.	Dr.		75,000
	To Purchases A/c				1,00,000
	(Goods destroyed)

14.	Machinery A/c	Dr.		65,000
	To Cash A/c				65,000
	(Machinery purchased and Expenses paid)

15.	Bank A/c (W.N 2)	Dr.		44,100
	Discount Allowed A/c	Dr.		900
	To Sales A/c				45,000
	(Goods Sold and Cash Discount of 2% allowed)

Working Notes:

WN 1: No entry will be passed because only an order has been received from Karan & Co.

Entry will be passed if we receive an advance along with the order

WN2: Cost = Rs 40,000, Profit = Rs 10,000 (20% of Selling price)

Selling Price = 40,000+10,000 = 50,000

Trade Discount = 10% of 50,000 = Rs 5,000

Bank = Rs 50,000 – Rs 5,000 – 2% of Rs 45,000= Rs 44,100

Answer:

Journal is called a Book of Prime Entry because transaction is first recorded in this book and afterwards transferred or posted in the Ledger Account.

Question 37:

Journal is called a Book of Prime Entry because transaction is first recorded in this book and afterwards transferred or posted in the Ledger Account.

Answer:

Entry passes to record closing balances of the previous year is called as an Opening Entry.
This is the first entry in the journal.

Double Entry Book Keeping Ts Grewal (2017) Solutions for Class 11 Commerce Accountancy Chapter 3 - Journal

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Question 4:

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