Q.1 Satyendra Bose of Calcutta started business on Jan. 1, 2009 by investing cash of Rs. 10,000.

He brought goods of Rs. 4,000 and furniture of Rs. 500. He borrowed Cash Rs. 5,000 from his
friend Asim the same day. His transactions for the month are as follows:

Jan. 1 Purchased goods worth Rs. 5,000 less 20% trade discount and 5% cash discount.

Jan. 2 Opened current account in State Bank of India with Rs. 3,[Link] goods worth Rs. 3,000
to Satish Ghosh and allowed 10% trade discount.

Jan. 3 Received Rs. 2,650 from Satish Ghosh in full settlement of his account.

Jan. 4 Sold goods to Krishna Kant Rs. 1,000.

Jan. 6 Sold goods to Ravi Kant for cash Rs. 700.

Jan. 10 Received Rs. 985 from Krishna Kant in full settlement.

Jan. 15 Paid by cheque: Salaries Rs. 500, Postage Rs. 10, Stationery Rs. 35

Jan. 16 Repair to furniture Rs. 20

Jan. 17 Received bill for two table fans Rs. 1,000 from M/s Gupta Electricals.

Jan. 18 Withdrew for personal use Rs. 700.

Jan. 20 Goods given in donation Rs. 50.

Jan. 22 Sold goods Rs. 500 to Shashi Bhushan on credit.

Jan. 24 Purchased goods from Vijai Rs. 1,200 who allowed 5% trade discount.

Jan. 26 Sold goods to Shashi Kant Rs. 300 and allowed him 10% cash discount.

Jan.30 Shashi Bhushan become insolvent and Rs. 200 could be realised from his official
receiver.

Jan. 31 Drew cheque for personal use Rs. 500

Jan. 31 Sold goods to Rahim of the invoice price of Rs. 2,000, on the terms of trade discount
@20% and cash discount @ 10%. He paid half in cash.

Journalize the above transactions.

 Journal

Date Particulars L. (Dr.) (Cr.)

F. Amount Amount
2009 Cash A/c Dr. 10,000
Jan.1 Goods A/c Dr. 4,000
Furniture A/c Dr. 500
To Capital A/c 14,500
(Being business started with cash, goods and
furniture)

Jan.1 Cash A/c Dr. 5,000

To Asim’s Loan A/c 5,000
(Being cash borrowed from Asim)

Jan. 1 Purchases A/c Dr. 4,000

To Cash A/c 3,800
To Discount A/c 200
(Being goods purchased for cash less 20% trade
discount and 5% cash discount)

Jan. 2 Bank A/c Dr. 3,000

To Cash A/c 3,000
(Being cash paid into bank)

Jan. 2 Satish Ghosh’s A/c Dr. 2,700

To Sales A/c 2,700
(Being goods sold to Satish Ghosh and allowed
10% trade discount)

Jan. 3 Cash A/c Dr. 2,650

Discount A/c Dr. 50
To Satish Ghosh’s A/c 2,700
(Being cash received in full settlement)

Jan. 4 Krishna Kant’s A/c Dr. 1,000

To Sales A/c 1,000
(Being goods sold to Krishna Kant)

Jan. 6 Cash A/c Dr. 700

To Sales A/c 700
(Being goods sold to Ravi Kant for cash)

Total c/f 33,600 33,600

 Total b/f 33,600 33,600

Jan.10 Cash A/c Dr.

Discount A/c Dr. 985
To Krishna Kant’s A/c 15
(Being cash received from Krishna Kant in full 1,000
settlement)

Jan. 15 Salaries A/c Dr.

Postage A/c Dr. 500
Stationery A/c Dr. 10
To Bank A/c 35
(Being salaries, postage and stationery paid by 545
cheque)

Jan. 16 Repairs A/c Dr.

To Cash A/c 20
(Being payment of repairs to furniture) 20

Jan. 17 Table Fans A/c Dr.

To M/s Gupta Electricals 1,000
(Being two table fans purchased) 1,000

Jan. 18 Drawings A/c Dr.

To Cash A/c 700
(Being withdrew for personal use) 700

Jan. 20 Donation A/c Dr.

To Purchases A/c 50
(Being goods given in donation) 50

Jan. 22 Shashi Bhushan’s A/c Dr. 500

To Sales A/c 500
(Being goods sold to Shashi Bhushan on credit)

Jan. 24 Purchases A/c Dr. 1,140

To Vijai’s A/c 1,140
(Being good purchased from Vijai and allowed
10% cash discount)

Jan. 26 Cash A/c Dr. 270

Discount A/c Dr. 30
To Sales A/c 300
(Being goods sold and allowed 10% cash discount)

Total c/f 38,855 38,855

 Total b/f 38,855 38,855

Jan. 30 Cash A/c Dr. 200

Bad Debts A/c Dr. 300
To Shashi Bhusan’s A/c 500
(Being Shashi Bhushan become insolvent and rs.
200 could be realized from him)

Jan. 31 Drawings A/c Dr. 500

To Bank A/c 500
(Being drew cheque for personal use)

Jan. 31 Rahim’s A/c Dr. 800

Cash A/c Dr. 720
Discount A/c Dr. 80
To Sales A/c 1600
(Being goods sold at 20% trade discount and 10%
cash discount and half payment received in cash)

Grand Total 41,455 41,455

Q.2 Journalise the following transactions of a merchant:

April 1, 2009 balances:

Debit balances: Cash in hand Rs. 12,000; Cash at Bank Rs. 25,000, Stock 18,000; Furniture Rs.
7,000; Building Rs. 35,000; Debtors: Raju Rs. 1,500, Chandra Kant Rs. 1,800; Avinash Rs. 800.

Credit balances: Outstanding rent Rs. 500; Creditors: Rajeev Rs. 1,700; Ranjeet R 2,800. During
the month ending 30th April 2009, the following transactions took place:

April

1 Sold goods for cash Rs. 1,600.

2 Purchased goods from Ranjeet Rs. 5,000 who allowed 20% trade discount.

4 Received Rs. 1,450 from Raju in full settlement.

5 Paid Rs. 6,700 to Ranjeet and discount allowed by him Rs. 100.

7 Rent for March 2000 paid by cheque.

8 Bought one stapling machine Rs. 20.

9 Bought goods worth Rs. 2,000 from Sundar and supplied them to Mahesh at Rs.2,500.
10 Mahesh returned goods worth Rs. 500 which in turn were sent to Sundar.

11 Avinash is declared insolvent and only 75% of the amount due from him could be realised.

12 Sold goods worth Rs. 4,000 to Shekhar.

15 Received a cheque of Rs. 1,800 from Chandra Kant.

18 Shekhar cleared his account in cash.

19 Bought a horse for Rs. 2,000 and a carriage for Rs. 1,000 for delivering goods to customers.

20 Bought goods worth Rs. 7,000 from Rajeev.

22 Defective goods worth Rs. 2,000 were returned to Rajeev and his account cleared by cheque.

24 Cash sales Rs. 5,800; credit sales to Chandra Bhan Rs. 2,000.

28 The horse bought on January 19 died and its car case was sold for Rs. 50.

30 Paid for cash salaries Rs. 3,000, rent Rs. 500, insurance premium Rs. 200, electricity charges
Rs.150.

30 Paid for advertising by cheque Rs. 200.

 Journal

Date Particulars L. (Dr.) (Cr.)

F. Amount Amount
2009 Cash A/c Dr. 12,000
April 1 Bank A/c Dr. 25,000
Stock A/c Dr. 18,000
Furniture A/c Dr. 7,000
Buildings A/c Dr. 35,000
Raju’s A/c Dr. 1,500
Chandra Kant’s A/c Dr. 1,800
Avinash’s A/c Dr. 800
To Outstanding Rent A/c 500
To Rajeev’s A/c 1,700
To Ranjeet’s A/c 2,800
To Capital A/c 96,100
(Being balances brought in from last year)

1 Cash A/c Dr. 1,600

To Sales A/c 1,600
(Being goods sold for cash)

2 Purchases A/c Dr. 4,000

To Ranjeet’s A/c 4,000
(Being goods purchased from Ranjeet less 20%
trade discount)

4 Cash A/c Dr. 1,450

Discount A/c Dr. 50
To Raju’s A/c 1500
(Being cash received in full settlement)

5 Ranjeet’s A/c Dr. 6800

To Cash A/c 6,700
To Discount A/c 100
(Being amount paid to Ranjeet and discount
allowed by him)

7 Outstanding Rent A/c Dr. 500

To Bank A/c 500
(Being rent for March paid by cheque)

8 Stapling Machine A/c Dr. 20

To Cash A/c 20
(Being stapling machine bought)
Total c/f 1,15,520 1,15,520
 Total b/f 1,15,520 1,15,520

9 Purchases A/c Dr. 2,000

To Sundar’s A/c 2,000
(Being goods purchased on credit)

9 Mahesh’s A/c Dr. 2,500

To Sales A/c 2,500
(Being goods sold on credit)

10 Sales Return A/c Dr. 500

To Mahesh’s A/c 500
(Being goods returned by Mahesh)

10 Sundar’s A/c Dr. 400

To Purchase Returns A/c 400
(Being goods returned to Sundar)

11 Cash A/c Dr. 600

Bad Debts A/c Dr. 200
To Avinash’s A/c 800
(Being Avinash become insolvent and Rs. 600
could be realized from him)

12 Shekhar’s A/c Dr. 4,000

To Sales A/c 4,000
(Being goods sold on credit)

15 Bank A/c Dr. 1,800

To Chandra Kant’s A/c 1,800
(Being payment received)

18 Cash A/c Dr. 3,800

Discount A/c Dr. 200
To Shekhar’s A/c 4,000
(Being payment received and allowed 5% cash
discount)

19 Live-stock A/c Dr. 2,000

Carriage A/c Dr. 1,000
To Cash A/c 3,000
(Being horse and carriage purchased)

Total c/f 1,34,520 1,34,520

 Total b/f 1,34,520 1,34,520

20 Purchases A/c Dr. 7,000

To Rajeev’s A/c 7,000
(Being goods purchased on credit)

22 Rajeev’s A/c Dr. 8,700

To Bank A/c 6,700
To Purchase Returns A/c 2,000
(Being goods returned to Rajeev and a/c cleared)

24 Cash A/c Dr. 5,800

Chandra Bhan’s A/c Dr. 2,000
To Sales A/c 7,800
(Being goods sold)

28 Cash A/c Dr. 50

P & L A/c Dr. 1,950
To Livestock A/c 2,000
(Being goods sold)

30 Salaries A/c Dr. 3,000

Rent A/c Dr. 500
Insurance Premium A/c Dr. 200
Electricity Charges A/c Dr. 150
To Cash A/c 3,850
(Being salaries, rent, Insurance premium and
electricity charges paid)

30 Advertisement expenses A/c Dr. 200

To Bank A/c 200
(Being advertisement expenses paid)

Grand Total 1,64,070 1,64,070