Q1. On 1st April, 2019, Mohit, Delhi started business with a capital of ₹ 50,000.

He made the following

transactions during the month of April:

2019 ₹
April 3 Purchased goods from Rita, Delhi on credit 20,000
for
April 4 Cash paid to Rita 10,000
April 6 Goods sold to Rohit, Chandigarh 25,000
April 8 Received cash from Rohit 20,000
April
Goods purchased from Rita 12,000
12
April
Cash paid to Rita 20,000
18
April
Goods sold to Rohit, Chandigarh 10,000
25
April Received cash from Rohit 6,000
30

You are required to journalise the above transactions and show the respective Ledger accounts.

The solution for this question is as follows:

 Rohit
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019
Apr.06 Sales A/c 25,000 Apr.08 Cash A/c 20,000
Apr.25 Sales A/c 10,000 Apr.30 Cash A/c 6,000

Apr.30 Balance c/d 9,000

35,000 35,000

May.01 Balance b/d 9,000

Sales Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019

Apr.30 Balance c/d 35,000 Apr.06 Rohit 25,000

Apr.25 Rohit 10,000

35,000 35,000

May.01 Balance b/d 35,000

Q.2 Suresh, Kanpur commenced business on 1st January, 2019 introducing capital in cash ₹ 1,00,000.
His other transactions during the month were as follows:

2019 ₹
Jan 1 Started business with cash 1,00,000
Jan 2 Bought goods for cash 20,000
Jan 3 Sold goods for cash 7,000
Jan 15 Sold goods to Shravan, Delhi 6,000
Jan 18 Bought goods on credit from Anurag, Kanpur 50,000
Jan 19 Goods returned to Anurag 5,000
Jan 20 Sold goods for cash 30,000
Jan 22 Paid electricity bill 1,000
Jan 28 Paid for telephone bill 500
Jan 29 Paid rent 800
Jan 31 Paid wages 3000

Enter the above transactions in his books of account.

Q.3 Journalise the following transactions in the books of Afzal, Kolkata and post them to the Ledger:

2019 ₹
Jan. 1 Started business with cash 1,00,000
Jan. 3 Bought goods on credit from Gupta & Co., Delhi 20,000
Jan. 5 Cash sales 5,000
Jan. 8 Cash purchases 8,000
Jan. 10 Sold goods to Ahmed & Co., Lucknow 10,000
Jan. 11 Deposited cash in bank 50,000
Jan. 13 Purchased a computer for office 20,000
Jan. 15 Took a loan from Mehboob 70,000
Jan. 16 Goods returned by Ahmed & Co. 2,000
Jan. 17 Purchased furniture from Mehfil Mart, Kolkata 10,000
Jan. 18 Paid interest to Mehboob 2,000
Jan. 19 Received claim from Ahmed & Co. for defects in goods supplied to 1,000
them.
Claim was accepted and rebate was allowed.
Jan. 22 Paid rent by cheque 2,000
Jan. 24 Withdrew from bank 20,000
Jan. 25 Sales of goods at counter after allowing trade discount of 10% 10,000
Goods purchased from Gupta & Co., Delhi were destroyed by
Jan. 26 10,000
accident
Jan. 27 Advertisement expenses paid through bank 5,000
Jan. 28 Ahmed & Co. settled their account by cheque 7,000
Paid the due amount to Gupta & Co. by cheque after availing
Jan. 29
discount of ₹ 800
Jan. 31 Sold old newspapers 500
 Bank Account
Dr. Cr.

Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019

Jan.11 Cash 50,000 Jan.22 Rent 2,000

Jan.28 Ahmed & Company 7,000 Jan.24 Cash 20,000

Jan.27 Advertisement 5,000

Jan.29 Gupta & Company 19,200

Jan.31 Balance c/d 10,800

57,000 57,000

Feb.01 Balance b/d 10,800

Computers Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019
Jan.13 Cash 20,000 Jan.31 Balance c/d 20,000

20,000 20,000
Feb.01 Balance b/d 20,000

Loan from Mehboob

Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019
Jan.31 Balance c/d 70,000 Jan.15 Cash 70,000

70,000 70,000

Feb.01 Balance b/d 70,000

 Insurance Claim Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019
Jan.19 Ahmed & Company 1,000 Jan.31 Balance c/d 1,000

1,000 1,000
Feb.01 Balance b/d 1,000

Rent Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019
Jan.22 Bank 2,000 Jan.31 Balance c/d 2,000

2,000 2,000
Feb.01 Balance b/d 2,000

Loss by Accident Account

Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019

Jan.26 Purchases 10,000 Jan.31 Balance c/d 11,200

10,000 10,000
Feb.01 Balance b/d 10,000

Advertisement Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019
Jan.27 Bank 5,000 Jan.31 Balance c/d 5,000

5,000 5,000
Feb.01 Balance b/d 5,000
 Sales Returns Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019
Jan.16 Ahmed & Company 2,000 Jan.31 Balance c/d 2,000

2,000 2,000
Feb.01 Balance b/d 2,000

Mehfil Mart
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019
Jan.17 Mehfil Mart 10,000 Jan.31 Balance c/d 10,000

10,000 10,000

Feb.01 Balance b/d 10,000

Furniture Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(₹) (₹)
2019 2019
Jan.31 Balance c/d 10,000 Jan.17 Furniture 10,000

10,000 10,000

Feb.01 Balance b/d 10,000

4. Pass Journal entries of M/s Bhanu Traders, Delhi from the following transactions. Post them to the
Ledger:

2019 ₹
April 1 Commenced business with cash 1,50,000
April 2 Opened a bank account with PNB 50,000
April 3 Purchased furniture 20,000
April 7 Bought goods for cash from M/s. Rupa Traders, Delhi 30,000
April 8 Purchased goods from M/s. Hema Traders, Chandigarh 42,000
April 30,000
Cash sales
10
April 12,000
Sold goods on credit to M/s. Gupta Traders, Kolkata
14
April 4,000
Rent paid
16
April 1,000
Paid Electricity expenses
18
April 12,000
Received cash from Gupta Traders
20
April 2,000
Goods returned to Hema Traders
22
April 40,000
Cash paid to Hema Traders
23
April 100
Bought postage stamps
25
April
Paid salary to Mohan
30 4,000
 Journal
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
2019
Apr-01 Cash A/c Dr. 1,50,000
To Capital A/c 1,50,000
(Started business
with cash)

Apr-02 Bank A/c Dr. 50,000

To Cash A/c 50,000
(Opened Bank A/c)

Apr-03 Furniture A/c Dr. 20,000

To Cash A/c 20,000
(Furniture
purchased)

Apr-07 Purchases A/c Dr. 30,000

To Cash A/c 30,000
(Goods purchased)

Apr-08 Purchases A/c Dr. 42,000

To M/s Hema Traders A/c 42,000
(Goods purchased)

Apr-10 Cash A/c Dr. 30,000

To Sales A/c 30,000
(Goods sold)

M/s Gupta Traders

Apr-14 Dr. 12,000
A/c
To Sales A/c 12,000
(Goods sold)

Apr-16 Rent A/c Dr. 4,000

To Cash A/c 4,000
(Rent paid)

Electricity
Apr-18 Dr. 1,000
Expenses A/c
To Cash A/c 1,000
(Paid electricity
expenses)

Apr-20 Cash A/c Dr. 12,000

To Gupta Traders
12,000
A/c
(Cash received from Gupta Traders)

Apr-22 Hema Traders A/c Dr. 2,000

To Purchases
2,000
Return A/c
(Goods returned)

Apr-23 Hema Traders A/c Dr. 40,000

To Cash A/c 40,000
(Cash paid)

Apr-25 Postage A/c Dr. 100

To Cash A/c 100
(Bought postage
stamps)

Apr-30 Salary A/c Dr. 4,000

To Cash A/c 4,000
(Paid salary)
Q.5 Journalise the following transactions in the Journal of M/s. Gupta Brothers (Prop. Shri R. K. Gupta),
Delhi and post them to the Ledger:
2019 ₹
March 1 Started business with cash 2,00,000
March 2 Opened bank account with SBI 80,000
March 4 Goods purchased from Raj, Jaipur (Rajasthan) 22,000
March 5 Goods purchased for cash 30,000
March 8 Goods sold to Naman, Delhi 12,000
March 10 Cash paid to Raj 22,000
March 15 Cash received from Naman 11,700
Discount allowed 300
March 16 Paid wages 200
March 18 Furniture purchased for office use 5,000
March 20 Withdrawn from bank for personal use 4,000
March 22 Issued cheque for rent 3,000
Goods taken for household purpose. These goods were purchased
March 23 2,000
from Raj
March 24 Drawn cash from bank for office use 6,000
March 26 Commission received 1,000
March 27 Bank charges 300
March 28 Cheque issued for life insurance premium of Proprietor 3,000
March 29 Paid salary 10,000
March 30 Cash sales 20,000