Request a call back

Join NOW to get access to exclusive study material for best results

Class 11-commerce NCERT Solutions Accountancy Part I Chapter 3 - Recording of Transactions - I

Recording of Transactions - I Exercise 87

Solution SA 1

The fundamental steps in the accounting process are:

  • Identifying and analysing the business transactions
  • Recording those transactions in journal
  • Classifying account individually and posting it in a ledger
  • Preparing and summarizing financial statement
  • Communicating it to the interested users

The pictorial representation of the same is given below:

 

 

  

Solution SA 2

Source document can be termed as an evidence providing document. The evidence provided by the source document is important because it:

  1. Provides relevant and detailed information of a particular transaction such as parties involved in the transaction, amount and date
  2. Verifies transactions during auditing
  3. Acts as a evidence in the court of law
  4. Summation of each account which culminates into financial statements 

Solution SA 3

To make sound business decisions, it is very important to have an accounting system which generates complete and error-free financial records. Although a journal and ledger are parts of an accounting system, they both serve extremely important and different purpose. A journal records transactions permanently in one entry using the source document and is listed as per their occurrences. It comes under the double-entry system and is called the book of original entry. Once the transactions are recorded in the journal, they are then posted into the ledger so as to assign each transaction to individual accounts,

The process of recording the transactions in journal and then in ledger is presented in the below given flow chart.

 

 

  

 

Solution SA 4

There are four columns for a journal entry; namely, Date, Particulars, L.F., Debit and Credit Amount. A journal entry format is as shown:

Date

Particulars

 

L.F.

Dr.

Rs.

Cr.

Rs. 

XXX

Vehicle A/c

Dr.

 

XXX

 

 

 To Cash A/c

 

 

 

XXX

 

(Being vehicle bought by the business)

 

 

 

 

 

The debit amount column always comes before/left to the credit amount column as a credit is a right-sided entry and debit is a left-sided entry. Credit accounts are indented and listed last. Indentation is leaving a space before writing any word. In the 'Particulars' column of journal format, debited account is written first and credited account is written on the next line leaving some space which is indentation.

Solution SA 5

An accounting system is of two types, single entry accounting system and double entry accounting system. Majority of the business uses the double entry accounting system as it consists of dual effect i.e. two kinds of amount and accounts, debit and credit which affect each transaction.

Solution SA 6

_________ Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount (Rs.) 

Date

Particulars

J.F.

Amount (Rs.) 

 

 

 

 

 

 

 

 

 

Recording of Transactions - I Exercise 88

Solution SA 7

Short term liabilities- Liabilities incurred with an intention to be paid or are payable within a year is termed as short-term liabilities. For example, short-term loans, outstanding wages, bills payable and bank overdraft creditors.

Capital- It refers to the amount invested in the form of cash or asset by the owner in a firm's business or organisation of his choice. It is a claim on the assets of the business and also it will be an obligation of the business towards the owner of the firm. On the balance sheet, the capital is shown on the liabilities side.

Business owners and business are treated differently. In case of closure, the business has to repay the owner, the capital amount, as the capital is treated as a liability to the business. An increase in liability is credited, the fresh capital introduced and its net profit increases the owner's capital; the capital along with the liability is increased. Similarly, if the liabilities are paid off, the liability is debited and withdrawals from the capital and its net loss decrease the capital; so capital along with liabilities is debited. Thus, the rules of debit and credit are same for both liability and capital. 

Solution SA 8

J.F. (Journal Folio) number is the journal's page number on which the transaction was recorded originally. The J.F. number is entered in the ledger at the time of posting entries into their respective accounts and not at the time of recording the transactions. It acts as a tracker to the original record. 

The purpose of entering J.F. number in the ledger is because of the below given benefits:

  1. It helps in locating the original transaction records in the journal. In other words, J.F. number helps to locate the position of the related journal entry and subsidiary book in the journal book.
  2. J.F. number in accounts ensures that recording in the books of original entry has been posted or not.

Solution SA 9

  1. Increase in revenue

    Increase in revenue is credited as it increases the capital. Capital has credit balance and if capital increases, then it is credited.

  2. Decrease in expense

    Decrease in expense is credited as all expenses have debit balance. If expense decreases, then it is credited.

     

  3. Record drawings

    Capital has credit balance; if the capital increases, then it is credited. If capital decreases, then it is debited. Drawings are debited as they decrease the capital.

     

  4. Record of fresh capital introduced by the owner- credit

    Capital has credit balance, if capital increases, then it is credited. The introduction of fresh capital increases the balance of capital, and so, it is credited.

Solution SA 10

Assets have debit balance which when decreased is considered credited. Thus, a decrease is recorded as a credit, if the transaction has a decreasing effect on the asset.

For example, sale of books results in decrease in books (asset); so, the sale of books will be credited.

Liabilities have credit balance which is credited if the liability increase and is debited with a decrease in liability. Thus, a decrease is recorded as a debit if the transaction has a decreasing effect on the liability.

For example, payment to the creditors results in a decrease in the creditors (liability); so, the creditors account will be debited.

Solution NUM 1

S. No

Explanation

Assets =

Liabilities + Capital

 

 

Cash +

Stock +

Debtors+

Furniture

Creditors

+ Capital

a.

Increase in Cash

2,00,000

 

 

 

 

 

 

Increase in Capital

 

 

 

 

 

2,00,000

 

 

2,00,000

 

 

 

= NIL  +

2,00,000

b.

Increase in Stock

 

40,000

 

 

 

 

 

Decrease in Cash

(40,000)

 

 

 

 

 

 

 

1,60,000 +

40,000

 

 

= NIL +

2,00,000

c.

Increase in Debtors

 

 

12,000

 

 

 

 

Decrease in Stock

 

(10,000)

 

 

 

 

 

Profit

 

 

 

 

 

2,000

 

 

1,60,000 +

30,000 +

12,000

 

= NIL +

2,02,000

d.

Increase in Furniture

 

 

 

7,000

 

 

 

Increase in Creditors

 

 

 

 

7,000

 

 

 

1,60,000 +

30,000 +

12,000 +

7,000

= 7,000

+ 2,02,000

 

Solution NUM 2

S. No

Explanation

Assets

= Liabilities + Capital

 

 

Cash  +

Furniture  +

Stock

 Creditors

+ Capital

a.

Increase in cash

2,50,000

 

 

 

 

 

Increase in Capital

 

 

 

 

2,50,000

 

 

2,50,000

 

 

= NIL +

2,50,000

b.

Increase in Furniture

 

 35,000

 

 

 

 

Decrease in Cash

(35,000)

 

 

 

 

 

 

2,15,000 +

35,000

 

=  NIL +

2,50,000

c.

Decrease in Capital (Expense)

 

 

 

 

(2,000)

 

Decrease in Cash

(2000)

 

 

 

 

 

 

2,13,000 +

35,000

 

=  NIL +

2,48,000

d.

Increase in Stock

 

 

40,000

 

 

 

Increase in Creditors

 

 

 

40,000

 

 

 

2,13,000 +

35,000

+ 40,000

=  40,000 +

2,48,000

e.

Increase in Cash

26,000

 

 

 

 

 

Decrease in Stock

 

 

(20,000)

 

 

 

Increase in Capital (Profit)

 

 

 

 

6,000

 

 

2,39,000 +

35,000

+ 20,000

= 40,000 +

2,54,000

 

Solution LA 1

Irrespective whether a business is small or big, there would be n-amount of financial transactions which would take place. A human mind cannot grasp this much amount of information. So in such instances, the source documents come in handy. A source document always enables verifiability and acts as evidence in court. They ensure that transactions recorded in the books are free from personal biases.

Source document in accounting is important because of the below given reasons.

  1. Systematic track of records
  2. Detect and prevent frauds and errors
  3. Alternative memory box
  4. Verifying the transaction during the auditing process
  5. Evidence in the count of law

 

Scenarios which are supported by source document are

  1. Return of goods purchased on credit worth Rs. 500, supported by debit note
  2. Deposits into bank worth Rs. 1000, supported by pay-in slips
  3. Purchase of goods worth Rs. 1000 on credit, supported by purchase invoice/bill
  4. Cash sales worth Rs. 2,000, supported by cash memo

 

The books of accounts only record events expressed in monetary terms and not the non-monetary events. For example, promotion of an employee is not recorded in the book but the salary increment is recorded at the time when salary is paid or due. 

Solution LA 2

An accounting system is of two types, single entry accounting system and double entry accounting system. Majority of the business use the double entry accounting system as it consists of dual aspect. Double entry system is a complete system of recording transaction in the books of accounts. Each transaction reveals two aspects, receiving aspect or incoming aspect or expenses/loss aspect known as debit aspect and giving aspect or outgoing aspect or income/gain aspect known as credit aspect. The dual aspect can be better understood by the help of an example; bought goods worth Rs.1000 on cash. This transaction affects two accounts with the same amount simultaneously. As goods are brought in exchange of cash, the cash balances in the business reduce by Rs.1000 i.e. the cash account is credited. Simultaneously, the amount of goods increases by Rs.1000, so purchase account will be debited.

Debit and credit depend on the nature of accounts involved; such as assets, expenses, income, liabilities and capital. There are five types of accounts.

 

  1. Assets- This increases the profit earning capacity of the business over a long-term across various accounting periods. Examples of fixed assets are furniture, machinery, land, plant and buildings.

    For example, machinery purchased and payment is made by cheque. The journal entry is

    Machinery A/c  Dr.

    To Bank A/c

     Here, machinery and bank balance, both are assets to the firm. As machinery is purchased, so machinery account will increase, and will be debited. On the other hand, payment of machinery is being made by cheque that reduces the bank balance of the business, so bank account will be credited.

  2. Expense- It is the costs incurred to maintain the profitability of business in the process of earning profits. This help in the generating revenues, business operations and production such as rent, wages, depreciation, interest, salaries. They are measured by the services rendered or the cost of assets during an accounting period. For example, rent paid. The journal entry is:

    Rent A/c Dr.

    To Cash A/c

    Here, rent is an expense. All expenses have debit balance. Hence, rent is debited. On the other hand, as rent is paid in cash that reduces the cash balances, so cash account is credited.

  3. Liability- Liabilities refer to the financial obligations or debt which a business owes to others such as loans from banks, other persons or creditors for goods supplied. Long term liabilities are loans which are payable after a period of 1 year. Short term liabilities are obligations which are payable within a period of time.

    The journal entry is:

    Bank A/c  Dr.

    To Bank Loan A/c

    Here, loan from bank is a liability to the firm. As all liabilities have credit balance, so loan from bank has been credited because it increases the liabilities.

  4. Income- It refers to the amount received from selling the products or providing services to customers, royalty and commission received; they are added to the capital.

    For example, rent received from tenant. The journal entry is:

    Cash A/c   Dr.

    To Rent A/c

    Here, rent is an income; hence, rent account has been credited and cash has been debited, as rent received increases the cash balances.

  5. Capital- It refers to the amount invested in form of cash or asset by the owner in a firm's business or organisation of his choice. It is a claim on the assets of the business and also it will be an obligation of the business towards the owner of the firm. On the balance sheet, the capital is shown on the liabilities side.

    For example, additional capital introduced by owner. The journal  entry is:

    Cash A/c  Dr.

    To Capital A/c

    The amount of capital increases i.e. credited when additional capital is introduced. On the other hand, the cash account is debited when the cash balances decrease i.e. capital introduced in form of cash.

Solution LA 3

In a business, recording each and every transaction is of utmost importance. Not doing so, can notably affect the financial status of the business.

A transaction is first recorded in the journal, the book of original entry. However, if the further details on expense, revenue, equity, liability or increase or decrease in assets are needed, an account is brought in use. A detailed record of the information relating to a financial transaction can be termed as an account. It helps in determining the financial position of the business.

There are some steps to record transactions in accounts; it can be easily understood with the help of an example.

Sold goods to Mr. X worth Rs. 40,000 on 12th April and received payment Rs. 40,000 on 25th April. The following journal entries will be recorded:

 

Date

Particulars

L.F

Debit Rs. 

Credit Rs. 

Apr. 12

 

 

 

 

Apr 25.

X' A/c Dr

 To Sales

(Goods sold on credit to Mr. X)

 

Cash A/c Dr

 To X's A/c

(Cash received from Mr. X)

22

18

 

 

 

13

22

40,000

 

 

 

 

40,000

 

40,000

 

 

 

 

40,000

Step 1- Locate the account in ledger, i.e. Mr. X's Account.

Step 2- Enter the date of transaction in the date column of the debit side of Mr. X's Account.

Step 3- In the 'Particulars' column of the debit side of Mr. X's Account, the name of corresponding account is to be written, i.e. 'Sales'.

Step 4- Enter the page number of the ledger in the Journal Folio (J.F.) column of Mr. X's Account.

Step 5- Enter the amount in the 'Amount' column.

Step 6- Same steps are to be followed to post entries in the credit side of Mr. X's Account.

Step 7- After entering all the transactions for a particular period, balance the account by totaling both sides and write the difference in shorter side, as 'Balance c/d'.

Step 8- Total of account is to be written on either sides.

Solution LA 4

Journal is known to be the book of original entry. Any financial transaction which takes place is recorded first in a journal so that they can be used for future references. The recording is done as and when a transaction occurs i.e. in a chronological order.

Performa of Journal

In the books of.....

Date

Particulars

L.F.

Debit

Rs.

Credit

Rs. 

 

 

 

 

 

 

 

 

 

 

Date- Date of the transaction is entered in the first column. This date is entered only once unless and until there is a change in the date of transaction. It should be entered in proper sequence.

Particulars- Details of business transactions like, name of the parties involved and the name of related accounts, are recorded.

L.F. - Page number of ledger account when entry is posted.

Debit Amount- Amount of debit account is written.

Credit Amount- Amount of credit account is written.

 Example:

Date 

Transactions by Mr. Ram 

April 01

Started business with cash Rs.1,13,000

April 06

Open a bank account Rs.40,000

April 12

Purchase goods for cash Rs.5,000

April 19

Goods sold for cash Rs.4,500

April 25

Goods sold to Mr. X Rs.3,400

 

Journal in the books of Mr. Ram 

Date

Particulars

 

L.F.

Dr. (Rs.)

Cr.(Rs.)

2014

 

 

 

 

 

Apr. 01

Cash A/c

Dr.

 

1,13,000

 

 

 To Capital A/c

 

 

 

1,13,000

 

(Being business started with cash)

 

 

 

 

 

Apr.02

Bank A/c

Dr.

 

40,000

 

 

 To Cash A/c

 

 

 

40,000

 

(Being bank account opened with cash)

 

 

 

 

 

Apr.12

Purchases A/c

Dr.

 

5,000

 

 

 To Cash A/c

 

 

 

5,000

 

(Being goods purchased for cash)

 

 

 

 

 

Apr.19

Cash A/c

Dr.

 

4,500

 

 

 To Sales A/c

 

 

 

4,500

 

(Being goods sold for cash)

 

 

 

 

 

Apr.25

Mr. X's A/c

Dr.

 

3,400

 

 

 To Sales A/c

 

 

 

3,400

 

(Being goods sold to Mr. X on credit)

 

 

 

 

 

Total

 

1,62,900

1,62,900

 

Solution LA 5

Basis of Difference

Source Documents

Vouchers

Meaning

It refers to the documents in writing, containing the details of events or transactions

When source document is considered as evidence of an event or transaction, then it is called voucher

Purpose

It is used for preparing accounting vouchers

It is used for analysing the transactions

Recording

It acts as a basis for preparing accounting voucher which helps in recording

It acts as a basis for recording transactions

Legality/Validity

It can be used as evidence in the court of law

It can be used for authenticating transactions

Prepared By

It is prepared by the those directly involved in the transactions or who are authorised to prepare or approve these documents

It is prepared by the authorised persons or by the accountants

Examples

Cash memo, invoice, and pay-in-slip

Cash memo, invoice, pay-in-slip (if used as evidence), debit note, credit note, cash vouchers, transfer vouchers

 

Solution LA 6

Majority of the business prefers the double entry accounting system i.e. the dual aspect concept over single entry system as it consists of dual effect i.e. two kinds of amount, debit and credit which affects each transaction. It is based on the fact that if there is receiver, there should be a giver. However, at any point of time, the assets of a business entity will always be equal to the total of its liabilities and capital i.e. total claims.

The equation between the assets and claims can be read as follows: 

  

or Liabilities = Asset - Capital

or Capital = Assets - Liabilities

The equation can also be represented as:

Assets - Liabilities = Capital

Assets - Capital = Liabilities

The above equation cannot be altered. For example, 

1. Business started with cash Rs.1,00,000

Cash A/c Dr 

 To Capital A/c

Assets

=

Liabilities

+

Capital

Cash

(1,00,000)

 

 

 

1,00,000

Assets decrease, as cash is invested into the business and capital increases. Thus the equality between LHS and RHS remains intact.

2. Goods purchased on credit Rs.20, 000

Assets

=

Liabilities

+

Capital

Cash

 

1,00,000

Stock

 

20,000

 

 

=

Creditors

 

20,000

 

 

+

 

 

1,00,000

 

Assets increase as well as liability increases, without disturbing the equality.

3. Goods purchased with cash Rs.25,000

Assets

=

Liabilities

+

Capital

Cash

1,00,000

(25,000)

Stock

20,000

25,000

 

=

 

20,000

 

+

 

1,00,000

 

As goods are purchased for cash, so cash balance reduces by Rs.25,000, but on the other hand, stock balance increases by Rs.25,000. Thus the total balance of LHS remains equal to the total claims. 

Solution LA 7

Majority of the business prefers the double entry accounting system i.e. the dual aspect concept over single entry system as it consists of dual effect i.e. two kinds of amount, debit and credit which affects each transaction. It is based on the fact that if there is receiver, there should be a giver.

If a business firm acquires an asset for cash, it has to give some other asset say cash or the obligation to pay for it in future. Thus, giver necessarily implies a receiver and a receiver necessarily implies a giver.

In double entry system, accounts are classified as shown below:

  


 



  1. Personal Accounts: Accounting transactions relating to persons such as individuals, firms, bank and companies are known as personal accounts, such as Mr. A, M/s ABC and Co. etc.

    Rule of double entry system for personal accounts: Debit the receiver and credit the giver.

    For example: Cash paid to Mr. A.

    Mr. A's A/c

    Dr.

    To Cash A/c

     

    (Being cash paid to Mr. A)

     

     
  2. Impersonal Accounts: It relates to non living things. Impersonal accounts are further classified as real accounts and nominal accounts.

    1. Real Account- Accounting transactions relating to tangible assets such as properties, goods and cash and intangible assets such as patents and trademark are known as real accounts.

      Rule of double entry system for real accounts: Debit what comes in and credit what goes out.

      For example: Furniture purchased for cash.

      Furniture  A/c

      Dr.

      To Cash A/c

       

      (Being furniture purchased for cash)

       

       
    2. Nominal Account: Accounting transactions relating to incomes and expenses and gains and losses of the firm are known as nominal accounts.

      Rule of double entry system for nominal accounts:Debit all expenses and losses and credit all incomes and gains.

      For example : Rent paid

      Rent A/c

      Dr.

      To Cash A/c

       

      (Being rent paid)

       

       

     


 

Recording of Transactions - I Exercise 89

Solution NUM 3

S. No

Explanation

Assets

=Liabilities + Capital

 

 

Cash   +

Stock +

Debtors

Furniture

Creditors

+ Capital

a.

Increase in Cash

1,75,000

 

 

 

 

 

 

Increase in Capital

 

 

 

 

 

1,75,000

 

 

1,75,000

 

 

 

= NIL +

1,75,000

b.

Increase in Stock

 

50,000

 

 

 

 

 

Increase in Creditors (Rohit)

 

 

 

 

= 50,000+

1,75,000

 

 

1,75,000 +

50,000

 

 

= 50,000 +

1,75,000

c.

Increase in Debtors (Manish)

 

 

20,000

 

 

 

 

Decrease in Stock

 

(17,500)

 

 

 

 

 

Increase in Capital (Profit)

 

 

 

 

 

2,500

 

 

1,75,000 +

32,500 +

20,000

 

= 50,000 +

1,77,500

d.

Increase in Furniture

 

 

 

10,000

 

 

 

Decrease in Cash

(10,000)

 

 

 

 

 

 

 

1,65,000 +

32,500 +

20,000 +

10,000 

=50,000 +

1,77,500

e.

Decrease in Creditors (Rohit)

 

 

 

 

(50,000)

 

 

Decrease in Cash

(48,500)

 

 

 

 

 

 

Increase in Capital

(Discount received)

 

 

 

 

 

1,500

 

 

1,16,500 +

32500 +

20,000 +

10,000 

=NIL +

1,79,000

f.

Increase in Cash

20,000

 

 

 

 

 

 

Decrease in Debtors (Manish)

 

 

(20,000)

 

 

 

 

 

1,36,500 +

32500 +

NIL +

10,000 

=NIL +

1,79,000

g.

Decrease in Capital (Expense)

 

 

 

 

 

(1,000)

 

Decrease in Cash

(1,000)

 

 

 

 

 

 

 

1,35,500 +

32500 +

NIL +

10,000 

=NIL +

1,78,000

h.

Decrease in Capital (Drawings)

 

 

 

 

 

(3,000)

 

Decrease in Cash

(3,000)

 

 

 

 

 

 

 

1,32,500 +

32500 +

NIL +

10,000 

=NIL +

1,75,000

 

Solution NUM 4

S.No

Explanation

Assets

=

 Liabilities + Capital

 

 

Cash  +

Machinery +

Stock

 

Creditors +

Unaccured Income

+

Capital

a.

Increase in Cash

1,50,000

 

 

 

 

 

 

 

 

Increase in Capital

 

 

 

 

 

 

 

1,50,000

 

 

1,50,000

 

 

=

NIL

 

+

1,50,000

b.

Increase in Machinery

 

40,000

 

 

 

 

 

 

 

Increase in Creditors

 

 

 

=

40,000

 

 

 

 

 

1,50,000+

40,000

 

=

40,000

 

 

1,50,000

c.

Increase in Stock

 

 

20,000

 

 

 

+

 

 

Decrease in Cash

(20,000)

 

 

 

 

 

 

 

 

 

 1,30,000 +

40,000 +

20,000

=

40,000

 

+

1,50,000

d.

Decrease in Cash

(80,000)

 

 

 

 

 

 

 

 

Decrease in Capital (Drawings)

 

 

 

 

 

 

 

(80,000)

 

 

50,000 +

40,000

+20,000

=

40,000

 

+

70,000

e.

Decrease in Creditors

 

 

 

 

(40,000)

 

 

 

 

Decrease in Cash

(38,000)

 

 

 

 

 

 

 

 

Increase in Capital

 

 

 

 

 

 

 

 

 

(Discount received)

 

 

 

 

 

 

 

2,000

 

 

12,000 +

 40,000 +

20,000 

=

NIL

 

+

72,000

f.

Increase in Cash

4,500

 

 

 

 

 

 

 

 

Decrease in Stock

 

 

(5000)

 

 

 

 

 

 

Decrease in Capital (Loss)

 

 

 

 

 

 

 

(500)

 

 

16,500 +

40,000 +

15,000

=

NIL

 

+

71,500

g.

Decrease in Cash

(1000)

 

 

 

 

 

 

 

 

Decrease in Capital (Expense)

 

 

 

 

 

 

 

(1000)

 

 

15,500 +

40,000 +

15,000

=

NIL

 

+

70,500

h.

Increase in Cash

2,000

 

 

 

 

 

 

 

 

Increase in Unaccrued Income

 

 

 

=

 

2,000

 

 

 

 

17,500

40,000

15,000

=

NIL

2,000

+

70,500

 

Solution NUM 5

S.No

Explanation

Assets

=

Liabilities + Capital

 

 

Cash  +

Stock +

Prepaid Expenses

=

Outstanding Expenses

+

Capital

a.  

Increase in cash

1,20,000

 

 

 

 

 

 

 

Increase in capital

 

 

 

 

 

 

1,20,000

 

 

1,20,000

 

 

=

NIL

+

1,20,000

b.  

Increase in stock

 

10,000

 

 

 

 

 

 

Increase in cash

(10,000)

 

 

=

 

 

 

 

 

1,10,000 +

10,000

 

=

NIL

+

1,20,000

c.  

Increase in cash

 5,000

 

 

 

 

 

 

 

Increase in capital (Income)

 

 

 

 

 

 

5,000

 

 

1,15,000 +

10,000

 

=

NIL

+

1,25,000

d.  

Increase in outstanding expenses

 

 

 

=

2,000

 

 

 

Decrease in capital (Expense)

 

 

 

 

 

 

(2,000)

 

 

1,15,000 +

10,000

 

=

2,000

+

1,23,000

e.  

Increase in prepaid expenses

 

 

1,000

 

 

 

 

 

Decrease in cash

(1,000)

 

 

 

 

 

 

 

 

1,14,000 +

10,000

+ 1,000

=

2,000

+

1,23,000

f.  

Increase in cash

700

 

 

 

 

 

 

 

Increase in capital (Income)

 

 

 

 

 

 

700

 

 

1,14,700 +

10,000

+ 1000

=

2,000

+

1,23,700

g.  

Increase in cash

7,000

 

 

 

 

 

 

 

Decrease in stock

 

(5,000)

 

 

 

 

 

 

Increase in capital (Profit)

 

 

 

 

 

 

2,000

 

 

1,21,700+

5,000 +

+ 1000

=

2000

+

1,25,700

h.  

Decrease in stock

 

(500)

 

 

 

 

 

 

Decrease in capital (Loss)

 

 

 

 

 

 

(500)

 

 

1,21,700+

4500 +

1000

=

2000

+

1,25,200

 

Recording of Transactions - I Exercise 90

Solution NUM 6

S. No

Explanation

Assets

=

 Liabilities + Capital

 

 

Cash  +

Stock +

Building +

Debtors 

 

Creditors +

Outstanding Exp +

Unaccured Income +

 

Capital

a.

Increase in Cash

5,00,000

 

 

 

 

 

 

 

 

 

 

Increase in Stock

 

1,00,000

 

 

 

 

 

 

 

 

 

Increase in Capital

 

 

 

 

 

 

 

 

 

6,00,000

 

 

5,00,000+

1,00,000

 

 

=

NIL

 

 

+

6,00,000

b.

Increase in Building

 

 

2,00,000

 

 

 

 

 

 

 

 

Decrease in Cash

(2,00,000)

 

 

 

 

 

 

 

 

 

 

 

3,00,000+

1,00,000 +

2,00,000

 

=

NIL

 

 

+

6,00,000

c.

Increase in Stock

 

50,000

 

 

 

 

 

 

 

 

 

Increase in Creditors

 

 

 

 

 

50,000

 

 

 

 

 

 

3,00000+

1,50,000 +

2,00,000

 

=

50,000

 

 

+

6,00,000

d.

Increase in Debtors

 

 

 

36,000

 

 

 

 

 

 

 

Decrease in Stock

 

(25,000)

 

 

 

 

 

 

 

 

 

Increase in Capital (profit)

 

 

 

 

 

 

 

 

 

11,000

 

 

3,00,000+

1,25,000 +

2,00,000 +

36,000

=

50,000 +

 

 

+

6,11,000

e.

Decrease in Cash

(3000)

 

 

 

 

 

 

 

 

 

 

Decrease in Capital (Expense)

 

 

 

 

 

 

 

 

 

(3000)

 

 

2,97,000+

1,25,000 +

2,00,000 +

36,000

=

50,000 +

 

 

+

6,08,000

f.

Decrease in Capital (Expense)

 

 

 

 

 

 

5,000

 

 

 

 

Increase in Liabilities

 

 

 

 

 

 

 

 

 

(5,000)

 

 

2,97,000+

1,25,000 +

2,00,000 +

36,000

=

50,000 +

5,000

 

 

6,03,000

g.

Decrease in Building

 

 

(8,000)

 

 

 

 

 

 

 

 

Decrease in Capital

 

 

 

 

 

 

 

 

 

(8,000)

 

 

2,97,000+

1,25,000 +

1,92,000 +

36,000

=

50,000 +

5,000

 

+

5,95,000

h.

Decrease in Cash

(20,000)

 

 

 

 

 

 

 

 

 

 

Decrease in Capital

 

 

 

 

 

 

 

 

 

(20,000)

 

 

2,77,000+

1,25,000 +

1,92,000 +

36000

=

50,000 +

5,000

 

+

5,75,000

i.

Increase in Cash

5,000

 

 

 

 

 

 

 

 

 

 

Increase in Liability

 

 

 

 

 

 

 

5,000

 

 

 

 

2,82,000 +

1,25,000 +

1,92,000 +

36,000

=

50,000 +

5,000 +

5,000

+

5,75,000

j.

Decrease in Creditors

 

 

 

 

 

(20,000)

 

 

 

 

 

Decrease in Cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

2,62,000 +

1,25,000 +

1,92,000 +

36,000

=

30,000 +

5,000 +

5,000

+

5,75,000

k.

Increase in Cash

30,000

 

 

 

 

 

 

 

 

 

 

Decrease in Debtors

 

 

 

(30,000)

 

 

 

 

 

 

 

 

2,92,000 +

1,25,000 +

1,92,000 +

6,000

=

30,000 +

5,000 +

5,000

+

5,75,000

 

Solution NUM 7

S. No

Explanation

Assets 

=

Liabilities + Capital

 

 

Cash  +

Stock  +

Investment +

Bank

 

Creditors

+

Capital

a.

Increase in Cash

1,20,000

 

 

 

 

 

 

 

 

Increase in Capital

 

 

 

 

 

 

 

1,20,000

 

 

1,20,000 +

 

 

 

=

NIL

+

1,20,000

b.

Increase in Cash

10,000

 

 

 

 

 

 

 

 

Increase in Capital (Income)

 

 

 

 

 

 

 

10,000

 

 

1,30,000

 

 

 

=

NIL

+

1,30,000

c.

Decrease in Investment

 

 

50,000

 

 

 

 

 

 

Decrease in Cash

(50,000)

 

 

 

 

 

 

 

 

 

80,000 +

 

50,000

 

=

NIL 

+

1,30,000

d.

Increase in Cash

5,000

 

 

 

 

 

 

 

 

Increase in Capital (Income)

 

 

 

 

 

 

 

5,000

 

 

85,000+

 

50,000

 

=

NIL

+

1,35,000

e.

Increase in Stock

 

35,000

 

 

 

 

 

 

 

Increase in Creditor (Ragani)

 

 

 

 

 

35,000

 

 

 

 

85,000 +

35,000 +

50,000

 

=

35,000

+

1,35,000

f.

Decrease in Capital

 

 

 

 

 

 

 

(7,000)

 

Decrease in Cash

(7,000)

 

 

 

 

 

 

 

 

 

78,000 +

35,000 +

50,000

 

=

35,000

+

1,28,000

g.

Increase in Cash

14,000

 

 

 

 

 

 

 

 

Decrease in Stock

 

(10,000)

 

 

 

 

 

 

 

Increase in Capital (Profit)

 

 

 

 

 

 

 

4,000

 

 

92,000+

25,000 +

50,000

 

=

35,000

+

1,32,000

h.

Decrease in Creditors (Ragani)

 

 

 

 

 

(35,000)

 

 

 

Decrease in cash

(35,000)

 

 

 

 

 

 

 

 

 

57,000+

25,000 +

50,000 

 

=

NIL

+

1,32,000

i.

Decrease in cash

(20,000)

 

 

 

 

 

 

 

 

Increase in bank

 

 

 

20,000

 

 

 

 

 

 

37,000 +

25,000 +

50,000 +

20,000

=

NIL

+

1,32,000

 

Solution NUM 8

S. No

Explanation

Assets 

=

Liabilities + Capital

 

 

Cash +

Stock +

Building +

Debtors +

Prepaid Expenses

 

Creditors +

Outstanding Expenses

+

Capital

a.

Increase in Cash, Stock and Building

2,30,000 +

1,00,000 +

2,00,000

 

 

 

 

 

 

 

 

Increase in Capital

 

 

 

 

 

 

 

 

 

5,30,000

 

 

2,30,000 +

1,00,000 +

2,00,000

 

 

=

 

 

+

5,30,000

b.

Increase in Stock

 

50,000

 

 

 

 

 

 

 

 

 

Decrease in Cash

(50,000)

 

 

 

 

 

 

 

 

 

 

 

1,80,000 +

1,50,000 +

2,00,000

 

 

=

 

 

+

5,30,000

c.

Increase in Cash

35,000

 

 

 

 

 

 

 

 

 

 

Decrease in stock

 

(20,000)

 

 

 

 

 

 

 

 

 

Increase in Capital (Profit)

 

 

 

 

 

 

 

 

 

15,000

 

 

2,15,000 +

1,30,000 +

2,00,000

 

 

 

 

 

 

5,45,000

d.

Increase in Stock

 

55,000

 

 

 

 

 

 

 

 

 

Increase in Creditors

 

 

 

 

 

=

55,000

 

 

 

 

 

2,15,000 +

1,85,000 +

2,00,000

 

 

=

55,000

 

+

5,53,000

e.

Increase in Debtors

 

 

 

60,000

 

 

 

 

 

 

 

Decrease in Stock

 

(52,000)

 

 

 

 

 

 

 

 

 

Increase in Capital (Profit)

 

 

 

 

 

 

 

 

 

8,000

 

 

2,15,000 +

1,33,000 +

2,00,000+

60,000

 

=

55,000

 

+

5,53,000

f.

Decrease in Creditors

 

 

 

 

 

 

(55,000)

 

 

 

 

Decrease in Cash

(53,000)

 

 

 

 

 

 

 

 

 

 

Increase in Capital (Discount received)

 

 

 

 

 

 

 

 

 

2,000

 

 

1,62,000 +

1,33,000 +

2,00,000 +

60,000

 

=

NIL

 

+

5,55,000

g.

Decrease in Cash

(20,000)

 

 

 

 

 

 

 

 

 

 

Decrease in Capital

 

 

 

 

 

 

 

 

 

(20,000)

 

 

1,42,000 +

1,33,000 +

2,00,000 +

60,000

 

=

NIL

 

+

5,35,000

h.

Increase in Cash

59,000

 

 

 

 

 

 

 

 

 

 

Decrease in Capital (Discount allowed)

 

 

 

 

 

 

 

 

 

(1000)

 

Decrease in Debtors

 

 

 

(60,000)

 

 

 

 

 

 

 

 

2,01,000 +

1,33,000 +

2,00,000 +

NIL

 

=

NIL

 

+

5,34,000

i.

Increase in Outstanding Expenses

 

 

 

 

 

 

 

3,000

 

 

 

Decrease in Capital (Expense)

 

 

 

 

 

 

 

 

 

(3,000)

 

 

2,01,000 +

1,33,000 +

2,00,000 +

NIL

 

=

NIL +

3,000

+

5,31,000

j.

Decrease in Prepaid Expense

 

 

 

 

2,000

 

 

 

 

 

 

Decrease in Cash

(2,000)

 

 

 

 

 

 

 

 

 

 

 

1,99,000 +

1,33,000 +

200,000 +

NIL +

2,000

=

NIL +

3,000

+

5,31,000

k.

Increase in Cash

13,000

 

 

 

 

 

 

 

 

 

 

Increase in Capital (Income)

 

 

 

 

 

 

 

 

 

13,000

 

 

2,12,000 +

1,33,000 +

2,00,000+

NIL +

2000 

=

NIL +

3,000

+

5,44,000

l.

Decrease in Capital

 

 

 

 

 

 

 

 

 

(20,000)

 

Decrease in Cash

(20,000)

 

 

 

 

 

 

 

 

 

 

 

1,92,000 +

1,33,000 +

2,00,000+

NIL +

2000

=

NIL +

3,000

+

5,24,000

m.

Decrease in Capital

 

 

 

 

 

 

 

 

 

(10,000)

 

Decrease in Building

 

 

(10,000)

 

 

 

 

 

 

 

 

 

1,92,000 +

1,33,000 +

1,90,000+

NIL+

2000

=

NIL +

3,000

+

5,14,000

n.

Increase in Cash

50,000

 

 

 

 

 

 

 

 

 

 

Increase in Capital

 

 

 

 

 

 

 

 

 

50,000

 

 

2,42,000 +

1,33,000 +

1,90,000+

NIL +

2000

=

NIL +

3,000

+

5,64,000

o.

Increase in Stock

 

10,000

 

 

 

 

 

 

 

 

 

Increase in Creditors

 

 

 

 

 

 

10,000

 

 

 

 

 

2,42,000 +

1,43,000 +

1,90,000+

NIL+

2000

=

10,000 +

 3,000

+

5,64,000

 

Recording of Transactions - I Exercise 91

Solution NUM 9

S. No

Explanation

Assets 

=

Liabilities + Capital

 

 

Cash  +

Stock +

Furniture +

Debtors +

 

Creditors

+

Capital

a.

Increase in Cash

1,25,000

 

 

 

 

 

 

 

 

Increase in Capital

 

 

 

 

 

 

 

1,25,000

 

 

1,25,000 +

 

 

 

=

 

 

1,25,000

b.

Increase in Stock

 

50,000

 

 

 

 

 

 

 

Decrease in Cash

(50,000)

 

 

 

=

 

 

 

 

 

75,000 +

50,000

 

 

=

 

 

1,25,000

c.

Increase in Furniture

 

 

10,000

 

=

 

 

 

 

Increase in Creditors

 

 

 

 

=

 10,000

 

 

 

 

75,000+

50,000

10,000

 

=

10,000

+

1,25,000

d.

Increase in Debtors

 

 

 

9,000

 

 

 

 

 

Decrease in Stock

 

(7000)

 

 

 

 

 

 

 

Increase in Capital (Profit)

 

 

 

 

 

 

 

2,000

 

 

75,000+

43,000 +

10,000 +

9,000

=

10,000 

+

1,27,000

e.

Decrease in Capital (Cartage Expenses)

 

 

 

 

 

 

 

(100)

 

Decrease in Cash

(100)

 

 

 

 

 

 

 

 

 

74,900 +

43,000 +

10,000 +

9,000 

=

10,000

+

1,26,900

f.

Decrease in Creditors

 

 

 

 

 

(10,000)

 

 

 

Decrease in Cash

(9,700)

 

 

 

 

 

 

 

 

Increase in Capital (Discount - received)

 

 

 

 

 

 

 

300

 

 

65,200 +

43,000 +

10,000 +

9,000

=

NIL

+

1,27,200

g.

Increase in Cash

12,000

 

 

 

 

 

 

 

 

Decrease in Stock

 

(10,000)

 

 

 

 

 

 

 

Increase in Capital (Profit)

 

 

 

 

 

 

 

2,000

 

 

77,200 +

33,000 +

10,000 +

9,000

=

NIL

+

1,29,200

h.

Increase in Cash

4,000 +

 

 

 

 

 

 

 

 

Increase in Capital (Income)

 

 

 

 

 

 

 

4,000

 

 

81,200 +

33,000 +

10,000 +

9,000

=

NIL

+

1,33,200

i.

Decrease in Capital

 

 

 

 

 

 

 

(3,000)

 

Decrease in Cash

(3,000)

 

 

 

 

 

 

 

 

 

78,200 +

33,000 +

10,000 +

9,000

=

NIL

+

1,30,200

 

Solution NUM 10

a. The transaction (a) increases assets by Rs.5,50,000 (cash Rs.4,00,000 and office equipment Rs.1,5,000) it will be debited and on the other hand it will increase the capital by Rs. 5,50,000, so it will be credited in capital account.

 

Cash Account 

Dr.

Cr.

 

 

(a) Rs.4,00,000

 

 

 

Office Equipment Account 

Dr.

Cr.

 

 

(a) Rs.1,50,000

 

  

Capital Account 

Dr.

Cr.

 

(a) Rs.4,00,000

(a) Rs.1,50,000

 

 

 

b. Purchase of land and small office building are assets. On one hand, the purchase of these items will increase their individual accounts and this will increase the total amount of the assets in the business; so, both the accounts will be debited. On the other hand, payment in cash on the purchase of these assets will decrease the cash balance, so cash account will be credited to the extent of amount paid. After payment for building in cash, the balance of building account will be transferred to creditors for building account. This will increase the amount of the creditors, which in turn will increase the total liabilities of the business. Long term payables are regarded as loan to the business that will increase both cash balance (due to loan taken) as well as liabilities of the business.

 

Land Account 

Dr.

Cr.

(b) Rs.1,50,000

 

 

 

 

 

Building Account 

Dr.

Cr.

 (b) Rs.3,50,000

 

 

 

 

Cash Account 

Dr.

Cr.

(a) Rs.4,00,000

(b) Rs.8,00,000

(b) Rs.1,50,000

(b) Rs.50,000

 

 

 

  

Long Term Payable Account 

Dr.

Cr.

 

(b) Rs.8,00,000

 

 

 

c. Payment for 'office supplies' is an expense. So, it will be debited on one hand while on the other hand, office supplies has been purchased on credit, so it will increase the liability and the supplier's account will be credited.

 

Office Supplies Account

Dr.

Cr.

(c) Rs.12000

 

 

 

Supplier's Account

Dr.

Cr.

 

(c) Rs. 12000

 

d. Amount invested (motor car) by the proprietor in the business would increase both the capital and assets.

 

Motor Car Account

Dr.

Cr.

(d) Rs.90,000

 

 

Capital Account

Dr.

Cr.

 

(a) Rs.4,00,000

 

(a) Rs.1,50,000

 

(d) Rs.90,000

 

e. Purchase of additional equipments increases the assets, hence, office equipments account will be debited. Further as the office equipments was purchased on credit, it increases the amount of the creditors for office equipments and the creditors account will be credited.

Office Equipment Account

Dr.

Cr.

(a) Rs.1,50,000

(b) Rs.30,000

 

 

Creditors for Office Equipment Account

Dr.

Cr.

 

(e) Rs.30,000

 

f. Salary is an expense and it will be debited. Payment of salary to the manager will be debited to the salary account. And on the other hand the payment of the salary in cash decreases the cash balance (Assets), so the cash account would be credited.

 

Salary Account

Dr.

Cr.

(f) Rs.7,500

 

 

Cash Account

Dr.

Cr.

(a) Rs.4,00,000

(b) Rs.8,00,000

(b) Rs.1,50,000

(b) Rs.50,000

(f) Rs.7,500

 

g. Amount received is income for the business. All revenues are to be credited, so client service account will be credited. On the other hand, cash received in exchange of services would increase the cash balance. It would be debited to the cash account.

 

Client Services Account

Dr.

Cr.

 

(g) Rs.30,000

 

Cash Account

Dr.

Cr.

(a) Rs.4,00,000

(b) Rs.8,00,000

(g) Rs.30,000

(b) Rs. 1,50,000

(b) Rs.50,000

(f) Rs.7,500

 

 

h. All expenses are to be debited. Amount paid for utilities would be debited to utilities account. Utilities have been paid in cash so the cash account will be credited (as this decreases assets).

 

Utilities Account

Dr.

Cr.

(h) Rs.4,000

 

 

Cash Account

Dr.

Cr.

(a) Rs.4,00,000

(b) Rs.8,00,000

(g) Rs.30,000

(b) Rs.1,50,000

(b) Rs.50,000

(f) Rs.7,500

(h) Rs.4,000

 

 

i. Payment to the supplier (creditors) will be debited. It results in the decrease in liabilities. Further as the payment has been made in cash, so it results in decrease in the cash balance (assets) and hence the cash account will be credited.

 

Supplier's Account (Creditors)

Dr.

Cr.

(h) Rs.12,000

(c) Rs.12,000

 

Cash Account

Dr.

Cr.

(a) Rs.4,00,000

(b) Rs.8,00,000

(g) Rs.30,000

(b) Rs. 1,50,000

(b) Rs.50,000

(f) Rs.7,500

(h) Rs.4,000

(i) Rs.12,000

 

 

j. Purchase of the equipments will be debited in the Equipment Account (as there is increase in the assets). 

Office Equipments Account

Dr.

Cr.

(a) Rs.1,50,000

(b) Rs.30,000

(g) Rs.1,00,000

(b) Rs.7,000

 

 

 

Cash Account

Dr.

Cr.

(a) Rs.4,00,000

(b) Rs.8,00,000

(g) Rs.30,000

(b) Rs.1,50,000

(b) Rs.50,000

(f) Rs.7,500

(h) Rs.4,000

(i) Rs.12,000

(j) Rs.93,000

 

k. Receipt from 'Client services' is revenue. The client services account will be credited and client is considered as debtors, so the client account will be debited.

 

Client Services Account

Dr.

Cr.

 

(g) Rs.30,000

(k) Rs.26,000

 

 

Client Account (Debtors)

Dr.

Cr.

(k) Rs.26,000

 

 

 

 

l. The client has been considered as Debtors. The amount received from the client will lead to the decrease in the debtors balance and the client account will be credited. Receipts from the client will increase the cash balance (asset) and hence the cash account will be debited.

 

Client Account (Debtors)

Dr.

Cr.

(k) Rs.26,000

(f) Rs.19,000

 

 

 

Cash Account

Dr.

Cr.

(a) Rs.4,00,000

(b) Rs.8,00,000

(g) Rs.30,000

(l) Rs.19,000

(b) Rs. 1,50,000

(b) Rs.50,000

(f) Rs.7,500

(h) Rs.4,000

(i) Rs.12,000

(j) Rs.93,000

 

 

m. The amount withdrawn by the proprietor is considered as 'drawings'. Drawings account will be debited (as decrease in capital is debited). On the other hand as drawings have been made in cash, decrease in cash means cash account will be credited with the amount of drawings.

 

Drawings Account

Dr.

Cr.

(m) Rs.20,000

 

 

Cash Account

Dr.

Cr.

(a) Rs.4,00,000

(b) Rs.8,00,000

(g) Rs.30,000

(l) Rs.19,000

(b) Rs.1,50,000

(b) Rs.50,000

(f) Rs.7,500

(h) Rs.4,000

(i) Rs.12,000

(j) Rs.93,000

(m) Rs.20,000

 

 

T - Accounts

Capital Accounts

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

 

 

 

 

(a)

(a)

(d)

Cash

Office Equipment

Motor Car

 

4,00,000

1,50,000

90,000

 

Office Equipments Account

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(a)

(e)

 

(j)

Capital

Creditors for office equipment

Cash (1,00,000 - 7,000)

 

1,50,000

30,000

93,000

 

 

 

 

 

Cash Account

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(a)

(b)

(g)

(i)

Capital

Long term payable

Client Services

Client

 

4,00,000

8,00,000

30,000

19,000

 

(b)

(b)

(f)

(h)

(i)

(j)

(m)

 

Land

Building

Salaries

Utilities

Suppliers

Office Equipments

Drawings

 

1,50,000

50,000

7,500

4,000

12,000

93,000

20,000

 

Land Account

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(b)

Cash

 

1,50,000

 

 

 

 

 

Building Account

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(b)

(b)

Cash

Creditors for Building

 

50,000

3,00,000

 

 

 

 

 

Office Supplies Account (Expense)

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(c)

Supplier

 

12,000

 

 

 

 

 

Motor Car Account

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(d)

Capital

 

90,000

 

 

 

 

 

Supplier's Account (Creditors)

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(i)

Cash

 

12,000

(c)

Office supplies

 

12,000

 

Creditors for Office Equipment

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

 

 

 

 

(e)

Office equipment

 

30,000

 

Salaries Account

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(i)

Cash

 

7,500

 

 

 

 

 

Client Services Account

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

 

 

 

 

(g)

(k)

Cash

Client

 

30,000

26,000

 

Utilities Account (Expenses)

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(h)

Cash

 

4,000

 

 

 

 

 

Client Accounts (Debtors)

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(k)

Client Services

 

26,000

(l)

Cash

 

19,000

 

Drawings Account

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

(m)

Cash

 

20,000

 

 

 

 

 

Long Term Payable Account

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

 

 

 

 

(b)

Cash

 

8,00,000

 

Creditors For Building Account

Dr.  

Cr.

S.No

Particulars

J.F.

Amount Rs. 

S.No

Particulars

J.F.

Amount Rs. 

 

 

 

 

(b)

Building

 

3,00,000

 

 

Recording of Transactions - I Exercise 92

Solution NUM 11

Books of Himanshu

Journal

Date

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

2017

 

 

 

 

 

Dec.01

Cash A/c

Dr.

 

75,000

 

 

 To Capital A/c

 

 

 

75,000

 

(Being started business with cash)

 

 

 

 

 

Dec.07

Purchases A/c

Dr.

 

10,000

 

 

 To Cash A/c

 

 

 

10,000

 

(Being goods purchased for cash)

 

 

 

 

 

Dec.09

Swati A/c

Dr.

 

5,000

 

 

 To Sales A/c

 

 

 

5,000

 

(Being goods sold on credit)

 

 

 

 

 

Dec.12

Furniture A/c

Dr.

 

3,000

 

 

 To Cash A/c

 

 

 

3,000

 

(Being furniture purchased for cash)

 

 

 

 

 

Dec.18

Cash A/c

Dr.

 

4,000

 

 

Discount Allowed A/c

Dr.

 

1,000

 

 

 To Sales a/c

 

 

 

5,000

 

(Being cash received from Swati and discount Allowed)

 

 

 

 

 

Dec.25

Rent A/c

Dr.

 

1,000

 

 

 To Cash A/c

 

 

 

1,000

 

(Being rent paid in cash)

 

 

 

 

 

Dec.30

Salaries A/c

Dr.

 

1,500

 

 

 To Cash a/c

 

 

 

1,500

 

(Being salary paid in cash)

 

 

 

 

 

 

Total

 

 

1,00,500

1,00,500

 

 

Solution NUM 12

Books of Mudit

Journal

Date

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

2017

 

 

 

 

 

Jan.01

Building A/c

Dr.

 

1,00,000

 

 

Cash A/c

Dr.

 

1,75,000

 

 

 To Capital A/c

 

 

 

2,75,000

 

(Being commenced with cash and building)

 

 

 

 

 

Jan.02

Purchase A/c

Dr.

 

75,000

 

 

 To Capital A/c

 

 

 

75,000

 

(Being goods purchased for cash)

 

 

 

 

 

Jan.03

Ramesh A/c

Dr.

 

30,000

 

 

 To sales A/c

 

 

 

30,000

 

(Being goods sold to Ramesh)

 

 

 

 

 

Jan.04

Wages A/c

Dr.

 

500

 

 

 To Cash A/c

 

 

 

500

 

(Being wages paid in cash)

 

 

 

 

 

Jan.06

Cash A/c

Dr.

 

10,000

 

 

 To Sales A/c

 

 

 

10,000

 

(Being goods sold for cash)

 

 

 

 

 

Jan.10

Trade Expenses A/c

Dr.

 

700

 

 

 To Cash A/c

 

 

 

700

 

(Being trade expenses paid in cash)

 

 

 

 

Jan.12

Cash A/c

Dr.

 

29,500

 

 

Discount Allowed A/c

Dr.

 

500

 

 

 To Ramesh A/c

 

 

 

30,000

 

(Being cash received from Ramesh and discount allowed to him)

 

 

 

 

 

Jan.14

Purchases A/c

Dr.

 

27,000

 

 

 To Sudhir

 

 

 

27,000

 

(Being goods purchased from Sudhir on credit)

 

 

 

 

 

Jan.18

Cartage A/c

Dr.

 

1,000

 

 

 To Cash A/c

 

 

 

1,000

 

(Being cartage paid in cash)

 

 

 

 

 

Jan.20

Drawings A/c

Dr.

 

5,000

 

 

 To Cash A/c

 

 

 

5,000

 

(Being cash drawn for personal use)

 

 

 

 

 

Jan.22

Drawings A/c

Dr.

 

2,000

 

 

 To Purchases A/c

 

 

 

2,000

 

(Being goods drawn for business for households use)

 

 

 

 

 

Jan.25

Sudhir A/c

Dr.

 

27,000

 

 

 To Cash A/c

 

 

 

26,700

 

 To Discount Received A/c

 

 

 

300

 

(Being cash paid to Sudhir and discount received)

 

 

 

 

 

Total

 

 

4,83,200

4,83,200

 

Recording of Transactions - I Exercise 93

Solution NUM 13

Journal

Date

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

2017

 

 

 

 

 

Dec.01

Cash A/c

Dr.

 

1,00,000

 

 

 To Capital A/c

 

 

 

1,00,000

 

(Being business started with cash

 

 

 

 

 

Dec.02

Bank A/c

Dr.

 

30,000

 

 

 To Cash A/c

 

 

 

30,000

 

(Being bank account opened with SBI)

 

 

 

 

 

Dec.04

Purchases A/c

Dr.

 

20,000

 

 

 To Ashu A/c

 

 

 

20,000

 

(Being goods purchased from Ashu)

 

 

 

 

 

Dec.06

Cash A/c

Dr.

 

15,000

 

 

 To Sales A/c

 

 

 

15,000

 

(Being goods sold for cash)

 

 

 

 

 

Dec.10

Purchases A/c

Dr.

 

40,000

 

 

 To Cash A/c

 

 

 

40,000

 

(Being goods purchased for cash)

 

 

 

 

 

Dec.13

Suman A/c

Dr.

 

20,000

 

 

 To Sales A/c

 

 

 

20,000

 

(Being goods sold to Suman)

 

 

 

 

 

Dec.16

Bank A/c

Dr.

 

19,500

 

 

Discount Allowed A/c

Dr.

 

500

 

 

 To Suman A/c

 

 

 

20,000

 

(Being cash received from Suman and discount allowed)

 

 

 

 

 

Dec.20

Ashu A/c

Dr.

 

10,000

 

 

 To Bank A/c

 

 

 

10,000

 

(Being cheque given to Ashu)

 

 

 

 

 

Dec.22

Rent A/c

Dr.

 

2,000

 

 

 To Bank A/c

 

 

 

2,000

 

(Being rent paid by cheque)

 

 

 

 

 

Dec.23

Bank A/c

Dr.

 

16,000

 

 

 To Cash A/c

 

 

 

16,000

 

(Being cash deposited into bank)

 

 

 

 

 

Dec.25

Machinery A/c

Dr.

 

10,000

 

 

 To Parigya A/c

 

 

 

10,000

 

(Being machinery purchased from Parigya)

 

 

 

 

 

Dec.26

Trade Expenses A/c

Dr.

 

2,000

 

 

 To Cash A/c

 

 

 

2,000

 

(Being trade expenses paid)

 

 

 

 

 

Dec.28

Parigya A/c

Dr.

 

10,000

 

 

 To Bank A/c

 

 

 

10,000

 

(Being cheque issued to Parigya)

 

 

 

 

 

Dec.29

Telephone expense A/c

Dr.

 

1,200

 

 

 To Bank A/c

 

 

 

1,200

 

(Being telephone expenses paid by cheque)

 

 

 

 

 

Dec.30

Salaries A/c

Dr.

 

4,500

 

 

 To Cash A/c

 

 

 

4,500

 

(Being salary paid)

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

3,00,700

3,00,700

 

Solution NUM 14

Books of Harpreet bros

Journal

S.No

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

 

 

 

 

 

 

(a)

Bad debts A/c

Dr.

 

1,000

 

 

 To Rohit A/c

 

 

 

1,000

 

(Being due from Rohit became bad debts)

 

 

 

 

 

(b)

Drawings A/c

Dr.

 

2,000

 

 

 To Purchases A/c

 

 

 

2,000

 

(Being goods withdrawn by proprietor for personal use)

 

 

 

 

 

(c)

Depreciation A/c

Dr.

 

500

 

 

 To Machinery A/c

 

 

 

500

 

(Being depreciation charged on machinery for two months)

 

 

 

 

 

(d)

Interest on Capital A/c

Dr.

 

6,750

 

 

 To Capital A/c

 

 

 

6,750

 

(Being interest on capital at 6% due for 9 months)

 

 

 

 

 

(e)

Bad debts A/c

Dr.

 

800

 

 

 Cash A/c

Dr.

 

1,200

 

 

 To Rahul's A/c

 

 

 

2,000

 

(Being received from Rahul 60 paise in a rupee and rest amount considered as bad debt)

 

 

 

 

 

 

Total

 

 

12,250

12,250

 

Solution NUM 15

Journal

S.No

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

 

 

 

 

 

 

(a)

Machinery A/c

Dr.

 

500

 

 

 To Cash A/c

 

 

 

500

 

(Being cash paid for installation of machinery)

 

 

 

 

 

(b)

Charity A/c

Dr.

 

2,000

 

 

 To Purchases A/c

 

 

 

2,000

 

(Being goods given as charity)

 

 

 

 

 

(c)

Interest on capital A/c

Dr.

 

4,900

 

 

 To Capital A/c

 

 

 

4,900

 

(Being interest on capital charged @ 7% p.a.)

 

 

 

 

 

(d)

Cash A/c

Dr.

 

1,200

 

 

 To Bad Debt Recovered A/c

 

 

 

1,200

 

(Being cash received on from debtors which was previously written off as bad)

 

 

 

 

 

(e)

Loss by Fire A/c

Dr.

 

2,000

 

 

 To Purchases A/c

 

 

 

2,000

 

(Being goods destroyed by fire)

 

 

 

 

 

(f)

Rent A/c

Dr.

 

1,000

 

 

 To Rent Outstanding A/c

 

 

 

1,000

 

(Being rent due but not paid)

 

 

 

 

 

(g)

Drawings A/c

Dr.

 

900

 

 

 To Interest on Drawings A/c

 

 

 

900

 

(Being interest allowed on drawings)

 

 

 

 

 

(h)

Cash A/c

Dr.

 

1,350

 

 

Bad debts A/c

Dr.

 

1,650

 

 

 To Sudhir Kumar

 

 

 

3,000

 

(Being Sudhir kumar declared insolvent and cash received from him 45 paise in a rupee in full settlement)

 

 

 

 

 

(i)

Cash A/c

Dr.

 

7,000

 

 

 To Commission received in Advance

 

 

 

7,000

 

(Being commission received in advance)

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

22,500

22,500

 

Recording of Transactions - I Exercise 94

Solution NUM 16

Journal

Date

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

2017

 

 

 

 

 

Nov.01

Cash A/c

Dr.

 

1,50,000

 

 

Stock A/c

Dr.

 

50,000

 

 

 To Capital A/c

 

 

 

2,00,000

 

(Being business started with cash and goods)

 

 

 

 

 

Nov.03

Purchases A/c

Dr.

 

30,000

 

 

 To Harish A/c

 

 

 

30,000

 

(Being goods purchased from Harish)

 

 

 

 

 

Nov.05

Cash A/c

Dr.

 

12,000

 

 

 To Sales A/c

 

 

 

12,000

 

(Being goods sold for cash)

 

 

 

 

 

Nov.08

Furniture A/c

Dr.

 

5,000

 

 

 To Cash A/c

 

 

 

5,000

 

(Being furniture purchased for cash)

 

 

 

 

 

Nov.10

Harish A/c

Dr.

 

15,000

 

 

 To Cash A/c

 

 

 

15,000

 

(Being cash paid to Harish)

 

 

 

 

 

Nov.13

Sundry Expenses A/c

Dr.

 

200

 

 

 To Cash A/c

 

 

 

200

 

(Being sundry expenses paid)

 

 

 

 

 

Nov.15

Cash A/c

Dr.

 

15,000

 

 

 To Sales A/c

 

 

 

15,000

 

(Being goods sold for cash)

 

 

 

 

 

Nov.18

Bank A/c

Dr.

 

5,000

 

 

 To Cash A/c

 

 

 

5,000

 

(Being cash deposited into Bank)

 

 

 

 

 

Nov.20

Drawings A/c

Dr.

 

1,000

 

 

 To Cash A/c

 

 

 

1,000

 

(Being cash withdrawn for personal use)

 

 

 

 

 

Nov.22

Harish A/c

Dr.

 

15,000

 

 

 To Cash A/c

 

 

 

14,700

 

 To Discount Received A/c

 

 

 

300

 

(Being full payment made to Harish and discount received)

 

 

 

 

 

Nov.25

Nitesh A/c

Dr.

 

7,000

 

 

 To Sales A/c

 

 

 

7,000

 

(Being goods sold to Nitesh)

 

 

 

 

 

Nov.26

Cartage A/c

Dr.

 

200

 

 

 To Cash A/c

 

 

 

200

 

(Being cartage paid)

 

 

 

 

 

Nov.27

Rent A/c

Dr.

 

1,500

 

 

 To Cash A/c

 

 

 

1,500

 

(Being rent paid)

 

 

 

 

 

Nov.29

Cash A/c

Dr.

 

6,800

 

 

Discount Allowed A/c

 

 

200

 

 

 To Nitesh A/c

 

 

 

7000

 

(Being cash received from Nitesh and discount allowed)

 

 

 

 

 

Nov.30

Salaries A/c

Dr.

 

3,000

 

 

 To Cash A/c

 

 

 

3,000

 

(Being salary paid)

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

3,16,900

3,16,900

 

Ledger

Cash A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.01

To Capital

 

1,50,000

Nov.08

By Furniture

 

5,000

Nov.05

To Sales

 

12,000

Nov.10

By Harish

 

15,000

Nov.15

To Sales

 

15,000

Nov.13

By Sundry Expenses

 

200

Nov.29

To Nitesh

 

6,800

Nov.18

By Bank

 

5,000

 

 

 

 

Nov.20

By Drawings

 

1,000

 

 

 

 

Nov.22

By Harish

 

14,700

 

 

 

 

Nov.26

By Cartage

 

200

 

 

 

 

Nov.27

By Rent

 

1,500

 

 

 

 

Nov.30

By Salaries

 

3,000

 

 

 

 

Nov.30

By Balance c/d

 

1,38,200

 

 

 

1,83,800

 

 

 

1,83,800

Dec.01

To Balance b/d

 

1,38,200

 

 

 

 

 

Capital A/c

Dr.    

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.30

To Balance c/d

 

2,00,000

Nov.01

By Cash

 

1,50,000

 

 

 

 

Nov.01

By Stock

 

50,000

 

 

 

2,00,000

 

 

 

2,00,000

 

 

 

 

Dec.01

By Balance b/d

 

2,00,000

 

Stock A/c

Dr.    

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.01

To Capital

 

50,000

Nov.30

By Balance c/d

 

50,000

 

 

 

50,000

 

 

 

50,000

Dec.01

To Balance b/d

 

50,000

 

 

 

50,000

 

Cartage A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.26

To Cash

 

200

Nov.30

By Balance c/d

 

200

 

 

 

200

 

 

 

200

Dec.01

To Balance b/d

 

200

 

 

 

 

 

Rent A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.27

To Cash

 

1,500

Nov.30

By Balance c/d

 

1,500

 

 

 

1,500

 

 

 

1,500

Dec.01

To Balance b/d

 

1,500

 

 

 

 

 

Salaries A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.30

To Cash

 

3,000

Nov.30

By Balance c/d

 

3,000

 

 

 

3,000

 

 

 

3,000

Dec.01

To Balance b/d

 

3,000

 

 

 

 

 

Furniture A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.08

To Cash

 

5,000

Nov.30

By Balance c/d

 

5,000

 

 

 

5,000

 

 

 

5,000

Dec.01

To Balance b/d

 

5,000

 

 

 

 

 

Nitesh's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.25

To Sales

 

7,000

Nov.29

By Cash

 

6,800

 

 

 

 

Nov.29

By Discount Allowed

 

200

 

 

 

7,000

 

 

 

7,000

 

Sales A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.30

To Balance c/d

 

34,000

Nov.05

By Cash

 

12,000

 

 

 

 

Nov.15

By Cash

 

15,000

 

 

 

 

Nov.25

By Nitesh

 

7,000

 

 

 

34,000

 

 

 

34,000

 

 

 

 

Dec.01

By Balance b/d

 

34,000

 

Purchases A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.03

To Harish

 

30,000

Nov.30

By Balance c/d

 

30,000

 

 

 

30,000

 

 

 

30,000

Dec.01

To Balance b/d

 

30,000

 

 

 

 

 

Harish's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.10

To Cash

 

15,000

Nov.03

By Purchases

 

30,000

Nov.22

To Cash

 

14,700

 

 

 

 

Nov.22

To Discount Received

 

300

 

 

 

 

 

 

 

30,000

 

 

 

30,000

 

Sundry Expenses A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.13

To Cash

 

200

Nov.30

By Balance c/d

 

200

 

 

 

200

 

 

 

200

Dec.01

To Balance b/d

 

200

 

 

 

 

 

Bank A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.18

To Cash

 

5,000

Nov.30

By Balance c/d

 

5,000

 

 

 

5,000

 

 

 

5,000

Dec.01

To Balance b/d

 

5,000

 

 

 

 

 

Drawings A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.20

To Cash

 

1,000

Nov.30

By Balance c/d

 

1,000

 

 

 

1,000

 

 

 

1,000

Dec.01

To Balance b/d

 

1,000

 

 

 

 

 

Discount Received A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.30

To Balance c/d

 

300

Nov.22

By Harish

 

300

 

 

 

300

 

 

 

300

 

 

 

 

Dec.01

By Balance b/d

 

300

 

Discount Allowed A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Nov.29

To Nitesh

 

200

Nov.30

By Balance c/d

 

200

 

 

 

200

 

 

 

200

Dec.01

To Balance b/d

 

200

 

 

 

 

 

 

 

Solution NUM 17

Books of M/s Goel Brothers

Journal

Date

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

2017

 

 

 

 

 

Jan.01

Cash A/c

Dr.

 

1,65,000

 

 

 To Capital A/c

 

 

 

1,65,000

 

(Being business started with cash )

 

 

 

 

 

Jan.02

Bank A/c

Dr.

 

80,000

 

 

 To Cash A/c

 

 

 

80,000

 

(Being account opened with PNB)

 

 

 

 

 

Jan.04

Purchase A/c

Dr.

 

22,000

 

 

 To Tara's A/c

 

 

 

22,000

 

(Being goods purchased from Tara)

 

 

 

 

 

Jan.05

Purchases A/c

Dr.

 

30,000

 

 

 To Cash A/c

 

 

 

30,000

 

(Being goods purchased for cash)

 

 

 

 

 

Jan.08

Naman's A/c

Dr.

 

12,000

 

 

 To Sales A/c

 

 

 

12,000

 

(Being sale of goods to Naman)

 

 

 

 

 

Jan.10

Tara's A/c

Dr.

 

22,000

 

 

 To Cash A/c

 

 

 

22,000

 

(Being cash paid to Tara)

 

 

 

 

 

Jan.15

Cash A/c

Dr.

 

11,700

 

 

Discount Allowed A/c

Dr.

 

300

 

 

 To Naman's A/c

 

 

 

12,000

 

(Being cash received from Naman and discount allowed)

 

 

 

 

 

Jan.16

Wages A/c

Dr.

 

200

 

 

 To Cash A/c

 

 

 

200

 

(Being wages paid)

 

 

 

 

 

Jan.18

Furniture A/c

Dr.

 

5,000

 

 

 To Cash A/c

 

 

 

5,000

 

(Being furniture purchased for cash)

 

 

 

 

 

Jan.20

Drawings A/c

Dr.

 

4,000

 

 

 To Bank A/c

 

 

 

4,000

 

(Being cash drawn from Bank for personal use)

 

 

 

 

 

Jan.22

Rent A/c

Dr.

 

3,000

 

 

 To Bank A/c

 

 

 

3,000

 

(Being rent paid through cheque)

 

 

 

 

 

Jan.23

Drawings A/c

Dr.

 

2,000

 

 

 To Purchases A/c

 

 

 

2,000

 

(Being goods drawn for household purpose)

 

 

 

 

 

Jan.24

Cash A/c

Dr.

 

6,000

 

 

 To Bank A/c

 

 

 

6,000

 

(Being cash withdrawn from bank)

 

 

 

 

 

Jan.26

Cash A/c

Dr.

 

1,000

 

 

 To Commision A/c

 

 

 

1,000

 

(Being commission received)

 

 

 

 

 

Jan.27

Bank Charges A/c

Dr.

 

200

 

 

 To Bank A/c

 

 

 

200

 

(Being bank charged paid)

 

 

 

 

 

Jan.28

Insurance Premium A/c

Dr

 

3,000

 

 

 To Bank A/c

 

 

 

3,000

 

(Being insurance premium paid through cheque)

 

 

 

 

 

Jan.29

Salaries A/c

Dr.

 

7,000

 

 

 To Cash A/c

 

 

 

7,000

 

(Being salary paid)

 

 

 

 

 

Jan.30

Cash A/c

Dr.

 

10,000

 

 

 To Sales A/c

 

 

 

10,000

 

(Being goods sold for cash)

 

 

 

 

 

 

Total

 

 

3,84,400

3,84,400

 

 

Ledger

Cash A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.01

To Capital

 

1,65,000

Jan.02

By Bank

 

80,000

Jan.15

To Naman

 

11,700

Jan.05

By Purchases

 

30,000

Jan.24

To Bank

 

6,000

Jan.10

By Tara

 

22,000

Jan.26

To Commission

 

1,000

Jan.16

By Wages

 

200

Jan.30

To Sales

 

10,000

Jan.18

By Furniture

 

5,000

 

 

 

 

Jan.29

By Salaries

 

7,000

 

 

 

 

Jan.31

By Balance c/d

 

49,500

 

 

 

1,93,700

 

 

 

1,93,700

Feb.01

To Balance b/d

 

49,500

 

 

 

 

 

Capital A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.31

To Balance c/d

 

1,65,000

Jan.01

By Cash

 

1,65,000

 

 

 

1,65,000

 

 

 

1,65,000

 

 

 

 

Feb.01

By Balance b/d

 

1,65,000

 

Bank A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.02

To Cash

 

80,000

Jan.20

By Drawings

 

4,000

 

 

 

 

Jan.22

By Rent

 

3,000

 

 

 

 

Jan.24

By Cash

 

6,000

 

 

 

 

Jan.27

By Bank charges

 

200

 

 

 

 

Jan.28

By Insurance Premium

 

3,000

 

 

 

 

Jan.31

By Balance c/d

 

63,800

 

 

 

80,000

 

 

 

80,000

Feb.01

To Balance b/d

 

63,800

 

 

 

 

 

Tara's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.10

To Cash

 

22,000

Jan.04

By Purchases

 

22,000

 

 

 

22,000

 

 

 

22,000

 

Purchases A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.04

To Tara

 

22,000

Jan.23

By Purchases

 

2,000

Jan.05

To Cash

 

30,000

Jan.31

By Balance c/d

 

50,000

 

 

 

52,000

 

 

 

52,000

Feb.01

To Balance b/d

 

50,000

 

 

 

 

 

Sales A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.31

To Balance c/d

 

22,000

Jan.08

By Naman

 

12,000

 

 

 

 

Jan.30

By Cash

 

10,000

 

 

 

22,000

 

 

 

22,000

 

 

 

 

Feb.01

By Balance b/d

 

22,000

 

Naman's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.08

To Sales

 

12,000

Jan.15

By Cash

 

11,700

 

 

 

 

Jan.15

By Discount Allowed

 

300

 

 

 

12,000

 

 

 

12,000

 

Discount Allowed A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.15

To Naman

 

300

Jan.31

By Balance c/d

 

300

 

 

 

300

 

 

 

300

Feb.01

To Balance b/d

 

300

 

 

 

 

 

Wages A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.16

To Cash

 

200

Jan.31

By Balance c/d

 

200

 

 

 

200

 

 

 

200

Feb.01

To Balance b/d

 

200

 

 

 

 

 

Furniture A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.18

To Cash

 

5,000

Jan.31

By Balance c/d

 

5,000

 

 

 

5,000

 

 

 

5,000

Feb.01

To Balance b/d

 

5,000

 

 

 

 

 

Drawings A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.20

To Cash

 

4,000

Jan.31

By Balance c/d

 

6,000

Jan.23

To Purchases

 

2,000

 

 

 

 

 

 

 

6,000

 

 

 

6,000

Feb.01

To Balance b/d

 

6,000

 

 

 

 

 

Rent A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.22

To Bank

 

3000

Jan.31

By Balance c/d

 

3000

 

 

 

3000

 

 

 

3000

Feb.01

To Balance b/d

 

3,000

 

 

 

 

 

Commission A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.31

To Balance c/d

 

1,000

Jan.26

By Cash

 

1,000

 

 

 

1,000

 

 

 

1,000

 

 

 

 

Feb.01

By Balance b/d

 

1,000

 

Bank Charges A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.27

To Bank

 

200

Jan.31

By Balance c/d

 

200

 

 

 

200

 

 

 

200

Feb.01

To Balance b/d

 

1,000

 

 

 

 

 

Insurance Premium A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.28

To Bank

 

3,000

Jan.31

By Balance c/d

 

3,000

 

 

 

3,000

 

 

 

3,000

Feb.01

To Balance b/d

 

3,000

 

 

 

 

 

Salaries A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.29

To Cash

 

7,000

Jan.31

By Balance c/d

 

7,000

 

 

 

7,000

 

 

 

7,000

Feb.01

To Balance b/d

 

7,000

 

 

 

 

 

 

 

Recording of Transactions - I Exercise 95

Solution NUM 18

Books of M/s. Mohit Traders

Journal

Date

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

2017

 

 

 

 

 

Aug .01

Cash A/c

Dr.

 

1,10,000

 

 

 To Capital A/c

 

 

 

1,10,000

 

(Being business commenced with cash )

 

 

 

 

 

Aug.02

Bank A/c

Dr.

 

50,000

 

 

 To Cash A/c

 

 

 

50,000

 

(Being account opened with H.D.F.C)

 

 

 

 

 

Aug.03

Furniture A/c

Dr.

 

20,000

 

 

 To Cash A/c

 

 

 

20,000

 

(Being Furniture purchased)

 

 

 

 

 

Aug.07

Purchases A/c

Dr.

 

30,000

 

 

 To Cash A/c

 

 

 

30,000

 

(Being goods purchased for cash)

 

 

 

 

 

Aug.08

Purchases A/c

Dr.

 

42,000

 

 

 To M/s Hema Trader A/c

 

 

 

42,000

 

(Being goods purchased from M/s Hema Trader)

 

 

 

 

 

Aug.10

Cash A/c

Dr.

 

30,000

 

 

 To Sales A/c

 

 

 

30,000

 

(Being goods sold for cash)

 

 

 

 

 

Aug.14

M/s Gupta Trader A/c

Dr.

 

12,000

 

 

 To Sales A/c

 

 

 

12,000

 

(Being goods sold to M/s Gupta traders)

 

 

 

 

 

Aug.16

Rent A/c

Dr.

 

4,000

 

 

 To Cash A/c

 

 

 

4,000

 

(Being rent paid in cash)

 

 

 

 

 

Aug.18

Trade Expenses A/c

Dr.

 

1,000

 

 

 To Cash A/c

 

 

 

1,000

 

(Being trade expenses paid in cash)

 

 

 

 

 

Aug.20

Cash A/c

Dr.

 

12,000

 

 

 To M/s. Gupta Traders A/c

 

 

 

12,000

 

(Being cash received from M/s Gupta traders)

 

 

 

 

 

Aug.22

M/s. Hema TraderA/c

Dr.

 

2,000

 

 

 To Purchase Return A/c

 

 

 

2,000

 

(Being goods returned to Hema Traders)

 

 

 

 

 

Aug.23

M/s Hema Traders A/c

Dr.

 

40,000

 

 

 To Cash A/c

 

 

 

40,000

 

(Being cash paid to Hema traders)

 

 

 

 

 

Aug.25

Postage Stamps A/c

Dr.

 

100

 

 

 To Cash A/c

 

 

 

100

 

(Being postage stamps purchased)

 

 

 

 

 

Aug.30

Salaries A/c

Dr.

 

4,000

 

 

 To Cash A/c

 

 

 

4,000

 

(Being Salaries paid in cash)

 

 

 

 

 

 

Total

 

 

3,57,100

3,57,100

 

Cash A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.01

To Capital

 

1,10,000

Aug.02

By Bank

 

50,000

Aug.10

To Sales

 

30,000

Aug.03

By Furniture

 

20,000

Aug.20

To M/s. Gupta Traders

 

12,000

Aug.07

By Purchases

 

30,000

 

 

 

 

Aug.16

By Rent

 

4,000

 

 

 

 

Aug.18

By Trade Expenses

 

1,000

 

 

 

 

Aug.23

By M/s Hema Traders

 

40,000

 

 

 

 

Aug.25

By Postage Stamps

 

100

 

 

 

 

Aug.30

By Salaries

 

4,000

 

 

 

 

Aug.31

By Balance c/d

 

2,900

 

 

 

1,52,000

 

 

 

1,52,000

Sept.01

To Balance b/d

 

2,900

 

 

 

 

 

Capital A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.31

To Balance c/d

 

1,10,000

Aug.01

By Cash

 

1,10,000

 

 

 

1,10,000

 

 

 

1,10,000

 

 

 

 

Sept.01

By Balance b/d

 

1,10,000

 

Bank A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.02

To Cash

 

50,000

Aug.31

By Balance c/d

 

50,000

 

 

 

50,000

 

 

 

50,000

Sept.01

To Balance b/d

 

50,000

 

 

 

 

 

Furniture A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.03

To Cash

 

20,000

Aug.31

By Balance c/d

 

20,000

 

 

 

20,000

 

 

 

20,000

Sept.01

To Balance b/d

 

20,000

 

 

 

 

 

Purchase A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.07

To Cash

 

30,000

Aug.31

By Balance c/d

 

72,000

Aug.08

To M/s. Hema Traders

 

42,000

 

 

 

 

 

 

 

72,000

 

 

 

72,000

Sept.01

To Balance b/d

 

72,000

 

 

 

 

 

M/s Hema Traders A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.22

To Purchase Return

 

2,000

Aug.08

By Purchases

 

42,000

Aug.23

To Cash

 

40,000

 

 

 

 

 

 

 

42,000

 

 

 

42,000

 

Sales A/c

Dr.  

Cr.

 

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.31

To Balance c/d

 

42,000

Aug.10

By Cash

 

30,000

 

 

 

 

Aug.14

By M/s Gupta Traders

 

12,000

 

 

 

42,000

 

 

 

42,000

 

 

 

 

Sept.01

By Balance b/d

 

42,000

 

M/s Gupta Traders A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.14

To Sales

 

12,000

Aug.20

By Cash

 

12,000

 

 

 

12,000

 

 

 

12,000

 

Rent A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.16

To Cash

 

4,000

Aug.31

By Balance c/d

 

4,000

 

 

 

4,000

 

 

 

4,000

Sept.01

To Balance b/d

 

4,000

 

 

 

 

 

Trade Expenses A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.18

To Cash

 

1,000

Aug.31

By Balance c/d

 

1,000

 

 

 

1,000

 

 

 

1,000

Sept.01

To Balance b/d

 

1,000

 

 

 

 

 

Purchase Return A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.31

To Balance c/d

 

2,000

Aug.22

By M/s. Hema Traders

 

2,000

 

 

 

2,000

 

 

 

2,000

 

 

 

 

Sept.01

By Balance b/d

 

2,000

 

Postage Stamps A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.25

To Cash

 

100

Aug.31

By Balance c/d

 

100

 

 

 

100

 

 

 

100

Sept.01

To Balance b/d

 

100

 

 

 

 

 

Salaries A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Aug.30

To Cash

 

4,000

Aug.31

By Balance c/d

 

4,000

 

 

 

4,000

 

 

 

4,000

Sept.01

To Balance b/d

 

4,000

 

 

 

 

 

 

Solution NUM 19

Books of M/s. Bhanu Traders

Journal

Date

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

2017

 

 

 

 

 

Dec .01

Cash A/c

Dr.

 

92,000

 

 

 To Capital A/c

 

 

 

92,000

 

(Being business started with cash )

 

 

 

 

 

Dec.02

Bank A/c

Dr.

 

60,000

 

 

 To Cash A/c

 

 

 

60,000

 

(Being cash deposited into Bank)

 

 

 

 

 

Dec.04

Purchases A/c

Dr.

 

40,000

 

 

 To Himani A/c

 

 

 

40,000

 

(Being furniture purchased)

 

 

 

 

 

Dec.06

Purchases A/c

Dr.

 

20,000

 

 

 To Cash A/c

 

 

 

20,000

 

(Being goods purchased for cash)

 

 

 

 

 

Dec.08

Himani A/c

Dr.

 

4,000

 

 

 To Purchase Return A/c

 

 

 

4,000

 

(Being goods returned to Himani)

 

 

 

 

 

Dec.10

Cash A/c

Dr.

 

20,000

 

 

 To Sales A/c

 

 

 

20,000

 

(Being goods sold for cash)

 

 

 

 

 

Dec.14

Himani A/c

Dr.

 

36,000

 

 

 To Bank A/c

 

 

 

36,000

 

(Being cheque given to Himani)

 

 

 

 

 

Dec.17

M/s Goyal Traders A/c

Dr.

 

3,50,000

 

 

 To Sales A/c

 

 

 

3,50,000

 

(Being goods sold to M/s Goyal Traders)

 

 

 

 

 

Dec.19

Drawings A/c

Dr.

 

2,000

 

 

 To Bank A/c

 

 

 

2,000

 

(Being cash withdrawn from Bank for personal use)

 

 

 

 

 

Dec.21

Sales Return A/c

Dr.

 

3,500

 

 

 To M/s. Goyal Traders A/c

 

 

 

3,500

 

(Being goods returned to M/s Goyal Traders)

 

 

 

 

 

Dec.22

Bank A/c

Dr.

 

20,000

 

 

 To Cash A/c

 

 

 

20,000

 

(Being cash deposited into Bank)

 

 

 

 

 

Dec.26

Bank A/c

Dr.

 

31,500

 

 

 To M/s Goyal Traders A/c

 

 

 

31,500

 

(Being cheque received from M/s Goyal Traders)

 

 

 

 

 

Dec.28

Charity A/c

Dr.

 

2,000

 

 

 To Purchases A/c

 

 

 

2,000

 

(Being goods given as charity)

 

 

 

 

 

Dec.29

Rent A/c

Dr.

 

3,000

 

 

 To Bank A/c

 

 

 

3,000

 

(Being rent paid)

 

 

 

 

 

Dec.30

Salaries A/c

Dr.

 

7,000

 

 

 To Cash A/c

 

 

 

7,000

 

(Being salaries paid)

 

 

 

 

 

Dec.31

Office Machine A/c

Dr.

 

3,000

 

 

 To Cash A/c

 

 

 

3,000

 

(Being office machinery purchased)

 

 

 

 

 

 

Total

 

 

6,94,000

6,94,000

 

Cash A/c

Dr.  

r.Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.01

To Capital

 

92,000

Dec.02

By Bank

 

60,000

Dec.10

To Sales

 

20,000

Dec.06

By Purchases

 

20,000

 

 

 

 

Dec.22

By Bank

 

20,000

 

 

 

 

Dec.30

By Salaries

 

7,000

 

 

 

 

Dec.31

By Office machine

 

3,000

 

 

 

 

Dec.31

By Balance c/d

 

2,000

 

 

 

1,12,000

 

 

 

1,12,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

2,000

 

 

 

 

 

Capital A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.31

To Balance c/d

 

92,000

Dec.01

By Cash

 

92,000

 

 

 

92,000

 

 

 

92,000

2018

 

 

 

2018

 

 

 

 

 

 

 

Jan.01

By Balance b/d

 

92,000

 

Bank A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.02

To Cash

 

60,000

Dec.14

By Himani

 

36,000

Dec.22

To Cash

 

20,000

Dec.19

By Drawings

 

2,000

Dec.26

To Goyal Traders

 

31,500

Dec.29

By Rent

 

3,000

 

 

 

 

Dec.31

By Balance c/d

 

70,500

 

 

 

1,11,500

 

 

 

1,11,500

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

70,500

 

 

 

 

 

Note: For transaction on December 29, 2017, it has been assumed that the rent of Rs.3,000 is paid through cheque. If instead the rent would have been paid in cash, the cash account would have shown a credit (negative) balance and that is logically not correct.

Purchase A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.04

To Himani

 

40,000

Dec.28

By Charity

 

2,000

Dec.06

To Cash

 

20,000

Dec.31

By Balance c/d

 

58,000

 

 

 

60,000

 

 

 

60,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

58,000

 

 

 

 

 

Himani's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.08

To Purchase Return

 

40,00

Dec.04

By Purchases

 

40,000

Dec.14

To Bank

 

36,000

 

 

 

 

 

 

 

40,000

 

 

 

40,000

 

Sales A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.31

To Balance c/d

 

55,000

Dec.10

By Cash

 

20,000

 

 

 

 

Dec.17

By M/s Goyal Traders

 

35,000

 

 

 

55,000

 

 

 

55,000

2018

 

 

 

2018

 

 

 

 

 

 

 

Jan.01

By Balance b/d

 

55,000

 

M/s Goyal Traders A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.17

To Sales

 

35,000

Dec.21

By Sales Return

 

3,500

 

 

 

 

Dec.26

By Bank

 

31,500

 

 

 

35,000

 

 

 

35,000

 

Purchases Return A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.31

To Balance c/d

 

4,000

Dec.08

By Himani

 

4,000

 

 

 

4,000

 

 

 

4,000

2018

 

 

 

2018

 

 

 

 

 

 

 

Jan.01

By Balance b/d

 

4,000

 

Drawings A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.19

To Bank

 

2,000

Dec.31

By Balance c/d

 

2,000

 

 

 

2,000

 

 

 

2,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

2,000

 

 

 

 

 

Sales Return A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.21

To M/s. Goyal Traders

 

3,500

Dec.31

By Balance c/d

 

3,500

 

 

 

3,500

 

 

 

3,500

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

3,500

 

 

 

 

 

Charity A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.28

To Purchases

 

2000

Dec.31

By Balance c/d

 

2000

 

 

 

2000

 

 

 

2000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

2,000

 

 

 

 

 

Rent A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.29

To Cash

 

3,000

Dec.31

By Balance c/d

 

3,000

 

 

 

3,000

 

 

 

3,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

 3,000

 

 

 

 

 

Salaries A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.30

To Cash

 

7,000

Dec.31

By Balance c/d

 

7,000

 

 

 

7,000

 

 

 

7,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

 7,000

 

 

 

 

 

 

Office Machine A/c

Dr.  

Cr.

 

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

 

2017

 

 

 

2017

 

 

 

 

Dec.31

To Cash

 

3,000

Dec.31

By Balance c/d

 

3,000

 

 

 

 

3,000

 

 

 

3,000

 

2018

 

 

 

2018

 

 

 

 

Jan.01

To Balance b/d

 

 3,000

 

 

 

 

 

 

Recording of Transactions - I Exercise 96

Solution NUM 20

Books of Beauti Traders

Journal

Date

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

2017

 

 

 

 

 

Dec .01

Cash A/c

Dr.

 

2,00,000

 

 

 To Capital A/c

 

 

 

2,00,000

 

(Being business started with cash )

 

 

 

 

 

Dec.02

Office Furniture A/c

Dr.

 

30,000

 

 

 To Cash A/c

 

 

 

30,000

 

(Being office furniture purchased)

 

 

 

 

 

Dec.03

Bank A/c

Dr.

 

1,00,000

 

 

 To Cash A/c

 

 

 

1,00,000

 

(Being opened a current account)

 

 

 

 

 

Dec.05

Computer A/c

Dr.

 

2,50,,000

 

 

 To Bank A/c

 

 

 

2,50,,000

 

(Being computer purchased and payment made through cheque)

 

 

 

 

 

Dec.06

Purchases A/c

Dr.

 

60,000

 

 

 To Ritika A/c

 

 

 

60,000

 

(Being goods purchased from Ritika on credit)

 

 

 

 

 

Dec.08

Cash A/c

Dr.

 

30,000

 

 

 To Sales A/c

 

 

 

30,000

 

(Being goods sold for cash)

 

 

 

 

 

Dec.09

Karishna A/c

Dr.

 

25,000

 

 

 To Sales A/c

 

 

 

25,000

 

(Being goods sold to Karishna)

 

 

 

 

 

Dec.12

Mansi A/c

Dr.

 

30,000

 

 

 To Cash A/c

 

 

 

30,000

 

(Being cash paid to Mansi on account)

 

 

 

 

 

Dec.14

Ritika A/c

Dr.

 

2,000

 

 

 To Purchases Return A/c

 

 

 

2,000

 

(Being goods returned to Ritika)

 

 

 

 

 

Dec.15

Stationary A/c

Dr.

 

3,000

 

 

  To Cash A/c

 

 

 

3,000

 

(Being stationary purchased for cash)

 

 

 

 

 

Dec.16

Wages A/c

Dr.

 

1,000

 

 

 To Cash A/c

 

 

 

1,000

 

(Being wages paid)

 

 

 

 

 

Dec.18

Sales Return A/c

 Dr.

 

2,000

 

 

 To Karishna A/c

 

 

 

2,000

 

(Being goods returned by Karishna)

 

 

 

 

 

Dec.20

Ritika A/c

Dr.

 

28,000

 

 

 To Bank A/c

 

 

 

28,000

 

(Being cheque issued to Ritika)

 

 

 

 

 

Dec.22

Cash A/c

Dr.

 

15,000

 

 

 To Karishna A/c

 

 

 

15,000

 

(Being cash received from Karishna on account)

 

 

 

 

 

Dec.24

Insurance Premium A/c

Dr.

 

4,000

 

 

 To Bank A/c

 

 

 

4000

 

(Being insurance premium paid through cheque)

 

 

 

 

 

Dec.26

Bank A/c

Dr.

 

8,000

 

 

 To Karishna A/c

 

 

 

8,000

 

(Being cheque received from Karishna)

 

 

 

 

 

Dec.28

Rent A/c

Dr.

 

3,000

 

 

 To Bank A/c

 

 

 

3,000

 

(Being rent paid through cheque)

 

 

 

 

 

Dec.29

Purchases A/c

Dr.

 

20,000

 

 

 To Meena Traders

 

 

 

20,000

 

(Being goods purchased on credit from Meera Traders)

 

 

 

 

 

Dec.30

Cash A/c

Dr.

 

14,000

 

 

 To Sales A/c

 

 

 

14,000

 

(Being goods sold for cash)

 

 

 

 

 

 

Total

 

 

8,25,000

8,25,000

 

Ledger

Cash A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.01

To Capital

 

2,00,000

Dec.02

By Office furniture

 

30,000

Dec.02

To Sales

 

30,000

Dec.03

By Bank

 

1,00,000

Dec.22

To Krishna

 

15,000

Dec.12

By Mansi

 

30,000

Dec.30

To Sales

 

14,000

Dec.15

By Stationery

 

3,000

 

 

 

 

Dec.16

By Wages

 

1,000

 

 

 

 

Dec.31

By Balance c/d

 

95,000

 

 

 

 

 

 

 

 

 

 

 

2,59,000

 

 

 

2,59,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

 95,000

 

 

 

 

 

Capital A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.31

Balance c/d

 

2,00,000

Dec.1

By Cash

 

2,00,000

 

 

 

2,00,000

 

 

 

2,00,000

2018

 

 

 

2018

 

 

 

 

 

 

 

Jan.01

By Balance b/d

 

2,00,000

 

Office Furniture A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.2

To Cash

 

30,000

Dec.31

By Balance c/d

 

30,000

 

 

 

30,000

 

 

 

30,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

30,000

 

 

 

 

 

Bank A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.03

To Cash

 

1,00,000

Dec.05

By Computer

 

2,50,000

Dec.26

To Krishna

 

8,000

Dec.20

By Ritika

 

28,000

Dec.31

To Balance c/d

 

1,77,000

Dec.24

By Insurance Premium

 

4,000

 

 

 

 

Dec.28

By Rent

 

3,000

 

 

 

2,85,000

 

 

 

2,85,000

2018

 

 

 

2018

 

 

 

 

 

 

 

Jan.01

By Balance b/d

 

1,77,000

 

Computer A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.05

To Bank

 

2,50,000

Dec.31

By Balance c/d

 

2,50,000

 

 

 

2,50,000

 

 

 

2,50,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

2,50,000

 

 

 

 

 

Purchases A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.06

To Bank

 

60,000

Dec.31

By Balance c/d

 

80,000

Dec.29

To Meena Traders

 

20,000

 

 

 

 

 

 

 

80,000

 

 

 

80,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

80,000

 

 

 

 

 

Ritika's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.14

To Purchase Return

 

2,000

Dec.06

By Purchases

 

60,000

Dec.20

To Bank

 

28,000

 

 

 

 

Dec.31

To Balance c/d

 

30,000

 

 

 

 

 

 

 

60,000

 

 

 

60,000

2018

 

 

 

2018

 

 

 

 

 

 

 

Jan.01

By Balance b/d

 

30,000

 

Meena's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.31

To Balance c/d

 

20,000

Dec.29

By Purchases

 

20,000

 

 

 

20,000

 

 

 

20,000

 2018

 

 

 

2018

 

 

 

 

 

 

 

Jan.01

By Balance b/d

 

20,000

 

Sales A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.31

To Balance c/d

 

69,000

Dec.08

By Cash

 

30,000

 

 

 

 

Dec.09

By Krishna

 

25,000

 

 

 

 

Dec.30

By Cash

 

14,000

 

 

 

69,000

 

 

 

69,000

2018

 

 

 

2018

 

 

 

 

 

 

 

Jan.01

By Balance b/d

 

69,000

 

Karishna's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.09

To Sales

 

25,000

Dec.18

By Sales return

 

2,000

 

 

 

 

Dec.22

By Cash

 

15,000

 

 

 

 

Dec.26

By Bank

 

8,000

 

 

 

25,000

 

 

 

25,000

 

Mansi's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.12

To Cash

 

30,000

Dec.31

By Balance c/d

 

30,000

 

 

 

30,000

 

 

 

30,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

30,000

 

 

 

 

 

Purchases Return A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.31

To Balance c/d

 

2,000

Dec.14

By Ritika

 

2,000

 

 

 

2,000

 

 

 

2,000

2018

 

 

 

2018

 

 

 

 

 

 

 

Jan.01

By Balance b/d

 

2,000

 

Stationery A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.15

To Cash

 

3,000

Dec.31

By Balance c/d

 

3,000

 

 

 

3,000

 

 

 

3,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

3,000

 

 

 

 

 

Wages A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.16

To Cash

 

1,000

Dec.31

By Balance c/d

 

1,000

 

 

 

1,000

 

 

 

1,000

2018

 

 

 

 

 

 

 

Jan.01

To Balance b/d

 

1,000

 

 

 

 

 

Sales Return A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.18

To Karishna

 

2,000

Dec.31

By Balance c/d

 

2,000

 

 

 

2,000

 

 

 

2,000

2018

 

 

 

 

 

 

 

Jan.01

To Balance b/d

 

2,000

 

 

 

 

 

Insurance Premium A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.24

Bank

 

4,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

4,000

 

 

 

4,000

 

 

 

4,000

 

Rent A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Dec.28

To Bank

 

3,000

Dec.31

By Balance c/d

 

3,000

 

 

 

3,000

 

 

 

4,000

2018

 

 

 

2018

 

 

 

Jan.01

To Balance b/d

 

3,000

 

 

 

 

 

 

 

Solution NUM 21

Books of Sanjana

Journal

Date

Particulars

 

L.F.

Dr. (Rs.)

Cr. (Rs.)

2017

 

 

 

 

 

Jan.01

Cash A/c

Dr.

 

6,000

 

 

Bank A/c

Dr.

 

55,000

 

 

Stock A/c

Dr.

 

40,000

 

 

Tarun's A/c

Dr.

 

10,000

 

 

 To Rohan's A/c

 

 

 

6,000

 

 To Capital A/c

 

 

 

1,05,000

 

(Being balances brought from the last month)

 

 

 

 

 

Jan.03

Karuna A/c

Dr.

 

15,000

 

 

 To Sales A/c

 

 

 

15,000

 

(Being goods sold to Karuna)

 

 

 

 

 

Jan.04

Cash A/c

Dr.

 

10,000

 

 

 To Sales A/c

 

 

 

10,000

 

(Being goods sold for cash)

 

 

 

 

 

Jan.06

Heena A/c

Dr.

 

5,000

 

 

 To Sales A/c

 

 

 

5,000

 

(Being Goods sold to Heena)

 

 

 

 

 

Jan.08

Purchases A/c

Dr.

 

30,000

 

 

 To Rupali A/c

 

 

 

30,000

 

(Being goods purchased from Rupali)

 

 

 

 

 

Jan.10

Sales return A/c

Dr.

 

2,000

 

 

 To Karuna A/c

 

 

 

2,000

 

(Being goods returned by Karuna)

 

 

 

 

 

Jan.14

Cash A/c

Dr.

 

13,000

 

 

 To Karuna A/c

 

 

 

13,000

 

(Being cash received from Karuna)

 

 

 

 

 

Jan.15

Rohan A/c

Dr.

 

6,000

 

 

 To Bank A/c

 

 

 

6,000

 

(Being cheque issued to Rohan)

 

 

 

 

 

Jan.16

Cash A/c

Dr.

 

3,000

 

 

 To Heena A/c

 

 

 

3,000

 

(Being cash received from Heena)

 

 

 

 

 

Jan.20

Bank A/c

Dr.

 

10,000

 

 

 To Tarun A/c

 

 

 

10,000

 

(Being cheque received from Tarun)

 

 

 

 

 

Jan.22

Bank A/c

Dr.

 

2,000

 

 

 To Heena A/c

 

 

 

2,000

 

(Being cheque received from Heena)

 

 

 

 

 

Jan.25

Rupali A/c

Dr.

 

18,000

 

 

 To Cash A/c

 

 

 

18,000

 

(Being cash payment made to Rupali)

 

 

 

 

 

Jan.26

Cartage A/c

Dr.

 

1,000

 

 

 To Cash A/c

 

 

 

1,000

 

(Being cartage paid)

 

 

 

 

 

Jan.27

Salaries A/c

Dr.

 

8,000

 

 

 To Cash A/c

 

 

 

8,000

 

(Being salaries paid)

 

 

 

 

 

Jan.28

Cash A/c

Dr.

 

7,000

 

 

 To Sales A/c

 

 

 

7000

 

(Being goods sold for cash)

 

 

 

 

 

Jan.29

Rupali A/c

Dr.

 

12,000

 

 

 To Bank A/c

 

 

 

12,000

 

(Being cheque issued to Rupali)

 

 

 

 

 

Jan.30

Drawings A/c

Dr.

 

4,000

 

 

 To Purchases A/c

 

 

 

4,000

 

(Being goods drawn for personal use)

 

 

 

 

 

Jan.31

General Expenses A/c

Dr.

 

500

 

 

 To Cash

 

 

 

500

 

(Being general expense paid)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

2,57,500

2,57,500

 

Ledger

Cash A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.01

To Balance b/d

 

6,000

Jan.25

By Rupali

 

18,000

Jan.04

To Sales

 

10,000

Jan.26

By Cartage

 

1,000

Jan.14

To Karuna

 

13,000

Jan.27

By Salaries

 

8,000

Jan.16

To Heena

 

3,000

Jan.31

By General Expenses

 

500

Jan.28

To Sales

 

7,000

Jan.31

By Balance c/d

 

11,500

 

 

 

39,000

 

 

 

39,000

Feb.01

To Balance b/d

 

11,500

 

 

 

 

 

Capital A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.31

To Balance c/d

 

1,05,000

Jan.01

By Balance b/d

 

1,05,000

 

 

 

1,05,000

 

 

 

1,05,000

 

 

 

 

Feb.01

By Balance b/d

 

1,05,000

 

Bank A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.01

To Balance b/d

 

55,000

Jan.15

By Rohan

 

6,000

Jan.20

To Tarun

 

10,000

Jan.29

By Rupali

 

12,000

Jan.22

To Heena

 

2,000

Jan.31

By Balance c/d

 

49,000

 

 

 

67,000

 

 

 

67,000

Feb.01

To balance b/d

 

49,000

 

 

 

 

 

Stock A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.01

To Balance b/d

 

40,000

Jan.31

By Balance c/d

 

40,000

 

 

 

40,000

 

 

 

40,000

Feb.01

To Balance b/d

 

40,000

 

 

 

 

 

Rohan' s A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.15

To Bank

 

6,000

Jan.01

By Balance b/d

 

6,000

 

 

 

6,000

 

 

 

6,000

 

Tarun's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.01

To Balance b/d

 

10,000

Jan.20

By Bank

 

10,000

 

 

 

10,000

 

 

 

10,000

 

Sales A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.31

To Balance c/d

 

37,000

Jan.03

By Karuna

 

15,000

 

 

 

 

Jan.04

By Cash

 

10,000

 

 

 

 

Jan.06

By Heena

 

5,000

 

 

 

 

Jan.28

By Cash

 

7,000

 

 

 

37,000

 

 

 

37,000

 

 

 

 

Feb.01

By Balance b/d

 

37,000

 

Karun's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.03

To Sales

 

15,000

Jan.10

By Sales Return

 

2,000

 

 

 

 

Jan.04

By Cash

 

13,000

 

 

 

15,000

 

 

 

15,000

 

Heena's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.06

To Sales

 

5,000

Jan.16

By Cash

 

3,000

 

 

 

 

Jan.22

By Bank

 

2,000

 

 

 

5,000

 

 

 

5,000

 

Purchases A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.08

To Rupali

 

30,000

Jan.30

By Drawings

 

4,000

 

 

 

 

Jan.31

By Balance c/d

 

26,000

 

 

 

30,000

 

 

 

30,000

Feb.01

To Balance b/d

 

26,000

 

 

 

 

 

Rupali's A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs. 

2017

 

 

 

2017

 

 

 

Jan.25

To Cash

 

18,000

Jan.08

By Purchases

 

30,000

Jan.29

To Bank

 

12,000

 

 

 

 

 

 

 

30,000

 

 

 

30,000

 

Sales Return A/c

Dr.  

Cr.

Date

Particulars

J.F.

Amount Rs. 

Date

Particulars

J.F.

Amount Rs.