Class- 11 D.K Goel Chapter 9 - Books of Original Entry - Journal Solutions

D.K Goel

Books of Original Entry- Journal

Class- 11

CBSE Class 11 Accountancy DK Goel Solutions are created by experts of the subject, hence, sure to prepare students to score well. The questions provided in DK Goel Books are prepared in accordance with CBSE, thus holding higher chances of appearing on CBSE question papers.

Very Short Questions

Question 1

What is a journal?

Answer: A journal is a book of original entry in which transactions are recorded in the order in which they occur i.e. in chronology order.

Question 2

Why is the journal called a book of original entry?

Answer: A journal is known as a book of original entry because all the transactions are first entered in this book.

Question 3

What is journalizing?

Answer: Journalising is a method of registering the transaction in the journal.

Question 4

Give one advantage of journal.

Answer: The one advantage of the journal is that all the transactions are registered as and when they take place. Therefore, the chances of omitting any transaction in the books of account are minimized.

Question 5

Give one limitation of a journal.

Answer: The one limitation of a journal is whenever there is a huge transaction, it is impossible to record all the transactions as it becomes bulky and voluminous.

Question 6

What is a narrative?

Answer: A brief description of all the required details after each entry is known as a narrative.

Question 7

What is ledger folio or L.F?

Answer: Ledger folio or L.F is the ledger account page number where posting is made from the journal. The page number is recorded in the journal.

Question 8

What is compound journal entry?

Answer: When two or more transactions related to one particular account take place on the same date. In this situation, instead of recording separate entries only one entry is passed. This type of journal entry is known as compound journal entry.

Question 9

What is opening entry?

Answer: Opening entry are those entries which carry forward all the assets and liabilities balances of the previous year to the current year.

Question 10

What entry is passed for withdrawing of goods by the proprietor for personal use?

Answer: Drawings A/c Dr.

To Purchase A/c

Question 11

Which account should be debited, if wages are paid for the installation of a machine?

Answer: Machine account.

Practical Question

Question 1:

Enter the following transactions in the Journal of Manohar Lal & Sons.:-

2019		₹
March 1	Manohar Lal & Sons started business with cash	60,000
2	Purchased furniture for cash	10,000
4	Purchased goods for cash	25,000
5	Bought goods from Kamlesh	15,000
10	Paid cash to Kamlesh	15,000
16	Purchased goods from Sohan	6,000
18	Purchased goods from Sohan for cash	8,000
20	Paid rent for the office	1,000

Answer 1:

Journal In the Books of Manohar Lal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Mar. 01	Cash A/c	Dr.		60,000
	To Capital A/c				60,000
	( Started business with cash)
Mar. 02	Furniture A/c	Dr.		10,000
	To Cash A/c				10,000
	(Furniture purchased for cash)
Mar. 04	Purchases A/c	Dr.		25,000
	To Cash A/c				25,000
	( Goods purchased for cash)
Mar. 05	Purchases A/c	Dr.		15,000
	To Kamlesh’s A/c				15,000
	(Goods purchased from Kamlesh)
Mar. 10	Kamlesh’s A/c	Dr.		15,000
	To Cash A/c				15,000
	(Cash  paid to Kamlesh)
Mar. 16	Purchases A/c	Dr.		6,000
	To Sohan’s A/c				6,000
	(Goods purchased from Sohan)
Mar. 18	Purchases A/c	Dr.		8,000
	To Cash A/c				8,000
	(Goods purchased from Sohan for cash)
Mar. 20	Rent A/c	Dr.		1,000
	To Cash A/c				1,000
	(Paid office rent)
	TOTAL			1,40,000	1,40,000

 

Question 2:

Enter the following transactions in the Journal of M/s Tripathi Bros. :-

2019		₹
Jan. 6	Sold goods for cash	36,000
8	Sold goods to Hari	30,000
14	Received cash from Hari	18,000
26	Received Commission	750
27	Paid Salary to Gopal	1,200
28	Received cash from Hari	12,000
29	Withdrew cash from office for personal use	4,000
30	Wages paid	7,200
30	Bought Machinery for Cash	8,000

Answer 2:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan 06	Cash A/c	Dr.		36,000
	To Sales A/c				36,000
	(Sold goods for cash)
Jan 08	Hari A/c	Dr.		30,000
	To Sales A/c				30,000
	(Sold goods to Hari)
Jan 14	Cash A/c	Dr.		18,000
	To Hari A/c				18,000
	(Received cash from Hari)
Jan 26	Cash A/c	Dr.		750
	To Commission A/c				750
	(Received commission)
Jan 27	Salary A/c	Dr.		1,200
	To Cash A/c				1,200
	(Paid salary to Gopal)
Jan 28	Cash A/c	Dr.		12,000
	To Hari A/c				12,000
	(Received cash from Hari)
Jan 29	Drawings A/c	Dr.		4,000
	To Cash A/c				4,000
	(Drew cash for personal use)
Jan 30	Wages A/c	Dr.		7,200
	To Cash A/c				7,200
	(Paid wages)
Jan 30	Machinery A/c	Dr.		8,000
	To Cash A/c				8,000
	(Purchased machinery)
				1,17,150	1,17,150

Question 3:

Enter the following transactions in the Journal of Sahil Bros. :

2018			₹
October	1	Purchased goods from Anil for Cash	40,000
	3	Purchased goods from Atul	75,000
	6	Returned goods to Atul	3,000
	8	Paid cash to Atul	50,000
	10	Sold goods to Charu	1,00,000
	12	Charu returned 20% of goods
	15	Paid rent	2,000
	20	Sahil withdrew for personal use	10,000

Answer 3:

Journal In the Books of Sahil
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Oct. 01	Purchases A/c	Dr.		40,000
	To Cash A/c				40,000
	(Goods purchased from Anil for cash)
Oct. 03	Purchases A/c	Dr.		75,000
	To Atul’s A/c				75,000
	(Goods purchased from Atul)
Oct. 06	Atul’s A/c	Dr.		3,000
	To Purchases Return A/c				3,000
	(Goods returned to Atul)
Oct. 08	Atul’s A/c	Dr.		50,000
	To Cash A/c				50,000
	(Cash paid to Atul)
Oct. 10	Charu’s A/c	Dr.		1,00,000
	To Sales A/c				1,00,000
	( Goods sold to Charu)
Oct. 12	Sales Return A/c	Dr.		20,000
	To Charu’s A/c				20,000
	(Goods returned to Charu)
Oct. 15	Rent A/c	Dr.		2,000
	To Cash A/c				2,000
	(Rent paid)
Oct. 20	Drawings A/c	Dr.		10,000
	To Cash A/c				10,000
	(Cash withdrawn for personal use)
	TOTAL			3,00,000	3,00,000

 

Question 4:

Enter the following transactions in the Journal of Ganesh Bros. :

2017			₹
March 3		Sold goods to Dev	1,00,000
5		Received from Dev in full settlement of his account	98,000
6		Sold goods to Manmohan	80,000
8		Manmohan returned goods	1,000
15		Received from Manmohan in full settlement of his account	78,200
16		Received cash from Ram	19,500
		and discount allowed	500
20		Paid cash to Pawan	4,700
		and discount received from him	300
25		Sold goods to Varun of the list price of ₹ 25,000 at 20% trade discount

Answer 4:

Journal In the Books of Ganesh
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Mar. 03	Dev’s A/c	Dr.		1,00,000
	To Sales A/c				1,00,000
	(Goods sold to Dev)
Mar. 05	Cash A/c	Dr.		98,000
	Discount Allowed A/c	Dr.		2,000
	To Dev’s A/c				1,00,000
	(Cash received from Dev in full settlement of his account)
Mar. 06	Manmohan’s A/c	Dr.		80,000
	To Sales A/c				80,000
	(Goods sold to Manmohan)
Mar. 08	Sales Return A/c	Dr.		1,000
	To Manmohan’s A/c				1,000
	(Goods returned to Manmohan)
Mar. 15	Cash A/c	Dr.		78,200
	Discount Allowed A/c	Dr.		800
	To Manmohan’s A/c				79,000
	(Cash received from Manmohan in full settlement of his account)
Mar. 16	Cash A/c	Dr.		19,500
	Discount Allowed A/c	Dr.		500
	To Ram’s A/c				20,000
	(Cash received from Ram and discount allowed)
Mar. 20	Pawan’s A/c	Dr.		5,000
	To Cash A/c				4,700
	To Discount Received A/c				300
	(Cash  paid to Pawan and received discount)
Mar. 25	Varun’s A/c	Dr.		20,000
	To Sales A/c				20,000
	(Goods sold @ 20% trade discount)
	TOTAL			4,05,000	4,05,000

 

Question 5:

Pass Journal entries in the books of Hari Shankar & Co. from the following:

2017		₹
April 1	Commenced business with cash	50,000
2	Purchased goods from Subhash	20,000
4	Sold goods to Ramnath	15,000
6	Ramnath returned defective goods	1,000
10	Received cash from Ramnath and	13,800
	Discount allowed	200
12	Gopal sold goods to us	10,000
14	Paid to Gopal in full settlement of his account after deducting 5% discount.
15	Paid Rent	10,000
16	Paid Rent of Hari Shankar's residence	5,000
18	Purchased goods for cash from Govind for ₹ 6,000 at 20% trade discount.
20	Purchased goods from Govind for ₹ 10,000 at 20% trade discount.
24	Paid to Govind ₹ 7,850 in full settlement of his account.
25	Paid to Subhash ₹ 4,750; discount received ₹ 250.
30	Paid Wages ₹ 400; Salaries ₹ 4,000; Advertisement expenses ₹ 800 and Trade expenses ₹ 1,000.

Answer 5:

Journal In the Books of Hari Shankar & Co.
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2017
Apr. 01	Cash A/c	Dr.		50,000
	To Capital A/c				50,000
	(Started business with cash)
Apr. 02	Purchases A/c	Dr.		20,000
	To Subhash’s A/c				20,000
	(Goods purchased from Subhash)
Apr. 04	Ramnath’s A/c	Dr.		15,000
	To Sales A/c				15,000
	(Goods sold to Ramnath)
Apr. 06	Sales Return A/c	Dr.		1,000
	To Ramnath’s A/c				1,000
	(Goods returned to Ramnath)
Apr. 10	Cash A/c	Dr.		13,800
	Discount Allowed A/c	Dr.		200
	To Ramnath’s A/c				14,000
	(Cash received from Ramnath and allowed discount)
Apr. 12	Purchases A/c	Dr.		10,000
	To Gopal’s A/c				10,000
	(Goods purchased from Gopal)
Apr. 14	Gopal’s A/c	Dr.		10,000
	To Cash A/c				9,500
	To Discount Received A/c				500
	(Cash paid to Gopal in full settlement of his account)
Apr. 15	Rent A/c	Dr.		10,000
	To Cash A/c				10,000
	(Rent paid)
Apr. 16	Drawings A/c	Dr.		5,000
	To Cash A/c				5,000
	(Rent paid for Hari Shankar’s residence)
Apr. 18	Purchases A/c	Dr.		4,800
	To Cash A/c				4,800
	(Goods purchased for cash at 20% trade discount)
Apr. 20	Purchases A/c	Dr.		8,000
	To Govind’s A/c				8,000
	(Goods purchased from Govind at 20% trade discount)
Apr. 24	Govind’s A/c	Dr.		8,000
	To Cash A/c				7,850
	To Discount Received A/c				150
	(Cash paid to Govind in full settlement of his account)
Apr. 25	Subhash’s A/c	Dr.		5,000
	To Cash A/c				4,750
	To Discount Received A/c				250
	(Cash paid to Subhash in full settlement of his account)
Apr. 30	Wages A/c	Dr.		400
	Salaries A/c	Dr.		4,000
	Advertisement Expenses A/c	Dr.		800
	Trade Expenses A/c	Dr.		1,000
	To Cash A/c				6,200
	(Expenses paid)
	TOTAL			1,67,000	1,67,000

 

Question 6:

Enter the following transaction in the Journal of Marutinandan Stores:

2017
Jan. 10		Purchased goods from Ghanshyam of the list price of ₹ 50,000 at 15% trade discount.
13		Returned goods to Ghanshyam of the list price of ₹ 2,000.
15		Paid cash to Ghanshyam ₹ 40,000 in full settlement of his account.
20		Purchased goods from Raghu of the list price of ₹ 60,000 at 10% trade discount.
22		Returned goods to Raghu of the list price of ₹ 5,000.
25		Paid cash to Raghu ₹ 49,000 in full settlement of his account.

Answer 6:

Journal In the Books of Marutinandan Stores
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 10	Purchases A/c	Dr.		42,500
	To Ghanshyam’s A/c				42,500
	(Goods purchased at 15% trade discount)
Jan. 13	Ghanshyam’s A/c	Dr.		1,700
	To Purchases Return A/c				1,700
	(Goods returned to Ghanshyam deducting trade discount of 15%)
Jan. 15	Ghanshyam’s A/c	Dr.		40,800
	To Cash A/c				40,000
	To Discount Received A/c				800
	(Cash paid to Ghanshyam in full settlement of his account)
Jan. 20	Purchases A/c	Dr.		54,000
	To Raghu’s A/c				54,000
	(Goods purchased from Raghu at trade discount of 10%)
Jan. 22	Raghu’s A/c	Dr.		4,500
	To Purchases Return A/c				4,500
	(Goods returned to Raghu deducting trade discount of 10%)
Jan. 25	Raghu’s A/c	Dr.		49,500
	To Cash A/c				49,000
	To Discount Received A/c				500
	(Cash paid to Raghu in full settlement of his account)
				1,93,000	1,93,000

Question 7:

Pass Journal Entries for the following transactions:

2017
Jan 6		Sold goods to Muskan of the list price of ₹ 2,00,000 at trade discount of 20%.
8		Muskan returned goods of the list price of ₹ 5,000.
15		Received from Muskan the full payment under a cash discount of 4%.

Answer 7:

Journal In the Books of …
Date	Particulars		L. F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 06	Muskan’s A/c	Dr.		1,60,000
	To Sales A/c				1,60,000
	(Goods sold to Muskan at trade discount of 20%)
Jan. 08	Sales Return A/c			4,000
	To Muskan’s A/c				4,000
	(Goods returned by Muskan deducting trade discount of 20%)
Jan. 15	Cash A/c	Dr.		1,49,760
	Discount Allowed A/c	Dr.		6,240
	To Muskan’s A/c				1,56,000
	(Cash received from Muskan in full settlement of her account)
				3,20,000	3,20,000

 

Question 8:

Give Journal Entries for the following transactions in the books of Raja Ram & Co. :

2017
March 3		Bought goods for cash of the list price of ₹ 80,000 at 10% trade discount and 2$\frac{1}{2}$% cash discount.
5		Sold goods for cash of the list price of ₹ 1,00,000 at 15% trade discount and 3% cash discount.
6		Sold goods to Nagpal of the list price of ₹ 50,000 at 20% trade discount.
8		Nagpal returned one-fourth of the above goods.
10		Nagpal settled the account by paying cash under a discount of 5%.

Answer 8:

Journal In the Books of Raja Ram
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Mar. 03	Purchases A/c	Dr.		72,000
	To Cash A/c				70,200
	To Discount Received A/c				1,800
	(Goods purchased for cash and received cash discount)
Mar. 05	Cash A/c	Dr.		82,450
	Discount Allowed A/c	Dr.		2,550
	To Sales A/c				85,000
	(Goods sold for cash and allowed cash discount)
Mar. 06	Nagpal’s A/c	Dr.		40,000
	To Sales A/c				40,000
	(Goods sold to Nagpal)
Mar. 08	Sales Return A/c	Dr.		10,000
	To Nagpal’s A/c				10,000
	(Goods returned by Nagpal)
Mar. 10	Cash A/c	Dr.		28,500
	Discount Allowed A/c	Dr.		1,500
	To Sales A/c				30,000
	(Cash received in full settlement)
	TOTAL			2,37,000	2,37,000

 

Question 9:

Pass Journal entries in the books of Raghunath Bros. from the following transactions:-

2016
June 01	Raghunath Bros. started business with cash ₹ 80,000; Goods ₹ 40,000 and furniture ₹ 20,000.
June 02	Sold goods to Nandlal of the list price of ₹ 20,000 at trade discount of 10%.
June 04	Nandlal returned goods of the list price of ₹ 4,000.
June 08	Received from Nandlal ₹ 14,150 in full settlement of his account.
June 10	Purchased goods from Brij Mohan of the list price of ₹ 10,000 at 15% trade discount.
June 13	Returned goods to Brij Mohan of the list price of ₹ 1,000.
June 16	Settled the account of Brij Mohan by paying cash, under a discount of 4%.
June 18	Purchased goods from Anil ₹ 5,000; Sunil ₹ 10,000.
June 19	Paid cash to Anil ₹ 1,900 and discount received ₹ 100.
June 20	Paid ₹ 9,800 to Sunil in full settlement of his account.
June 20	Bought a 'Table Fan' for ₹ 8,000 for the domestic use of Raghunath.
June 25	Sold goods for cash of the list price of ₹ 8,000 at 10% trade discount and 3% cash discount.
June 30	Paid Rent ₹ 8,000; Trade Expenses ₹ 7,000 and Travelling Expenses ₹ 3,800.

Answer 9:

Journal In the books of Raghunath Bros.
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2016
June 01	Cash A/c	Dr.		80,000
	Stock A/c	Dr.		40,000
	Furniture A/c	Dr.		20,000
	To Capital A/c				1,40,000
	(started business with cash, goods and furniture)
June 02	Nandlal	Dr.		18,000
	To Sales A/c				18,000
	(goods sold to Nandlal @ 10% Trade discount)
June 04	Sales return A/c	Dr.		3,600
	To Nandlal				3,600
	(goods sold to Nandlal returned)
June 08	Cash A/c	Dr.		14,150
	Discount allowed A/c	Dr.		250
	To Nandlal				14,400
	(cash received from Nandlal in full settlement)
June 10	Purchases A/c	Dr.		8,500
	To Brij Mohan				8,500
	(purchased goods from Brij Mohan on credit)
June 13	Brij Mohan	Dr.		850
	To Purchase Return A/c				850
	(purchased goods returned by Brij Mohan)
June 16	Brij Mohan	Dr.		7,650
	To discount received A/c				306
	To Cash A/c				7,344
	(settled amount due to Brij Mohan)
June 18	Purchases A/c	Dr.		15,000
	To Anil				5,000
	To Sunil				10,000
	(credit purchase from Anil & Sunil)
June 19	Anil			2,000
	To discount received A/c				100
	To Cash A/c				1,900
	(cash paid to Anil and received discount)
June 20	Sunil	Dr.		10,000
	To discount received A/c				200
	To Cash A/c				9,800
	(cash paid to Sunil and received discount)
June 20	Drawings A/c	Dr.		8,000
	To Cash A/c				8,000
	(table fan purchased for personal use)
June 25	Cash A/c			6,984
	Discount allowed A/c			216
	To Sales A/c				7,200
	(cash sales @10% TD & @5% Cash Discount)
June 30	Rent A/c	Dr.		8,000
	Trade expenses A/c	Dr.		7,000
	Travelling A/c	Dr.		3,800
	To Cash A/c				18,800
	(expenses paid in cash)
	TOTAL			2,54,000	2,54,000

Question 10:

Journalise the following transactions:

2019
March 5		Sold goods to Shruti for ₹ 80,000 at 15% trade discount and 4% cash discount. Received 75% amount immediately through a cheque.
10		Purchased goods from Richa for ₹ 60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately.

Answer 10:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Mar.05	Shruti	Dr.		68,000
	To Sales A/c				68,000
	(Goods sold to Shruti at 15% trade discount)
Mar.05	Bank A/c	Dr.		48,960
	Discount Allowed A/c	Dr.		2,040
	To Shruti				51,000
	(Payment received and cash discount allowed)
Mar.10	Purchases A/c	Dr.		54,000
	To Richa				54,000
	(Goods purchased from Richa at 10% trade discount)
Mar.10	Richa	Dr.		32,400
	To Bank A/c				30,780
	To Discount Received A/c				1,620
	(Payment made and cash discount received)

 

Working Notes:

1. Amount of goods sold would be Rs 68,000 (80,000 - 15% of 80,000) and cash discount would be Rs 2,040, it would be calculated on amount received Rs 51,000 i.e., 75% of Rs 68,000.

2. Amount of goods purchased would be Rs 54,000 (60,000 - 10% of 60,000) and cash discount would be Rs 1,620, it would be calculated on amount paid Rs 32,400 i.e., 60% of Rs 54,000

Question 11:

Pass journal entries for the following:

2019
Jan. 6		Purchased goods from Henry for ₹ 50,000 on 10% trade discount and 4% cash discount and paid 60% amount by cheque.
Jan. 15		Bought goods from Amit for ₹ 2,00,000 at terms 5% cash discount and 20% trade discount. Paid 3/4th of the amount in cash at the time of purchase.
Jan. 18		Sold goods to Sherpa at the list price of ₹ 50,000 less 20% trade discount and 4% cash discount if the payment is made within 7 days. 75% payment is received by cheque on Jan. 23rd.
Jan. 25		Sold goods to Garima for ₹ 1,00,000, allowed her 20% trade discount and 5% cash discount if the payment is made within 15 days. She paid 1/4th of the amount by cheque on Feb. 5th and 60% of the remainder on Feb.15th in cash

Answer 11:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan. 06	Purchases A/c	Dr.		45,000
	To Bank A/c (WN1)				25,920
	To Discount Received A/c				1,080
	To Henry’s A/c				18,000
	(Goods purchased and discount received on cash payment)
Jan. 15	Purchases A/c	Dr.		1,60,000
	To Bank A/c				1,14,000
	To Discount Received A/c				6,000
	To Amit’s A/c				40,000
	(Goods purchased and discount received on cash payment)
Jan. 18	Sherpa’s A/c	Dr.		40,000
	To Sales A/c				40,000
	(Goods sold to Sherpa on credit)
Jan. 23	Bank A/c	Dr.		28,800
	Discount Allowed A/c	Dr.		1,200
	To Sherpa’s A/c				30,000
	(75% payment received by Sherpa and allowed cash discount)
Jan. 25	Garima’s A/c	Dr.		80,000
	To Sales A/c				80,000
	(Goods sold to Garima on credit)
Feb. 05	Bank A/c	Dr.		19,000
	Discount Allowed A/c	Dr.		1,000
	To Garima’s A/c				20,000
	(Cheque received from Garima and allowed cash discount)
Feb. 15	Cash A/c*	Dr.		60,000
	To Garima’s A/c				60,000
	(Cash received from Garima)
	TOTAL			4,35,000	4,35,000

Working Notes:

WN1: Calculation of Payment made to Henry

  

WN2: Calculation of Payment made to Amit

  
 

*Note: Cash discount can be availed only if the payment is made within 15 days. Since payment is made on Feb. 15, thus, no discount is to be allowed to her.

Question 12:

Journalise the following transactions in the books of Dixit & Sons. :

2018
March 2	Sold goods to Dilip of the list price of ₹ 62,000 for ₹ 60,000.
16	Purchased goods costing ₹ 2,00,000 from Hari & Co. Paid 75% immediately by cheque to avail 4% discount.
20	Sold goods to Vishal Traders costing ₹ 40,000 at 25% profit, allowing 10% trade discount and 10% cash discount. Received 80% payment immediately by cheque.
26	Sold goods to Brij & Co. costing ₹ 50,000 at 40% profit, allowing 10% trade discount and 5% cash discount. Brij & Co. paid the full amount by cheque and availed cash discount.

Answer 12:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Mar 02	Dixit A/c   To Sales A/c	Dr.		60,000	60,000
	(Sold to Dixit)
Mar 16	Purchases A/c	Dr.		2,00,000
	To Hari & Co.				50,000
	To Bank A/c				1,44,000
	To Discount Received A/c				6,000
	(Purchased from Hari & Co., 75% paid through cheque and partly credit)
Mar 20	Bank A/c	Dr.		9,000
	Vishal Traders A/c	Dr.		32,400
	Discount Allowed A/c	Dr.		3,600
	To Sales A/c				45,000
	(Sold to Vishal Traders, partly received through cheque and partly credit)
Mar 26	Bank A/c	Dr.		59,850
	Discount Allowed A/c	Dr.		3,150
	To Sales A/c				63,000
	(Sold to Brij & Co., received fully through cheque)
				3,68,000	3,68,000

 

Question 13:

Journalise the following transactions:

2017			₹
Jan. 1		Paid into bank for opening a Current Account	10,000
3		Goods sold for ₹ 50,000 and the amount was deposited into the bank
7		Amount withdrawn from bank	20,000
10		Goods sold for Cash	15,000
12		Amount deposited into bank	12,000
14		Goods purchased and payment made by cheque.	25,000

Answer 13:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan. 01	Bank A/c	Dr.		10,000
	To Cash A/c				10,000
	(Payment made to open current account)
Jan. 03	Bank A/c	Dr.		50,000
	To Sales A/c				50,000
	(Goods sold and amount deposited into bank)
Jan. 07	Cash A/c	Dr.		20,000
	To Bank A/c				20,000
	(Cash withdrawn from Bank)
Jan. 10	Cash A/c	Dr.		15,000
	To Sales A/c				15,000
	(Goods sold for cash)
Jan. 12	Bank A/c	Dr.		12,000
	To Cash A/c				12,000
	(Cash deposited into bank)
Jan. 14	Purchases A/c	Dr.		25,000
	To Bank A/c				25,000
	(Goods purchased and payment made by cheque)
	TOTAL			1,32,000	1,32,000

Question 14(A):

Following balances appeared in the books of Radhika Traders as on 1st April, 2017:−
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors : ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000. 
In April, 2017, the following transaction took place:

2017			₹
April 2		Bought goods of the list price of ₹ 6,000 from Khanna Brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.
3		Received a draft from Mohan in full settlement and deposited it into Bank	9,750
5		Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque.
8		Sold goods and received a cheque	25,000
10		Deposited the above cheque into Bank
12		Sohan deposited in our Bank A/c	4,000
16		Paid Income Tax by Cheque	5,600
20		Received a cheque from Sohan and sent to Bank	7,800
		Discount allowed	200
21		Withdrew from Bank−for office	2,000
		for private use	4,000
23		Sent a cheque to X in full settlement of his A/c	4,900
27		Cheque of Sohan returned by the bank as dishonoured.
28		Dinesh was declared insolvent and a payment of 60 paise in a ₹ received from his estate by a Cheque
30		Bank allowed Interest	350
		Paid for Rent by cheque	1,500
		Paid for traveling expenses by cheque	500

Pass Journal entries for the above transactions.

Answer 14(A):

Journal In the Books of Radhika Traders
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
April 01	Cash in Hand A/c	Dr.		8,000
	Cash at Bank A/c	Dr.		7,000
	Stock A/c	Dr.		30,000
	Mohan’s A/c	Dr.		10,000
	Sohan’s A/c	Dr.		12,000
	Dinesh’s A/c	Dr.		14,000
	Furniture A/c	Dr.		5,000
	Building A/c	Dr.		25,000
	To X’s A/c				5,000
	To Y’s A/c				6,000
	To Capital A/c (Balancing figure)				1,00,000
	(Balances of previous year brought forward)
April 02	Purchases A/c	Dr.		5,100
	To Khanna Brothers				3,060
	To Cash A/c				1,999
	To Discount Received A/c				41
	(Goods purchased and received discount on cash payment)
April 03	Bank A/c	Dr.		9,750
	Discount Allowed A/c	Dr.		250
	To Mohan				10,000
	(Draft received from Mohan deposited into bank)
April 05	Purchases A/c	Dr.		6,400
	To Bank A/c				6,400
	(Goods purchased and payment made by cheque)
April 08	Cheques-in-Hand A/c	Dr.		25,000
	To Sales A/c				25,000
	(Goods sold and received a cheque)
April 10	Bank A/c	Dr.		25,000
	To Cheques-in-Hand A/c				25,000
	(Cheque deposited into bank)
April 12	Bank A/c	Dr.		4,000
	To Sohan’s A/c				4,000
	(Amount deposited by Sohan)
April 16	Drawings A/c	Dr.		5,600
	To Cash A/c				5,600
	(Income tax paid)
April 20	Bank A/c	Dr.		7,800
	Discount Allowed A/c	Dr.		200
	To Sohan’s A/c				8,000
	(Banked cash received from Sohan in full settlement)
April 21	Drawings A/c	Dr.		4,000
	Cash A/c	Dr.		2,000
	To Bank A/c				6,000
	(Amount withdrawn for office and personal use)
April 23	X	Dr.		5,000
	To Bank A/c				4,900
	To Discount Received A/c				100
	(Cheque issued to X in full settlement of his account)
April 27	Sohan’s A/c	Dr.		8,000
	To Bank A/c				7,800
	To Discount Allowed A/c				200
	(Cheque received from Sohan gets dishonoured)
April 28	Cash A/c	Dr.		8,400
	Bad Debts A/c	Dr.		5,600
	To Dinesh’s A/c				14,000
	(Cash received and bad-debts written off)
April 30	Bank A/c	Dr.		350
	To Interest A/c				350
	(Interest allowed by bank)
April 30	Rent A/c	Dr.		1,500
	Travelling Expenses A/c	Dr.		500
	To Bank A/c				2,000
	(Expenses paid through cheque)
	TOTAL			2,35,450	2,35,450

Question 14(B):

Following was the position of Harish & Co. as on 1st April, 2017 :−
Cash in Hand ₹ 10,000; Cash at Bank ₹ 16,800; Furniture ₹ 8,000; Stock ₹ 50,000; Debtors− Ram ₹ 8,000; Shyam ₹ 12,000; Creditors− Anil ₹ 4,000; Sunil ₹ 5,000.
Following transactions took place during April, 2017 :−

2017
April 2		Received a cheque from Ram in full settlement of his account after deducting 5% cash discount.
4		Deposited the above cheque into Bank.
5		Goods purchased for ₹ 20,000 at 10% trade discount and 5% cash discount. Payment made by cheque.
6		Received a cheque from Shyam for ₹ 3,860 and discount allowed to him ₹ 140. Cheque deposited into the bank on the same day.
10		Cash paid to Anil after deducting 2% cash discount.
15		Old furniture sold for ₹ 800.
16		Sold goods to Shiv Parshad of the list price of ₹ 10,000 at a trade discount of 15%.
18		Shiv Parshad returned goods of the list price of ₹ 1,000.
20		Paid for furniture repairs to Bahadur Singh ₹ 100.
25		Received a cheque from Shiv Parshad after deducting 4% cash discount. Cheque was deposited into bank.
28		Bank charged ₹ 50 for 'Bank Charges'.
30		Received Commission ₹ 200.

Answer 14(B):

Journal In the Books of Harish & Co.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
April 01	Cash in Hand A/c	Dr.		10,000
	Cash at Bank A/c	Dr.		16,800
	Furniture A/c	Dr.		8,000
	Stock A/c	Dr.		50,000
	Ram’s A/c	Dr.		8,000
	Shyam’s A/c	Dr.		12,000
	To Anil’s A/c				4,000
	To Sunil’s A/c				5,000
	To Capital A/c (Balancing figure)				95,800
	(Previous year’s balances brought forward)
April 02	Cheques-in-Hand A/c	Dr.		7,600
	Discount Allowed A/c	Dr.		400
	To Ram’s A/c				8,000
	(Cheque received from Ram in full settlement)
April 04	Bank A/c	Dr.		7,600
	To Cheques-in-Hand A/c				7,600
	(Cheques-in-hand sent to bank)
April 05	Purchases A/c	Dr.		18,000
	To Bank A/c				17,100
	To Discount Received A/c				900
	(Goods purchased for cash and received discount)
April 06	Bank A/c	Dr.		3,860
	Discount Allowed A/c	Dr.		140
	To Shyam’s A/c				4,000
	(Cheque received from Shyam)
April 10	Anil’s A/c	Dr.		4,000
	To Cash A/c				3,920
	To Discount Received A/c				80
	(Cash paid to Anil in full settlement)
April 15	Cash A/c	Dr.		800
	To Furniture A/c				800
	(Furniture sold for cash)
April 16	Shiv Parshad’s A/c	Dr.		8,500
	To Sales A/c				8,500
	(Goods sold to Shiv Parshad on credit)
April 18	Sales Return A/c	Dr.		850
	To Shiv Parshad’s A/c				850
	(Goods returned by Shiv Parshad)
April 20	Repairs A/c	Dr.		100
	To Cash A/c				100
	(Cash paid for repair of furniture)
April 25	Bank A/c	Dr.		7,344
	Discount Allowed A/c	Dr.		306
	To Shiv Parshad’s A/c				7,650
	(Cheque received in full settlement)
April 28	Bank Charges A/c	Dr.		50
	To Bank A/c				50
	(Bank charged some charges)
April 30	Cash A/c	Dr.		200
	To Commission A/c				200
	(Commission received)
	TOTAL			1,64,550	1,64,550

 

Question 15:

Pass Journal Entries for the following transactions:−
1. Provide depreciation on Furniture ₹ 500 and on Machinery ₹ 2,000.
2. Received cash ₹ 1,000 for bad-debts written off last year.
3. Ajay Singh was declared bankrupt. He owed ₹ 2,500 to us. Nothing could be recovered from his estate.
4. ₹ 20,000 for wages and ₹ 4,000 for salaries are outstanding.
5. Purchased furniture for ₹ 6,000 for the proprietor and paid the amount by cheque.
6. Provide 9% interest on capital amounting to ₹ 2,00,000.
7. Charge interest on drawings ₹ 1,000.

Answer 15:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1.	Depreciation A/c	Dr.		2,500
	To Furniture A/c				500
	To Machinery A/c				2,000
	(Depreciation charged on furniture and machinery)
2.	Cash A/c	Dr.		1,000
	To Bad Debts Recovered A/c				1,000
	(Bad debts recovered)
3.	Bad Debts	Dr.		2,500
	To Ajay Singh’s A/c				2,500
	(Bad debts written-off)
4.	Wages A/c	Dr.		20,000
	Salaries A/c	Dr.		4,000
	To Outstanding Wages A/c				20,000
	To Outstanding Salaries A/c				4,000
	(Wages and Salaries were outstanding)
5.	Drawings A/c	Dr.		6,000
	To Bank A/c				6,000
	(Furniture purchased for personal use)
6.	Interest on Capital A/c	Dr.		18,000
	To Capital A/c				18,000
	(Interest on capital provided)
7.	Drawings A/c	Dr.		1,000
	To Interest on Drawings A/c				1,000
	(Interest on drawings charged)
	TOTAL			55,000	55,000

Question 16:

Pass journal entries for the following:

Jan. 5		Purchased goods for Cash ₹ 10,000 and spent ₹ 200 for their carriage.
Jan. 10		Purchased machinery for Cash ₹ 50,000 and spent ₹ 500 for its carriage.
Jan. 15		Paid ₹ 20,000 for cement, ₹ 10,000 for timber and ₹ 5,000 as wages for the construction of building.
Jan. 17		Purchased an old machinery for ₹ 20,000 and spent ₹ 2,500 on its immediate repairs.
Jan. 20		Paid ₹ 500 for repairing some other machinery.

Answer 16:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
Jan. 05	Purchases A/c	Dr.		10,000
	Carriage A/c	Dr.		200
	To Cash A/c				10,200
	(Goods purchased for cash and paid carriage)
Jan. 10	Machinery A/c	Dr.		50,500
	To Cash A/c				50,500
	(Machinery purchased for cash and carriage paid)
Jan. 15	Building A/c	Dr.		35,000
	To Cash A/c				35,000
	(Payment made for construction of building)
Jan. 17	Machinery A/c	Dr.		22,500
	To Cash A/c				22,500
	(Machinery purchased and expenses paid)
Jan. 20	Repairs A/c	Dr.		500
	To Cash A/c				500
	(Payment made for repairs)
	TOTAL			1,18,700	1,18,700

Question 17:

Enter the following transactions in the Journal of Arun Govil & Co. :

2018
June 1	Arun Govil & Co. paid into bank as capital ₹ 6,00,000.
June 3	Purchased goods from Mukesh of the list price of ₹ 2,00,000 at 10% trade discount.
June 4	One-fourth of the above goods returned to Mukesh for not being upto specifications.
June 6	Issued a  cheque to Mukesh for the amount due to him after deducting 2% as cash discount.
June 7	Withdrew from bank ₹ 2,50,000 for office use and ₹ 10,000 for personal use.
June 10	Purchased a machinery for ₹ 1,00,000 and spent ₹ 5,000 on its installation. Payment for machinery was made by cheque and installation expenses were paid in cash.
June 12	Sold goods for ₹ 1,00,000 to Amar.
June 13	Amar clears his account by giving a cheque of ₹ 98,500. Cheque is immediately sent to bank.
June 15	Purchased stationery for personal use ₹ 3,000 and for office use ₹ 5,000.
June 20	Purchased land for ₹ 2,00,000 and paid 1% as brokerage and ₹ 15,000 as registration charges on it. Entire payment is made by Cheque.
June 30	Wages due to labourers ₹ 20,000 and salary due to the clerk ₹ 30,000.

Answer 17:

Journal In the Books of Sh. Arun Govil & Co.
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
June 01	Bank A/c	Dr.		6,00,000
	To Capital A/c				6,00,000
	(Business started with cash)
June 03	Purchases A/c	Dr.		1,80,000
	To Mukesh’s A/c				1,80,000
	(Goods purchased from Mukesh @ 10% trade discount)
June 04	Mukesh’s A/c	Dr.		45,000
	To Purchases Return A/c				45,000
	(1/4th goods returned to Mukesh)
June 06	Mukesh	Dr.		1,35,000
	To Bank A/c				1,32,300
	To Discount Received A/c				2,700
	(Cheque issued to Mukesh in full settlement)
June 07	Drawings A/c	Dr.		10,000
	Cash A/c	Dr.		2,50,000
	To Bank A/c				2,60,000
	(Cash withdrawn for office and personal use)
June 10	Machinery A/c	Dr.		1,05,000
	To Bank A/c				1,00,000
	To Cash A/c				5,000
	(Machinery purchased and paid installation charges)
June 12	Amar’s A/c	Dr.		1,00,000
	To Sales A/c				1,00,000
	(Goods sold to Amar on credit)
June 13	Bank A/c	Dr.		98,500
	Discount Allowed A/c	Dr.		1,500
	To Amar’s A/c				1,00,000
	(Cheque received from Amar in full settlement)
June 15	Drawings A/c	Dr.		3,000
	Stationery A/c	Dr.		5,000
	To Cash A/c				8,000
	(Stationery purchased for office and personal use)
June 20	Land A/c	Dr.		2,17,000
	To Bank A/c				2,17,000
	(Land purchased and brokerage paid)
June 30	Salaries A/c	Dr.		30,000
	Wages A/c	Dr.		20,000
	To Outstanding Wages A/c				20,000
	To Outstanding Salaries A/c				30,000
	(Outstanding expenses provided)
	TOTAL			18,00,000	18,00,000

Question 18:

Journalise the following transactions of Raj Kumar Traders, timber merchants:-
1. Purchased timber from Kuldeep Kumar, for cash ₹ 2,000 and credit ₹ 10,000.
2. Paid to Kuldeep Kumar in full settlement of his account ₹ 9,950.
3. Paid rent in advance ₹ 10,000.
4. Purchased machinery for ₹ 1,00,000 by cheque and carriage ₹ 2,000 and installation charges ₹ 1,000 paid in Cash.
5. Purchased goods for ₹ 50,000 from Govind and sold it to Manohar for ₹ 65,000.

Answer 18:

Journal In the Books of Raj Kumar
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
1)	Purchases A/c	Dr.		12,000
	To Cash A/c				2,000
	To Kuldeep Kumar’s A/c				10,000
	(Goods purchased for cash and credit)
2)	Kuldeep Kumar’s A/c	Dr.		10,000
	To Cash A/c				9,950
	To Discount Received A/c				50
	(Cash paid to Kuldeep Kumar in full settlement)
3)	Prepaid Rent A/c	Dr.		10,000
	To Cash A/c				10,000
	(Rent paid in advance)
4)	Machinery A/c	Dr.		1,03,000
	To Bank A/c				1,00,000
	To Cash A/c				3,000
	(Machinery purchased and expenses paid)
5)	Purchases A/c	Dr.		50,000
	To Govind’s A/c				50,000
	(Goods purchased from Govind)
	Manohar Lal’s A/c	Dr.		65,000
	To Sales A/c				65,000
	(Goods sold to Manohar Lal)
	TOTAL			2,50,000	2,50,000

 

Question 19:

Pass Journal entries for the following transactions:−
1. Purchased Machinery for ₹ 20,000 and paid ₹ 200 for its carriage.
2. Received a cheque fo ₹ 4,850 from X in full settlement of his account of ₹ 5,000. Cheque was immediately deposited into bank.
3. Received by cheque a first and final payment of 60 paise in a ₹ from Y who owed us ₹ 10,000.
4. Sold goods to Z for ₹ 10,000 at a trade discount of 20%. Next day a cheque was received from him after deducting 5% cash discount. Cheque was immediately deposited into Bank.
5. Goods costing ₹ 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount.

Answer 19:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Machinery A/c	Dr.		20,200
	To Cash A/c				20,200
	(Machinery purchased and paid for carriage)
2)	Bank A/c	Dr.		4,850
	Discount Allowed A/c	Dr.		150
	To X’s A/c				5,000
	(Cheque received from X in full settlement)
3)	Cash A/c	Dr.		6,000
	Bad Debts A/c	Dr.		4,000
	To Y’s A/c				10,000
	(Cash received and bad debts written-off)
4)	Z’s A/c	Dr.		8,000
	To Sales A/c				8,000
	(Goods sold to Z on credit)
	Bank A/c	Dr.		7,600
	Discount Allowed A/c	Dr.		400
	To Z’s A/c				8,000
	(Cheque received in full settlement)
5)	Manoj’s A/c (WN)	Dr.		21,600
	To Sales A/c				21,600
	(Goods sold to Manoj)
	TOTAL			72,800	72,800

Working Notes: Calculation of amount of goods sold to Manoj

Question 20:

Journalise the following transactions:−
1. Goods for ₹ 50,000 were destroyed by fire.
2. Goods worth ₹ 18,000 were distributed as free samples and ₹ 20,000 were given away as charity in cash.
3. Goods worth ₹ 25,000 and cash ₹ 40,000 were taken away by the proprietor for his personal use.
4. Goods worth ₹ 20,000 and cash ₹ 5,000 were given away as charity.
5. Cash ₹ 1,00,000 were stolen from the Iron Safe of the trader.

Answer 20:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Loss by Fire A/c	Dr.		50,000
	To Purchases A/c				50,000
	(Goods destroyed by fire)
2)	Advertisement Expenses A/c	Dr.		18,000
	To Purchases A/c				18,000
	(Goods distributed as free samples)
	Charity A/c	Dr.		20,000	20,000
	To Cash A/c
	(Cash given away as charity)
3)	Drawings A/c	Dr.		65,000
	To Cash A/c				40,000
	To Purchases A/c				25,000
	(Goods and cash withdrawn for personal use)
4)	Charity A/c	Dr.		25,000
	To Cash A/c				5,000
	To Purchases A/c				20,000
	(Goods and cash given away as charity)
5)	Loss by Theft A/c	Dr.		1,00,000
	To Cash A/c				1,00,000
	(Cash stolen)
	TOTAL			2,78,000	2,78,000

 

Question 21:

Journalise the following transactions:−
(i) Sold goods to Brijesh of the list price of ₹ 10,000 at trade discount of 5%. Received full payment in cash.
(ii) Goods given away as charity ₹ 1,000.
(iii) Charge interest on capital of ₹ 5,00,000 @ 7% p.a.
(iv) Outstanding wages ₹ 3,000.
(v) ₹ 5,000 due from Sunny are now bad debts.
(vi) ₹ 50,000 cash sales (of goods costing ₹ 40,000).

Answer 21:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Cash A/c	Dr.		9,500
	To Sales A/c				9,500
	(Goods sold for cash to Brijesh)
2)	Charity A/c	Dr.		1,000
	To Purchases A/c				1,000
	(Goods given away as charity)
3)	Interest on Capital A/c	Dr.		35,000
	To Capital A/c				35,000
	(Interest on capital provided)
4)	Wages A/c	Dr.		3,000
	To Outstanding Wages  A/c				3,000
	(Outstanding wages provided)
5)	Bad Debts A/c	Dr.		5,000
	To Sunny’s A/c				5,000
	(Bad debts written-off)
6)	Cash A/c	Dr.		50,000
	To Sales A/c				50,000
	(Goods sold for cash)
	TOTAL			1,03,500	1,03,500

Question 22:

Prepare journal from the transactions given below:−
(a) Proprietor withdrew for private use ₹ 10,000 from bank.
(b) Goods costing ₹ 50,000 were burnt by fire.
(c) Purchased machinery for cash ₹ 1,50,000 and paid ₹ 2,000 on its installation.
(d) Charge 5% depreciation on building costing ₹ 2,00,000 and 8% depreciation on furniture costing ₹ 5,000.
(e) Prepaid salary ₹ 2,000.
(f) Kapil who owed us ₹ 20,000 becomes insolvent and nothing is received from his estate.

Answer 22:

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Drawings A/c	Dr.		10,000
	To Bank A/c				10,000
	(Cash withdrawn from bank for personal use)
b)	Loss by Fire A/c	Dr.		50,000
	To Purchases A/c				50,000
	(Goods destroyed by fire)
c)	Machinery A/c	Dr.		1,52,000
	To Cash A/c				1,52,000
	(Purchased machinery for cash and installation charges were paid)
d)	Depreciation A/c	Dr.		10,400
	To Building A/c				10,000
	To Furniture A/c				400
	(Depreciation charged on building and furniture)
e)	Prepaid Salary A/c	Dr.		2,000
	To Salary A/c				2,000
	(Prepaid salary recorded)
f)	Bad Debts A/c	Dr.		20,000
	To Kapil’s A/c				20,000
	(Bad debts written-off)
	TOTAL			2,44,400	2,44,400

Question 23:

Journalise the following transactions in the Journal of Navin Gupta & Sons.:-
1. Out of Insurance premium paid this year, ₹ 15,000 is related to next year.
2. Credit purchases from Ram & Co. for ₹ 50,000. Cash discount will be received at 5% on payment of bill within 10 days.
3. Cash paid to Ram & Co. and discount availed of.
4. Paid Income Tax ₹ 20,000 by cheque.
5. Goods costing ₹ 2,00,000 sold for cash at a profit of 10%.
6. Purchased iron safe for ₹ 2,00,000 filing cabinet for ₹ 50,000 and Computer for ₹ 1,00,000.

Answer 23:

Journal In the Books of Sh. Navin Gupta
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
1)	Prepaid Insurance A/c	Dr.		15,000
	To Insurance A/c				15,000
	(Prepaid insurance recorded)
2)	Purchases A/c	Dr.		50,000
	To Ram & Co.				50,000
	(Goods purchased on credit from Ram & Co.)
3)	Ram & Co.	Dr.		50,000
	To Cash A/c				47,500
	To Discount Received A/c				2,500
	(Cash paid to Ram & Co. in full settlement)
4)	Drawings A/c	Dr.		20,000
	To Cash A/c				20,000
	(Paid income tax)
5)	Cash A/c	Dr.		2,20,000
	To Sales A/c				2,20,000
	(Goods sold for cash including profit of 10%)
6)	Office Equipment A/c	Dr.		3,50,000
	To Cash A/c				3,50,000
	(Office equipment purchased)
	TOTAL			7,05,000	7,05,000