Question: Assets : Cash 8000; cash at bank 7000;stock 30000; Debtors 36000, Mohan 10000, Sohan 12000, Dinesh 14000, Furniture 5000; building 5000 |
Liabilities: Creditors-- X: 5000, Y: 6000 (Money are in INR)
April 2: bought goods of the list price of ₹6000 from khanna brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.
April 3: received a draft from Mohan in full settlement and deposited it into bank. INR 9750
April 5: purchased goods from Suresh of the list price of 8000 at 20% trade discount and paid him by cheque.
April 8: sold goods and received a cheque ---- INR 25000
April 10: deposited the above cheque into bank
April 12: Sohan deposited in our bank A/c -----INR 4000
April 16: Paid income tax by cheque -----------INR 5600
April 20: Received a cheque from Sohan and sent to bank INR 7800
discount allowed INR 200
April 21: Withdrew from bank -- for office INR 2000
-- for private use INR 4000
April 23: Sent a cheque to x in full settlement of his A/c INR 4900
April 27: Cheque of Sohan returned by the bank as dishonoured
April 28: Dinesh was declared insolventand a payment of ^) paise in a rupee received
from his estate by a Cheque.
April 30: bank allowed interest INR 350
paid for rent by cheque INR 1500
Paid for travelling expenses by cheque INR 500
Create Journal entries for the above transactions
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| Apr 2 | Purchases A/c Dr. | 5,100 | ||
| To Khanna Brothers A/c | 5,100 | |||
| (Being goods purchased after trade discount) | ||||
| Apr 2 | Khanna Brothers A/c Dr. | 2,040 | ||
| To Bank A/c | 1,999 | |||
| To Discount Received A/c | 41 | |||
| (Being part payment made with cash discount) | ||||
| Apr 3 | Bank A/c Dr. | 9,750 | ||
| Discount Allowed A/c Dr. | 250 | |||
| To Mohan A/c | 10,000 | |||
| (Being amount received from Mohan in full settlement) | ||||
| Apr 5 | Purchases A/c Dr. | 6,400 | ||
| To Bank A/c | 6,400 | |||
| (Being goods purchased after trade discount and paid by cheque) | ||||
| Apr 8 | Bank A/c Dr. | 25,000 | ||
| To Sales A/c | 25,000 | |||
| (Being goods sold and cheque received) | ||||
| Apr 12 | Bank A/c Dr. | 4,000 | ||
| To Sohan A/c | 4,000 | |||
| (Being amount deposited by Sohan into bank) | ||||
| Apr 16 | Drawings A/c Dr. | 5,600 | ||
| To Bank A/c | 5,600 | |||
| (Being income tax paid—treated as drawings) | ||||
| Apr 20 | Bank A/c Dr. | 7,800 | ||
| Discount Allowed A/c Dr. | 200 | |||
| To Sohan A/c | 8,000 | |||
| (Being cheque received from Sohan in full settlement) | ||||
| Apr 21 | Cash A/c Dr. | 2,000 | ||
| To Bank A/c | 2,000 | |||
| (Being cash withdrawn for office use) | ||||
| Apr 21 | Drawings A/c Dr. | 4,000 | ||
| To Bank A/c | 4,000 | |||
| (Being cash withdrawn for personal use) | ||||
| Apr 23 | X A/c Dr. | 5,000 | ||
| To Bank A/c | 4,900 | |||
| To Discount Received A/c | 100 | |||
| (Being payment made to X in full settlement) | ||||
| Apr 27 | Sohan A/c Dr. | 7,800 | ||
| To Bank A/c | 7,800 | |||
| (Being cheque dishonoured) | ||||
| Apr 28 | Bank A/c Dr. | 7,000 | ||
| Bad Debts A/c Dr. | 7,000 | |||
| To Dinesh A/c | 14,000 | |||
| (Being amount received from insolvent debtor and balance written off) | ||||
| Apr 30 | Bank A/c Dr. | 350 | ||
| To Interest A/c | 350 | |||
| (Being interest allowed by bank) | ||||
| Apr 30 | Rent A/c Dr. | 1,500 | ||
| To Bank A/c | 1,500 | |||
| (Being rent paid by cheque) | ||||
| Apr 30 | Travelling Expenses A/c Dr. | 500 | ||
| To Bank A/c | 500 | |||
| (Being travelling expenses paid) |