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JOURNAL AND LEDGER Q.1. Journalise the following transactions : 2006 Jan 1 Mr.

Umesh started business with cash Rs. 20,000; goods Rs. 40,000; Machinery Rs. 80,000 & Bank balance Rs.50,000. 5 Sold good to Santosh of Rs.50,000 @10% T.D. and 10%C.D. Half the amount was received in cash. 7 Goods worth Rs.5,000 were destroyed by fire and the insurance company granted a claim for Rs. 3,750. 11 Bought 2 horses for Rs.5,000 each and a carriage for Rs.7,000 for business purpose. 15 Paid house rent Rs.10,000. 18 Withrew cash Rs.5,000 for office use and Rs.3,000 for personal use from the bank. 22 Sent moneyorder to our Supplier M. Dinesh and paid Rs.50 as money order commission charges. 29 Cash sales realized Rs.7680 and we allowed a C.D. of 4%. 30 Sold goods to Sahil for Rs. 9,500 and paid carriage expenses Rs.500 on his behalf. Q.2. Journalise the following transactions in the books of Sameer. 2006 May 1 Invested in a running business Rs.1,50,000 and acquired furniture Rs.20,000; Goods Rs. 10,000; Debtors Rs. 25,000; creditors Rs.15,000. 4 Purchased goods from Rocky for Rs.50,000 @10%T.D. & 10%C.D. and issued a cheque for 1/4th of the amount. 7 Exchanged personal furniture worth Rs.25,000 for goods worth Rs.20,000 and cash for the balance and retained both in the business. 10 Mr. Victor, our customer paid Rs.12,500 in full settlement of Rs.13,000. 15 Withdrew goods worth Rs.3000 and cash Rs.5000 from the business for personal use. 20 Goods worth Rs.10,000 were insured for Rs.8,000. A fire occurred and goods worth Rs.5,000 were destroyed and insurance company granted a proportionate claim. 25 Paid rent Rs.2000; insurance Rs. 1000; and interest Rs.500. 27 Machinery costing Rs.10,000 and having book value Rs.8,000 was sold to Hussain for a cash profit of Rs.500. 28 Paid insurance premium for goods Rs.2500 and life insurance premium of Sameer rs.1000. 30 Mr. Gulshan our debtor for Rs.5000 was declared insolvent and we could recover 50% of the amount due from him. 31 Sold goods to Topic worth Rs.30,000 @12.5% T.D. &2% C.D., 1/4th of the amount was received by cheque. Q.3. Journalise the following transactions. 2006 Jan 1 Business commenced by Mr. Patel with cash Rs.1,00,000 ( which includes Rs.2500 as loan taken from Mr.Sharma @ 12% interest p.a.), goods Rs.20,000; Furniture Rs.40,000 and machinery Rs.50,000.

Jan 4 Sold goods worth Rs.10,000 on cash terms. the amount was received in cash and by cheque. 7 Exchanged a computer worth Rs.25,000 for goods worth Rs.22,500. 9 Cash sales Rs.25,000 @10%T.D. & 5% C.D. terms. Half the sales proceeds were deposited in the bank. 13 Paid salaries Rs.5000, Rent Rs. 1000 & freight RS.2000. 15 Received Rs.9,500 from travelling salesman for goods sold by him after deducting Rs.500 as his commission. 19 Sold goods to Kulkarni & Co. Rs.36,000. 1/3rd amount was received immediately. 24 Received Rs. 23,000 from Kulkarni in full settlement of his account. 27 Goods worth Rs.15,000 were destroyed by fire and the insurance company granted Rs.12,000 as claim. 30 Withdrew Rs.4000 for office use and Rs.5000 for personal use from the bank. Q.4. Journalise the following transactions. Also prepare ledger A/cs of M/s Amarsons & M/s Cambridge. 2006 Mar 1 Stared business in readymade garments by investing Rs.50,000. 4 Opened a bank account by depositing Rs.5000. 8 Purchased readymade shirts worth Rs.20,000 from M/s Amarsons at 20%T.D. 10 Sold above goods to M/s Cambridge Wholesale Stores at 50% above cost. 15 Paid carriage on the above sales. 18 M/s Cambridge Wholesale Stores returned 1/4th of the goods sold to them and we returned those goods to M/s Amarsons. 20 Settled M/s Amarsons account by making a payment of Rs.11,500 . 25 Received cash from M/s Cambridge Wholesale Stores in settlement of their account & allowed a cash discount of 5%. 27 Uninsured goods of Rs.500 were lost by fire. 30 Distributed goods worth Rs.1500 as free samples. Q.5. Journalise the following transactions. 2006 Mar 1 Started business with cash Rs.15,000; building Rs.50,000; goods Rs.25,000; loan from bank Rs.10,000. 3 Cash sales realized Rs. 15,360 in cash & we allowed C.D. @ 4%. 5 Shridhar invoiced goods to us worth Rs.18,000 @ 5% T.D. & 3% C.D. terms, if payment is made within 10 days. He also paid carriage Rs.200 on our behalf. 10 Sold goods to Harish worth rs. 40,000 @ 10% T.D. and paid expenses Rs.1500 on his belalf. 14 Settled Shidhars account in cash. 20 Shekhar our debtor for Rs.8,000 was declared bankrupt and only 40 paise in a rupee could be recovered from his estate.

22 Goods with selling price Rs.7,200 were destroyed by fire and the insurance company granted a claim of 60%. The selling price is 150% of the cost price. 24 Paid rent to Ranjeet Rs.8000. 1/4th of the premises was used for residential purpose by the proprietor. 27 Goods with selling price Rs.1000 whose cost price was Rs.750 were distributed as free samples. 29 Furniture costing Rs.16,000 and having book value Rs. 14,400 was sold to Prakash on credit at a profit of Rs.1000. 30 Purchased 100 shares of of HMT Ltd. @ Rs.500 per share and paid 1% brokerage. 31 Sold the above shares @ Rs.550 per share and paid 1% brokerage. Q.6. Journalise the following transactions and prepare the following ledger accounts : (i) Cash a/c (ii) Pradeep a/c (iii) Sanjay a/c (iv) Sunita a/c (v) Capital a/c. 2006 Jul 1 The following balances appeared in the books of XYZ & Co. Cash A/c Rs. 25,000; Stock a/c Rs.30,000; Pradeep a/c(Dr.) Rs. 16,000; Sanjay a/c(Cr.) Rs.15,000; Sunita a/c(Cr.) Rs.6,000. 1 Purchased goods from Leela worth Rs. 20,000. 2 Sold goods of catalogue price Rs.10,000 @10% T.D. & 4% C.D. 4 Sold goods to Pratap for Rs.16,000 @10% T.D. 6 Bought goods from Sanjay worth Rs.12,000 and he allowed 5%T.D. 7 Paid house rent Rs.800 and office rent Rs. 1200. 8 Bought goods from Sunita worth Rs.6,000. 10 Paid salary to salesman Rs.1000 12 Paid Rs.6,000 to Sanjay on account. 18 Received cash from Pratap Rs.14,000 in full settlement. 21 Paid Rs.5,800 to Sunita on account. 28 Introduced further capital Rs.20,000 into the business. Q.7. Following balances appear in the books of Mohan Joshi as on 1st July,2006. Debit Balances Cash Stock of goods a/c Machinery a/c Prashants a/c 2006 Jul 5 Withdrew from the bank for office use Rs.5,000 Rs.20,000 25,000 50,000 20,000 Credit Balances Vikrams a/c Capital a/c Bank overdraft a/c Rs.25,000 70,000 20,000

10 Sold goods to Prashant worthRs.5,000 and paid carriage on his behalf Rs.1,000. 14 Purchased goods for cash Rs. 5,000. 15 Brought further capital into the business Rs.20,000. 20 Purchased goods from Vikram worth Rs.5,000. 22 Received a cheque of Rs. 34,500 from Prashant in full settlement of his account. 25 Paid salary to Vijay Rs. 5,000. 27 Paid Rs.20,000 to Vikram, he allowed us a discount of Rs.1000. 29 Sold goods for cash Rs.15,000. You are required to pass journal entries of the above transactions, prepare the necessary ledger accounts and prepare the trial balance. Q.8. From the following transactions, prepare Suns a/c in the books of Moon & Moons a/c in the books of Sun. 2006 Jan1 Sun owes Moon Rs.15,000. 2 Moon sold goods to Sun worth Rs.20,000 @ 10% T.D. 4 Moon paid to Star Rs. 500 on Suns behalf. 8 Sun paid Rs.10,000 to Moon by cheque. 15 Moon sold goods worth Rs. 2000 for cash. 18 Sun sends free samples to Moon with cost price of Rs.2000. 24 Sun purchased goods from Moon worth Rs. 30,000. 28 Moon paid Rs.200 for rent. 30 Sun settles the account with Moon.