Business Accounting

Revision for Journal entries:

1. Mr Rajaram started business with Cash at Bank Rs. 1,00,000 Furniture Rs. 30,000 &
Machinery Rs.50,000.
2. Took a loan from Bank Rs. 2,00,000.
3. Deposited cash in Bank Rs. 75,000
4. Withdrew cash from bank Rs.2,000
5. Purchased goods on credit from Mr, Rohit Agarwal Rs.25,000
6. Sold goods worth Rs. 12,000 to Rahul @ 5% trade discount & 1% cash discount on
credit.
7. Purchased goods on cash basis from Sujata Rs.10,000 @ 10% trade discount.
8. Sold goods for cash to Ramesh Rs. 15,750.
9. Signed up a rent agreement with Amit for taking premises on rent @ Rs.12,500 per
month.
10. Placed an order with Yakub & Co. for purchase of goods, delivery to be received after 1
month Rs. 37,500.
11. Suleman Bros. placed an order with us for supply of goods Rs. 50,000.
12. Received Rs. 14,850 from Patel in full settlement of Rs. 15,000 due from him.
13. Paid Rs. 83,000 to Mehta in full settlement of Rs. 85,000 due to him.
14. Mr Laxman, a customer who owed Rs. 10,000 became insolvent & 50 paise in a rupee
could be recovered from his estate.
15. Recovered Rs. 2,500 from Aishwarya which were earlier written off as bad debts.
16. Goods worth Rs. 1200 were distributed as free samples.
17. Goods returned by customer Mr A Rs. 1,000.
18. Goods returned to supplier, Mr. B Rs. 4,000.
19. Cash was stolen from the business cash box Rs.10755.
20. There was a robbery in the godown & goods worth Rs. 50,000 were stolen overnight.
21. Uninsured Goods worth Rs.75,000 were lost due to fire.
22. Goods worth Rs.1,25,000 were lost due to fire & the insurance company admitted a
claim for Rs. 1,07500.
23. Goods worth Rs. 25000 were lost due to fire & insurance company admitted a claim for
the entire loss.
24. Purchased Machinery on credit from Datta & company for Rs.2,80,000 & paid half the
amount in cash.
25. Paid wages Rs. 25,000, Rs.15,000 by cheque & Rs. 10,000 by cash.
26. Owner Mr Rajaram issued a cheque or Rs. 2,00,000 from the business bank account for
the purpose of daughter’s wedding.
27. Owner Mr. Rajaram withdrew goods for personal use Rs.5000.
28. Paid electricity bill by cheque Rs. 4,525.
29. Received commission in cash Rs. 2,500.
30. Withdrew from Bank for personal use Rs. 20,000
31. Purchased equipment for Rs.1,50,000 & paid Rs. 8,000 towards transportation charges &
Rs 3,000 for installation, entire amount was paid by cheque.
32. Purchased furniture & issued a cheque for the same to the supplier M/s Khira Furniture
works Rs. 20,000.
33. Received Rs. 5,000 from Ramesh on behalf of Sudesh.
34. Issued an appointment letter to new employee Mr. John offering him a salary of Rs. 6
lakhs per annum.
35. In a furniture business, furniture worth Rs. 25,000 was used up for the Marketing
Manager’s office.
36. Goods worth Rs. 7,500 were given away as donation to an old age home.
37. Purchased goods worth Rs. 30,000 from Ranjeet at 5% trade discount & 2% cash
discount. 30% of the amount due was paid on the same day.
38. Sold goods worth Rs. 50,000 to Rekha at 10% trade discount & 5% cash discount. Rekha
paid 75% of the amount due right away.
39. Received Interest from Bank Rs. 2,500.
40. Issued a cheque in favour of Bank of India Rs. 23,500 for repayment of loan, included in
Rs.23,500 was Interest on loan Rs. 3,500.
41. Purchased a computer for Rs.47,500 in exchange of goods of Rs. 50,000 @ 5% Trade
discount.
42. Proprietor received a gift of Rs. 50,000 from his brother & invested the same in buying
shares on his personal name.
43. Proprietor received a gift of Rs. 25,000 from his friend & invested the same in buying
shares in the name of the business.
44. Paid rent Rs. 50,000 by cheque, Rs. 20,000 out of this was paid for the residential unit of
the proprietor.
45. Paid telephone bill of Rs. 4500 & electricity bill Rs. 7000, both bills paid by cash.
46. Sold machinery of the book value of Rs. 26,500 for cash Rs. 15,000.