WORKSHEET 1

Mohan was carrying on business as a cloth dealer. On 1st April, 2020 his assets
were: Furniture and Office Equipment, ` 12,500; Stock of Cloth ` 1,25,000; Cash in
Hand ` 2,250; Bank Balance ` 42,500; Amount due from B ` 6,000; Amount due
from G ` 7,500. On that date he owed ` 10,000 to M and ` 7,250 to P. His
transactions during April, 2020 were as follows:

Journalise the transactions. Note that cheques received are immediately sent to the Bank.
Date Particulars `
2020
April 1 Sold cloth on credit to G 2,500
.............................................................................................................................................
April 2 Purchased cloth from A on credit 10,000
..............................................................................................................................
April 3 Paid rent for the month of March by cheque 1,500
........................................................................................................
April 4 Purchases of cloth (paid by 4,000
cheque).........................................................................................................................
Cash 2,250
sales............................................................................................................................................................................
April 5 Cheque received from B 4,900
................................................................................................................................................
Allowed him discount 100
....................................................................................................................................................
April 6 Paid for 250
stationery............................................................................................................................................................
April 8 Drew cash for personal use 2,500
..........................................................................................................................................
April Drew cash from Bank for 7,500
10 office...................................................................................................................................
April B ’s cheque returned dishonoured by Bank which charges ` 25 for expenses
12
April Purchased goods on credit from M 12,500
13 ...........................................................................................................................
April Sent cheque to M in full settlement of amount due on 1st April 9,750
15 ...................................................................
Sent cheque to P 7,250
..............................................................................................................................................................
April Sold goods on credit to G 9,000
16 .............................................................................................................................................
April Paid telephone 2,400
17 charges.................................................................................................................................................
April Cash 5,500
18 sales............................................................................................................................................................................
Paid for advertising 1,750
.........................................................................................................................................................
April Paid income- 9,500
20 tax................................................................................................................................................................
Received letter from P saying that he has not received the cheque;
cancelled the cheque and paid cash.
April B becomes insolvent; only 50% received from his estate
21
April Cash purchases 4,500
22 .................................................................................................................................................................
April Purchased filing cabinet and paid by 2,500
24 cheque .......................................................................................................
April Paid salaries for the 10,000
27 month...........................................................................................................................................