ASSIGNMENT

Course Name: Basics Accounts - 1

Module 2: Journal
1. Explain the Features of Journal Entries

A simple journal entry has one debit and one credit whereas a compound
journal entry includes one or more debits and/or credits than a simple
journal entry.

2. What are the advantages of using journal?

Journal records all the financial transactions of a business in one place on a

time and date basis. The transaction are recorded, in support of a bill, to
check the authenticity of each of these journal entries with their bills.

3. Write a short note on Nominal accounts

An account recording the financial transactions of a business in a particular

category, rather than with a person other organization

4. Explain the term Journalizing

Journalizing is the practice of documenting a business transaction in

accounting records. Record-Keeping, Especially for accountants, is a detail –
oriented skill that requires commitment. Every business transaction is
recorded in a journal, also known as a Book of original entry.
5. Journalise the following transactions in the books of Mr. Bipin.

2011 Started business with Cash Rs 3,25,000 Goods worth Rs 50,000 and Laptop
July 1 Rs 45, 000.
3 Deposited in Dena Bank Rs 1,50,000.
7 Bought goods on credit from Manish Rs 10,000 at 10% Trade discount.
11 Sold goods to Nitin of Rs 12,000 at 5% Trade Discount.
13 Goods worth Rs 900 burnt by fire.
17 Received cash of Rs 11,200 from Nitin in full settlement of his account.
20 Drew from bank Rs 4,000 for his personal purpose.
23 Paid cash Rs 9,300 to Manish in full settlement of his account.
25 Paid house rent Rs 2,500.
28 Sold goods worth Rs 12,000 to Dinesh who paid us Rs 8,000 on account.
31 Wages paid Rs 6,000.

Date Particulars l/f Debit Amt Credit Amt

2011
July 1
Cash A/c … Dr. 3,25,000
Stock A/c ….. Dr. 50,000
Laptop Ac ……. Dr. 45,000
To
Capital A/c 4,20,000
(Being the business started with cash,
Stock and Laptop)
2011 July.3 Bank A /c Dr. 1,50,000
To Cash 1,50,000
(Being Cash deposited in Dena Bank)
2011 July.7 Purchase A/c Dr. 9,000
To Manish A/c 9,000
(Being purchased from Manish on
credit)
2011 July.11 Nitin A/c Dr. 11,400
To Sales A/c 11,400
(Being Goods sold to nitin on credit)
2011 July.13 Lossed by Fire A/c Dr. 900
 To Purchase A/c 900
(Being Goods Loss by fire)
2011 July.17 Cash A/c Dr. 11,200
Discount allowed A/c Dr. 200
To Nitin A/c 11,400
(Being payment received from Nitin )
2011 July.20 Drowning A/c Dr. 4,000
To Cash A/c 4,000
(Being Cash Withdrawn from Bank )
2011 July.23 Manish A/c . Dr. 10,000
To Cash A/c 9000
Discount A/c 1000
(Being Cash paid to Manish in full
settlement )
2011 July.25 Rent A/c . Dr. 2,500
To Cash A/c 2,500
(Being Rent paid )
2011 July.28 Cash A/c . Dr. 8,000
Receivable A/c 4,000
To Sales A/c 12,000
(Being Sold Goods to Dinesh)
2011 July.31 Wages A/c . Dr. 6,000
To Cash A/c 6,000
(Being Wages Paid)
Total 6,37,200 6,37,200