SOLVED EXAMPLES

IUuJttration. 1
Ent~r the following transactions in the Journal of Dr. S . Sinha, Katiher :
2019 t
March I Started business with a Capital of 75,ooo
3 Purchased goods from Kumar Steels for cash 30.000
5 Purchased goods from Prasad Steels on credit 40 ,000
8 Goods returned to Kumar Steels 5,000
9 Sold goods to Mahendra Lal for cash 60,000
10 Sold goods to Hazarika Traders on credit 50.000
11 Paid Carriage 5,000
12 Paid cash to Prasad Steels 40 ,000
15 Received cash from Hazarika Traders in full settlement 49 ,000
17 Interest on capital 300
18 Goods given as charity 500
19 Goods given as free sample 1,000
21 Withdrew cash for private use 4,000
28 Rent paid 1.500
28 Interest received 1.500
30 Paid advertisement to Hindustan Daily, Newspaper for cash 2. 000
31 Paid Legal expenses for cash 500
Solution
Journal Entries in the books of Dr. S. Sinha, Katihar
L.F. Amount
1
Amount
Date Particulars
Dr. Cr.
2019 I ~
March 1 Cash Ale ... Dr. 75,000
\ To Capital Ale 75,000
I<Being cash brought in as capital)
,, 3 1Purchases Ale ... Dr. 30,000
To Cash Ale 30.000
1(Being goods purchased
for cash from Kumar Steels)
5 Purchases Ale ... Dr. 40,000
I
1
To Prasad Steels 40,000
m·
1. E:_m g goods P~hased on credit from Prasad Steels)
)I
8 1 Kumar Stools
... Dr. 5,000 I
To Purchases Returns Ale
5,000
<Br~ing _goods returned ~K~r Steels)
- -----
- - _ ___ Carried Forward
- - · - - _ _ L- __ 1,s_o,000 IiiO.Ooo
 3'
BOOK OF ORIGIN AL RECOR DS : JOURN AL

Brough t Forwar d 1,50,00 0 LW .O(X)

9 Cash Ale ... Dr. 60 ,000
To Sales Air 60,000
, tBcing t,;oods so1<i_i~ en~ to Mahen dra Lal) --
- -- - - - - - - - - - .-
.. Dr. 50.000
,. IO Hazari ka 'I'roders
To Sales Ale 5-0,000
{Being gocxis sold on credit to Hazari ka TradeI"8 )
.. 11 Carriag e lvr . . . Dr. 5,000
-5 ,()l)J
To Cash Air
tBeiug carriag e paid)
---
- -- - - - - - - - - - - - -... 40.000
" 12 Prasad SteE>ls Ale Dr.
4()J)C,)
To Cash A.le
{Being cash paid to Prasad S~ls)
15 Cash Ale . . . Dr. 49 .000
..
Discou nt Ale . .. Dr. LOOO
50,0fJ)
To Hazari ka Trader s
{Being cash receive d from Hazari ka Traders in full settlem ent)
., 17 Interes t on Capita l lvc . . . Dr. 300
3,CfJ
To Capita l Ale
(Being interes t charged on capital )
... Dr. .5CX)
,. 18 Charit y l\/c
:,):
To Purcha ses Ale
(Being goods given as charity )
,, 19 Adver tiseme nt/Free Sampl e Ale ... Dr. LOCI.)

To Purcha ses Ale

:...:-I
(Being goods given as free sample )
. .. Dr. 4.000
,, 21 Drawi ngs Ale
-L))J
To Cash Ale
(Being cash withdra wn for persona l use )
.. . Dr. 1..50(,
,, 28 Rent Ale
! -5-)~
To Cash Ale
(Being rent paid)
... Dr. 1.5(()
., 28 Cash Ale
::...5):'
To Intere st Ale
(Being interes t receive d)
... Dr. :2..1.X"\."I
,. 30 Adver tiseme nt Ale
2.)C\.}
To Casblv c
(Being adverti sement expens es paid for cash to Hindus tan Daily
newspa per)
... Dr.
., 31 Legal Expen ses Ale
To Cash A/c
<Being legal expenses paid for cash)
Grand Total f
Illust ration 2
Saroj Mart furnish es the following inform ation :
Transa ctions during the month of Apri.l, 2019 are as under :
Date Detail s
01.4 .2019 Goods purcha sed from Manis ha t 36,000 .
01.4.2 019 Station ery purcha sed for cash t 2,200.
02 .4 .2019 Goods sold to Priya for f 16,000 .
05.4.20 19 Sold goods to Nidhi t 14,000 .
08.4 .2019 Nidhi pays f 14 ,000 cash.
10.4 .2019 Purcha sed goods fort 20,000 on credit from Ritu .
29 .4 .2019 Cash vvithdr awn for househ old purpos es t 5.000.
30 .4.2019 Interes t receive d cash t 1,200.
30.4 .2019 Cash sales f 2,300.
30.4.2019 Payme nt of salarie s in cash f 12,000.
Journa lise the transac tions.
Soluti on IN THE BOOKS OF SARO J MART
Journ al Entri es
Date Particu lars Amou nt Amoun t
L.F
2019 Dr. Cr.
Apr. 01 Purcha ses Ale f t
. .. Dr. 36,000
To Manis ha
\Being goods purchas ed on credit) 36,000
Apr. 01 Station ery Ale
To Cash Ale .. . Dr. 2,200
(Being purchas e of statione ry for cash) 2,200
Apr. 02 Priya
To Sales Ale ... Dr. 16,000
(Being goods sold to Priya on credit) I
16,000
Apr. 05 Nidhi I
To Sales Ale .. . Dr. 14,ooo I
CBeing sale of goods to Nidhi on credit) 14,000
Apr. 08 Cash Ale
To Nidhi ... Dr. 14,000
CBeing cash received from Nidhi) 14,000
Apr. 10 Purcha ses Ale
To Ritu Ale ... Dr. 20,000
(Being Eurchas e of goods on credit)
Apr. 29 Drawin gs Ale 20,000
To Cash Ale ... Dr. 5,000
CBeing withdra wal of cash from th b .
EroErietor) e us mess for persona l use 5,000
Apr. 30 CashA /c
1 of the
---- --
! ~nterest Received Ale
0 ·----
(Bemg:
... Dr~ 1,200
mterest received)
Apr. 30 I Cash Ale - -- - - - - - --
1,200
To Sales Ale
A f CBeing sale of goods for cash)
. .. Dr. 2,300
pr. 30 Salarie s Ale ---~-- 2,300
1 To CashA /c
l (B .
-
- - - -.. . Dr.
I emg paymen t of salary to th ffi 12,000
I ·e O ce persons ) 12,000
Grand Total t
1 22.700 1.22.700
------- ------ ------ -------- -------- ---=~-
Transactions Relating to Loan, Interest and Payment ~
~l

Illustration 1
J ournalise the fullo"ing transactions in the books of Ram Kishore Roy :
i
t l ) Cash given as loan to Raj Store. Patna 2s,000
l2) Cheque given as loan to Rupa Dress, Katihar 40,00o
{3) Loan take,n from Bank Bo,o00
t4) Loan taken from Rimmv in Cash 10,000
,5) Interest charged by Baclt. 24% per annum for one month
,6 ) Bad debts :recovered 2,000
(7 ) Int-erest payable to Basudev & Sons, Katihar 1,500
l8 ) lntRrest re~ivable from Barman Brothers. Purnea 3,000
(9) Interest paid to Ram & Company, Ranchi 4,000
t lO ) Interest receivable from Chandan Singh 5,000
, 11) In final settlement of a debt oft 7,200, a cheque ofChandrama Singh
received and deposit;ed into Bank 7,000
{12) Chandrama Singh's cheque returned dishonoured
t 13) t 1,250 owing by Manohar, written off as bad debts
t 14) Raj St.ore, Patna declared insolvent and 40 paise in a rupee received from his estate.
( 15) Rupa Dresses, Katihar declared insolvent and nothing was recovered from his estate.
Solution Journal Entries in the books of Ram Kishore Roy
Amount Amount
S .No. Particulars L.F.
Dr. Cr.
t t
1. Loan t.o Raj Store, Patna .. Dr. 25 ,000
To Cash Ale 25.000
(Being cash given as loan to Raj Store, Patna)
2. Loan to Rupa Dresses, Katihar ..Dr. 40,000
To Bank Ale 40,000
IBeing cheque given as loan to Rupa Dresses, Katihar)
3. Bank Ale ..Dr. 80,000 I

80,000
To Bank Loan Ale I
(Being loan taken from Bank)
4. Cash Ale .. Dr. 70,000
70,000
To Rimmy's Loan Ale I
(Being cash taken from Rimmy as loan) I

5. Interest on Bank Loan Ale ..Dr. 1,600 I

1,600
To Bank Loan Ale
(Being interest charged by Bank@24% p.a. for one month)
6. Cash Ale .. Dr. 2,000 I 2,000
To Bad Debts Recovered Ale I
I
fBeing bad debts recovered)
I
Carried Forward 2,1s ,600 I 2,1 8,600
I
 BOOK OF ORIGINAL RECORDS : JOURNAL 45
- - - - - -- - - - - - -
- - - - - ,- -
Brought Foiward 2,18,600 2,18,600
,,I , Interest lPa:vable)
. Ale - .. Dr. 1,500
To Basudev & S{)ns\ Katihar 1,500
lBeing interest payable t-0 Basudev & Sons. Katihar) I
s. . .Barman Brothers, Purnea ..Dr. 3,000
To Interst (Receivable) Ale 3,000
(B~ing inte rest receivable from Burman Brothers Pumea )
--- --- '
9. Int erest Ale ..Dr. 4,000
To Cash Ale 4,000
tBeing interest paid to Ram & Company, Ranchi)
10. CashA/c .. Dr. 5,000
To Interest Ale 5,000
lBeing interest received from Chandan Singh )
I
11. BankA/c ..Dr. 7,000 I

Discount Ale .. Dr. 200

To Chandrama Singh 7,200
lBeing final settlement of debt received and discount allowed)
12. Chandrama Singh .. Dr. 7,200
1
I
To Bank Ale 7,000
' To Discount Ale 200
I (Being cheque of Chandrama Singh dishonoured)
13. \Bad Debts Ale .. Dr. 1,250
To Manohar 1,250
(Being bad debts allowed)
14. Cash Ale .. Dr. 10,000
Bad Debts Ale ..Dr. 15,000
To Raj Store, Patna Ale I 25,000
(Being Raj Store becomes insolvent and 40 paise in rupee received as final
settlement) I
15. Bad Debts Ale .. Dr. 40,000 I
To Rupa Dresses, Katihar Ale 40,000
Being Rupa Dresses becomes insolvent and nothing was received from his
I
estate) I
Grand Total f 3,12,1so \ 3,12,150
 Miscellaneous Transactions
.I llustration 9
J ournalise the following transactions in the books ofManohar; r
1. Salaries due to Cler ks 12,400
2 . Outst.anding wages 5,600
3. Paid Rent in advance 1,600
4 . Paid for r epairs t.o Cbandan Mistry 1,400
5. Repairs of Car, payment not yet made 2,000
6 . P ayment of Cash for Petrol 2,500
7. Bank Charges 300
8 . Rent earned but not received 2,300
9. Rent received in advance 2,700
10. Paid Salary to Sushil 3,650
-
Sou:dion
- - - . '~ . . ... .,_ ,._ "_. "LJ

Jou.ma) Entries in the books of Mano bar

S.Jilo. Particulars Amount Amount

L .F
Dr. Cr.
Salaries Ale
t f
1.
... Dr. 12,400
Th Outstanding Salaries Ale
12,400
tBeing salaries due to clerks )
2. Wages Ale --
... Dr. 5,600
To Outstanding Wages Ale
5 ,600
{Being wages due t;o workers )
3. Prepaid Rent Ale
...Dr. 1,600
To Cash Ale 1,600
(Being rent paid in advance )
4. Repairs Ale ... Dr. 1,400
To Cash Ale 1,400
(Being paid for repairs to Chandan Mistri)
5. Repairs Ale .. .Dr. 2 ,000
To Outstanding Repairs Ale 2,000
(Being repairs charges due)
6. Petrol Expenses Ale ...Dr. 2 ,500
To Cash Ale 2,500
(Being petrol expenses paid in cash)
7. 1 Bank Charges Ale ...Dr. 300
To Bank Ale 300
<Being Bank charges charged by Bank)
8. Outstanding Rent Ale ... Dr. 2,300
To Rent Ale 2,300
(Being rent earned but not received)
9. CashA/c ...Dr. 2 ,700
1

To Rent Received in Advance Ale 2,700

(Being advance rent received)
10. Salary Ale ... Dr. I 3,650
To Cash Ale 3,650
(&ing paid salary to Sushi])
Grand Total t 34,450 34,450
I
1.11scount., 1.raae u1scount and t;ash Uiscount
Illustration 11
Pass Journal entries in the books of Sri Ram Prakash Mahato from the following transactions :
2019 ~
July 1 Purchased goods from Subodh Jha at 10% Trade Discount 12,000
2 Sold goods to Binay Pandey at 10% Trade Discount 20,000
2 Returned goods to Subodh Jha 2,000
3 Binay Pandey returned goods 4,000
4 Final payment made to Subodh Jha at 5% Cash Discount.
5 Final Payment received from Binay Pandey at 5% Cash Discount.
7 Sold goods worth f 10,000 to Bittu Traders at 20% Trade Discount and 5% Cash Discount.
10 Sold goods worth f 4,000 at 15% Trade Discount and 2.5% Cash Discount, Received 60%
amount immediately.
12 Purchased goods of the list price off 16,000 at 10% Trade Discount and 2.5% Cash Discount
from Ram Nivas Gupta. Cash paid 80% of the total price.
21 Sold goods of the list price off 30,000 less 20% Trade Discount and 5% Cash Discount to
Santosh Verma. 50% of the amount received in cash.
Solution J.ou.rnal Entries in the books of Sri Ram Prakash Mahato
Date Particulars Amount Amount
L.F.
Dr. Cr.
2019 f ~
July 1 Purchases Ale ... Dr. 10,800
To Subodh Jha's Ale 10,800
(Being goods purchased on credit at 10% trade discount)
2 Binay Pandey's Ale ... Dr. 18,000
"
To Sales Ale 18,000
(Being goods sold on credit at 10% trade discount)
,, 2 Subodh Jha's Ale ... Dr. 1,800
To Purchases Returns Ale 1,800
(Being goods returned for f 2,000 at 10% trade discount)
3 Sales Returns Ale
" ... Dr. 3,600
To Binay Pandey's Ale 3,600
(Being goods returned by Binay Pandey oft 4,000 at 10% trade discount)
'" ' 4 Subodh Jha's Ale
I To Cash Ale ·.. Dr. 9,000
To Discount Ale 8,550
450
(Beiruz final Pavment made at 5% cash discount)
Carried Forward 43,200 43,200
 - - - - - - -- - - - -- - - - - -- - - -- - - - - - - - - - -- -
- Brought Forward 43,200 43,200
5 CashA/c ... Dr. 13,680
Discount Ale ... Dr. 720
'lb Binay Pandey's Ale 14,400
(Being final pa_ym ent received at 5% cash discount)
7 Cash Ale ... Dr. 7,600
Discount Ale ... Dr. 400
To Sales Ale 8,000
(Being _goo~s sol<:{ ~ t 20% trade discount and 5% cash discount)
10 CashA/e ... Dr. 1,989
Discount Ale ... Dr. 51
Bittu Traders ... Dr. 1,360
To Sales Ale 3,400
(Being goods sold at 15% trade discount and 2.5% cash discount, 60% of
the -amount
- -
received)
- - - -- - - - - - -- - - - - - - - - - - - l
J uly 12 Purchases Ale ... Dr. 14,400
To Cash Ale 11,232
To Discount Ale 288
To Ram Nivas Gupta's Ale 2,880
(Being goods purchased at 10% trade discount and 2.5% cash discount,
_ 80% of the price paid in cash)
21 Cash Ale ... Dr. 11,400
Discount Ale ... Dr. 600
Santosh Verma's Ale ... Dr. 12,000
To Sales Ale 24,000
(Being goods sold at 20% trade discount and 5% cash discount, 50% of
the price received in cash)
Grand Total t 1,07 ,400 1,07 ,400
 [An s. lira no l(HW \ 1 , \ 1\ •., ,1v\J I
owi ng tran sac tion s :
2. Give jour nal entr ies of Mis Moh it trad ers fron1 the foll ~
2016 1,10 ,000
Aug. l Com men ced busi ness with cash 50,000
2 Opened ban k acco unt with H.D .F.C . 20,000
3 Purc hase d furn itur e for cash 30,000
7 Bou ght goods for cash from Mis Rup a Tra ders 42,0 00
8 Purc hase d goods from Mis Hem a Tra ders 30,000
10 Sold goods for cash
12,0 00
14 Sold goods on cred it to Mis Gup ta Tra ders
16 Ren t paid 4,00 0
18 Paid trad e exp ense s 1,00 0
20 Received cash from Gup ta Tra ders 12,0 00
22 Goods retu rned t:o Hem a Tra ders 2,00 0
23 Cas h paid to Hem a Tra ders 40,000
25 Bou ght post age stam ps 100
30 Paid sala ry to Rish abh 4,000
(Ans. Grand Total f 3,5 7, I 00]
... 1~ ,. ..., "t. - , ,_ 11 _ _ _ •
8. Journalise the following transactions in the books of Anil Vastralaya, Ranchi :
1. Cash stolen by a thief from office~ 2,400. The thief was arrested but only f 1,800 could be recovered from
him
2. Charge interest on Capital@ 10% per annum on f 1,20,000
3. Charge interest on Drawings@ 10% per annum on f 20,000
4. ~ 2,500 received as Bad debts recovered
5. Goods costing f 3,200 sold at a profit of 20% on cost to Ramesh & Co.
6. Plant purchased for f 70,000 on 1st April, 2016 is valued at f 65,000 on March 31, 2016
7. Goods returned to Amber House, valued f 50, 000
8. Goods returned by Chunari House, valued f 20,000
9.. Paid carriage on purchases f 7,000 and carriage on sales f 10,000
10. A curtain valued f 700 made from the cloths of the firm
11. ~ 4,000 paid as rent out of personal cash
[Ans. Grand Total f 1~1,840]
 .
nu Trad ers :
12. Journalise the following tran sact ions in the Books of Mis Bha
2016
Mar. 1 Star ted busi ness with cash ~
2 Dep osite d into bank 92,000
4 Bou ght good s on cred it from Him ani 60,000
6 Purc hase d good s for cash 40,000
8 Retu rned goods to Him ani 20,000
10 Sold good s for cash 4,000
Che que give n to Him ani 20,000
14
36,000
17 Goods sold to Mis Goy al Trad ers 3,50,000
19 Drew cash from bank for pers onal use 2,000
21 Goy al Trad ers retu rned goods 3,500
22 Cash depo sited into bank 20,00 0
26 Che que rece ived from Goyal Trad er s 31 ,500
28 Goo ds give n as char ity 2,000
29 Ren t paid 3,000
30 Sala ry paid 7,000
31 Office m achi ne purc hase d for cash 3,000
[Ans. Gra nd Total \' 6,94 ,000 ]