NCERT Solutions for Class 11 Accountancy Financial Accounting I Chapter 4: Recording of Transactions II

Chapter at a glance

Test Your Understanding

Question TYU – I

Select the Correct Answer
(a) When a firm maintains a cash book, it need not maintain: (i) Journal Proper (ii) Purchases (journal) book (iii) Sales (journal) book (iv) Bank and cash account in the ledger
(b) Double column cash book records: (i) All transactions (ii) Cash and bank transactions (iii) Only cash transactions (iv) Only credit transactions
(c) Goods purchased on cash are recorded in the: (i) Purchases (journal) book (ii) Sales (journal) book (iii) Cash book (iv) Purchases return (journal) book
(d) Cash book does not record transaction of: (i) Cash nature (ii) Credit nature (iii) Cash and credit nature (iv) None of these
(e) Total of these transactions is posted in purchase account: (i) Purchase of furniture (ii) Cash and credit purchase (iii) Purchases return (iv) Purchase of stationery
(f) The periodic total of sales return journal is posted to: (i) Sales account (ii) Goods account (iii) Purchases return account (iv) Sales return account
(g) Credit balance of bank account in cash book shows: (i) Overdraft (ii) Cash deposited in our bank (iii) Cash withdrawn from bank (iv) None of these
(h) The periodic total of purchases return journal is posted to: (i) Purchase account (ii) Profit and loss account (iii) Purchase returns account (iv) Furniture account
(i) Balancing of account means: (i) Total of debit side (ii) Total of credit side (iii) Difference in total of debit & credit (iv) None of these

Answer

For (g), a credit balance in the bank column means the bank has paid more than was deposited — an overdraft. (The textbook key prints (ii), which is a misprint.)

Question TYU – II

1. Fill in the Correct Words: (a) Cash book is a …… journal. (b) In Journal proper, only …… discount is recorded. (c) Return of goods purchased on credit to the suppliers will be entered in …… Journal. (d) Assets sold on credit are entered in …… (e) Double column cash book records transaction relating to …… and …… (f) Total of the debit side of cash book is …… than the credit side. (g) Cash book does not record the …… transactions. (h) In double column cash book …… transactions are also recorded. (i) Credit balance shown by a bank column in cash book is …… (j) The amount paid to the petty cashier at the beginning of a period is known as …… amount. (k) In purchase book goods purchased on …… are recorded.
2. State whether the following statements are True or False: (a) Journal is a book of secondary entry. (b) One debit account and more than one credit account in a entry is called compound entry. (c) Assets sold on credit are entered in sales journal. (d) Cash and credit purchases are entered in purchase journal. (e) Cash sales are entered in sales journal. (f) Cash book records transactions relating to receipts and payments. (g) Ledger is a subsidiary book. (h) Petty cash book is a book having record of big payments. (i) Cash received is entered on the debit side of cash book. (j) Transaction recorded both on debit and credit side of cash book is known as contra entry. (k) Balancing of account means total of debit and credit side. (l) Credit purchase of machine is entered in purchase journal.

Answer

1. (a) subsidiary (special) (b) cash (c) purchases return (d) journal proper (e) cash, bank (f) more (or equal) (g) credit (h) bank (i) overdraft (j) imprest (k) credit

2.

7. is False: the ledger is the principal book; journal, cash book and the day books are subsidiary books. (The textbook key prints True.)

Note on 1(b): in the journal proper only the cash discount is recorded; trade discount is never recorded in the books.

Questions for Practice – Short Answers

Question SA – Q1

Briefly state how the cash book is both journal and a ledger.

Answer

Transactions involving cash are first recorded in the cash book in date order, so it is a book of original entry (journal). At the same time it has a debit side for receipts and a credit side for payments and is balanced like an account, so it also serves as the Cash Account (and Bank Account) in the ledger — no separate cash or bank account is opened in the ledger. Only the other side of each entry is posted to the ledger.

Question SA – Q2

What is the purpose of contra entry?

Answer

A contra entry records a transaction that affects both the cash and bank columns of the cash book — cash deposited into the bank or cash withdrawn from the bank for office use. Both aspects are recorded in the cash book itself (one on each side) and marked “C” in the L.F. column, which shows that no posting to the ledger is needed. It keeps the cash and bank balances correct without unnecessary postings.

Question SA – Q3

What are special purpose books?

Answer

Special purpose (subsidiary) books are books of original entry in which transactions of a similar nature are recorded together:

1. Cash book (cash and bank transactions)
2. Purchases (journal) book — credit purchases of goods
3. Sales (journal) book — credit sales of goods
4. Purchases return (journal) book
5. Sales return (journal) book
6. Bills receivable and bills payable books
7. Journal proper — for the remaining transactions

Question SA – Q4

What is petty cash book? How it is prepared?

Answer

The petty cash book records small, frequent payments (postage, cartage, conveyance, stationery, refreshment) made by a petty cashier.

Preparation (imprest system): The main cashier gives the petty cashier a fixed amount (imprest) at the start of the period. Each payment is entered with its date, voucher number and amount in the total column and also in an analysis column for that type of expense. At the end of the period the columns are totalled, the balance is found, and the main cashier reimburses the amount spent so that the petty cashier again starts with the full imprest. The column totals are posted to the respective expense accounts.

Question SA – Q5

Explain the meaning of posting of journal entries?

Answer

Posting is the process of transferring entries from the journal (books of original entry) to the respective accounts in the ledger. The account debited in the journal is debited in the ledger with “To (credit account)” and the account credited is credited with “By (debit account)”; the date, amount and journal folio are also entered, and the ledger folio is written in the journal.

Question SA – Q6

Define the purpose of maintaining subsidiary journal.

Answer

1. Division of work — different clerks can record different types of transactions at the same time.
2. Saves time and labour — postings are made in periodic totals.
3. Specialisation and efficiency — staff become expert in their books.
4. Easy reference — information about credit purchases, sales or returns is available in one place.
5. Better control — errors and frauds are located easily.

Question SA – Q7

Write the difference between return inwards and return outwards.

Answer

Question SA – Q8

What do you understand by ledger folio?

Answer

Ledger folio (L.F.) is the page number of the ledger on which an account appears. It is written in the L.F. column of the journal (or subsidiary book) when the entry is posted, indicating that posting has been done and allowing cross-reference between the journal and the ledger.

Question SA – Q9

What is difference between trade discount and cash discount?

Answer

Question SA – Q10

Write the process of preparing ledger from a journal.

Answer

1. Open a separate account in the ledger for each account appearing in the journal.
2. For the account debited in the journal, enter the date, “To (name of the account credited)”, J.F. and amount on the debit side.
3. For the account credited, enter the date, “By (name of the account debited)”, J.F. and amount on the credit side.
4. Write the ledger page number in the L.F. column of the journal.
5. At the end of the period, total and balance each account (Balance c/d and b/d).

Question SA – Q11

What do you understand by Imprest amount in petty cash book?

Answer

The imprest amount is the fixed sum of money given to the petty cashier at the beginning of a period (week or month) to meet petty expenses. At the end of the period the amount actually spent is reimbursed, so the petty cashier again holds the full imprest amount at the start of the next period.

Questions for Practice – Long Answers

Question LA – Q1

Explain the need for drawing up the special purpose books.

Answer

In a large business it is impracticable to record hundreds of transactions in a single journal. Special purpose books are needed because:

1. Volume of transactions — similar transactions (credit purchases, credit sales, cash) are recorded in separate books, so the journal is not overloaded.
2. Division of labour — different persons maintain different books simultaneously, speeding up work.
3. Saving of time — no narration is needed and only periodic totals are posted to the nominal accounts (sales, purchases, returns).
4. Fewer posting errors — fewer postings mean fewer mistakes, and errors are easy to trace.
5. Ready information — total credit sales, purchases or returns of a period are available at a glance.
6. Internal check and control — one person’s work is checked by another, reducing fraud.
7. Specialisation — staff become efficient in handling one type of record.

Question LA – Q2

What is cash book? Explain the types of cash book.

Answer

A cash book is a special journal in which all cash receipts and payments (and, in a double column cash book, bank transactions) are recorded in chronological order. Receipts are entered on the debit side and payments on the credit side. It serves as both a journal and the cash (bank) account in the ledger.

Types

(Triple column cash books with a discount column are also used in practice.)

Question LA – Q3

What is contra entry? How can you deal this entry while preparing double column cash book?

Answer

A contra entry is a transaction that involves both cash and bank accounts, so both its aspects appear in the cash book itself. Examples: cash deposited into bank; cash withdrawn from bank for office use.

Treatment in double column cash book

The letter C is written in the L.F. column of both entries to show that they are contra entries and need no posting to the ledger. (Cash withdrawn for personal use is not a contra entry — it is debited to Drawings.)

Question LA – Q4

What is petty cash book? Write the advantages of petty cash book?

Answer

A petty cash book is a cash book in which small and recurring payments (postage, cartage, conveyance, stationery, refreshment, etc.) are recorded by a petty cashier, usually under the imprest system, with separate analysis columns for each type of expense.

Advantages

1. Saves the time of the main cashier, who handles only large transactions.
2. Better control over small payments — every payment is supported by a voucher and checked at reimbursement.
3. Fewer postings — only column totals are posted to expense accounts.
4. Analysis of petty expenses is available readily.
5. Limits fraud — the petty cashier never holds more than the imprest amount.
6. Training — junior staff gain experience of keeping accounts.

Question LA – Q5

Describe the advantages of sub-dividing the Journal.

Answer

Sub-dividing the journal into cash book, purchases book, sales book, return books and journal proper gives these advantages:

1. Division of work among several clerks.
2. Specialisation and efficiency.
3. Saving of time and labour — no narrations; only totals posted to nominal accounts.
4. Easy reference — information on any class of transactions is in one book.
5. Fewer errors and easier detection.
6. Internal check — the work of one clerk is checked by another, reducing fraud.
7. Timely information for management, e.g. total credit sales of the month.

Question LA – Q6

What do you understand by balancing of account?

Answer

Balancing an account means finding the difference between the totals of its debit and credit sides and writing it on the shorter side so that both sides become equal.

Steps

1. Total both sides of the account.
2. Write the difference on the side with the smaller total as “To/By Balance c/d” (carried down).
3. Enter the equal totals on both sides on the same line.
4. Bring the balance down on the opposite side at the start of the next period as “By/To Balance b/d”.

A debit balance (debit side bigger) is shown on the credit side as c/d and brought down to the debit side. Personal and real accounts are balanced and carried forward; nominal accounts (expenses and incomes) are closed by transfer to the Trading and Profit & Loss Account.

Questions for Practice – Numerical Questions

Question Num – Q1

Enter the following transactions in a simple cash book for December 2016:
01 Cash in hand ₹ 12,000
05 Cash received from Bhanu ₹ 4,000
07 Rent Paid ₹ 2,000
10 Purchased goods Murari for cash ₹ 6,000
15 Sold goods for cash ₹ 9,000
18 Purchase stationery ₹ 300
22 Cash paid to Rahul on account ₹ 2,000
28 Paid salary ₹ 1,000
30 Paid rent ₹ 500

Answer

Cash Book

Closing balances — Cash in hand ₹ 13,200

Question Num – Q2

Record the following transaction in simple cash book for November 2016:
01 Cash in hand ₹ 12,500
04 Cash paid to Hari ₹ 600
07 Purchased goods ₹ 800
12 Cash received from Amit ₹ 1,960
16 Sold goods for cash ₹ 800
20 Paid to Manish ₹ 590
25 Paid cartage ₹ 100
30 Paid salary ₹ 1,000

Answer

The salary date is taken as 30th (November has 30 days; the textbook prints 31).

Cash Book

Closing balances — Cash in hand ₹ 12,170

Question Num – Q3

Enter the following transaction in Simple cash book for December 2017:
01 Cash in hand ₹ 7,750
06 Paid to Sonu ₹ 45
08 Purchased goods ₹ 600
15 Received cash from Parkash ₹ 960
20 Cash sales ₹ 500
25 Paid to S.Kumar ₹ 1,200
30 Paid rent ₹ 600

Answer

Cash Book

Closing balances — Cash in hand ₹ 6,765

Question Num – Q4

Record the following transactions in a bank column cash book for December 2016:
01 Started business with cash ₹ 80,000
04 Deposited in bank ₹ 50,000
10 Received cash from Rahul ₹ 1,000
15 Bought goods for cash ₹ 8,000
22 Bought goods by cheque ₹ 10,000
25 Paid to Shyam by cash ₹ 20,000
30 Drew from Bank for office use ₹ 2,000
31 Rent paid by cheque ₹ 1,000

Answer

Cash Book (Double Column)

Closing balances — Cash in hand ₹ 5,000; Cash at bank ₹ 37,000

Question Num – Q5

Prepare a double column cash book with the help of following information for December 2016:
01 Started business with cash ₹ 1,20,000
03 Cash paid into bank ₹ 50,000
05 Purchased goods from Sushmita ₹ 20,000
06 Sold goods to Dinker and received a cheque ₹ 20,000
10 Paid to Sushmita cash ₹ 20,000
14 Cheque received on December 06, 2016 deposited into bank
18 Sold goods to Rani ₹ 12,000
20 Cartage paid in cash ₹ 500
22 Received cash from Rani ₹ 12,000
27 Commission received ₹ 5,000
30 Drew cash for personal use ₹ 2,000

Answer

Credit purchase from Sushmita (5th) and credit sale to Rani (18th) are not cash transactions and are not entered. Dinker’s cheque, not banked on the same day, is entered in the cash column and transferred to the bank on 14th (contra).

Cash Book (Double Column)

Closing balances — Cash in hand ₹ 64,500; Cash at bank ₹ 70,000

Question Num – Q6

Enter the following transactions in double column cash book of M/s Ambica Traders for July 2017:
01 Commenced business with cash ₹ 50,000
03 Opened bank account with ICICI ₹ 30,000
05 Purchased goods for cash ₹ 10,000
10 Purchased office machine for cash ₹ 5,000
15 Sales goods on credit to Rohan and received cheque ₹ 7,000
18 Cash sales ₹ 8,000
20 Rohan’s cheque deposited into bank
22 Paid cartage by cheque ₹ 500
25 Cash withdrawn for personal use ₹ 2,000
30 Paid rent by cheque ₹ 1,000

Answer

The sale to Rohan is first debited to Rohan and credited to Sales in the journal; the cheque received is entered in the cash column against Rohan.

Cash Book (Double Column)

Closing balances — Cash in hand ₹ 11,000; Cash at bank ₹ 35,500

Question Num – Q7

Prepare double column cash book from the following information for July 2017:
01 Cash in hand ₹ 7,500; Bank overdraft ₹ 3,500
03 Paid wages ₹ 200
05 Cash sales ₹ 7,000
10 Cash deposited into bank ₹ 4,000
15 Goods purchased and paid by cheque ₹ 2,000
20 Paid rent ₹ 500
25 Drew from bank for personal use ₹ 400
30 Salary paid ₹ 1,000

Answer

The opening overdraft is a credit balance in the bank column.

Cash Book (Double Column)

Closing balances — Cash in hand ₹ 8,800; Bank overdraft ₹ 1,900

Question Num – Q8

Enter the following transaction in a double column cash book of M/s Mohit Traders for January 2017:
01 Cash in hand ₹ 3,500; Bank overdraft ₹ 2,300
03 Goods purchased for cash ₹ 1,200
05 Paid wages ₹ 200
10 Cash sales ₹ 8,000
15 Deposited into bank ₹ 6,000
22 Sold goods for cheque which was deposited into bank same day ₹ 2,000
25 Paid rent by cheque ₹ 1,200
28 Drew from bank for personal use ₹ 1,000
31 Bought goods by cheque ₹ 1,000

Answer

Cash Book (Double Column)

Closing balances — Cash in hand ₹ 4,100; Cash at bank ₹ 2,500

Question Num – Q9

Prepare double column cash book from the following transactions for August 2017:
01 Cash in hand ₹ 17,500; Cash at bank ₹ 5,000
03 Purchased goods for cash ₹ 3,000
05 Received cheque from Jasmeet ₹ 10,000
08 Sold goods for cash ₹ 7,000
10 Jasmeet’s cheque deposited into bank
12 Purchased goods and paid by cheque ₹ 20,000
15 Paid establishment expenses through bank ₹ 1,000
18 Cash sales ₹ 7,000
20 Deposited into bank ₹ 10,000
24 Paid trade expenses ₹ 500
27 Received commission by cheque ₹ 6,000
29 Paid Rent ₹ 2,000
30 Withdrew cash for personal use ₹ 1,200
31 Salary paid ₹ 6,000

Answer

The commission cheque is taken as deposited in the bank directly.

Cash Book (Double Column)

Closing balances — Cash in hand ₹ 8,800; Cash at bank ₹ 10,000

Question Num – Q10

M/s Ruchi trader started their cash book with the following balances on July 2017: cash in hand ₹ 1,354 and balance in bank current account ₹ 7,560. Prepare bank column cash book:
03 Cash sales ₹ 2,300
05 Purchased goods, paid by cheque ₹ 6,000
08 Cash sales ₹ 10,000
12 Paid trade expenses ₹ 700
15 Sales goods, received cheque (deposited same day) ₹ 20,000
18 Purchased motor car paid by cheque ₹ 15,000
20 Cheque received from Manisha (deposited same day) ₹ 10,000
22 Cash Sales ₹ 7,000
25 Manisha’s cheque returned dishonoured
28 Paid Rent ₹ 2,000
29 Paid telephone expenses by cheque ₹ 500
31 Cash withdrawn for personal use ₹ 2,000

Answer

On dishonour, the bank column is credited and Manisha is debited again.

Cash Book (Double Column)

Closing balances — Cash in hand ₹ 15,954; Cash at bank ₹ 6,060

Question Num – Q11

Prepare petty cash book from the following transactions. The imprest amount is ₹ 2,000 (January 2017):
01 Paid cartage ₹ 50
02 STD charges ₹ 40
02 Bus fare ₹ 20
03 Postage ₹ 30
04 Refreshment for employees ₹ 80
06 Courier charges ₹ 30
08 Refreshment of customer ₹ 50
10 Cartage ₹ 35
15 Taxi fare to manager ₹ 70
18 Stationery ₹ 65
20 Bus fare ₹ 10
22 Fax charges ₹ 30
25 Telegrams charges ₹ 35
27 Postage stamps ₹ 200
29 Repair on furniture ₹ 105
30 Laundry expenses ₹ 115
31 Miscellaneous expenses ₹ 100

Answer

Petty Cash Book (analytical, imprest system)

Total spent ₹ 1,065; balance in hand ₹ 935; reimbursement of ₹ 1,065 restores the imprest of ₹ 2,000.

Question Num – Q12

Record the following transactions during the week with a weekly imprest ₹ 500 (January 2017):
24 Stationery ₹ 100
25 Bus fare ₹ 12
25 Cartage ₹ 40
26 Taxi fare ₹ 80
27 Wages to casual labour ₹ 90
29 Postage ₹ 80

Answer

Petty Cash Book (analytical, imprest system)

Total spent ₹ 402; balance in hand ₹ 98; reimbursement of ₹ 402 restores the imprest of ₹ 500.

Question Num – Q13

Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2017:
01 Bought from Rahul Traders as per invoice no. 20041: 40 Registers @ ₹ 60 each, 80 Gel Pens @ ₹ 15 each, 50 note books @ ₹ 20 each; Trade discount 10%.
15 Bought from Global Stationers as per invoice no. 1132: 40 Ink Pads @ ₹ 8 each, 50 Files @ ₹ 10 each, 20 Color Books @ ₹ 20 each; Trade Discount 5%
23 Purchased from Lamba Furniture as per invoice no. 3201: 2 Chairs @ 600 per chair, 1 Table @ 1000 per table
25 Bought from Mumbai Traders as per invoice no. 1111: 10 Paper Rim @ ₹ 100 per rim, 400 drawing Sheets @ ₹ 3 each, 20 Packets water colour @ ₹ 40 per packet

Answer

Only credit purchases of goods dealt in are recorded. The furniture bought from Lamba Furniture (23rd) is an asset, so it is recorded in the journal proper (Furniture A/c Dr. ₹ 2,200 To Lamba Furniture), not in the purchases book.

Purchases (Journal) Book of M/s Gupta Traders

Total of purchases book = ₹ 8,299

Question Num – Q14

Enter the following transactions in sales (journal) book of M/s Bansal electronics (September 2014):
01 Sold to Amit Traders as per bill no. 4321: 20 Pocket Radio @ 70 per Radio; 2 T.V. set, B&W (6”) @ 800 per T.V.
10 Sold to Arun Electronics as per bill no. 4351: 5 T.V. sets (20”) B&W @ ₹ 3,000 per T.V.; 2 T.V. sets (21”) Colour @ ₹ 4,800 per T.V.
22 Sold to Handa Electronics as per bill no. 4399: 10 Tape recorders @ ₹ 600 each; 5 Walkman @ ₹ 300 each
28 Sold to Harish Trader as per bill no. 4430: 10 Mixer Juicer Grinder @ ₹ 800 each.

Answer

Sales (Journal) Book of M/s Bansal Electronics

Total of sales book = ₹ 43,100

Question Num – Q15

Prepare a purchases return (journal) book from the following transactions for April 2017:
05 Returned goods to M/s Kartik Traders ₹ 1,200
10 Goods returned to Sahil Pvt. Ltd. ₹ 2,500
17 Goods returned to M/s Kohinoor Traders for list price ₹ 2,000 less 10% trade discount
28 Return outwards to M/s Handa Traders ₹ 550

Answer

The column “Invoice/Bill” here is the debit note number.

Purchases Return (Journal) Book

Total of purchases return book = ₹ 6,050

Note: 1,200 + 2,500 + 1,800 + 550 = ₹ 6,050. The textbook answer of ₹ 6,150 does not agree with the given data.

Question Num – Q16

Prepare Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for July 2017:
04 M/s Gupta Traders returned the goods ₹ 1,500
10 Goods returned from M/s Harish Traders ₹ 800
18 M/s Rahul Traders returned the goods not as per specifications ₹ 1,200
28 Goods returned from Sushil Traders ₹ 1,000

Answer

The column “Invoice/Bill” here is the credit note number.

Sales Return (Return Inwards) Book of M/s Bansal Electronics

Total of sales return book = ₹ 4,500

Question Num – Q17

Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of February 2017:
01 Goods sold to Sachin ₹ 5,000; 04 Purchase from Kushal Traders ₹ 2,480; 06 Sold goods to Manish Traders ₹ 2,100; 07 Sachin returned goods ₹ 600; 08 Returns to Kushal Traders ₹ 280; 10 Sold to Mukesh ₹ 3,300; 14 Purchased from Kunal Traders ₹ 5,200; 15 Furniture purchased from Tarun ₹ 3,200; 17 Bought of Naresh ₹ 4,060; 20 Return to Kunal Traders ₹ 200; 22 Return inwards from Mukesh ₹ 250; 24 Purchased goods from Kirit & Co. for list price of ₹ 5,700 less 10% trade discount; 25 Sold to Shri Chand goods ₹ 6,600 less 5% trade discount; 26 Sold to Ramesh Brothers ₹ 4,000; 28 Return outwards to Kirit and Co. ₹ 1,000 less 10% trade discount; 28 Ramesh Brothers returned goods ₹ 500.

Answer

Sales Book

Purchases Book

Purchases Return Book

Sales Return Book

Journal proper

Ledger — personal accounts (posted individually from the books)

Sachin A/c

Kushal Traders A/c

Manish Traders A/c

Mukesh A/c

Kunal Traders A/c

Tarun A/c

Naresh A/c

Kirit & Co. A/c

Shri Chand A/c

Ramesh Brothers A/c

Ledger — nominal and real accounts (posted with periodic totals)

Sales A/c

Purchases A/c

Purchases Returns A/c

Sales Returns A/c

Furniture A/c

Totals — Sales book ₹ 20,670; Purchases book ₹ 16,870; Purchases return book ₹ 1,380; Sales return book ₹ 1,350

Question Num – Q18

The following balances of ledger of M/s Marble Traders on April 01, 2017: Cash in hand ₹ 6,000; Cash at bank ₹ 12,000; Bills receivable ₹ 7,000; Ramesh (Cr.) ₹ 3,000; Stock (Goods) ₹ 5,400; Bills payable ₹ 2,000; Rahul (Dr.) ₹ 9,700; Himanshu (Dr.) ₹ 10,000.
Transactions during the month were: 01 Goods sold to Manish ₹ 3,000; 02 Purchased goods from Ramesh ₹ 8,000; 03 Received cash from Rahul in full settlement ₹ 9,200; 05 Cash received from Himanshu on account ₹ 4,000; 06 Paid to Ramesh by cheque ₹ 6,000; 08 Rent paid by cheque ₹ 1,200; 10 Cash received from Manish ₹ 3,000; 12 Cash sales ₹ 6,000; 14 Goods returned to Ramesh ₹ 1,000; 15 Cash paid to Ramesh in full settlement ₹ 3,700, Discount received ₹ 300; 18 Goods sold to Kushal ₹ 10,000; 20 Paid trade expenses ₹ 200; 21 Drew for personal use ₹ 1,000; 22 Goods return from Kushal ₹ 1,200; 24 Cash received from Kushal ₹ 6,000; 26 Paid for stationery ₹ 100; 27 Postage charges ₹ 60; 28 Salary Paid ₹ 2,500; 29 Goods purchased from Sheetal Traders ₹ 7,000; 30 Sold goods to Kirit ₹ 6,000; Goods purchased from Handa Traders ₹ 5,000.
Journalise the above transactions and post them to the ledger.

Answer

Capital on 1 April = Assets (6,000 + 12,000 + 7,000 + 5,400 + 9,700 + 10,000 = 50,100) – Liabilities (3,000 + 2,000) = ₹ 45,100.

Journal

Ledger

Cash A/c

Bank A/c

Bills Receivable A/c

Stock A/c

Rahul A/c

Himanshu A/c

Ramesh A/c

Bills Payable A/c

Capital A/c

Manish A/c

Sales A/c

Purchases A/c

Discount Allowed A/c

Rent A/c

Purchases Returns A/c

Discount Received A/c

Kushal A/c

Trade Expenses A/c

Drawings A/c

Sales Returns A/c

Stationery A/c

Postage A/c

Salary A/c

Sheetal Traders A/c

Kirit A/c

Handa Traders A/c