Home » Class 11 Accountancy » NCERT Solutions for Class 11 Accountancy Financial Accounting Part-1 Chapter 4 – Recording of Transactions – II

NCERT Solutions for Class 11 Accountancy Financial Accounting Part-1 Chapter 4 – Recording of Transactions – II


Short answers : Solutions of Questions on Page Number : 142


Q1 :Briefly state how the cash book is both journal and a ledger?
Answer :
Transactions are recorded directly from source documents in the Cash Book, so there is no need to record transactions in the Journal book. Further, on the basis of the cash transactions recorded in the Cash Book, cash and bank balances can be determined, and so there is no need to prepare cash account (which is a part of ledger) separately. Thus, the Cash Book serves the purpose of both Journal as well as ledger.


Q2 :What is the purpose of contra entry?
Answer :
Contra entry represents deposits or withdrawals of cash from bank or vice versa. The purpose of contra entry is to indicate the transactions that effect both cash and bank balances. This entry does not affect the financial positions of a business. A contra entry is recorded in both sides of a two column Cash Book and is denoted by ‘C’ in the ledger folio column.


Q3 :What are special purpose books?
Answer :
Business transactions are large in number and difficult to record; so, journal is sub-divided for quick, efficient and accurate recording of the business transactions. Special purpose books like, sales book and purchases book are maintained for those transactions that are routine and repetitive in nature. Recording through these books is economical and enables division of work among accountants.


Q4 :What is petty cash book? How it is prepared?
Answer :
Petty Cash Book is used for recording payment of petty expenses, which are of smaller denominations like postage, stationery, conveyance, refreshment, etc. Person who maintains petty cash book is known as petty cashier and these small expenses are termed as petty expenses.
It is prepared by two methods:
Ordinary system: In this case, a fixed sum of money is paid to petty cashier for the payment of petty expenses and after spending the whole amount, the account is submitted by the petty cashier to the main cashier.
Imprest system: In this case, a fixed sum of the money is given to the petty cashier in the beginning of a period and at the end of the period the amount spent by him is reimbursed, so that he has a fixed amount in the beginning of every new period.


Q5 :Explain the meaning of posting of journal entries?
Answer :
Posting is the process of transferring the business transactions from Journal to ledgers.
Every transaction is first recorded in the Journal and subsequently transferred to their respective accounts.


Q6 :Define the purpose of maintaining subsidiary journal.
Answer :
The process of accounting starts from identification of financial and non-financial events. Financial events are first recorded in a Journal. A small business has lesser number of transactions and thereby it may be possible to record these transactions through Journal entry. However, on the contrary, as the business grows, there will be voluminous number of transactions and the firm may experience difficulty, thereby it becomes tedious to record through Journal entry. Thus, in order to save time and effort, it is recommended to sub-divide Journal. Sub-division of Journal provides scope for division of work. This leads to the improvement of efficiency and effectiveness and infuses higher degree of accountability to the accountants for the specific subsidiary Journal assigned to them. The purposes of maintaining subsidiary Journal are given below.
It saves time and efforts in recording.
It enables division of work, leading to an enhancement of efficiency and effectiveness, as particular accountant takes care of particular books.
It also makes each accountant more responsible and accountable for the books assigned to them.
It records routine and repetitive transactions at one place, which leads to easy accessibility of information and hassle-free communication.


Q7 :Write the difference between return inwards and return outwards.
Answer :

Basis of Difference Return Inwards Return Outwards
Meaning Goods sold to the customers, are returned by them. Goods purchased are returned to the suppliers.
Balance It has debit balance. It has credit balance.
Treatment It is deducted from Sales in the Trading Account. It is deducted from Purchases in the Trading Account.
Issued Credit note is prepared by the seller. Debit note is prepared by the buyer.
Reduction It reduces the payment from the Debtors. It reduces the payment made to the Creditors.
Term It is also termed as Sales Returns. It is also termed as Purchases Returns.

Q8 :What do you understand by ledger folio?
Answer :
Ledger folio is a page number of an account in ledger that is written in the L.F. column of a journal format. In journal entry, ledger folio number is written corresponding to the name of the account in the L.F. column. It helps in easy locating of the account in the ledger book. It reduces the time in recording and rechecking.


Q9 :What is difference between trade discount and cash discount?
Answer :

Basis of Difference Trade Discount Cash Discount
Meaning It is allowed when goods are purchase or sold. It is allowed at the time of payment.
Recording in books It is recorded in invoice/bill but not in the books. It is recorded in the discount column of the Cash Book’s debit side, if allowed, and credit side, if received.
Purpose It is allowed to increase sale. It is allowed for earlier payment.
Deduction It is deducted from the price-list of the goods. It is not deducted from the price-list of the goods.

Q10 :Write the process of preparing ledger from a journal.
Answer :
The process of preparing ledger from Journal can be explained with the help of an example. Let us suppose that machinery is purchased from Mr. X, so, the journal entry will be:

Machinery A/c
Dr.
To Mr. X Account
In this example, Machinery Account is debited and Mr. X Account is credited. Let us understand the process of preparing ledger from the journal entry.
Account which is debited in the entry:
Step 1: Indentify the account in ledger that is debited, i.e., ‘Machinery Account’.
Step 2: Enter date in the debit side of the ‘Machinery Account’ in the ‘Date’ column.
Step 3: Enter the name of the account as ‘Mr. X Account’ (which is credited in the entry) in the ‘Particulars’ column in the debit side of the Machinery Account.
Step 4: Enter the page number of the journal, where the entry is recorded in the ‘J.F.’ (journal folio) column.
Step 5: Post the corresponding amount in the ‘Amount’ column, which is recorded against ‘Machinery Account’ in the journal entry.
Account which is credited in entry:
Step 1: Indentify the account in ledger that is credited, i.e., ‘Mr. X Account’.
Step 2: Enter date in the credit side of ‘Mr. X Account’ in the ‘Date’ column.
Step 3: Enter the name of the account as ‘Machinery Account’ (which is debited in the entry) in the ‘Particulars’ column in the credit side of the ‘Machinery Account’.
Step 4: Enter the page number of the journal where the entry is recorded in the ‘J.F.’ (journal folio) column.
Step 5: Post the corresponding amount in the ‘Amount’ column, which is recorded against ‘Mr. X Account’ in the journal entry.


Q11 :What do you understand by Imprest amount in petty cash book?
Answer :
Imprest amount is an amount of money given by the main cashier to the petty cashier in the beginning of a period. At the end of the period, the amount spent by the petty cashier gets reimbursed in such a manner, that he has the same amount of cash in hand in the beginning of next period. For example, if the main cashier gives an imprest amount of Rs 1,000 to the petty cashier on April 01, 2011 and at the end of the month the petty expenses amount to be Rs 850, which is spent by the petty cashier during the month. In this case, Rs 850 will be reimbursed, so, that on May 01, 2011, the petty cashier will have Rs 1,000 at his disposable to meet petty expenses for the next month.


Long answers : Solutions of Questions on Page Number : 142


Q1 :Explain the need for drawing up the special purpose books.
Answer :
The needs for drawing up the special purpose book are given below.
Quick and efficient recording: It is a time consuming process to record all the transactions in a journal. If there are separate books, then recording of transactions can be done more efficiently and timely. So, the need of special purpose book arises.
Repetitive nature: In every business, some transactions are similar and repetitive in nature. It will be more convenient to record all similar transactions at one place. For example, all credit sales transactions are recorded in the Sales Book.
Economical: It is more economical as recording through the special purpose books saves time and also enhances the efficiency of accountants and clerks.
Easy posting: If similar transactions are recorded at one place, posting becomes easier.
Complete information at one place: All information related to purchases, sales, cash receipts, payments, etc. are easily and hassle-free available.

Q2 :What is cash book? Explain the types of cash book.
Answer :
Cash Book is a book of original entry. It records all transactions related to receipts and payments of cash and deposits in and withdrawals from a bank in a chronological order. In the debit side of the cash book, the cash receipts are recorded in the cash column while all deposits into bank account are recorded in the bank column. On the contrary, in the credit side of the cash book, all cash payments are recorded in the cash column, while all payments through cheques are recorded in the bank column. Usually, it is prepared on monthly basis. Cash book also serves the purpose of principle book (i.e. cash account and bank account).

Single Column Cash Book: A single column Cash Book contains one column of amount on both sides, i.e., one in the debit side and other in the credit side. In the single column Cash Book, only cash transactions are recorded. In the debit side of the Cash Book, all cash receipts are recorded, while in the credit side all cash payments are recorded.

Double Column Cash Book: A double column Cash Book contains two columns of amount, namely cash column and bank column on both sides. In the cash column of Cash Book, all cash receipts and payments are recorded, according to the rule of Real Accounts. All deposits either in cash or through cheques into the bank account of the business are debited in the bank column and all withdrawals of cash and payments through cheques are credited in the bank column.

Cash Book

Dr                                                                                                 Cr

Date Particulars L.F. Cash
Rs
Bank
Rs
Date Particulars L.F. Cash
Rs
Bank
Rs
   Cash  (C)    –    Bank   (C)    

Triple Ccolumn Cash Book: In a triple column Cash Book, there are three columns of amount namely, cash, bank and discount. Discount allowed and discount received are recorded in the discount column. While in the debit side, discount allowed is recorded along with the receipts, either in cash or through cheque; whereas, in the credit side, discount received is recorded, along with the payments made either in cash or by issuing cheques.

Petty Cash Book: This book is used for recording payment of petty expenses, which are of smaller denominations like, postage, stationery, conveyance, refreshment, etc. is known as Petty Cash Book.


Q3 :What is contra entry? How can you deal this entry while preparing double column cash book?
Answer :
The transaction that is entered in either sides of the double column or three column cash book, affecting both cash and the bank balances concomitantly is called contra entry. These entries result in increase in cash balances and decrease in bank balances or vice versa. In other words, a debit of bank account leads to a credit of cash account and a credit of bank account leads to a debit of cash account. For example, Rs 200 cash deposited into bank. This transaction increases the bank amount on one hand; whereas, on the other hand reduces the cash balance. In this entry, in the debit side of the cash book, ‘Cash’ will be recorded with a balance of Rs 200 in the bank column and in the credit side of the cash book, ‘Bank’ will be recorded with a balance of Rs 200 in the cash column. This entry is a contra entry as it affects both cash and bank balance together. The contra entries are denoted by ‘C’.

Some transactions that lead to contra entry are given below.
Opening a bank account
Depositing cash into bank
Withdrawal from bank
These transactions are recorded in a double column Cash Book as done below.

Sales Book

Date

Bill No.

Name of the
Customer

 (Accounts to be
debited)

L.F.

Details

Rs

Amount

 Rs

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

Cash

(C)

Bank

(C)

Q4 :What is petty cash book? Write the advantages of petty cash book?
Answer :
Petty Cash Book is used for recording payments of small expenses, which are of smaller denominations such as postage, stationery, conveyance, refreshment, etc. Person who maintains Petty Cash Book is known as petty cashier and these small expenses are termed as petty expenses.
It is prepared by the below given two methods.
Ordinary system: Under this system, a certain sum of money is given to the petty cashier for the payment of petty expenses. After spending the whole amount, the accounts are submitted by the petty cashier to the main cashier.
Imprest system: Under this system, a fixed sum of money is given to the petty cashier in the beginning of a period to meet the petty expenses to be incurred in that period. At the end of the period, the amount spent by the petty cashier is reimbursed. So, the petty cashier has the same fixed amount of money in the beginning of the next period.
The Performa of Petty Cash Book is given below.

Petty Cash
Book

Dr.

Cr.

Amount
Received

Date

Particulars

Voucher No.

Amount Paid

Rs

Analysis of
Payments

Postage

Stationery

Conveyance

Telephone and

 Telegram

Miscellaneous

Remarks

Advantages of Petty Cash Book:
Simple method: Recording of transactions in a petty cash book is easy. In an analytical Petty Cash Book, there exists separate heads for different petty expenses, which makes recording much easier. Recording in a Petty Cash Book does not require formal knowledge of accounting principles and techniques.
Time saving: Recording in Petty Cash Book saves time and efforts of the chief cashier.
Efficient control: At the end of a period,Petty Cash Book is audited by the main cashier, so frauds and errors are less probable.
Convenient handling: Recording in Petty Cash Book is convenient, as entries are to be recorded under separate heads, which makes posting easier and quicker.

Q6 :Enter the following transactions in double column cash book of M/s Ambica Traders for November 2005:

    Rs
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 from 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:

Books of M/s. Ambika Traders

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

  Rs

Bank

 Rs

Date

Particulars

L.F.

Cash

 Rs

Bank

Rs

2005

 

 

 

2005

 

 

 

Nov.01

Capital

 

50,000

 

Nov.03

Bank

C

30,000

 

Nov.03

Cash

C

30,000

Nov.05

Purchases

10,000

 

Nov.15

Rohan

 

7,000

 

Nov.10

Office Machine

5,000

 

Nov.18

Sales

 

8,000

 

Nov.20

Bank

C

7,000

 

Nov.20

Cash

C

7,000

Nov.22

Cartage

 

500

 

 

 

 

Nov.25

Drawings

2,000

 

 

 

 

 

Nov.30

Rent

 

1,000

 

 

 

 

Nov.30

Balance c/d

11,000

35,500

 

 

 

65,000

37,000

 

65,000

37,000

 

 

 

   

 

       

Q7 :Prepare double column cash book from the following information for September 2005:

    Rs
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
25 Drew from bank for personal use 400
30 Salary paid 1,000

Answer:

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

 Rs

Bank

 Rs

Date

Particulars

L.F.

Cash

Rs

Bank

 Rs

2005

 

 

 

2005.

Sep.01

Balance b/d

 

7,500

 

Sep.01

Balance b/d
(Overdraft)

 

3,500

Sep.05

Sales

 

7,000

 

Sep.03

Wages

200

 

Sep.10

Cash

C

4,000

Sep.10

Bank

C

4,000

 

 

 

 

Sep.15

Purchases

 

2,000

 

 

 

Sep.20

Rent

500

 

 

 

 

Sep.25

Drawings

 

400

 

 

 

Sep.30

Salaries

1,000

 

Sep.30

Balance c/d (Over
draft)

 

1,900

Sep.30

Balance c/d

8,800

 

 

 

 

14,500

5,900

 

14,500

5,900

 

 

 

 

 

 

   

 

 

Q8 :Enter the following transaction in a double column cash book of M/s Mohit Traders for January 2005:

    Rs
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:

Books of M/s. Mohit Traders

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

 Rs

Bank

Rs

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

2005

 

 

 

2005

 

 

 

Jan.01

Balance b/d

 

3,500

 

Jan.01

Balance b/d
(overdraft)

 

2,300

Jan.10

Sales

 

8,000

 

Jan.03

Purchases

1,200

 

Jan.15

Cash

C

6,000

Jan.05

Wages

200

 

Jan.22

Sales

 

2,000

Jan.15

Bank

C

6,000

 

 

 

 

 

Jan.25

Rent

 

1,200

 

 

 

 

Jan.28

Drawings

 

1,000

 

 

 

 

Jan.31

Purchases

 

1,000

 

 

 

 

Jan.31

Balance c/d

4,100

2,500

 

 

 

11,500

8,000

 

11,500

8,000

 

 

 

 

 

 

   

 

 

Q9 :Prepare double column cash book from the following transactions for the year December 2005:

    Rs
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
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:

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

2005

2005

Dec.01

Balance b/d

17,500

5,000

Dec.03

Purchases

3,000

Dec.05

Jasmeet

10,000

Dec.10

Bank

C

10,000

Dec.08

Sales

7,000

Dec.12

Purchases

20,000

Dec. 10

Cash

C

10,000

Dec.15

Establishment Expenses

1,000

Dec.18

Sales

7,000

Dec.20

Bank

C

10,000

Dec.20

Cash

C

10,000

Dec.24

Trade Expenses

500

Dec.27

Commission

6,000

Dec.29

Rent

2,000

Dec.30

Drawings

1,200

Dec.31

Salaries

6,000

Dec.31

Balance c/d

8,800

10,000

41,500

31,000

41,500

31,000

Q10 :M/s Ruchi trader started their cash book with the following balances on Dec. 01 2005 : cash in hand Rs 1,354 and balance in bank current account Rs 7,560. He had the following transaction in the month of December, 2005:

    Rs
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
Prepare bank column cash book

Answer :

Books of M/s. Ruchi Trader

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

Date

Particulars

L.F.

Cash

Rs

Bank

Rs

2005

2005

Dec.01

Balance b/d

1,354

7,560

Dec.05

Purchases

6,000

Dec.03

Sales

2,300

Dec.12

Trade Expenses

700

Dec.08

Sales

10,000

Dec.18

Motor Car

15,000

Dec.15

Sales

20,000

Dec.25

Manisha (Dishonour)

10,000

Dec.20

Manisha

10,000

Dec.28

Rent

2,000

Dec.22

Sales

7,000

Dec.29

Telephone Expenses

500

Dec.31

Drawings

2,000

Dec.31

Balance c/d

15,954

6,060

20,654

37,560

20,654

37,560

Q11 :Prepare petty cash book from the following transactions. The imprest amount is Rs 2,000.

January   Rs
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
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

Amount

Received

Rs

Date

Particulars

Voucher

No.

Amount

Paid

Rs

Analysis of Payments

Telephone Telegram

Postage

Conveyance

Refreshment

Cartage

Miscellaneous

2,000

Jan.01

Cash

Jan.01

Cartage

50

50

Jan.02

STD
charges

40

40

Jan.02

Bus
Fare

20

20

Jan.03

Postage

30

30

Jan.04

Refreshment
for Employees

80

80

Jan.06

Courier
charges

30

30

Jan.08

Refreshment
of customer

50

50

Jan.10

Cartage

35

35

Jan.15

Taxi
Fare to Manager

70

70

Jan.18

Stationery

65

65

Jan.20

Bus
Fare

10

10

Jan.22

Fax
Charges

30

30

Jan.25

Telegram
Charges

35

35

Jan.27

Postage
stamps

200

200

Jan.29

Repair
to Furniture

105

105

Jan.30

Laundry
Expense

115

115

Jan.31

Miscellaneous
Expenses

100

100

1,065

105

260

100

130

85

385

Jan.31

Balance
c/d

935

2,000

2,000

935

Feb.01

Balance
b/d

1,065

Feb.01

Cash


 

Q12 :Record the following transactions during the week ending Dec. 30, 2005 with a weekly imprest Rs 500

    RS
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

Amount

Received

Rs

Date

Particulars

Voucher No.

Amount

Paid

Rs

Analysis of Payments

Stationery

Conveyance

Cartage

Postage

Miscellaneous

2010

   

500

Dec.24

Cash

 

 

 

 

 

 

 

 

Dec.24

Stationery

 

100

100

 

 

 

 

 

Dec.25

Bus Fare

 

12

 

12

 

 

 

 

Dec.25

Cartage

 

40

 

 

40

 

 

 

Dec.26

Taxi Fare

 

80

 

80

 

 

 

 

Dec.27

Wages to Casual labour

 

90

 

 

 

 

90

 

Dec.29

Postage

 

80

 

 

 

80

 

 

 

402

100

92

40

80

90

 

Dec.30

Balance c/d

 

98

 

 

 

 

 

 

2010

 

 

500

 

 

 

 

 

98

Dec.31

Balance b/d

 

 

 

 

 

 

 

402

Dec.31

Cash

 

 

 

 

 

 

 

Q13 :Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2005
Bought from Rahul Traders as per invoice no. 20041
40 Registers @ Rs 60 each
80 Gel Pens @ Rs 15 each
50 note books @ Rs 20 each
Trade discount 10%.
15Bought from Global Stationers as per invoice no. 1132
40 Ink Pads @ Rs 8 each
50 Files @ Rs 10 each
20 Color Books @ Rs 20 each
Trade Discount 5%
23Purchased from Lamba Furniture as per invoice no. 3201
2 Chairs @ 600 per chair
1 Table @ 1,000 per table
25 Bought from Mumbai Traders as per invoice no. 1111
10 Paper Rim @ Rs 100 per rim
400 drawing Sheets @ Rs 3 each
20 Packet water colour @ Rs 40 per packet
Answer:

Books of M/s. Gupta
Traders

Purchases Book

Date

Invoice

No.

Name of
Supplier

 (Accounts to be
credited)

L.F.

Details

Rs

Amount

Rs

2005

   

 

 July 01

20041

Rahul Traders

 

 

 

 

40 Registers @ Rs 60
each

 

2,400

 

 

 

80 Gel Pens @ Rs 15
each

 

1,200

 

 

 

50 Note Books @ Rs 20
each

 

1,000

 

 

 

 

4,600

 

 

 

Less:
Trade Discount 10%

 

(460)

4,140

 

 

 

 

 

July 15

1132

Global Stationeries

 

 

 

 

 

40 Ink Pads @ Rs 8
each

 

320

 

 

 

50 Files @ Rs 10 each

 

500

 

 

 

20 Colour Books @ Rs 20
each

 

400

 

 

   

1,220

 

 

 

Less:
Trade discount 5%

 

(61)

1,159

 

   

 

July 25

1111

Mumbai Traders

 

 

   

10 Paper Rim @ Rs 100
each

 

1,000

 

   

400 Drawing Sheet @ Rs 3
each

 

1,200

 

   

20 Packet Water Colour @ Rs
40 per pack

 

800

3,000

   

 

 

 

 

   

Purchases Account

 

 

8299

           

Note: Furniture purchased from Lamba Traders will not be recorded in the Purchases Book as furniture is not to be considered as goods for the M/s Gupta Trader. This is because as per the transactions M/s. Gupta traders deals in stationery and not in furniture.

Note: Slight change in the Performa of subsidiary book is done. Here ‘Details’ column has been added in Purchase Book.

Q14 :Enter the following transactions in sales (journal) book of M/s. Bansal electronics:
September
01Sold 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
1.0 Sold to Arun Electronics as per bill no.4351
5 T.V. sets (20.) B&W @ Rs 3,000 per T.V.
2 T.V. sets (21.) Colour @ Rs 4,800 per T.V.
22 Sold to Handa Electronics as per bill no.4,399
10 Tape recorders @ Rs 600 each
5 Walkman @ Rs 300 each
28Sold to Harish Trader as per bill no.4430
10 Mixer Juicer Grinder @ Rs 800 each.
Answer:

Books of M/s. Bansal Electronics

Sales Book

Date

Bill No.

Name of the
Customer

 (Accounts to be
debited)

L.F.

Details

Rs

Amount

 Rs

   

 

Sept.01

4321

Amit Traders

 

 

 

20 Pocket Radio @ Rs 70 Per
Radio

 

1,400

 

 

2 T.V. Set, B&W (6″) @ Rs
800 per T.V.

 

1,600

3,000

 

 

 

Sept.10

4351

Arun Electronics

 

 

 

5 T.V. sets (20″) B&W @
Rs 3,000 per T.V.

 

15,000

 

2 T.V. sets (21″)
Colour @ Rs 4,800 per
T.V.

 

9,600

24,600

   

Sept.22

4399

Handa Electronics

 

 

10 Tape Recorders @ Rs 600
each

 

6,000

 

5 Walkman @ Rs 300
each

 

1,500

7,500

   

Sept.28

4430

Harish Traders

 
 

10 Mixer Juicer Grinder @ Rs
800 each

 

8,000

8,000

 

 

 

 

   

Sales Account

 

 

43,100

Q15 :Prepare a purchases return (journal) book from the following transactions for January 2006.

    Rs
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 Rs 2,000 less 10% trade discount.  
28 Return outwards to M/s Handa Traders 550

Answer:

Purchases Return
Book

Date

Debit Note No.

Name of
Supplier

 (Account to be
debited)

 

L.F.

Amount

Rs

2006

 

 

 

 

Jan. 05

 

M/s Kartik Traders

 

 

1,200

Jan. 10

 

Sahil Pvt. Ltd.

 

 

2,500

Jan. 17

 

M/s Kohinoor Trader

 

 

 

 

List Price

2,000

 

 

 

Less: 10% Trade discount

(200)

 

1,800

Jan. 28

 

M/s Handa Traders

 

 

550

   

 

 

 
   

Purchases Return Account

 

6,050

           

Q16 :Prepare Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for November 2005:

    Rs
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:

Sales Return
Book

Date

Credit Note

No.

Name of
Customer

(Account to be
credited)

L.F.

Amount

Rs

2005

Nov.04

M/s Gupta Traders

1,500

Nov.10

M/s Harish Traders

800

Nov.18

M/s Rahul Traders

1,200

Nov.28

Sushil Traders

1,000

Sales Return Account

4,500

Q17 :Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of February 2006:

    Rs
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
less 10% trade discount
5,700
25 Sold to Shri Chand goods
less 5% trade discount
6,600
26 Sold to Ramesh Brothers 4,000
28 Return outwards to Kirit and Co.
less 10% trade discount
1,000
28 Ramesh Brothers returned goods Rs 500.  

Answer :

Journal

Purchases Book

Date

Invoice

No.

Name of
Supplier

 (Accounts to be
credited) 

L.F.

Amount

 Rs

2006

 

 

Feb.04

Kushal Traders

 

2,480

Feb.14

Kunal Traders

 

5,200

Feb.17

Naresh

 

4,060

Feb.24

Kirit and Co.

5,700

 

 

 

Less:
Trade Discount 10%

(570)

 

5,130

 

 

   

 

   

Purchases Account

   

16,870

           

Sales Book

Date

Invoice

No.

Name of Customer

(Accounts to be debited)

L.F.

Amount

Rs

2011

Feb. 01

Sachin

5,000

Feb.06

Manish Traders

2,100

Feb.10

Mukesh

3,300

Feb.25

Shri Chand

6,600

Less: 5% Trade Discount

(330)

6,270

Feb.26

Ramesh Brothers

4,000

Sales Account

20,670

Sales Return Book

Date

Credit

Note

Name of Customer

(Accounts to be credited)

L.F.

Amount

Rs

2011

Feb.07

Sachin

600

Feb.22

Mukesh

250

Feb.28

Ramesh Brothers

500

Sales Return Account

1,350

Purchases Return Book

Date

Debit

Note

Name of Supplier

(Accounts to be debited)

L.F.

Amount

Rs

2011

Feb.08

Kushal Traders

280

Feb.20

Kunal Traders

200

Feb.28

Kirit and Co.

1,000

Less: 10% Trade Discount

(100)

900

Sales Return A/c

1,380

Journal Proper

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2011

Feb.15

Furniture A/c

Dr.

3,200

To Tarun

3,200

(Furniture purchased from Tarun)

Ledger

Purchases Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.28

Sundries as per Purchases

Book

16,870

Feb.28

Balance c/d

16,870

16,870

16,870

Sales Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.28

Sundries as per Sales Book

20,670

Feb.28

Balance c/d

20,670

20,670

20,670

Sales Return Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.28

Sundries as per Sales Return Book

1,350

Feb.28

Balance c/d

1,350

1,350

1,350

Purchases Return Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.28

Sundries as per Purchases Return Book

1,380

Feb.28

Balance c/d

1,380

1,380

1,380

Sachin’s Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.01

Sales

5,000

Feb.07

Sales Return

600

Feb.28

Balance c/d

4,400

5,000

5,000

Kushal Traders’ Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.08

Purchases Return

280

Feb.04

Purchases

2,480

Feb.28

Balance c/d

2,200

2,480

2,480

Manish Traders’ Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.06

Sales

2,100

Feb.28

Balance c/d

2,100

2,100

2,100

Mukesh’s Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.10

Sales

3,300

Feb.22

Sales Return

250

Feb.28

Balance c/d

3,050

3,300

3,300

Kunal Traders’ Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.20

Purchase Return

200

Feb.14

Purchases

5,200

Feb.28

Balance c/d

5,000

5,200

5,200

Furniture Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.15

Tarun

3,200

Feb.28

Balance c/d

3,200

3,200

3,200

Tarun’s Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.15

Furniture

3,200

Feb.28

Balance c/d

3,200

3,200

3,200

Naresh’s Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.17

Purchases

4,060

Feb.28

Balance c/d

4,060

4,060

4,060

Kirit & Co. Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.28

Purchases Return

900

Feb.24

Purchases

5,130

Feb.28

Balance c/d

4,230

5,130

5,130

Shri Chand & Co. Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.25

Sales

6,270

Feb.28

Balance c/d

6,270

6,270

6,270

Ramesh’s Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Feb.26

Sales

4,000

Feb.28

Sales Return

500

Feb.28

Balance c/d

3,500

4,000

4,000


Q18:The following balances of ledger of M/s Marble Traders on April 01, 2006

  Rs
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:

April   Rs
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 Remesh 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
16 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 100
26 Paid for stationery 60
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

Answer:

Books of M/s. Marble Traders

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

2011

Cash A/c

Dr.

6,000

Apr.01

Bank A/c

Dr.

12,000

Bills Receivable A/c

Dr.

7,000

Stock A/c

Dr.

5,400

Rahul’s A/c

Dr.

9,700

Himanshu A/c

Dr.

10,000

To Ramesh’s A/c

3,000

To Bills Payable A/c

2,000

To Capital A/c (Balancing figure )

45,100

(Balance brought from last year)

Apr.01

Manish

Dr.

3,000

To Sales A/c

3,000

(Goods sold to Manish)

Apr.02

Purchases A/c

Dr.

8,000

To Ramesh

8,000

(Goods purchased from Ramesh)

Apr.03

Cash A/c

Dr.

9,200

Discount Allowed A/c

Dr.

500

To Rahul

9,700

(Cash received from Rahul and discount allowed)

Apr. 05

Cash A/c

Dr.

4,000

To Himanshu

4,000

(Cash received from Himanshu)

Apr.06

Ramesh

Dr.

6,000

To Bank A/c

6,000

(Cheque issued to Ramesh)

Apr. 08

Rent A/c

Dr.

1,200

To Bank A/c

1,200

(Rent paid by cheque)

Apr.10

Cash A/c

Dr.

3,000

To Manish

3,000

(Cash received from Manish)

Apr.12

Cash A/c

Dr.

6,000

To Sales A/c

6,000

(Goods sold for cash)

Apr.14

Ramesh

Dr.

1,000

To Purchases Return A/c

1,000

(Goods returned to Ramesh)

Apr.15

Ramesh

Dr.

4,000

To Cash A/c

3,700

To Discount Received A/c

300

(Cash paid to Ramesh and discount received)

Apr.18

Kushal

Dr.

10,000

To Sales A/c

10,000

(Goods sold to Kushal)

Apr.20

Trade Expenses A/c

Dr.

200

To Cash A/c

200

(Trade expenses paid)

Apr.21

Drawings A/c

Dr.

1,000

To Cash A/c

1,000

(Cash withdrawn for personal use)

Apr.22

Sales Return A/c

Dr.

1,200

To Kushal

1,200

(Kushal returned goods)

Apr.24

Cash A/c

Dr.

6,000

To Kushal

6,000

(Cash received from Kushal)

Apr.26

Stationery A/c

Dr.

100

To Cash A/c

100

(Stationery paid)

Apr.27

Postages A/c

Dr.

60

To Cash A/c

60

(Postage charges paid)

Apr.28

Salaries A/c

Dr.

2,500

To Cash A/c

2,500

(Salary paid)

Apr.29

Purchases A/c

Dr.

7,000

To Sheetal Traders

7,000

(Goods purchased from Sheetal Traders)

Apr.30

Kirit

Dr.

6,000

To Sales A/c

6,000

(Goods sold to Kirit)

Apr.30

Purchases A/c

Dr.

5,000

To Handa Traders

5,000

(Goods purchased from Handa Traders)

Total

1,35,060

1,35,060

Ledger

Cash Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.01

Balance b/d

6,000

Apr.15

Ramesh

3,700

Apr.03

Rahul

9,200

Apr.20

Trade Expenses

200

Apr.05

Himanshu

4,000

Apr.21

Drawings

1,000

Apr.10

Manish

3,000

Apr.26

Stationary

100

Apr.12

Sales

6,000

Apr.27

Postage

60

Apr.24

Kushal

6,000

Apr.28

Salaries

2,500

Apr.30

Balance c/d

26,640

34,200

34,200

Bank Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.01

Balance b/d

12,000

Apr.06

Ramesh

6,000

Apr.08

Rent

1,200

Apr.30

Balance c/d

4,800

12,000

12,000

Bills Receivable Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.01

Balance b/d

7,000

Apr.30

Balance c/d

7,000

7,000

7,000

Stock Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.01

Balance b/d

5,400

Apr.30

Balance c/d

5,400

5,400

5,400

Rahul’sAccount

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.01

Balance b/d

9,700

Apr.03

Cash

9,200

Apr.03

Discount Allowed

500

9,700

9,700

Himanshu’sAccount

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.01

Balance b/d

10,000

Apr.05

Cash

4,000

Apr.30

Balance c/d

6,000

10,000

10,000

Ramesh’sAccount

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.06

Bank

6,000

Apr.01

Balance b/d

3,000

Apr.14

Purchases Return

1,000

Apr.02

Purchases

8,000

Apr.15

Cash

3,700

Apr.15

Discount Received

300

11,000

11,000

Bills Payable Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.01

Balance b/d

2,000

Apr.30

Balance c/d

2,000

2,000

2,000

Manish’s Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.01

Sales

3,000

Apr.10

Cash

3,000

3,000

3,000

Sales Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.01

Manish

3,000

Apr.12

Cash

6,000

Apr.18

Kushal

10,000

Apr.30

Balance c/d

25,000

Apr.30

Kirit

6,000

25,000

25,000

Purchases Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.02

Ramesh

8,000

Apr.29

Sheetal Traders

7,000

Apr.30

Handa Traders

5,000

Apr.30

Balance c/d

20,000

20,000

20,000

Rent Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.08

Bank

1,200

Apr.30

Balance c/d

1,200

1,200

1,200

Discount Received Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.15

Ramesh

300

Apr.30

Balance c/d

300

300

300

Kushal’sAccount

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.18

Sales

10,000

Apr.22

Sales Return

1,200

Apr.24

Cash

6,000

Apr.30

Balance c/d

2,800

10,000

10,000

Trade Expenses Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2011

2011

Apr.20

Cash

200

Apr.30

Balance c/d

200

200

200

Drawing’s Account

Dr.

Cr.

Date

Particulars

J.F.