Question

5. Record the following transactions in the books of Naveen Bhandar:
(1) Naveen as sole proprietor started business as "Naveen Bhandar" with 5,000 borrow
from his wife on loan and * 10.000 of his own.
(ii) Purchased goods at an auction for 2,100 and invoiced the same to Karamjit for
2,520.
(iii) Karim invoiced us goods worth 75,000 at 2% trade discount, half of which was
consigned to Khan at 20% above cost.
100
(iv) Billa Bros, purchased goods for 1,200 on 10% trade discount and 5% cash discoun
terms. Received a cheque for half of the amount due immediately,
(v) Purchased office equipment costing * 700 from Delhi Stores who in payment accepted
goods worth 300 and the balance to be paid after one month.
(vi) Purchased furniture for private use from Modern Furnishing House for 800 and paid
half of the amount from the business rest being paid from the private sources of
Naveen.
(vii) Paid 50 to doctor for medical treatment of Naveen's wife.
(viii) Dhamija, our travelling agent informed the sale for * 900 which he remits in cash after
deducting his commission 45.
(ix) Supplied goods costing 2,000 to Ramesh. Issued invoice at 10% above cost less 39
trade discount.
(x) Sold goods for * 150 to Naresh and the amount due was adjusted towards purchases of
equal amount for personal use.
​

Answer 1

Answer:

(i) cash a/c....Dr. 15000

To capital a/c. 10,000

To wife's loan a/c. 5000

(ii) purchases a/c.....dr. 2100

To cash a/c. 2100

cash a/c..... dr. 2520

to sales a/c. 2520