Question

Journalise the following transactions in the books of Shankar Stores:-

2018

April 1 Started business with Rs.5,00,000; paid into bank Rs.4,00,000.

April 4 Purchased goods for Rs.1,40,000 in all, out of which half the goods was on credit from Mr.

Sudhir.

April 7 Purchased building for Rs.2,00,000 and paid 2% brokerage on its purchase. Also incurred

Rs.24,000 on its registration. Payment for building was made by cheque and brokerage and

registration charges were paid in cash.

April 12 Sold goods to Arun for Rs.2,00,000. Arun pays one-fourth amount in cash.

April 14 A cheque of Rs.1,48,000 is received from Arun in full settlement and the cheque is immediately

deposited into bank.

April 16 Paid stationary expenses Rs.180.

April 17 Paid fire insurance premium on building by cheque Rs.1000 and Shankar’s life insurance

premium by cheque Rs.4000.

April 20 Paid for office cleaning Rs.200.

April 28 Received a sum of Rs.2500 being rent for a portion of building let out.

April 28 Paid for advertisement in ‘The Hindustan Times’ Rs.2000.​

Answer 1

Answer:

Bank a/c. dr. 400000

Cash a/c. dr. 100000

To capital a/c. 500000

purchase a/c. dr. 140000

To Cash a/c. 70000

To Sudhir. 70000

Building a/c. dt 228000

To bank a/ c. 200000

To cash. a/c. 28000

cash. a/ c. dr. 50000

Arun. dr. 150000

To sales a/ c. 200000

Bank a/c. dr. 148000

discount. dr. 2000

To Arun. 150000

Stationary a/ c. dr. 180

To cash a/c. 180

fire insurance premium dr. 1000

drawings. dr. 4000

To bank a/ c. 5000

sundry expenses a/ c. dr 200

To cash a/ c. 200

Cash a/c. dr. 2500

To rent received a/c. 2500

Advertisement. dr. 2000

To cash a/ c. 2000