Question

Journalize the following transactions in the books of Mr. ABC Ltd.
Debit Balances on April 1, 2010
Cash at Bank:₹ 75,000; Sundry Debtors: ₹ 11,000; Stock: ₹ 25,000; Land & Building: ₹ 1,75,000.
Credit Balances on April 1, 2010
Sundry Creditors Pallavi: ₹ 15,000; Bank Loan: ₹ 25,000; Capital: ₹ 2,86,000 Transactions during the month of April, 2010:
2010 April
1 Purchased goods worth ₹ 20,000 for cash less 25% Trade discount.
4 Sold goods to Rajesh ₹ 20,000. 6 Purchased goods from Somesh worth ₹ 10,000.
9 Goods costing ₹ 1,000 distributed as free samples.
11 Received an amount of ₹ 2,000 from Brijesh which was previously written off as bad debt.
15 Paid to Somesh 1/3rd amount in cash and received 5% cash discount.
21 Received cash gift ₹ 11,000 from father with which purchased shares of Tata Co. for the business.
25 Repayment of bank loan with interest ₹ 5,000 (interest ₹ 100)
29 Sold goods to Rakesh ₹ 40,000 at 10% trade discount and received half the amount in cash for which 5% cash discount is given.
30 Paid for salary ₹ 4,000. 30 Withdrew cash from bank for personal purpose ₹ 1,000.

Answer 1

Journal
Date Particulars L.F. Debit
Amount
(Rs) Credit
Amount
(Rs)
Purchase A/c Dr. 15,000
To Cash 15,000
(Being goods worth 20,000/- purchased at a trade discount of 25%)

Rajesh A/c Dr. 20,000
To Sales 20,000
(Being goods sold to rakesh)

Purchase A/c Dr. 10,000
To Somesh 10,000
(Goods purchased from somesh)

Sample Expenses A/c Dr. 1,000
To Purchase A/c 1,000
(Being goods distributed as samples)

Cash A/c Dr. 2,000
To Bad Debt recovered A/c 2,000
(Being amount received from Brijesh previously written off as bad)

Somesh A/c Dr. 3,333
To Discount received A/v (3,333 x 5%) 167
To Cash A/c 3,166
(Being 1/3 amount paid to somesh after receiving 5% discount)

Cash A/c Dr. 11,000
To Gift received 11,000
(Being gift received from father)

Shares of Tata Co. Ltd Dr. 11,000
To Cash A/c 11,000
(Being shares purchased from gift money)

Bank Loan Dr. 4,900
Interest on Loan A/c Dr. 100
To Bank A/c 5,000
(Being bank loan paid with interest)

Rakesh A/c Dr. 36,000
To Sales 36,000
(Goods sold to rakesh at 10% trade discount)

Cash A/c Dr. 17,100
Discount allowed A/c (18,000 x 5%) 900
To Rakesh A/c 18,000
(Being half amount received from rakesh at 5% discount)
Salary A/c Dr. 4,000
Drawings A/c Dr. 1,000
To Bank A/c 5,000
(Being salary paid and amount withdrawn for personal use)





Note : As no details about cash in had is given , it has been assumed that all cash transactions are done in cash and later cash is deposited in bank.