Question

Q.1 Mr.Tanishk deals in Motor Cars. Record the following transactions in his Journal:

1) Purchased 4 motor cars @ Rs.1,20,000 each from Maruti Ltd. for stock.

2) Purchased 1 motor car for Rs.75,000 from Maruti Ltd. for business use.

3) Returned 1 Motor car from stock to Maruti Ltd.

4) Sold 3 motor cars for Rs.4,50,000 (Banked Rs.4,25,000)

5) Purchased an accounting machine for Rs.4,000.

6) Bought on credit from TATA Motors, 5 Motor cars for Rs.8,00,000 for resale.

7) Received credit note from TATA Motors for one car returned to them.

8) Paid to TATA Motors by cheque the amount owing.

9) Drew a cheque for self Rs.10,000 and drew out of cash for self Rs.2,000.

10) Mr.Tanishk brought his own car into business valuing Rs.1,80,000 for sale. ​

Answer 1

Answer:

Explanation:

                                 Journal entries                                                                      

Motor car A/c Dr.   4,80,000  

 To Maruti Ltd. A/c       4,80,000

 

Motor Car A/c Dr.   75,000  

 To Maruti Ltd. A/c       75,000

 

Maruti Ltd. A/c Dr.   1,52,000  

 To Motor car A/c     1,52,000

 

Maruti Ltd. A/c Dr.   1,20,000  

 To Motor car A/c     1,20,000

       

         

Accounting Machinery A/c Dr.   4000  

 To cash A/c       4000

         

           

Motor car A/c Dr.   8,00,000  

 To Tata Motor A/c       8,00,000

         

           

Tata Motor A/c Dr.   1,60,000  

 To Motor Car A/c       1,60,000

 

(viii) Tata Motor A/c Dr.   6,40,000  

 To Cash A/c       6,40,000

 

(ix) Drawing A/c Dr.   12000  

 To Cash A/c       2000

 To Bank A/c       10000

         

           

(x) Tata Motor A/c Dr.   1,60,000  

 To Motor Car A/c       1,60,000