Solution

Class 11 - Accountancy

Test 2
1. JOURNAL
Amt. Amt.
Date Particulars L.F.
(Dr.) (Cr.)

Sept
Suresh A/c Dr 48,400
2

To Sales A/c 48,000

To Cash A/c 400

(Being goods sold to Suresh on credit and paid carriage outwards on his
behalf, i.e., to be charged from Suresh.)

Sept
Sundry Expenses A/c Dr 300
3

To Cash A/c 300

(Being amount spent for refreshment of customer.)

Sept
Machinery A/c Dr 12,500
7

To Cash A/c 12,500

(Being machinery purchased and installed by payment of expenses Rs 2,500.)

Sept
Cash A/c Dr 40,000
9

To Sales A/c 40,000

(Being the goods sold for cash.)

Sept
Cartage Outwards A/c Dr 200
9

To Cash A/c 200

(Being the cartage paid on sale.)

2. In the books of ---------------
Journal
Debit Credit
Sl.No. Particulars L.F. Amount Amount
(Rs) (Rs)

Purchase A/c
To Raj's A/c
1 Dr 25,500 25,500
(Being goods purchased from Raj of the list price of Rs 30,000 at 15%
trade discount)

Raj's A/c
To Discount Allowed A/c 1,020
2 Dr 25,500
To Cash A/c 24,480
(Being Raj account settled by paying cash and at 4% Cash discount)

3 Purchase A/c Dr 1,20,000 1,14,000

To Cash A/c 6,000

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 To Discount Received A/c
(Being goods purchased for cash of the list price of Rs 1,50,000 at 20%
trade discount and 5% cash discount)

Cash A/c
Discount Allowed A/c
Dr 52,380
4 To Sales A/c 54,000
Dr 1,620
(Being goods sold for cash of the list price of Rs 60,000 at 10% trade
discount and 3% cash discount)

2,25,000 2,25,000
Total
======== =======
3. JOURNAL
Debit Credit
Date Particulars L/F Amount Amount
(Rs) (Rs)

Drawings A/c 15,000

To Cash A/c Dr 15,000

To Purchases A/c
5,000
(Being cash and goods taken away by proprietor for personal use)

Charity A/c
To Purchases A/c Dr 25,000 25,000
(Being goods given away as charity)

Advertisement Expenses A/c

To Purchases A/c Dr 12,500 12,500
(Being goods distributed as free samples)

Loss by Theft A/c 25,000

To Purchases A/c Dr 35,000

To Cash A/c
10,000
(Being goods and cash stolen by an employee)

Loss by Fire A/c

To Purchases A/c Dr 50,000 50,000
(Being goods destroyed by fire)

Insurance Company A/c

To Loss by Fire A/c Dr 50,000 50,000
(Being insurance claim lodged with the insurance company)

Bank A/c Dr 30,000

Profit and Loss A/c 50,000

To Insurance Company
Dr 20,000
(Being insurance claim of Rs 50,000, accepted and received at Rs 30,000)

2,37,500 2,37,500
Total
====== ======
4. A cash discount is a deduction allowed by the seller of goods or by the provider of services in order to
motivate the customer to pay within a specified time. The seller or provider often refers to the cash discount
as a sales discount. The buyer often refers to the same discount as a purchase discount. The cash discount is
also known as an early payment discount. A trade discount is the amount by which a manufacturer reduces
the retail price of a product when it sells to a re seller, rather than to the end customer. The re seller then
charges the full retail price to its customers in order to earn a profit on the difference between the amount by

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 which the manufacturer sold the product to it and the price at which it then sells the product to the final
customer. The re seller does not necessarily resell at the suggested retail price; selling at a discount is a
common practice, if the reseller wishes to gain market share or clear out excess inventory.
Basis Trade Discount Cash Discount

It is a reduction granted by a supplier from the list
price of goods or services on business considerations
Meaning
(such as quantity bought, trade practices, etc.) other
than for prompt payment.
A reduction granted by a supplier from
the invoice price in consideration of
immediate payment or payment within
a stipulated period.

It is allowed on payment being made

Nature It is allowed on purchases made in large quantity.
promptly on or before an agreed date.

Nature of
It is allowed on both credit and cash transaction. It is allowed only on payment.
Transaction

Cash discount is recorded separately in

Recording It is not recorded separately in the books of accounts.
the books of accounts.

Deduction
from It is deducted from the invoice. It is not deducted from the invoice.
Invoice

Time when It is allowed on immediate payment or

It is allowed on purchase of goods.
Allowed payment within a specified period.
5. In accounting and book keeping, a journal is a record of financial transactions in order by date. Traditionally,
a journal has been defined as the book of original entry. The definition was more appropriate when
transactions were written in a journal prior to manually posting them to the accounts in the general ledger or
subsidiary ledger. The following are the limitations of Journal:
i. As the number of transactions are large, journal becomes bulky and voluminous.
ii. Journal does not provide information on prompt basis.
iii. As the journal can only be handled by one person, it does not facilitate the installation of a internal check
system.
iv. Cash transaction are usually recorded in a separate book called ‘cash book’. Such transactions are not
recorded in journal.
6. In the books of -------------------
Journal
Debit Credit
Date Particulars L.F. Amount Amount
(Rs) (Rs)

Office Equipment A/c

Sept 02,
To Cash A/c Dr 80,000 80,000
2013
(Being office equipment purchased)

Furniture & Fittings A/c

Sept 03,
To Cash A/c Dr 32,160 32,160
2013
(Being filling cabinet purchased & Rs. 160 cartage paid for it)

Typewriter A/c
Sept 04,
To Cash A/c Dr 64,000 64,000
2013
(Being typewriter purchased)

Electric fan A/c

Sept 05,
To Cash A/c Dr 16,000 16,000
2013
(Being electric fan purchased)

Sept 06, Live Stock A/c Dr 1,20,000 1,20,000

2013 To Cash A/c

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 (Being livestock purchased)

Post Cards A/c

Envelopes A/c Dr 200
Sept 07,
Stamps A/c Dr 400 1,400
2013
To Cash A/c Dr 800
(Being postcards, envelopes, & stamps purchased)

Office Stationery A/c

Sept 08,
To Cash A/c Dr 3,200 3,200
2013
(Being office stationery purchased)

Charity A/c
Sept 15, To Cash A/c 1,600
Dr 4,800
2013 To Purchase A/c 3,200
(Being goods and cash given as charity)

Cash A/c
Sept 20, Profit & Loss A/c Dr 8,000
1,20,000
2013 To Livestock A/c Dr 1,12,000
(Being livestock sold)

Cash A/c
Sept 25,
To Capital A/c Dr 80,000 80,000
2013
(Being household furniture sold & money invested in the business)

Rent A/c
Drawing A/c
Sept 31, Dr 64,000
To Cash A/c 96,000
2013 Dr 32,000
(Being building rent paid out of which 1/3 rd is used for the
residential purpose by the proprietor)

6,17,560 6,17,560
Total
======= ======
7. In the books of -----------
JOURNAL
Debit Credit
Date Particulars L/F Amount Amount
(Rs) (Rs)

Machinery A/c
To Cash A/c Dr 500 500
(Being Rs 500 installation charges for machinery paid)

Charity A/c
To Purchases A/c Dr 2,000 2,000
(Being goods given as charity)

Interest on Capital A/c

To Capital A/c Dr 4,900 4,900
(Being interest @ 7% charges on capital of Rs 70,000)

Cash A/c
To Bad Debts Recovered A/c Dr 1,200 1,200
(Being Rs 1,200 bad debts recovered)

Loss by fire A/c

To Purchases A/c Dr 2,000 2,000
(Being goods destroyed by fire)

Rent A/c Dr 1,000 1,000

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 To Outstanding Rent A/c
(Being outstanding rent recorded in books)

Drawings A/c
To Interest on Drawings A/c Dr 900 900
(Being interest on drawings charged)

Cash A/c
Bad Debts A/c Dr 1,350
3,000
To Sudhir's A/c Dr 1,650
(Being 45 paise in a rupee received from Sudhir who owed Rs 3,000)

Cash A/c
To Advance Commission Received A/c Dr 7,000 7,000
(Being commission received in advance)

22,500 22,500
Total
======= ========
8. In the books of Singh Enterprises, Delhi
Journal
Date Particulars L.F. Dr. Cr.

2017 Rs. Rs.

June 1 Cash A/c Dr. 50,000

To Capital A/c 50,000

(Being business started)

June 2 Bank A/c Dr. 2,00,000

To Capital A/c 2,00,000

(Being Cheque deposit from saving account)

June 3 Cash A/c Dr. 50,000

To Ram 50,000

(Being Cash received from Ram)

June 4 Purchase A/c Dr. 15,000

Input CGST A/c Dr. 900

Input SGST A/c Dr. 900

To Cash A/c 16,800

(Being goods purchased)

June 11 M/s Hari Sales Dr. 13,440

To Sales A/c 12,000

To Output CGST A/c 720

To Output SGST A/c 720

(Being goods sold)

June 13 Ramavtar Dr. 40,000

To Cash A/c 40,000

(Being paid to Ramavtar)

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 June 17 Cash A/c Dr. 10,000

To M/s Hari Sales 10,000

(Being Cash received from M/s Hari Sales)

June 20 Furniture A/c Dr. 20,000

Input CGST A/c Dr. 1,200

Input SGST A/c Dr. 1,200

To Cash A/c 22,400

(Being Furniture purchase and paid with GST)

June 27 Rent A/c Dr. 28,000

To Cash 28,000

(Being rent paid)

June 30 Salary A/c Dr. 50,000

To Cash A/c 50,000

(Being Salary paid)

9. In the books of Rachana
Journal
Debit Credit
Date Particulars L.F. Amount Amount
(Rs) (Rs)

Cash in hand A/c

Cash at Bank A/c
Dr 18,000
Purchase A/c
Dr 1,65,000 30,000
01.12.2013 Y's A/c
Dr 1,20,000 2,91,000
To X's A/c
Dr 18,000
To Capital A/c
(Being business started with cash)

Z's A/c
03.12.2013 To Sales A/c Dr 45,000 45,000
(Being goods sold to Z)

Cash A/c
04.12.2013 To Sales A/c Dr 30,000 30,000
(Being goods sold in cash)

S's A/c
06.12.2013 To Sales A/c Dr 15,000 15,000
(Being goods sold to S)

Purchase A/c
08.12.2013 To T 's A/c Dr 90,000 90,000
(Being goods purchased from T)

Sales Return A/c

10.12.2013 To Z's A/c Dr 6,000 6,000
(Being goods returned from Z)

Cash A/c
14.12.2013 To Z's A/c Dr 39,000 39,000
(Being cash received from Z)

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 15.12.2013 X's A/c Dr 18,000 18,000
To Bank A/c
(Being Cheque given to X)

Cash A/c
16.12.2013 To S's A/c Dr 9,000 9,000
(Being Cash received from S)

Bank A/c
20.12.2013 To Y's A/c Dr 30,000 30,000
(Being Cash received from Y)

Bank A/c
22.12.2013 To S's A/c Dr 6,000 6,000
(Being Cash received from S)

T's A/c
25.12.2013 To Cash A/c Dr 54,000 54,000
(Being Cash paid to T)

Cartage A/c
26.12.2013 To Cash A/c Dr 3,000 3,000
(Being cartage paid)

Salary A/c
27.12.2013 To Cash A/c Dr 24,000 24,000
(Being Salary paid)

Cash A/c
28.12.2013 To Sales A/c Dr 21,000 21,000
(Being goods sold in cash)

T's A/c
29.12.2013 To Bank A/c Dr 36,000 36,000
(Being cheque given to T)

Drawing A/c
30.12.2013 To Purchase A/c Dr 12,000 12,000
(Being goods taken by Rachna for personal use)

General Expense A/c

31.12.2013 To Cash A/c Dr 1,500 1,500
(Being general expenses paid)

7,60,500 7,60,500
Total
======= =======
10. JOURNAL
Debit Credit
Date Particulars LF Amount Amount
(Rs) (Rs)

Rent A/c
To Cash A/c
Dr 30,000 30,000
(Being the rent paid for building)(Being the rent for half building charged
to proprietor)

Drawings A/c
To Rent A/c Dr 15,000 15,000
(Being the fire insurance premium paid for building)

Fire Insurance Premium A/c Dr 2,500 2,500

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 To Cash A/c
(Being fire insurance premium paid)

Drawings A/c
To Fire Insurance Premium A/c
Dr 1,250 1,250
(Being the fire Insurance premium for half building charged to proprietor
and remaining paid in advanced)

Drawings A/c
To Cash A/c Dr 5,000 5,000
(Being the life insurance premium paid)

Drawings A/c
To Cash A/c Dr 5,000 5,000
(Being the income tax paid)

Salary A/c
To Outstanding A/c Dr 1,250 1,250
(Being salary due to clerk)

Depreciation on Furniture A/c

To Furniture A/c Dr 250 250
(Being the depreciation on furniture provided)

Interest on Capital A/c

To capital A/c Dr 11,250 11,250
(Being the interest on capital provided @ 15% per annum for 6 months)

Capital A/c
To Interest on Drawings A/c Dr 2,250 2,250
(Being the interest on drawing charged @ 18% per annum for 2 months)

67,750 67,750
Total
===== ======
11. In the books of --------------------
JOURNAL
Debit Credit
Date Particulars L/F Amount Amount
(Rs) (Rs)

Loss by Fire A/c

2013 Mar 31 To Trading A/c Dr 80,000 80,000
(Being goods lost by fire adjusted)

Insurance Company A/c

Profit and Loss A/c 60,000
Mar 31 Dr 80,000
To Loss by Fire A/c 20,000
(Being the insurance company admitted a partial claim only)

1,60,000 1,60,000
Total
===== ======
Effects on Final Accounts
Trading Account
for the year ended 31st March 2013
Amount Amount
Particulars Particulars
(Rs) (Rs)

By Loss by Fire A/c 80,000

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 Profit and Loss Account
for the year ended 31st March 2013
Amount Amount
Particulars Particulars
(Rs) (Rs)

By Loss by Fire A/c 80,000

Less Insurance Claim 60,000 20,000

Balance Sheet
as at 31st March 2013
Amount Amount
Liabilities Assets
(Rs.) (Rs.)

Current Assets

Claim due from Insurance Company 60,000

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