Question

Journalise the following transactions, post them into Ledger, balance the accounts and
prepare a Trial Balance :−
2017 (₹)
March Shyam Sunder & Sons commenced business with cash 80,000
1
2 Purchased goods for cash 36,000
3 Machinery purchased for cash 4,000
4 Purchased goods from :
Raghu 22,000
Dilip 30,000
6 Returned goods to Raghu 4,000
8 Paid to Raghu, in full settlement of his account 17,500
10 Sold goods to Mahesh Chand & Co. for ₹ 32,000 at 5% trade discount
13 Received cash from Mahesh Chand & Co. 19,800
Discount allowed 200
15 Paid cash to Dilip 14,850
Discount received 150
20 Sold goods for cash 25,000
24 Sold goods for cash to Sudhir Ltd. 18,000
25 Paid for Rent 1,500
26 Received for Commission 2,000
28 Withdrew by Proprietor for his personal use 5,000
28 Purchased a fan for Proprietor's house 1,200
solution
Journal
In the Books of…
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
2017
Mar. 01 Cash A/c Dr. 80,000
To Capital A/c 80,000
(Business started with cash)
Mar. 02 Purchases A/c Dr. 36,000
To Cash A/c 36,000
(Goods purchased for cash)
Mar. 03 Machinery A/c Dr. 4,000
To Cash A/c 4,000
(Machinery purchased for cash)
Mar. 04 Purchases A/c Dr. 52,000
To Raghu’s A/c 22,000
To Dilip’s A/c 30,000
(Goods purchased on credit from Raghu
and Dilip)
Mar. 06 Raghu’s A/c Dr. 4,000
 To Purchases Return A/c 4,000
(Goods returned to Raghu)
Mar. 08 Raghu’s A/c Dr. 18,000
To Cash A/c 17,500
To Discount Received A/c 500
(Cash paid to Raghu in full
settlement)
Mar. 10 Mahesh Chand & Co. Dr. 30,400
To Sales A/c 30,400
(Goods sold to Mahesh Chand & Co. at
trade discount)
Mar. 13 Cash A/c Dr. 19,800
Discount Allowed A/c 200
To Mahesh Chand & Co. 20,000
(Cash received from Mahesh Chand
& Co.)
Mar. 15 Dilip’s A/c Dr. 15,000
To Cash A/c 14,850
To Discount Received A/c 150
(Cash paid to Dilip)
Mar. 20 Cash A/c Dr. 25,000
To Sales A/c 25,000
(Goods sold for cash)
Mar. 24 Cash A/c Dr. 18,000
To Sales A/c 18,000
(Goods sold for cash)
Mar. 25 Rent A/c Dr. 1,500
To Cash A/c 1,500
(Rent paid)
Mar. 26 Cash A/c Dr. 2,000
To Commission A/c 2,000
(Commission received)
Mar. 28 Drawings A/c Dr. 6,200
To Cash A/c 6,200
(Cash withdrawn and fan purchased
for personal use)
TOTAL 3,12,100 3,12,100
Cash Account
Dr. Cr.
Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs)
2017 2017
Mar.01 Capital A/c 80,000 Mar.02 Purchases A/c 36,000
Mar.13 Mahesh Chand &
19,800 Mar.03 Machinery A/c 4,000
Co.
Mar.20 Sales A/c 25,000 Mar.08 Raghu’s A/c 17,500
Mar.24 Sales A/c 18,000 Mar.15 Dilip’s A/c 14,850
Mar.26 Commission A/c 2,000 Mar.25 Rent A/c 1,500
Mar.28 Drawings A/c 6,200
Mar.31 Balance c/d 64,750
1,44,800 1,44,800
2017
Apr.01 Balance b/d 64,750
Capital Account
Dr. Cr.
Amount
Date Particulars J.F. Amount (Rs) Date Particulars J.F.
(Rs)
2017 2017
Mar.31 Balance c/d 80,000 Mar.01 Cash A/c 80,000
80,000 80,000
2017
Apr.01 Balance b/d 80,000
Purchases Account
Dr. Cr.
Amount
Date Particulars J.F. Amount (Rs) Date Particulars J.F.
(Rs)
2017 2017
Mar.02 Cash A/c 36,000 Mar.31 Balance c/d 88,000
Mar.04 Raghu’s A/c 22,000
Dilip’s A/c 30,000
88,000 88,000
2017
Apr.01 Balance b/d 88,000
Machinery Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
2017 2017
Mar.03 Cash A/c 4,000 Mar.31 Balance c/d 4,000
4,000 4,000
2017
Apr.01 Balance b/d 4,000
Raghu’s Account
Dr. Cr.
Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs)
2017 2017
Mar.06 Purchases Return 4,000 Mar.04 Purchases A/c 22,000
A/c
Mar.08 Cash A/c 17,500
Discount Received 500
A/c
 22,000 22,000
Dilip’s Account
Dr. Cr.
Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs)
2017 2017
Mar.04 Purchases
Mar.15 Cash A/c 14,850 30,000
A/c
Mar.15 Discount Received A/c 150
Mar.31 Balance c/d 15,000
30,000 30,000
2017
Apr.01 Balance b/d 15,000
Purchases Return Account
Dr. Cr.
Amount
Date Particulars J.F. Date Particulars J.F. Amount (Rs)
(Rs)
2017 2017
Mar.31 Balance c/d 4,000 Mar.06 Raghu’s A/c 4,000
4,000 4,000
2017
Apr.01 Balance b/d 4,000

Discount Received Account

Dr. Cr.
Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs)
2017 2017
Mar.31 Balance c/d 650 Mar.08 Raghu’s A/c 500
Mar.15 Dilip’s A/c 150
650 650
2017
Apr.01 Balance b/d 650
Discount Allowed Account
Dr. Cr.
Amount
Date Particulars J.F. Amount (Rs) Date Particulars J.F.
(Rs)
2017 2017
Mahesh Chand &
Mar.13 200 Mar.31 Balance c/d 200
Co.
200 200
2017
Apr.01 Balance b/d 200
Mahesh Chand & Co.
Dr. Cr.
Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs)
2017 2017
Mar.10 Sales A/c 30,400 Mar.13 Cash A/c 19,800
Discount
Mar.13 200
Allowed A/c
Mar.31 Balance c/d 10,400
30,400 30,400
2017
Apr.01 Balance b/d 10,400
Rent Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
2017 2017
Mar.25 Cash A/c 1,500 Mar.31 Balance c/d 1,500
1,500 1,500
2017
Apr.01 Balance b/d 1,500

Commission Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
2017 2017
Mar.31 Balance c/d 2,000 Mar.26 Cash A/c 2,000
2,000 2,000
2017
Apr.01 Balance b/d 2,000
Drawings Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
2017 2017
Mar.28 Cash A/c 6,200 Mar.31 Balance c/d 6,200
6,200 6,200
2017
Apr.01 Balance b/d 6,200
 Sales Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
2017 2017
Mahesh Chand &
Mar.31 Balance c/d 73,400 Mar.10 30,400
Co.
Mar.20 Cash A/c 25,000
Mar.24 Cash A/c 18,000
73,400 73,400
2017
Apr.01 Balance b/d 73,400
Trial Balance as on March 31, 2017
Name of Debit Credit
L.F.
Accounts Balances Amount (Rs) Balances Amount (Rs)
Cash A/c 64,750
Capital A/c 80,000
Purchases
88,000
A/c
Machinery
4,000
A/c
Dilip’s A/c 15,000
Purchases
4,000
Return A/c
Discount
Received 650
A/c
Discount
Allowed 200
A/c
Mahesh
Chand & 10,400
Co.
Rent A/c 1,500
Commission
2,000
A/c
Drawings
6,200
A/c
Sales A/c 73,400
Total 1,75,050 1,75,050

SIMILAR QUESTIONS
Q. Journalise the following transactions, post them into Ledger and prepare a Trial Balance:

2019 (₹) 2019

April 1 Mohan commenced business with cash 1,00,000 April Received cash from Gopal
20
April 3 Bought goods 5,000 Discount Allowed
April 4 Sold goods to Gopal 4,000 April Paid wages
25
April Bought goods from Ram 8,000 April Paid to Ram in full settlement
10 27
April Paid trade expenses 2,000 April Paid rent
15 30

Q. Following balances appeared in the books of Ram & Shyam on January 1, 2017 :−
Assets : Cash in hand ₹ 30,000; Stock ₹ 36,000; Lal Chand ₹ 7,600; Mukesh Khanna ₹ 16,200; Furniture ₹ 8,000.
Liabilities : Ghanshyam ₹ 6,000; Vinod ₹ 8,000.
Following transactions took place during Jan. 2017 :−

2017
Jan. 2 Purchased Typewriter for ₹ 7,500.
4 Sold goods for Cash of the list price of ₹ 25,000 at 20% trade discount and 5% Cash discount.
6 Sold goods to Gopal Seth for ₹ 10,000.
8 Gopal Seth returned goods for ₹ 1,500.
12 Purchased goods from Arun ₹ 12,000; and from Varun ₹ 15,000.
13 Settled Arun's account in full after deducting 5% for cash discount.
14 Paid cash to Ghanshyam in full settlement of his account.
16 Received ₹ 7,500 from Lal Chand in full settlement of his account.
17 Purchased a Scooter for office use ₹ 18,000.
20 Sold goods for cash ₹ 20,000.
22 Received from Gopal Seth ₹ 4,850 and discount allowed ₹ 150.
27 Paid for Wages ₹ 7,000 and Salaries ₹ 3,000.
28 Withdrew goods for ₹ 2,000 and Cash ₹ 1,500 for private use.
29 Paid for Life Insurance Premium of the Proprietor ₹ 1,600.

Journalise the above transactions, post them into Ledger, balance them and prepare a Trial Balance.

Q. Write up the following transactions in the Journal of Ashok and post them to the Ledger for April, 2017.
Also, prepare the Trial Balance as on 30th April, 2017.

2017 ₹
April Commenced business with cash 40,000
1
April
Deposited in bank 30,000
2
April
Bought goods for cash 5,000
5
April
Sold goods to Amit 2,500
7
April
Bought goods from Parvat 5,100
9
April
Received cash from Amit 1,950
12
Discount allowed 50
April
Paid cash to Parvat 3,900
13
Discount allowed by him 100
April
Received cash for goods sold 2,750
14
April
Bought goods from Dinesh 2,350
15
April
Withdrew cash for private expenses 1,000
16
April
Received cash from Amit and deposited into bank 500
17
April Paid sundry trade expenses 250
20
April
Paid rent 450
25
April
Paid cash to Dinesh 2,300
28
Discount allowed by him 50
April
Goods sold to Romy 4,750
29
April Paid for carriage 50
30

Q. Prepare Returns Inward and Return Outward Books of Manoj, Mumbai from the following transactions and
post them into Ledger Accounts:

2019
March 1 Mathur Bros., New Delhi, returned:
5 pairs of Shoes for being defective @ ₹ 2,000 per pair
Less: Trade Discount 10%, IGST was charged @ 18%
March 5 Returned to Kanpur Leather Private Ltd., Kanpur:
100 pairs of Chappals being not up to the approved sample. They were
purchased @ ₹ 300 per pair
Less: Trade Discount 15%
 IGST was paid @ 18%
March Baluja Shoes Co., Mumbai, returned 12 pairs of ladies chappals sold to them
12 @ ₹ 4,000 per pair
Less: Trade Discount 10%, CGST and SGST was charged @ 9% each
March
Returned to Bata Shoes Pvt Ltd., Mumbai:
20
100 pairs B.S.C Canvas Shoes @ ₹ 500 per pair
Less: Trade Discount 15%
CGST and SGST was paid @ 9% each