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ILLUSTRATION 1.
Enter the following transactions in the Journal of Siya Ram & Sons.:—
2023 8
Jan. 1 Siya Ram & Sons started business with cash 50,000
2. Purchased goods for cash 20,000
4 Purchased goods from Subhash 12,000
5 Purchased Furniture for cash 6,000
10. Paid cash to Subhash 8,000
16 Purchased goods from Ravi for cash 7,500,
17 Purchased goods from Ravi 5,000
20 Bought Machinery for cash 8,000
27 Paid rent 400 GINALENTRY = JOURNAL 7 7
onc
~ JOURNAL OF SIYARAM & St
7 IN: in
pin Partclars
Be
Br canal
w To Capital Ae
(cash brought into the business by Siya Ram & Sons | |
as capital)
2 Purchases Ale Dr. 20,000
To Cash
(Goods purchased for cash)
ost Purchases Ale Dr 12,000
To Subhash | 12,000
(Goods purchased from Subhash on credit)
jo,5 Furiture Ale Dr. 6,000
To Cash Ale | 6,000
(Fumiture purchased for cash)
Jon 10 | Subhash 8,000
To Cash Alc | 8,000
paid to Subhash)
Jin, 16 | Purchases Ale Dr. 7,300
| ToCash Ale 7,800
(Goods purchased for cash)
fan. 17 | Purchases Alc Dr. 5,000
ToRavi 5,000
| (Goods purchased from Ravi on credit) |
Jan.20 | Machinery Ale Dr 8,000
| ToCash Ale
|(dachinery purchase for cash)
fan.27 | Rent Ale
To Cash Ale
(Rent paid)
8,000
Dr. 400
400,
‘Toul 1,16,900 116,900
Explanation of the above mentioned entries
Tan {Siva Ream & Sons started business wit Cash =~ A business unit is
alvaye considered tobe separate and dstinot rom the proprietor, All he wansactions
ae acid iatne books oF the business fom the point of view ofthe business, Cash
coming into the business willbe debited according 1 the rule of real account, ie,
ME ae een int Propeetor 13 the gives of cash (0 the busintes, therefore,
Woprctors capital account will be credited according (0 the rule of personal account,
ie, ‘Credit the giver” ‘
js for Cash -— The two accounts affected in this
Jan, 2. Purchased 00 5
tnmaanticn arg Ppurcases Ae” and “Cash Ale Purchases A/c is a nominal account ON
and will be debited because of the rile of ‘Debit all expenses’. Cash Ae ,
account and will be credited because of the rule of ‘Credit What goes out
Jan. 4. Purchased goods from Subhash When the name of the seller
and itis not mentioned that the goods have been purchased for cash, it will be assun
that the goods have been purchased on credit, Purchases A/e will be debited secon,
to the rule of nominal aecount re. "Debit all expenses’, Subhash isthe giver of yog”
as such, his personal account will be credited according 0 the rule o
giver’.
Jan. 5. Purchased Furniture for Cash Both the accounts involy,
fumiture account and cash account are real accounts. Furniture is coming inty jy.
business, therefore, it will be debited and as cash is going out, it will be crediteg
Jan, 10, Paid Cash to Subhash :— Subhash is the receiver of cash, as such, pj,
personal account has been debited according to the rule of “debit the receiver’. Cash
going out, hence, it will be credited according to the rule of real account “Credit wha,
goes out’.
Jan. 16. Purchased goods from Ravi for Cash :— Purchases A/c will be debited
according to the rule of nominal account ie. “Debit all expenses’. Cash Ale will be
credited because of the rule of *Credit what goes out’.
Jan, 17. Purchased goods from Ravi :— The word ‘cash’ is not mentioned in this
transaction, as such, it will be treated as a credit purchase of goods from Ravi
Purchases A/c will be debited as per the rule of nominal account i.e. ‘Debit all
expenses’. Ravi is the giver of goods and hence the account of Ravi will be credited a
per the rule of personal account, i.e. ‘Credit the giver’,
Jan. 20. Bought Machinery for Cash :— Both the accounts involved, ic
Machinery Account and Cash Account are real accounts. Machinery is coming into the
business, therefore, it will be debited and as Cash is going out, it will be Credited
Jan. 27. Paid Rent :— This transaction affects Rent account and cash account,
Rent is a nominal account and because this is an expense of business, as such, the Rent
‘account will be debited according to the rule of ‘debit all expenses’. Cash account will
be credited, as cash is going out of the business.
ILLUSTRATION 2.
Enter the following transactions in the Journal of Yash Raj & Sons
es | a to
‘April Sold goods forcash 1000
9. Sold goods to Mahesh 15,000
12. Received cash from Mahesh 1908
18. Sold goods to Suresh for cash 12,600
19 Sold goods to Suresh 7,000
24 Withdrew cash from office for personal use 2,00
29 Paid wages 450
1,200
30 Paid salary to Gopal |
M | 200
30 | Received Commis JOURNAL OF YASH RAJ & SONS
L. | Amount” Amount
Fl Dr. Cr
hale Dr. 13,000
my cas f
apil? PT ales Ale 13,000
(Goods sold for cash)
Dr. 15,000
9 Mahesh
ae To Sales A/c
(Goods sold to Mahesh on credit)
sin Cash Ale Dr. 10,000
er To Mahesh
(Cash received from Mahesh)
Apel 18 Cash Ale Dr
To Sales A/c
(Goods sold for cash)
api 9 Suresh Dr.
To Sales A/c
(Goods sold to Suresh on credit)
pil 24. Drawings A/c Dr.
To Cash Ale
(Amount withdrew for personal use)
April 29 Wages Ae
To Cash Ale 450
(Wages paid)
April 30 Salary Ale Dr. 1,200
To Cash Ale 1,200
(Salary paid)
‘April 30 Cash Ale
To Commission Received Ale
15,000
10,000
12,600
12,600
7,000
7,000
2,500
2,500
Dr. 450
Dr, 200
200
=x |
eal Tol = | 61,950
Explanation of the above mentioned entries
April 7. Sold goods for Cash :—
Sales A/c. Cash is coming into the busi
oe eompetiton.
ulk purchases by
5 pifrent prices can be charged fiom regular customers and occasional
* tomers simply by altering the rate of trade discount.
4, Change in rate of trade discount is an easy method to make
changes in prices
without reprinting of catalogues.
advantages of Cash Discount :
othe Seller:
|, Seller receives the amount within a stipulated time because cash discount is
allowed only if the customer makes the payment within the specified period.
Cash received in time improves the cash inflow of the business and the cash
may be put to better use
3. The possibility of bad debts is minimised,
Prompt payment reduces the clerical work of maintaining of debtors accounts
and of sending frequent reminders to debtors
Tothe Buyer :
|. Theearlier the buyer pays the higher he eams in cash discount,
2. A buyer who earns hi
igher cash discount can sell the goods to his customers at
lower rates,
5, Farly payment enhances the reputation or goodwill ofthe buyer,
Rebate
{‘'salso a reduction in the value of goods sold allowed by the seller. Is allowed
{ts reason othe than for which trade discount and eash discount ae allowed. Fat
‘Stample, rebate is usually allowed for inferior quality of goods sold or goods being not
TE" specification. As such, itis c” ‘ferent from trade discount and cash discount,
de discount is usually allowed by the seller on higher volume of goods purchased
the purchaser and cash discount is allowed on prompt payment.
Accounting Treatment :
Usually, no se
arate entry is passed for rebate because it reduces the sales value of
8004s just like trade discount. 9. DY Ceolling two OF more accounts and creciting (wo or more accounts, such as
the ‘Opening Entry’.
ILLUSTRATION 4.
Record the following transactions in the Journal of Naresh & Co. :
2022 | 3
fx
June 1 Paid cash to Mahesh 9,600.
and discount received from him 400
June 4 Received cash from Arun 4,900
and discount allowed to him 100
June 10 Goods sold to Harish 30,000
June 12 Harish returned goods 2,000
June 14 Received cash from Harish $27,500 in full settlement of his account.
June 20 Sold goods to Gopal of the list price of 760,000 at 10% trade discount.
June 23. Purchased goods from Ravi of the list price of 20,000 at 15% trade discount. RY — JOURNAL
JOURNAL OF NARESH & CO,
Particulars Roi
Dr.
z
Dr, 10,000
oH
To Discount Received Ale
(Cash paid to Mahesh and discount received)
4 Cash Ale Dr, 4,900
Jn piscount Allowed Alc
Dr. 100
To Arun
(Cash received from Arun and discount allowed)
June 10 Harish
Dr, 30,000
‘To Sales Ale
(Good sold to Harish)
Jone 12. Sales Return Ale
Dy 2,000
To Harish :
(Goods returned by Harish)
June 14, Cash Ale Dr. 27,500
Discount Allowed A/c
Dr, 500
To Harish
(Cash received from Harish and discount allowed to
him)
June 20, Gopal
Dr, 54,000
To Sales Alc
(Goods of the list price of 260,000 sold at 10% trade
| discount)
June 23, Purchases Ave
Dr. 17,000
To Ravi
(Goods ofthe list price of €20,000 purchased at 15%
trade discount)
ILLUSTRATION
Toul & 146,000
Amount
Cr.
z
9,600
400
5,000
30,000
2,000
28,000
54,000
17,000
146,000
Give Joumal entries tor the following transactions in the books of Partap Rai &
Sons.
April 2
April 3
April 6
April 8
April 9
April 10
April 10,
April 12
Cash purchases ae
Sold goods to Vasudey
Retumed defective goods by Vasudey
Received cash from Vasudev
and Discount allowed
‘Chanderkant sold goods to us
Pritam purchased goods from us
Paid insurance premium by ch
que
Paid for Life Insurance Premium of Sh. Partap Rai by cheque
5
48,000
10,000
1,000
8,800
200
20,000 April 15 Paid Cash to ‘handerkant
and Discount allowed by him 8
[April 18. Bought goods fom Pawan, list pric 2
discaunt list price 15,000 less 20% trade 2
April 22. Paid to Pawan,
April 26 Received Cash from Pritam fg
April 30. Paid wages £2,000, Advertisement Fxpenses €2,50 6
Salaries paid £9,000 . 2,300 and m0
April 30. Received Interest
April 30. Received Commission 500
2.004
SOLUTION :
JOURNAL OF PARTAP RAL & SONS.
Date Particulars 1 dno TR
Incure
BE Dr. Or
2023 z z
April 2 Purchases A/c Dr. 43000
To Cash Ale ssom
(Goods purchased for cash) :
April3 Vasudev Dr. 10,000
To Sales Ale 10,000
(Goods sold to Vasudev)
April 6 Sales Return A’e Dr. 1,000
To Vasudev 1,000
(Goods retuned by Vasudev)
April 8 Cash A/e Dr. 8,800
Discount Allowed A/c Dr. 200
To Vasudev 9,000
‘Cash received ftom Vasudev and discount allowed)
April 9 Purchases A/c Dr. 20,000
To Chanderkant 20,000
(Goods purchased from Chanderkant)
Apsil 10. Pritam Dr. 7
To Sales Ac 12,000
(Goods sold to Pritam)
“April 10 Insurance Premium Nc Dr 500 0
To Bank Ale
(Insurance premium paid)
‘April 12. Drawings Ale Dr 2,000 sp
‘To Bank Ale :
(Life Insurance Premium paid)
Cr 102, 500 Be
Dr
t Received Ale
kant and discount received)
Dr,
Dr.
i Dr.
(cosh eceived
49 Wages A
A817 avenisement Expenses Ale Dr
salaries Ale De
ToCash Ale
Expenses paid)
30 Cash Ne
jg" To Interest Received Ale
| To Commission Received Ac
Dr.
(income received)
r Tol &
eS ET
[LUSTRATION 6.
Enter the following transactions in tl
m0
Apel | Purchased goods from Vinod
Agi? Returned goods to Vinod ofthe Fst pes of 21,000.
pil 6 Paid Cash to Vinod €34,000 in
JOURNAL OF HARI & CO.
Particulars
April | Purchases A/c Dr
To Vinod
(Goods oft
trade discount
CF
se price of 40,000 prcased st 10
the Journal of Hari & Co.
{ull settlement of his account
L
F
102,500
14,000
12,000
6,000
2,300
102,500
13,780
20
12,000
6,000
Amount
Dr
z
36,000
36,000
ofthe list price of %40,000 at 10% trade discount
©
36,000
36,000 So Cnt |
BOOKS OF RY — Jo
=a
BF | =
| | | 36.000) aR
April 2 Vinod Dr 00
| To Purchases Retum A/e
(Goods of the list price of @1,000, retumed to Vinod; 0
‘Actual price being €1,000 fess 10% trade discount) |
April 6 Vinod Dr. 35,100.
To Cash Ale | | ae
To Discount Received Alc (See Note |) | ia
(Cash paid to Vinod and discount received from him) :
| Tow % | | 72,000 7206
Note L, Discount received from Vinod has been calculated a follows z
Purchases 36,000
Less: Purchases Return 900
Net Amount due to Vinod 35,100
Less : Amount paid in ful settlement of his account 34,000
1,100
Discount received from him
———
ILLUSTRATION 7.
Enter the following transactions in the Journal of Gaurav Bros.
2022
May 10. Sold goods to Kailash of thelist price of 1,00,000 at trade discount of 15%.
May 13. Kailash retuned goods of thelist price of €4,000.
May 18. Received from Kailash the amount due from him, under a cash discount of 5%
SOLUTION : JOURNAL OF GAURAV AROS.
Dae TO Patiars TL Amount Amount
z Dr. cr.
2022 . .
May 10 Kailash e seeaed
To Sales Ale 85,000
(Goods of the list price of €1,00,000 sold at 15% trade
discount)
May 13. Sales Retum Alc Dr. 3,400
To Kailash 3,400
(Goods of the ist price of €4,000 returned by Kailash;
Actual price being %4,000 less 15% trade discount)
May 18 Cash A/c (See Note 1) Dr. 77,520
Discount Allowed Al Dr. 44080
To Kailash 81,600
(Cash received from Kailash and discount allowed to
him)
Total & 1,70,000 1,70,000
rr " 9.19
ah eceived fom Klas has been
‘alculated as follows ee
£
sales :
se Sales Return 85,00
Amnount due from Kailash 1400
7 81.600
count allowed to him : 81,600 5
Cash received from Kailash
Ti,
ijiuSTRATI
pass Journal Entries forthe following transactions
(Bought goods from Mohan ofthe list price of £10,000 at 15% tra se discount
(ii) Settled the account of Mohan by paying cash, under a discount of 4
t goods for cash of i ;
(in Bowed good of thelist price of 250,000 at 20% trade discount and 5%
(o) Sold goods for cash of the list
— Price of 20,000 at 10% trade discount and 3% cash
SOLUTION :
ae
Sr.No.
(0) Purchases Ale
Dr.
‘To Mohan
; 500
(Goods of the list price of €10,000 bought at 15% trade :
discount)
(i) Mohan Dr. 8,500
To Cash Ale 8,160
To Discount Received Ale 340
(Cash paid and discount received @ 4% on 88,500)
(iii) Purchases Ale Dr. 40,000
To Cash Ale 38,000
To Discount Received Ale
2,000
(Goods of the list price of €50,000 bought at 20% trade
discount and 5% cash discount
List Price 50,000
Less : Trade Discount @ 20% 10,000
40,000
Less : Cash Discount @ 5% on 240,000 2,000,
38,000)
Cr
57,000| 57,000 BP
57,000 9
(iv) Cash Ave Dr. 1146,
Discount Allowed A/c Dr. 540
To Sales A/c
(Goods of the list price of 820,000 sold at 10% trade 18,609
discount and 3% cash discount
List Price 20,000
Less. Trade Discount (@ 10% 2,000
18,000
Less : Cash Discount @ 3% on 218,000
Total 75.000 75 yg
ILLUSTRATION 9.
Pass journal entries for the following transactions in the journal of Himans|
Chauhan. shu
2023
April 1 Himanshu Chauhan started business with cash @1,50,000, Fumiture 210,000
and Goods 60,000. "
4 Sold goods to Partap of the list price of £20,000 at trade discount of 10%
6 Partap retuned goods of list price of £2,000.
10. Received from Partap 16,000 in full settlement of his account.
7 15 Purchased furniture for 712,000.
"15. Purchased goods from Sahdev of the list price of 250,000 at 12% Trade
Discount.
18 Returned goods to Sahdev of the list price of %4,000,
"20 Cleared the account of Sahdev by paying cash at a discount of 5
“21 Sold goods to Aakriti %20,000 and Shikha 32,000.
7 24 Received cash from Aakriti 719,600 in full settlement of her account,
Paid insurance premium %1,500 by cheque,
25 Paid 22,400 for insurance premium for proprietor by chequ
"26 Purchased goods for %16,000 for cash at a trade discount of 10% and cash
discount of 2%,
“27 Received full payment from Shikha at a discount of 5% in full settlement of his
account,
28 Paid for advertisement %2,000, salaries %8,000 and rent €1,600.
30 Received Commission %1,000, ‘
GINAL ENTRY — JOURNAL
lo
tl Journal of Himanshu Chauhan
Particulars ET 7: =
g {LY Amount | Amonund
1B) by. Cr
3 N e x
yy cash Ale Dr, 150,000
« Furiture Ae Dr. 10,000
parchases A/c (or Stock A/c) Dr 60,000
Vo Capital Ale eel
(Business stated with cash, furniture and goods) :
4 Partap Dr. 18,000
To Sales Ale We
(Goods of the list price of 20,000 sold at 10% .
discount)
+» 6 Sales Retums A/c Dr. 1,800
To Partap 1,800
(Goods returned for 82,000 less 10% trade discount)
10 Cash Ale Dr. 16,000
Discount Allowed Ale (Note 1) Dr 200
To Partap 16,200
(Cash received from Partap and discount allowed to
him)
“15 Furniture Ale Dr. 12,000
To Cash Ale 12,000
(Fumiture purchased for cash)
15 Purchases A/e Dr. 44,000
To Sahdev 44,000
(Goods of te list price of €50,000 purchased at 12%
trade discount)
18 Sahdev Dr. 3,520
To Purchases Returns Ale
(Goods retumed for %4,000 less 12% trade discount)
20 Sahdev Dr. 40,480
To Cash Ale
To Discount Received Alc
(Cash paid to Sahdev and discount received)
“2 Aakriti Dr. 20,000
‘Shikha Dr. 32,000
To Sales 52,000
(Goods sold on credit)
“24 Cash Ale Dr. 19,600
Discount Allowed A/c Dr 400 5
To Aakriti 20,000
(Cash received and discount allowed)
cr 428,000 4,28,000 BOOKS OF ORIGINAL ENTRY ~ JOUR
= AL
<= — tl
as 1 28a) aa
24) Insurance Expenses Ale Dr. 1,500
To Bank Alc fF
(Insurance premium paid) 5
"25. Drawings A/c Dr. 2,400
To Bank Alc | i
(Paid for insurance premium for proprietor) :
26. Purchases Ale Dr. 14,400
ToCash Alc?
To Discount Received Alc on
(Goods purchased at 10% trade discount and 2% cash
discount)
"27 Cash Ale Dr. 30,400
Discount Allowed Ale Dr. 1,600
To Shikha 32000
(Cash received and discount allowed)
"28 Advertisement Expenses A/c Dr. 2,000
Salaries Ae Dr 8,000
Rent Ale Dr 1,600
To Cash Ale 1,600
(Expenses paid)
30 Cash Ale Dr. 1,000
To Commission Received A/c 1,000
(Commission received)
Tol 4,90,900 4,90,900
Note
Discount allowed to Partap is calculated as follows.
Sales
Less: Sales Retums
Amount due trom Partap
Amount received trom him in full settlement
Discount allowed
iO
16,000
200
(2), Discount received trom Sahdev is calculated as follows
Purchases
Less : Purchases Returns
‘Net amount due to Sahdev
Discount received om him : 40,480 x 7
00
Amount paid to him in full settlement 3856
Invoice price of goods purchased 16,000
Less. Trade Discount @ 10% 1,600
i300
Less : Cash Discount @ 2% 288
LL og ORIGINAL ENTRY — JOURNAL
808
Py
»z@ATION TO.
gos” se the following transactions :
Josey Sod goods t0 Harsh for €50,000 at 20% trade discount and 59% cash
discount. Harsh paid 40% immediately through a bankers cheque
py Cash received from Ram on behalf of Shyam 25,000, (Chandigarh 2020)
GMTION:
@ Bank A/c* Dr.
Discount Allowed Alc Dr.
Harsh Dr.
To Sales A/c
| (Goods sold to Harsh at 20% trade discount and 5%
‘cash discount. Received 40% payment)
(b) | Cash Ale
‘To Shyam
(Cash received from Ram on behalf of Shyam)
40,000
+ Incase there is no information as to the date of deposit of the Cheque, it is assumed that
the Cheque is deposited into the hank on the same day
Working Note
Invoice price of goods
Less Trade Discount @ 20%
(Cash Transaction (40% of 840,000)
Less : Cash Discount @ $%
(2) Credit Transaction (60% of €40,000)
a
ILLUSTRATION 11.
Pass journal entries for the following
208
March 1 Bought goods from Vishwas worth €1,00,000 at 20% trade discount and 5% cash
discount, Paid full amount at te time of purchase itself
March 3 Bought goods from Trisha for %2,00,000 at 5% cash discount and 10% trade
discount. Half of the amount paid by cheque at the time of purchase.
March 4 Sold goods to Nupur for €50,000 at terms 4% cash discount and 20% trade
discount. Half the amount received by cash and balance half by cheque om the
same day “I
ara for 1,002,000 on terms 1 fade drsconne
Unt and
March 6 Sold povals to ANU
eived within fteen ays payment a
discount if the paayeent is Fee
‘on March 18th by chegue
arch 20. Sok pwns to Sat for 1.00.00 af 244 tre discon at
Sond een incised whi ten day She pid hal he tah Bcc
ee Oh ofthe remainder on March st "nt On Mach
SOLUTION JOURNAL
Date Particulars ae
Fl tee
2023 « ;
March 1. Purchases A br 40,000
To Cash Ne
To Discount Received Aic se
Goad purchased from Vishwas at 20% trade io
discount and 5% cash discount)
March 3. Purchases Ale Dr 1.80.00
To Bank Ac eae
To Discount Received Alc ‘ison
To Trisha fain
(Goods purchased fom Tisha at 10% trade issour
ii st ash discount on hal of the amount paid)
March 4 Cash Ae Dr. 19,200
Bank Alc* br. 19.200
Discount Allowed Ale Dr. 1,600
To Sales Ale 40,000
{Goods sold to Nupur at 20% trade discount and 4%
cash discoun!)
March 6 Anuradha or. 90,000
‘To Sales Ale 90,000
(Goods sold at 10% trade discount)
March 18 Bank Alct Dr. 68,400
Discount Allowed A/c Dr 3,600
To Anuradha 72,00
(0% amount due from Anuradha received after
allowing 5% cash discount)
March 20, Sudha pe 80,000
To Sales Ale 30.000
(Goods soldat 20% trade discount)
March 26 Cash Ne 7 446,000
Discount Allowed Ate br 4,000
To fue 4,000
(Half of the amount due from Sudha received after
alin 10% cash discount)
cr
5,82,000,5,82,000 | s,82,000) 5,82,000
12,000
| 12,000
= " | 9k 0
iis ssumed thatthe cheque deposited into the bank on the same day.
Notes!
Invoice price of goods
workin
Tess: Trade Discount @20%
March |
ess : Cash Discount @5%
invoice price of goods
March 3.1
‘Trade Discount @10%
Less
of 1,80,000)
(i) Cash Transaction (1/2
Less : Cash Discount @
(ii) Credit Transaction (1 22 of 1,80,000)
March 4 Invoice price of goods
+ Trade Discount @
20%
Less
Less : Cash Discount @4%
Cash: V2 0f 38,400 = £19,200; Cheque 1/2 of 38,400 = 219,200
March 6 Invoice price of goods
Less : Trade Discount @10%
30% of £90,000
ived
Less + Cash Discount @5%
March 18 Cash recei
9 invoice price of goods
Discount @20%
Mare
Less : Trade
Cash received on Mi 26th : 1/2 of 80,000
Cash Discount @ 10%
Less BOOKS OF ORIGINAL ENTRY — joy,
ILLUSTRATION 12.
Journaise the following tra
mnsactions in the books of Mathur Bros,
valued %20,00,000. a
Purchased goods from Manohar Lal ofthe ist price of €50,000 for 245,099
Feb.
Feb. 17 Purchased goods costing €1,00,000 from Sahil & Co. Paid 60% immediately
cheque to avail 5% discount, 7
Feb. 24 Sold goods to Kishore & Co. ofthe list price of €40,000 for £38,000,
Feb, 26 Sold to Kanika & Co. goods costing €1,00,000 at 20% profit allowing 10% trade
discount and 5% cash discount. Kanika & Co. made 40% payment immediately by
cheque
SOLUTION :
JOURNAL OF MATHUR BROS.
Date Particulars L. Amount Amount
Babe | ce
2023 z €
Feb. 1 Cash Ale Dr. 50,000
Bank Ale Dr —_4,50,000
Building A/c Dr. 20,00,000
To Capital Ale 25,00,000
(Started business with Cash, Cheque and Building)
Feb. 5 Purchases A/e Dr, 46,000
To Manohar Lal 46,000
(Goods of list price of €50,000 purchased for £46,000)
Feb. 17 Purchases Ale Dr. —‘1,00,000
To Bank Alc 57,000
To Discount Received Ale 3,000
To Sahil & Co. 40,000
(Goods purchased paying 60% availing 5% discount)
Feb. 24 Kishore & Co. Dr. 38,000
To Sales Ale 38,000
(Goods of list price of 840,000 sold for 838,000)
Feb, 26 Bank Alc* (Note 1) Dr. 41,040,
Discount Allowed Ale Dr. 2,160
Kanika & Co. Dr. 64,800
‘To Sales Ac
(Goods sold and discount allowed)
Total z
“Ics assumed thatthe cheque is deposited into the bank on the same day |NALENTRY — JOURNAL
927
cor OR! z
- ae NOE ds 1,00,000
ine Oc poods
orn ast of 8°
"o Oe 30% of €1,00,000 mae
aad 22 20,
10
. : — 000
ess Trade Discount : €1,20,000 x 7 12,000
z
sash Sales : 40% of €1,08,000 43,200
ces Cash Discount (5% of 843,200) 2,160
uk Received 41,040
gedit Sales : 60% of 21,08,000 64,800
Recording of Banking Transactions
5No. Transaction Entry
When cash is deposited into the bank. Bank A/c Dr.
f To Cash A/c
2, When cash is withdrawn from the bank. Cash A/c Dr.
” To Bank A/c
3, When cheques, drafts ete. received from the customers Bank A/c Dr.
are deposited into the bank on the same day. To Customer's Personal A/c
4, When cheques, drafis etc. received from the customers Cheques in Hand Ale Dr.
"are not sent to bank on the same day. ‘To Customer's Personal A/c
On the date when above cheques, drafts etc. are sent to Bank A/c Dr.
the bank.
To Cheques in Hand A/c
6, When a customer directly deposits the amount in our Bank A/c
‘bank account.
5.
Dr.
To Customer’s Personal A/e
7, Wren a cheque previously deposited into the bank is Customer’s Personal A/c Dr.
dishonoured. To Bank A/c
§-A When a cheque is received from a customer and Bank Ale Dr.
discount is allowed to him, and if the
Xe cheque is Discount Allowed Ale Dr.
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