Complex Compound Journal Entries :: Problems & Solutions

No. Problems & Solutions
01.
Journalise the following transactions.
Jun 5th:



6th:
7th:
8th:
14th:

16th:

18th:
19th:
20th:
25th:
30th:
Acquired the running business of Max, for cash Rs. 50, 000 by taking over the following assets and liabilities at values stated against them:
Stock of Goods Rs. 15,000; Cash 25,000; Furniture Rs. 10,000; Debtors Rs. 7,000;
Machinery Rs. 8,000 & Creditors Rs. 15,000.
Opened a bank account with Rs. 5,000
Bought goods worth Rs. 6, 000 from Usha & Co. & paid half the amount in cash.
Sold to Bee & Co. goods worth Rs.5,000 and a cheque received for the due
Sold private car for Rs. 4,000 and bought a new one with the proceeds for business plus Rs. 5,000 from
office cash.
Bought furniture worth Rs. 4,000 of which, those worth Rs. 1,000 are for office decoration and the
balance for stock.
Sold goods to Arial & Co. Rs. 8,000 and to Wheel & Co. 7,000
Payment made to Credtiors Rs. 4,500
Cash received from Debtors Rs. 5,800
Paid Rent by cheque Rs. 2,500
Commission received Rs. 3,000

Solution »

 

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Journal in the books of M/s ___ for the period from June 9th, 2005 to June 23th, 2005
Date V/R
No.
L/F Debit Amount
(in Rs)
Credit Amount
(in Rs)
June 5th Dr
Dr
Dr
Dr
Dr






15,000
10,000
7,000
8,000
25,000





15,000
50,000
6th Dr
5,000
5,000
7th Dr

6,000
3,000
3,000
8th Dr
5,000
5,000
14th Dr

9,000
4,000
5,000
16th Dr
Dr


3,000
1,000


4,000
18th Dr
Dr


8,000
7,000


15,000
19th Dr
4,500
4,500
20th Dr
5,800
5,800
25th Dr
2,500
2,500
30th Dr
3,000
3,000

General Ledger
[Books of M/s ____ ]

DrGoods/Stock a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
05/06/05
07/06/05
07/06/05
08/06/05
16/06/05
To Cap. & Lia. a/c
To cash a/c
To Usha & Co. a/c
To Bank a/c
To cash a/c




15,000
3,000
3,000
5,000
3,000
18/06/05
18/06/05
30/06/05
By Arial & Co. a/c
By Wheel & Co. a/c
By Balance c/d


8,000
7,000
14,000
      29,000       29,000
01/07/05 To Balance b/d 14,000        
DrFurniture a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
05/06/05
16/06/05
To Cap. & Lia. a/c
To cash a/c

10,000
1,000
30/06/05 By Balance c/d 11,000
      11,000       11,000
01/07/05 To Balance b/d 11,000        
DrDebtors a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
05/06/05 To Cap. & Lia. a/c 7,000 20/06/05
30/06/05
By Cash a/c
By Balance c/d

5,800
1,200
      7,000       7,000
01/07/05 To Balance b/d 1,200        
DrMachinery a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
05/06/05 To Cap. & Lia. a/c 8,000 30/06/05 By Balance c/d 8,000
      8,000       8,000
01/07/05 To Balance b/d 8,000        
DrCash a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
05/06/05
20/06/05
30/06/05
To Cap. & Lia. a/c
To Debtors a/c
To Commission a/c


25,000
5,800
3,000
06/06/05
07/06/05
14/06/05
16/06/05
16/06/05
19/06/05
30/06/05
By Bank a/c
By Goods/Stock a/c
By Car a/c
By Goods/Stock a/c
By Furniture a/c
By Creditorsa/c
By Balance c/d






5,000
3,000
5,000
3,000
1,000
4,500
12,300
      33,800       33,800
01/07/05 To Balance b/d 12,300        
DrCreditors a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
19/06/05
30/06/05
To Cash a/c
To Balance c/d

4,500
10,500
05/06/05 By Sundry Assets a/c 15,000
      15,000       15,000
        01/07/05 By Balance b/d 10,500
DrCapital a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
30/06/05 To Balance c/d 54,000 05/06/05
14/06/05
By Sundry Assets a/c
By Car a/c

50,000
4,000
      54,000       54,000
        01/07/05 By Balance b/d 54,000
DrBank a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
06/06/05 To Cash a/c
To Balance c/d

5,000
2,500
25/06/05
08/06/05
By Rent a/c
By Goods/Stock c/d

2,500
5,000
      7,500       7,500
        01/07/05 By Balance b/d 2,500
DrUsha & Co. a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
30/06/05 To Balance c/d 3,000 07/06/05 By Goods/stock a/c 3,000
      3,000       3,000
        01/07/05 By Balance b/d 3,000
DrCar a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
14/06/05
14/06/05
To Capital a/c
To Cash a/c

4,000
5,000
30/06/05 By Balance c/d 9,000
      9,000       9,000
01/07/05 To Balance b/d 9,000        
DrArial & Co. a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
18/06/05 To Goods/Stock a/c 8,000 30/06/05 By Balance c/d 8,000
      8,000       8,000
01/07/05 To Balance b/d 8,000        
DrWheel & Co. a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
18/06/05 To Goods/Stock a/c 7,000 30/06/05 By Balance c/d 7,000
      7,000       7,000
01/07/05 To Balance b/d 7,000        
DrRent a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
25/06/05 To Bank a/c 2,500 30/06/05 By Balance c/d 2,500
      2,500       2,500
01/07/05 To Balance b/d 2,500        
DrCommission a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
30/06/05 To Balance c/d 3,000 30/06/05 By Cash a/c 3,000
      3,000       3,000
        01/07/05 By Balance b/d 3,000

"Trial Balance"
[Modern Method]

Trial Balance of M/s.____ as on 30/06/05
Particulars L/F Debit Amount
(in Rs)
Credit Amount
(in Rs)
Goods/Stock a/c
Furniture a/c
Debtors a/c
Machinery a/c
Cash a/c
Creditors a/c
Capital a/c
Bank a/c
Usha & Co. a/c
Car a/c
Arial & Co. a/c
Wheel & Co. a/c
Rent a/c
Commission a/c













14,000
11,000
1,200
8,000
12,300




9,000
8,000
7,000
2,500





10,500
54,000
2,500
3,000




3,000
Total   73,000 73,000

No. Problems & Solutions
02.
Mr. Madhav acquired the business of Mr. Gowrav on 1st April, 2005. Record the following transactions in the journal and post them into the ledger of Mr. Madhav. Also prepare a trial balance as on that date.
Apr 1st:





4th:
5th:
6th:

7th:
8th:

11th:
12th:
13th:
14th:
15th:
Debit Balances on the date of acquisition:
Cash in hand Rs. 8,000, Cash at Bank Rs. 25,000, Stock of goods Rs. 20,000, Furniture Rs. 2,000, Buildings Rs. 10,000. Sundry Debtors – Vijay Rs. 2,000, Anil Rs. 1,000 & Madhu Rs. 2,000.
Credit Balances on the date of acquisition:
Sundry creditors – Anand Rs. 5,000, Loan from Bablu Rs. 10,000
Following were further transactions in the month of April, 2005;
Sold household furniture for Rs. 2,000 and paid the money into business cash.
Cash received from Vijay Rs. 1,980 in full settlement of his account.
Paid landlord Rs. 1,200 for rent. One – third of the premises is occupied by the proprietor for his own residence.
Goods sold to Anil for Rs. 3,000 and to Madhu for Rs. 5,000
Sold some office equipment for Rs. 1,300 (proceeds being received as Rs. 700 by cheque and balance
in cash) and paid the cheque into his private Bank A/c.
Interest received from Madhu Rs. 200.
Paid to Bablu towards interest Rs. 500
Sold goods for cash Rs. 5,000.
Cash paid to Anand Rs. 2,000
Withdrew goods from business for personal use Rs. 2,000.

Solution »

 
 

Journal in the books of M/s ___ for the period from May 12th, 2005 to May 21st, 2005
Date V/R
No.
L/F Debit Amount
(in Rs)
Credit Amount
(in Rs)
April 1st Dr
Dr
Dr
Dr
Dr
Dr
Dr
Dr










8,000
25,000
20,000
2,000
10,000
2,000
1,000
2,000








5,000
10,000
55,000
4th Dr
2,000
2,000
5th Dr
Dr


1,980
20


2,000
6th Dr
Dr


800
400


1,200
7th Dr
Dr


3,000
5,000


8,000
8th Dr
Dr


600
700


1,300
11th Dr
200
200
12th Dr
500
500
13th Dr
5,000
5,000
14th Dr
2,000
2,000
15th Dr
2,000
2,000

General Ledger
[Books of Mr. Madhav]

DrCash a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
01/04/05
04/04/05
05/04/05
11/04/05
13/04/05
To Cap. & Lia. a/c
To Capital a/c
To Vijay a/c
To Interest a/c
To Goods/Stock a/c




8,000
2,000
1,980
200
5,000
06/04/05
06/04/05
12/04/05
14/04/05
15/04/05
By Rent a/c
By Drawings a/c
By Interest a/c
By Anand a/c
By Balance c/d




800
400
500
2,000
13,480
      17,180       17,180
16/04/05 To Balance b/d 13,480        
DrBank a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
01/04/05 To Cap. & Lia. a/c 25,000 15/04/05 By Balance c/d 25,000
      25,000       25,000
16/04/05 To Balance b/d 25,000        
DrGoods/Stock a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
01/04/05 To Cap. & Lia. a/c 20,000 07/04/05
07/04/05
13/04/05
15/04/05
15/04/05
By Anil a/c
By Madhu a/c
By Cash a/c
By Drawings a/c
By Balance c/d




3,000
5,000
5,000
2,000
5,000
      20,000       20,000
16/04/05 To Balance b/d 5,000        
DrFurniture a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
01/04/05 To Cap. & Lia. a/c 2,000 15/04/05 By Balance c/d 2,000
      2,000       2,000
16/04/05 To Balance b/d 2,000        
DrBuildings a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
01/04/05 To Cap. & Lia. a/c 10,000 15/04/05 By Balance c/d 10,000
      10,000       10,000
16/04/05 To Balance b/d 10,000        
DrVijay a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
01/04/05 To Cap. & Lia. a/c 2,000 05/04/05
05/04/05
By Cash a/c
By Dis. Allowed a/c

1,980
20
      2,000       2,000
DrAnil a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
01/04/05
07/04/05
To Cap. & Lia. a/c
To Goods/Stock a/c

1,000
3,000
15/04/05 By Balance c/d 4,000
      4,000       4,000
16/04/05 To Balance b/d 4,000        
DrMadhu a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
01/04/05
07/04/05
To Cap. & Lia. a/c
To Goods/Stock a/c

2,000
5,000
15/04/05 By Balance c/d 7,000
      7,000       7,000
16/04/05 To Balance b/d 7,000        
DrAnand a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
14/04/05
15/04/05
To Cash a/c
To Balance c/d

2,000
3,000
01/04/05 By Sundry Assets a/c 5,000
      5,000       5,000
        16/04/05 By Balance b/d 3,000
DrLoan from Bablu a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
15/04/05 To Balance c/d 10,000 01/04/05 By Sundry Assets a/c 10,000
      10,000       10,000
        16/04/05 By Balance b/d 10,000
DrCapital a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
15/04/05 To Balance c/d 57,000 01/04/05

04/04/05
By Sundry Assets a/c
By Cash a/c

55,000

2,000
      57,000       57,000
        16/04/05 By Balance b/d 57,000
DrRent a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
06/04/05 To Cash a/c 800 15/04/05 By Balance c/d 800
      800       800
16/04/05 To Balance b/d 800        
DrDrawings a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
06/04/05
15/04/05
To Cash a/c
to Goods/Stock a/c

400
2,000
15/04/05 By Balance c/d 2,400
      2,400       2,400
16/04/05 To Balance b/d 2,400        
DrInterest a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
12/04/05 To Cash a/c 500 11/04/05
15/04/05
By Cash a/c
By Balance c/d

200
300
      500       500
16/04/05 To Balance b/d 300        
DrDiscount Allowed a/cCr
Date Particulars J/F Amount
(in Rs)
Date Particulars J/F Amount
(in Rs)
06/04/05 To Vijaya/c 20 15/04/05 By Balance c/d 20
      20       20
16/04/05 To Balance b/d 20        

"Trial Balance"
[Modern Method]

Trial Balance of Mr. Madhav as on 15/04/05
Particulars L/F Debit Amount
(in Rs)
Credit Amount
(in Rs)
Cash a/c
Bank a/c
Goods/Stock a/c
Furniture a/c
Buildings a/c
Vijay a/c
Anil a/c
Madhu a/c
Anand a/c
Loan from Bablu a/c
Capital a/c
Rent a/c
Drawings a/c
Interest a/c
Discount Allowed a/c














13,480
25,000
5,000
2,000
10,000

4,000
7,000



800
2,400
300
20








3,000
10,000
57,000



Total   70,000 70,000
Author Credit : The Edifier  

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