Journal - Problems and Solutions

Prb 5

Problem - 1

Mr. Nirmal has the following transactions in the month of April.

Write Journal Entries for the transactions.

10th April : Commenced business with a capital of 1,00,000
11th April : Purchased goods from Veeru for 20,000
13th April : Purchased Goods for Cash 15,000
14th April : Purchased Goods from Abhiram for cash 9,000
16th April : Bought Goods from Shyam on credit 12,000
17th April : Sold goods worth 15,000 to Tarun
19th April : Sold goods for cash 20,000
20th April : Sold goods to Utsav for cash 6,000
21st April : Sold goods to Pranav on credit 17,000
22nd April : Returned goods to Veeru 3,000
23rd April : Goods returned from Tarun 1,000
25th April : Goods taken by the proprietor for personal use 1,000
26th April : Bought Land for 50,000
27th April : Purchased machinery for cash 45,000
28th April : Bought computer from Intel Computers for 25,000
28th April : Cash sales 15,000
29th April : Cash purchases 22,000
30th April : Bought furniture for proprietor's residence and paid cash 10,000

Solution

Journal in the books of Mr. Nirmal for the period from 1st to 30th April
Date V/R
No. 		Particulars L/F Amount
(Dr) 		Amount
(Cr)
April 10th – Cash a/c
To Capital a/c
Dr
 –
–
 1,00,000
1,00,000
[Being the amount received from Mr. Nirmal in cash, the proprietor as his capital contribution vide receipt no:__ dated:__]
11th – Goods/Stock a/c
To Veeru a/c
Dr
 –
–
 20,000
20,000
[Being the value of stock purchased from Mr. Veeru on credit vide bill no:___ dated:__]
13th – Goods/Stock a/c
To Cash a/c
Dr
 –
–
 15,000
15,000
[Being the value of stock purchased for cash from M/s ___ vide bill no:___ dated:__]
14th – Goods/Stock a/c
To Cash a/c
Dr
 –
–
 9,000
9,000
[Being the value of stock purchased for cash from Mr. Abhiram vide bill no:___ dated:__]
16th – Goods/Stock a/c
To Shyam a/c
Dr
 –
–
 12,000
12,000
[Being the value of stock purchased from Mr. Shyam on credit vide bill no:___ dated:__]
17th – Tarun a/c
To Goods/Stock a/c
Dr
 –
–
 15,000
15,000
[Being the value of stock sold on credit to Mr. Tarun vide invoice no:___ dated:__]
19th – Cash a/c
To Goods/Stock a/c
Dr
 –
–
 20,000
20,000
[Being the value of goods sold for cash vide receipt no:___ dated:__]
20th – Cash a/c
To Goods/Stock a/c
Dr
 –
–
 6,000
6,000
[Being the value of stock sold to Mr. Utsav for cash vide receipt no:___ dated:__]
21st – Pranav a/c
To Goods/Stock a/c
Dr
 –
–
 17,000
17,000
[Being the value of stock sold to Mr. Pranav on credit vide bill no:___ dated:__]
22nd – Veeru a/c
To Goods/Stock a/c
Dr
 –
–
 3,000
3,000
[Being the value of goods returned to Mr. Veeru vide returns bill no:___ dated:__]
23rd – Goods/Stock a/c
To Tarun a/c
Dr
 –
–
 1,000
1,000
[Being the value of stock returned by Mr. Tarun vide returns bill no:___ dated:__]
25rd – Drawings a/c
To Goods/Stock a/c
Dr
 –
–
 1,000
1,000
[Being the value of stock taken by the proprietor vide bill no:___ dated:__]
26th – Land a/c
To Cash a/c
Dr
 –
–
 50,000
50,000
[Being the amount paid for land purchased on:__]
27th – Machinery a/c
To Cash a/c
Dr
 –
–
 45,000
45,000
[Being the amount paid for the purchase of machinery vide bill no:___ dated:__]
28th – Computers a/c
To Intel Computers a/c
Dr
 –
–
 25,000
25,000
[Being the value of a computer purchased from M/S Intel Computers on credit vide bill no:___ dated:__]
29th – Cash a/c
To Goods/Stock a/c
Dr
 –
–
 15,000
15,000
[Being the value of stock sold for cash vide receipt no:___ dated:__]
29th – Goods/Stock a/c
To Cash a/c
Dr
 –
–
 22,000
22,000
[Being the value of stock purchased for cash vide bill no:___ dated:__]
30th – Drawings a/c
To Cash a/c
Dr
 –
–
 10,000
10,000
[Being the amount of cash paid for furniture purchased for proprietor's residence vide bill no:___ dated:__]

Problem - 2

Journalise the following transactions in the books of Rama & Sons

3rd May : Cash deposited into bank 60,000
4th May : Loan given to Bhuvan 20,000
4th May : Paid cash to Veeru 20,000
5th May : Paid to Veeru by cheque 15,000
5th May : Cash received from Tarun 12,000
5th May : Took loan from Anush 15,000
6th May : Cheque received from Pranav 15,000
6th May : Paid to Intel Computers by cheque 17,000
6th May : Withdrew from bank 5,000
7th May : Withdrew from bank for office use 8,000
7th May : Cash received from Bhuvan on loan account 10,000
8th May : Withdrew from bank for personal use 1,000
8th May : Cash taken by proprietor for personal use 3,000
9th May : Bought furniture and paid by cheque 15,000
9th May : Paid to Anush by cheque on loan account 5,000
9th May : Brought additional capital of 25,000

Solution

Journal in the books of M/s Rama & Sons
for the period from 1st May to 10th May
Date V/R
No. 		Particulars L/F Amount
(Dr) 		Amount
(Cr)
May 3rd – Bank a/c
To Cash a/c
Dr
 –
–
 60,000
60,000
[Being the amount of cash deposited into bank vide voucher no:___ dated:__]
4th – Loan to Bhuvan a/c
To Cash a/c
Dr
 –
–
 20,000
20,000
[Being the amount of cash given as loan to Bhuvan vide voucher no:___ dated:__]
4th – Veeru a/c
To Cash a/c
Dr
 –
–
 20,000
20,000
[Being the amount of cash paid to Veeru vide voucher no:___ dated:__]
5th – Veeru a/c
To Bank a/c
Dr
 –
–
 15,000
15,000
[Being the amount paid to veeru on account by cheque no. ___ dated ___]
5th – Cash a/c
To Tarun a/c
Dr
 –
–
 12,000
12,000
[Being the amount of cash received from Tarun vide cash receipt no:___ dated:__]
5th – Cash a/c
To Loan from Anush a/c
Dr
 –
–
 15,000
15,000
[Being the amount of loan taken from Anush on:__]
6th – Bank a/c
To Pranav a/c
Dr
 –
–
 15,000
15,000
[Being the amount received by cheque no. ____ date ____from Pranav]
6th – Intel Computers a/c
To Bank a/c
Dr
 –
–
 17,000
17,000
[Being the amount paid by cheque no. ____ date ____to Intel Computers]
6th – Cash a/c
To Bank a/c
Dr
 –
–
 5,000
5,000
[Being the amount of cash withdrawn from bank]
7th – Cash a/c
To Bank a/c
Dr
 –
–
 8,000
8,000
[Being the amount of cash withdrawn from bank vide bill no:___ dated:__]
7th – Cash a/c
To Loan to Bhuvan a/c
Dr
 –
–
 10,000
10,000
[Being the amount of cash received from Bhuvan as loan vide cash receipt no:___ dated:__]
8th – Drawings a/c
To Bank a/c
Dr
 –
–
 1,000
1,000
[Being the amount of withdrawn from bank for personal use vide cheque no:___ dated:__]
8th – Drawings a/c
To Cash a/c
Dr
 –
–
 3,000
3,000
[Being the amount of cash taken by the proprietor for personal purposes vide voucher no:___ dated:__]
9th – Furniture a/c
To Bank a/c
Dr
 –
–
 15,000
15,000
[Being the amount paid by cheque no ____ date ____ towards the purchase of furniture vide bill no:___ dated:__]
9th – Loan from Anush a/c
To Bank a/c
Dr
 –
–
 5,000
5,000
[Being the amount paid by cheque no ____ date ____ towards repayment of loan from Anush vide voucher no:___ dated:__]
9th – Cash a/c
To Capital a/c
Dr
 –
–
 25,000
25,000
[Being the amount received from proprietor as capital vide cash receipt no:___ dated:__]

Problem - 3

Write journal entries in the books of Chikky & Bros.

10th June : Paid wages 12,000
11th June : paid rent by cheque 10,000
13th June : Paid salary to Mr. Charan 12,000
14th June : Purchased stationery from Kagaz & Co. and paid by cheque 5,000
15th June : Received interest 14,000
17th June : Received commission by cheque 6,000
18th June : Rent received from Mr. Mody 8,000
19th June : Interest received from Mr.Bijju by cheque 10,000
20th June : Carriage paid on purchase of goods 3,000
22nd June : Carriage paid on sale of goods 2,000

Solution

Journal in the books of M/s Chikky & Bros.
for the period from 1st June to 30th June
Date V/R
No. 		Particulars L/F Amount
(Dr) 		Amount
(Cr)
June 10th – Wages a/c
To Cash a/c
Dr
 –
–
 12,000
12,000
[Being the amount of cash paid towards wages vide voucher no:___ dated:__]
11th – Rent paid a/c
To Bank a/c
Dr
 –
–
 10,000
10,000
[Being the amount paid by cheque no.____ date ____ towards rent vide voucher no:___ dated:__]
13th – Salaries a/c
To Cash a/c
Dr
 –
–
 12,000
12,000
[Being the amount of cash paid towards Salary to Mr. Charan vide voucher no:___ dated:__]
14th – Stationery a/c
To Bank a/c
Dr
 –
–
 5,000
5,000
[Being the amount paid by cheque no.____ date ____ towards stationery purchased from Kagaz & co. vide voucher no:___ dated:__]
15th – Cash a/c
To Interest Received a/c
Dr
 –
–
 14,000
14,000
[Being the amount of cash received towards interest vide receipt no:___ dated:__]
17th – Bank a/c
To Commission Received a/c
Dr
 –
–
 6,000
6,000
[Being the amount received by cheque no. ____ date____ towards commission vide receipt no:___ dated:__]
18th – Cash a/c
To Rent Received a/c
Dr
 –
–
 8,000
8,000
[Being the amount of cash received towards rent from Mr. Mody vide receipt no:___ dated:__]
19th – Bank a/c
To Interest Received a/c
Dr
 –
–
 10,000
10,000
[Being the amount received by cheque no. ____ date____ towards interest from Bijju vide receipt no:___ dated:__]
20th – Carriage Outwards a/c
To Cash a/c
Dr
 –
–
 3,000
3,000
[Being the amount of cash paid towards carriage on goods purchased vide voucher no:___ dated:__]
22nd – Carriage Inwards a/c
To Cash a/c
Dr
 –
–
 2,000
2,000
[Being the amount of cash paid towards carriage on goods sold vide voucher no:___ dated:__]

To avoid ambiguity regarding what information the account head provides, it is always appropriate to use additional words to specify the nature of information.

Note such usage in case of the following above

  • Rent may indicate either rent received or rent paid
  • Commission may indicate either commission received or commission paid
  • Interest may indicate either interest received or interest paid

Where we do not specify by using a suffix, we assume that account head to represent an expenditure. This is just a convention and not a rule.

  • Advertisement, since not specified is treated as an expenditure.
Author : The Edifier
Prb 7