NCERT Solutions for Class 11 Accountancy Financial Accounting Part-1 Chapter 4 - Recording of Transactions

Short answers : Solutions of Questions on Page Number : 142

Q1 :Briefly state how the cash book is both journal and a ledger?
Answer :
Transactions are recorded directly from source documents in the Cash Book, so there is no need to record transactions in the Journal book. Further, on the basis of the cash transactions recorded in the Cash Book, cash and bank balances can be determined, and so there is no need to prepare cash account (which is a part of ledger) separately. Thus, the Cash Book serves the purpose of both Journal as well as ledger.

NCERT Solutions for Class 11 Accountancy Financial Accounting Part-1 Chapter 4 – Recording of Transactions – II

Q2 :What is the purpose of contra entry?
Answer :
Contra entry represents deposits or withdrawals of cash from bank or vice versa. The purpose of contra entry is to indicate the transactions that effect both cash and bank balances. This entry does not affect the financial positions of a business. A contra entry is recorded in both sides of a two column Cash Book and is denoted by ‘C’ in the ledger folio column.

Q3 :What are special purpose books?
Answer :Business transactions are large in number and difficult to record; so, journal is sub-divided for quick, efficient and accurate recording of the business transactions. Special purpose books like, sales book and purchases book are maintained for those transactions that are routine and repetitive in nature. Recording through these books is economical and enables division of work among accountants.

Q4 :What is petty cash book? How it is prepared?
Answer :
Petty Cash Book is used for recording payment of petty expenses, which are of smaller denominations like postage, stationery, conveyance, refreshment, etc. Person who maintains petty cash book is known as petty cashier and these small expenses are termed as petty expenses.
It is prepared by two methods:
Ordinary system: In this case, a fixed sum of money is paid to petty cashier for the payment of petty expenses and after spending the whole amount, the account is submitted by the petty cashier to the main cashier.
Imprest system: In this case, a fixed sum of the money is given to the petty cashier in the beginning of a period and at the end of the period the amount spent by him is reimbursed, so that he has a fixed amount in the beginning of every new period.

Q5 :Explain the meaning of posting of journal entries?
Answer :
Posting is the process of transferring the business transactions from Journal to ledgers.
Every transaction is first recorded in the Journal and subsequently transferred to their respective accounts.

Q6 :Define the purpose of maintaining subsidiary journal.
Answer :
The process of accounting starts from identification of financial and non-financial events. Financial events are first recorded in a Journal. A small business has lesser number of transactions and thereby it may be possible to record these transactions through Journal entry. However, on the contrary, as the business grows, there will be voluminous number of transactions and the firm may experience difficulty, thereby it becomes tedious to record through Journal entry. Thus, in order to save time and effort, it is recommended to sub-divide Journal. Sub-division of Journal provides scope for division of work. This leads to the improvement of efficiency and effectiveness and infuses higher degree of accountability to the accountants for the specific subsidiary Journal assigned to them. The purposes of maintaining subsidiary Journal are given below.
It saves time and efforts in recording.
It enables division of work, leading to an enhancement of efficiency and effectiveness, as particular accountant takes care of particular books.
It also makes each accountant more responsible and accountable for the books assigned to them.
It records routine and repetitive transactions at one place, which leads to easy accessibility of information and hassle-free communication.

Q7 :Write the difference between return inwards and return outwards.
Answer :

Basis of Difference	Return Inwards	Return Outwards
Meaning	Goods sold to the customers, are returned by them.	Goods purchased are returned to the suppliers.
Balance	It has debit balance.	It has credit balance.
Treatment	It is deducted from Sales in the Trading Account.	It is deducted from Purchases in the Trading Account.
Issued	Credit note is prepared by the seller.	Debit note is prepared by the buyer.
Reduction	It reduces the payment from the Debtors.	It reduces the payment made to the Creditors.
Term	It is also termed as Sales Returns.	It is also termed as Purchases Returns.

Q8 :What do you understand by ledger folio?
Answer :
Ledger folio is a page number of an account in ledger that is written in the L.F. column of a journal format. In journal entry, ledger folio number is written corresponding to the name of the account in the L.F. column. It helps in easy locating of the account in the ledger book. It reduces the time in recording and rechecking.

Q9 :What is difference between trade discount and cash discount?
Answer :

Basis of Difference	Trade Discount	Cash Discount
Meaning	It is allowed when goods are purchase or sold.	It is allowed at the time of payment.
Recording in books	It is recorded in invoice/bill but not in the books.	It is recorded in the discount column of the Cash Book’s debit side, if allowed, and credit side, if received.
Purpose	It is allowed to increase sale.	It is allowed for earlier payment.
Deduction	It is deducted from the price-list of the goods.	It is not deducted from the price-list of the goods.

Q10 :Write the process of preparing ledger from a journal.
Answer :
The process of preparing ledger from Journal can be explained with the help of an example. Let us suppose that machinery is purchased from Mr. X, so, the journal entry will be:

Machinery A/c
Dr.
To Mr. X Account
In this example, Machinery Account is debited and Mr. X Account is credited. Let us understand the process of preparing ledger from the journal entry.
Account which is debited in the entry:
Step 1: Indentify the account in ledger that is debited, i.e., ‘Machinery Account’.
Step 2: Enter date in the debit side of the ‘Machinery Account’ in the ‘Date’ column.
Step 3: Enter the name of the account as ‘Mr. X Account’ (which is credited in the entry) in the ‘Particulars’ column in the debit side of the Machinery Account.
Step 4: Enter the page number of the journal, where the entry is recorded in the ‘J.F.’ (journal folio) column.
Step 5: Post the corresponding amount in the ‘Amount’ column, which is recorded against ‘Machinery Account’ in the journal entry.
Account which is credited in entry:
Step 1: Indentify the account in ledger that is credited, i.e., ‘Mr. X Account’.
Step 2: Enter date in the credit side of ‘Mr. X Account’ in the ‘Date’ column.
Step 3: Enter the name of the account as ‘Machinery Account’ (which is debited in the entry) in the ‘Particulars’ column in the credit side of the ‘Machinery Account’.
Step 4: Enter the page number of the journal where the entry is recorded in the ‘J.F.’ (journal folio) column.
Step 5: Post the corresponding amount in the ‘Amount’ column, which is recorded against ‘Mr. X Account’ in the journal entry.

Q11 :What do you understand by Imprest amount in petty cash book?
Answer :
Imprest amount is an amount of money given by the main cashier to the petty cashier in the beginning of a period. At the end of the period, the amount spent by the petty cashier gets reimbursed in such a manner, that he has the same amount of cash in hand in the beginning of next period. For example, if the main cashier gives an imprest amount of Rs 1,000 to the petty cashier on April 01, 2011 and at the end of the month the petty expenses amount to be Rs 850, which is spent by the petty cashier during the month. In this case, Rs 850 will be reimbursed, so, that on May 01, 2011, the petty cashier will have Rs 1,000 at his disposable to meet petty expenses for the next month.

Long answers : Solutions of Questions on Page Number : 142

Q1 :Explain the need for drawing up the special purpose books.
Answer :
The needs for drawing up the special purpose book are given below.
Quick and efficient recording: It is a time consuming process to record all the transactions in a journal. If there are separate books, then recording of transactions can be done more efficiently and timely. So, the need of special purpose book arises.
Repetitive nature: In every business, some transactions are similar and repetitive in nature. It will be more convenient to record all similar transactions at one place. For example, all credit sales transactions are recorded in the Sales Book.
Economical: It is more economical as recording through the special purpose books saves time and also enhances the efficiency of accountants and clerks.
Easy posting: If similar transactions are recorded at one place, posting becomes easier.
Complete information at one place: All information related to purchases, sales, cash receipts, payments, etc. are easily and hassle-free available.

Q2 :What is cash book? Explain the types of cash book.
Answer :
Cash Book is a book of original entry. It records all transactions related to receipts and payments of cash and deposits in and withdrawals from a bank in a chronological order. In the debit side of the cash book, the cash receipts are recorded in the cash column while all deposits into bank account are recorded in the bank column. On the contrary, in the credit side of the cash book, all cash payments are recorded in the cash column, while all payments through cheques are recorded in the bank column. Usually, it is prepared on monthly basis. Cash book also serves the purpose of principle book (i.e. cash account and bank account).

Single Column Cash Book: A single column Cash Book contains one column of amount on both sides, i.e., one in the debit side and other in the credit side. In the single column Cash Book, only cash transactions are recorded. In the debit side of the Cash Book, all cash receipts are recorded, while in the credit side all cash payments are recorded.

Double Column Cash Book: A double column Cash Book contains two columns of amount, namely cash column and bank column on both sides. In the cash column of Cash Book, all cash receipts and payments are recorded, according to the rule of Real Accounts. All deposits either in cash or through cheques into the bank account of the business are debited in the bank column and all withdrawals of cash and payments through cheques are credited in the bank column.

Cash Book

Dr Cr

Date	Particulars	L.F.	Cash Rs	Bank Rs	Date	Particulars	L.F.	Cash Rs	Bank Rs
	Cash	(C)		–		Bank	(C)

Triple Ccolumn Cash Book: In a triple column Cash Book, there are three columns of amount namely, cash, bank and discount. Discount allowed and discount received are recorded in the discount column. While in the debit side, discount allowed is recorded along with the receipts, either in cash or through cheque; whereas, in the credit side, discount received is recorded, along with the payments made either in cash or by issuing cheques.

Petty Cash Book: This book is used for recording payment of petty expenses, which are of smaller denominations like, postage, stationery, conveyance, refreshment, etc. is known as Petty Cash Book.

Q3 :What is contra entry? How can you deal this entry while preparing double column cash book?
Answer :
The transaction that is entered in either sides of the double column or three column cash book, affecting both cash and the bank balances concomitantly is called contra entry. These entries result in increase in cash balances and decrease in bank balances or vice versa. In other words, a debit of bank account leads to a credit of cash account and a credit of bank account leads to a debit of cash account. For example, Rs 200 cash deposited into bank. This transaction increases the bank amount on one hand; whereas, on the other hand reduces the cash balance. In this entry, in the debit side of the cash book, ‘Cash’ will be recorded with a balance of Rs 200 in the bank column and in the credit side of the cash book, ‘Bank’ will be recorded with a balance of Rs 200 in the cash column. This entry is a contra entry as it affects both cash and bank balance together. The contra entries are denoted by ‘C’.

Some transactions that lead to contra entry are given below.
Opening a bank account
Depositing cash into bank
Withdrawal from bank
These transactions are recorded in a double column Cash Book as done below.

Sales Book

Date

Bill No.

Name of the
Customer

(Accounts to be
debited)

L.F.

Details

Amount

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

Bank

Date

Particulars

L.F.

Cash

Bank

Cash

(C)

–

Bank

(C)

–

Q4 :What is petty cash book? Write the advantages of petty cash book?
Answer :
Petty Cash Book is used for recording payments of small expenses, which are of smaller denominations such as postage, stationery, conveyance, refreshment, etc. Person who maintains Petty Cash Book is known as petty cashier and these small expenses are termed as petty expenses.
It is prepared by the below given two methods.
Ordinary system: Under this system, a certain sum of money is given to the petty cashier for the payment of petty expenses. After spending the whole amount, the accounts are submitted by the petty cashier to the main cashier.
Imprest system: Under this system, a fixed sum of money is given to the petty cashier in the beginning of a period to meet the petty expenses to be incurred in that period. At the end of the period, the amount spent by the petty cashier is reimbursed. So, the petty cashier has the same fixed amount of money in the beginning of the next period.
The Performa of Petty Cash Book is given below.

Petty Cash Book
Dr.					Cr.
Amount Received	Date	Particulars	Voucher No.	Amount Paid Rs	Analysis of Payments
Amount Received	Date	Particulars	Voucher No.	Amount Paid Rs	Postage	Stationery	Conveyance	Telephone and Telegram	Miscellaneous	Remarks

Advantages of Petty Cash Book:
Simple method: Recording of transactions in a petty cash book is easy. In an analytical Petty Cash Book, there exists separate heads for different petty expenses, which makes recording much easier. Recording in a Petty Cash Book does not require formal knowledge of accounting principles and techniques.
Time saving: Recording in Petty Cash Book saves time and efforts of the chief cashier.
Efficient control: At the end of a period,Petty Cash Book is audited by the main cashier, so frauds and errors are less probable.
Convenient handling: Recording in Petty Cash Book is convenient, as entries are to be recorded under separate heads, which makes posting easier and quicker.

Q6 :Enter the following transactions in double column cash book of M/s Ambica Traders for November 2005:

		Rs
01	Commenced business with cash	50,000
03	Opened bank account with ICICI	30,000
05	Purchased goods for cash	10,000
10	Purchased office machine for cash	5,000
15	Sales goods on credit from Rohan and received cheque	7,000
18	Cash sales	8,000
20	Rohan’s cheque deposited into bank
22	Paid cartage by cheque	500
25	Cash withdrawn for personal use	2,000
30	Paid rent by cheque	1,000

Answer:

Books of M/s. Ambika Traders
Cash Book
Dr.									Cr.
Date	Particulars	L.F.	Cash Rs	Bank Rs	Date	Particulars	L.F.	Cash Rs	Bank Rs
2005					2005
Nov.01	Capital		50,000		Nov.03	Bank	C	30,000
Nov.03	Cash	C		30,000	Nov.05	Purchases		10,000
Nov.15	Rohan		7,000		Nov.10	Office Machine		5,000
Nov.18	Sales		8,000		Nov.20	Bank	C	7,000
Nov.20	Cash	C		7,000	Nov.22	Cartage			500
					Nov.25	Drawings		2,000
					Nov.30	Rent			1,000
					Nov.30	Balance c/d		11,000	35,500
			65,000	37,000				65,000	37,000

Q7 :Prepare double column cash book from the following information for September 2005:

		Rs
01	Cash in hand	7,500
	Bank overdraft	3,500
03	Paid wages	200
05	Cash sales	7,000
10	Cash deposited into bank	4,000
15	Goods purchased and paid by cheque	2,000
20	Paid rent	500
25	Drew from bank for personal use	400
25	Drew from bank for personal use	400
30	Salary paid	1,000

Answer:

Cash Book
Dr.									Cr.
Date	Particulars	L.F.	Cash Rs	Bank Rs	Date	Particulars	L.F.	Cash Rs	Bank Rs
2005					2005.
Sep.01	Balance b/d		7,500		Sep.01	Balance b/d (Overdraft)			3,500
Sep.05	Sales		7,000		Sep.03	Wages		200
Sep.10	Cash	C		4,000	Sep.10	Bank	C	4,000
					Sep.15	Purchases			2,000
					Sep.20	Rent		500
					Sep.25	Drawings			400
					Sep.30	Salaries		1,000
Sep.30	Balance c/d (Over draft)			1,900	Sep.30	Balance c/d		8,800
			14,500	5,900				14,500	5,900

Q8 :Enter the following transaction in a double column cash book of M/s Mohit Traders for January 2005:

		Rs
01	Cash in hand	3,500
	Bank overdraft	2,300
03	Goods purchased for cash	1,200
05	Paid wages	200
10	Cash sales	8,000
15	Deposited into bank	6,000
22	Sold goods for cheque which was deposited into bank same day	2,000
25	Paid rent by cheque	1,200
28	Drew from bank for personal use	1,000
31	Bought goods by cheque	1,000

Answer:

Books of M/s. Mohit Traders
Cash Book
Dr.									Cr.
Date	Particulars	L.F.	Cash Rs	Bank Rs	Date	Particulars	L.F.	Cash Rs	Bank Rs
2005					2005
Jan.01	Balance b/d		3,500		Jan.01	Balance b/d (overdraft)			2,300
Jan.10	Sales		8,000		Jan.03	Purchases		1,200
Jan.15	Cash	C		6,000	Jan.05	Wages		200
Jan.22	Sales			2,000	Jan.15	Bank	C	6,000
					Jan.25	Rent			1,200
					Jan.28	Drawings			1,000
					Jan.31	Purchases			1,000
					Jan.31	Balance c/d		4,100	2,500
			11,500	8,000				11,500	8,000

Q9 :Prepare double column cash book from the following transactions for the year December 2005:

		Rs
01	Cash in hand	17,500
	Cash at bank	5,000
03	Purchased goods for cash	3,000
05	Received cheque from Jasmeet	10,000
08	Sold goods for cash	7,000
10	Jasmeet’s cheque deposited into bank
12	Purchased goods and paid by cheque	20,000
15	Paid establishment expenses through bank	1,000
18	Cash sales	7,000
20	Deposited into bank	10,000
24	Paid trade expenses	500
24	Paid trade expenses	500
27	Received commission by cheque	6,000
29	Paid Rent	2,000
30	Withdrew cash for personal use	1,200
31	Salary paid	6,000

Answer:

Cash Book
Dr.									Cr.
Date	Particulars	L.F.	Cash Rs	Bank Rs	Date	Particulars	L.F.	Cash Rs	Bank Rs
2005					2005
Dec.01	Balance b/d		17,500	5,000	Dec.03	Purchases		3,000
Dec.05	Jasmeet		10,000		Dec.10	Bank	C	10,000
Dec.08	Sales		7,000		Dec.12	Purchases			20,000
Dec. 10	Cash	C		10,000	Dec.15	Establishment Expenses			1,000
Dec.18	Sales		7,000		Dec.20	Bank	C	10,000
Dec.20	Cash	C		10,000	Dec.24	Trade Expenses		500
Dec.27	Commission			6,000	Dec.29	Rent		2,000
					Dec.30	Drawings		1,200
					Dec.31	Salaries		6,000
					Dec.31	Balance c/d		8,800	10,000

			41,500	31,000				41,500	31,000

Q10 :M/s Ruchi trader started their cash book with the following balances on Dec. 01 2005 : cash in hand Rs 1,354 and balance in bank current account Rs 7,560. He had the following transaction in the month of December, 2005:

		Rs
03	Cash sales	2,300
05	Purchased goods, paid by cheque	6,000
08	Cash sales	10,000
12	Paid trade expenses	700
15	Sales goods, received cheque (deposited same day)	20,000
18	Purchased motor car paid by cheque	15,000
20	Cheque received from Manisha (deposited same day)	10,000
22	Cash Sales	7,000
25	Manisha’s cheque returned dishonoured
28	Paid Rent	2,000
29	Paid telephone expenses by cheque	500
Prepare bank column cash book

Answer :

Books of M/s. Ruchi Trader
Cash Book
Dr.									Cr.
Date	Particulars	L.F.	Cash Rs	Bank Rs	Date	Particulars	L.F.	Cash Rs	Bank Rs
2005					2005
Dec.01	Balance b/d		1,354	7,560	Dec.05	Purchases			6,000
Dec.03	Sales		2,300		Dec.12	Trade Expenses		700
Dec.08	Sales		10,000		Dec.18	Motor Car			15,000
Dec.15	Sales			20,000	Dec.25	Manisha (Dishonour)			10,000
Dec.20	Manisha			10,000	Dec.28	Rent		2,000
Dec.22	Sales		7,000		Dec.29	Telephone Expenses			500
					Dec.31	Drawings		2,000
					Dec.31	Balance c/d		15,954	6,060

			20,654	37,560				20,654	37,560

Q11 :Prepare petty cash book from the following transactions. The imprest amount is Rs 2,000.

January		Rs
01	Paid cartage	50
02	STD charges	40
02	Bus fare	20
03	Postage	30
04	Refreshment for employees	80
06	Courier charges	30
08	Refreshment of customer	50
10	Cartage	35
15	Taxi fare to manager	70
15	Taxi fare to manager	70
18	Stationery	65
20	Bus fare	10
22	Fax charges	30
25	Telegrams charges	35
27	Postage stamps	200
29	Repair on furniture	105
30	Laundry expenses	115
31	Miscellaneous expenses	100

Answer:

Petty Cash Book
Amount Received Rs	Date	Particulars	Voucher No.	Amount Paid Rs	Analysis of Payments
Amount Received Rs	Date	Particulars	Voucher No.	Amount Paid Rs	Telephone Telegram	Postage	Conveyance	Refreshment	Cartage	Miscellaneous
2,000	Jan.01	Cash
	Jan.01	Cartage		50					50
	Jan.02	STD charges		40	40
	Jan.02	Bus Fare		20			20
	Jan.03	Postage		30		30
	Jan.04	Refreshment for Employees		80				80
	Jan.06	Courier charges		30		30
	Jan.08	Refreshment of customer		50				50
	Jan.10	Cartage		35					35
	Jan.15	Taxi Fare to Manager		70			70
	Jan.18	Stationery		65						65
	Jan.20	Bus Fare		10			10
	Jan.22	Fax Charges		30	30
	Jan.25	Telegram Charges		35	35
	Jan.27	Postage stamps		200		200
	Jan.29	Repair to Furniture		105						105
	Jan.30	Laundry Expense		115						115
	Jan.31	Miscellaneous Expenses		100						100
				1,065	105	260	100	130	85	385
	Jan.31	Balance c/d		935
2,000				2,000
935	Feb.01	Balance b/d
1,065	Feb.01	Cash

Q12 :Record the following transactions during the week ending Dec. 30, 2005 with a weekly imprest Rs 500

		RS
24	Stationery	100
25	Bus fare	12
25	Cartage	40
26	Taxi fare	80
27	Wages to casual labour	90
29	Postage	80

Answer:

Petty Cash Book
Amount Received Rs	Date	Particulars	Voucher No.	Amount Paid Rs	Analysis of Payments
Amount Received Rs	Date	Particulars	Voucher No.	Amount Paid Rs	Stationery	Conveyance	Cartage	Postage	Miscellaneous
	2010
500	Dec.24	Cash
	Dec.24	Stationery		100	100
	Dec.25	Bus Fare		12		12
	Dec.25	Cartage		40			40
	Dec.26	Taxi Fare		80		80
	Dec.27	Wages to Casual labour		90					90
	Dec.29	Postage		80				80
				402	100	92	40	80	90
	Dec.30	Balance c/d		98
	2010			500
98	Dec.31	Balance b/d
402	Dec.31	Cash

Q13 :Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2005
Bought from Rahul Traders as per invoice no. 20041
40 Registers @ Rs 60 each
80 Gel Pens @ Rs 15 each
50 note books @ Rs 20 each
Trade discount 10%.
15Bought from Global Stationers as per invoice no. 1132
40 Ink Pads @ Rs 8 each
50 Files @ Rs 10 each
20 Color Books @ Rs 20 each
Trade Discount 5%
23Purchased from Lamba Furniture as per invoice no. 3201
2 Chairs @ 600 per chair
1 Table @ 1,000 per table
25 Bought from Mumbai Traders as per invoice no. 1111
10 Paper Rim @ Rs 100 per rim
400 drawing Sheets @ Rs 3 each
20 Packet water colour @ Rs 40 per packet
Answer:

Books of M/s. Gupta Traders
Purchases Book
Date	Invoice No.	Name of Supplier (Accounts to be credited)	L.F.	Details Rs	Amount Rs
2005
July 01	20041	Rahul Traders
		40 Registers @ Rs 60 each		2,400
		80 Gel Pens @ Rs 15 each		1,200
		50 Note Books @ Rs 20 each		1,000
				4,600
		Less: Trade Discount 10%		(460)	4,140

July 15	1132	Global Stationeries
		40 Ink Pads @ Rs 8 each		320
		50 Files @ Rs 10 each		500
		20 Colour Books @ Rs 20 each		400
				1,220
		Less: Trade discount 5%		(61)	1,159

July 25	1111	Mumbai Traders
		10 Paper Rim @ Rs 100 each		1,000
		400 Drawing Sheet @ Rs 3 each		1,200
		20 Packet Water Colour @ Rs 40 per pack		800	3,000

		Purchases Account			8299

Note: Furniture purchased from Lamba Traders will not be recorded in the Purchases Book as furniture is not to be considered as goods for the M/s Gupta Trader. This is because as per the transactions M/s. Gupta traders deals in stationery and not in furniture.

Note: Slight change in the Performa of subsidiary book is done. Here ‘Details’ column has been added in Purchase Book.

Q14 :Enter the following transactions in sales (journal) book of M/s. Bansal electronics:
September
01Sold to Amit Traders as per bill no.4321
20 Pocket Radio @ 70 per Radio
2, T.V. set, B&W.(6.) @ 800 Per T.V
1.0 Sold to Arun Electronics as per bill no.4351
5 T.V. sets (20.) B&W @ Rs 3,000 per T.V.
2 T.V. sets (21.) Colour @ Rs 4,800 per T.V.
22 Sold to Handa Electronics as per bill no.4,399
10 Tape recorders @ Rs 600 each
5 Walkman @ Rs 300 each
28Sold to Harish Trader as per bill no.4430
10 Mixer Juicer Grinder @ Rs 800 each.
Answer:

Books of M/s. Bansal Electronics
Sales Book
Date	Bill No.	Name of the Customer (Accounts to be debited)	L.F.	Details Rs	Amount Rs

Sept.01	4321	Amit Traders
		20 Pocket Radio @ Rs 70 Per Radio		1,400
		2 T.V. Set, B&W (6″) @ Rs 800 per T.V.		1,600	3,000

Sept.10	4351	Arun Electronics
		5 T.V. sets (20″) B&W @ Rs 3,000 per T.V.		15,000
		2 T.V. sets (21″) Colour @ Rs 4,800 per T.V.		9,600	24,600

Sept.22	4399	Handa Electronics
		10 Tape Recorders @ Rs 600 each		6,000
		5 Walkman @ Rs 300 each		1,500	7,500

Sept.28	4430	Harish Traders
		10 Mixer Juicer Grinder @ Rs 800 each		8,000	8,000

		Sales Account			43,100

Q15 :Prepare a purchases return (journal) book from the following transactions for January 2006.

		Rs
05	Returned goods to M/s Kartik Traders	1,200
10	Goods returned to Sahil Pvt. Ltd.	2,500
17	Goods returned to M/s Kohinoor Traders for list price Rs 2,000 less 10% trade discount.
28	Return outwards to M/s Handa Traders	550

Answer:

Purchases Return Book
Date	Debit Note No.	Name of Supplier (Account to be debited)		L.F.	Amount Rs
2006
Jan. 05		M/s Kartik Traders			1,200
Jan. 10		Sahil Pvt. Ltd.			2,500
Jan. 17		M/s Kohinoor Trader
		List Price	2,000
		Less: 10% Trade discount	(200)		1,800
Jan. 28		M/s Handa Traders			550

		Purchases Return Account			6,050

Q16 :Prepare Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for November 2005:

		Rs
04	M/s Gupta Traders returned the goods	1,500
10	Goods returned from M/s Harish Traders	800
18	M/s Rahul Traders returned the goods not as per specifications.	1,200
28	Goods returned from Sushil Traders	1,000

Answer:

Sales Return Book
Date	Credit Note No.	Name of Customer (Account to be credited)	L.F.	Amount Rs
2005
Nov.04		M/s Gupta Traders		1,500
Nov.10		M/s Harish Traders		800
Nov.18		M/s Rahul Traders		1,200
Nov.28		Sushil Traders		1,000

		Sales Return Account		4,500

Q17 :Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of February 2006:

		Rs
01	Goods sold to Sachin	5,000
04	Purchase from Kushal Traders	2,480
06	Sold goods to Manish Traders	2,100
07	Sachin returned goods	600
08	Returns to Kushal Traders	280
10	Sold to Mukesh	3,300
14	Purchased from Kunal Traders	5,200
15	Furniture purchased from Tarun	3,200
17	Bought of Naresh	4,060
20	Return to Kunal Traders	200
22	Return inwards from Mukesh	250
24	Purchased goods from Kirit & Co. for list price of less 10% trade discount	5,700
25	Sold to Shri Chand goods less 5% trade discount	6,600
26	Sold to Ramesh Brothers	4,000
28	Return outwards to Kirit and Co. less 10% trade discount	1,000
28	Ramesh Brothers returned goods Rs 500.

Answer :

Journal
Purchases Book
Date	Invoice No.	Name of Supplier (Accounts to be credited)		L.F.	Amount Rs
2006
Feb.04		Kushal Traders			2,480
Feb.14		Kunal Traders			5,200
Feb.17		Naresh			4,060
Feb.24		Kirit and Co.	5,700
		Less: Trade Discount 10%	(570)		5,130

		Purchases Account			16,870

Sales Book
Date	Invoice No.	Name of Customer (Accounts to be debited)		L.F.	Amount Rs
2011
Feb. 01		Sachin			5,000
Feb.06		Manish Traders			2,100
Feb.10		Mukesh			3,300
Feb.25		Shri Chand	6,600
		Less: 5% Trade Discount	(330)		6,270
Feb.26		Ramesh Brothers			4,000

		Sales Account			20,670

Sales Return Book
Date	Credit Note	Name of Customer (Accounts to be credited)	L.F.	Amount Rs
2011
Feb.07		Sachin		600
Feb.22		Mukesh		250
Feb.28		Ramesh Brothers		500

		Sales Return Account		1,350

Purchases Return Book
Date	Debit Note	Name of Supplier (Accounts to be debited)		L.F.	Amount Rs
2011
Feb.08		Kushal Traders			280
Feb.20		Kunal Traders			200
Feb.28		Kirit and Co.	1,000
		Less: 10% Trade Discount	(100)		900

		Sales Return A/c			1,380

Journal Proper
Date			Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2011
Feb.15	Furniture A/c			Dr.		3,200
		To Tarun					3,200
	(Furniture purchased from Tarun)

Ledger
Purchases Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.28	Sundries as per Purchases Book		16,870
				Feb.28	Balance c/d		16,870

			16,870				16,870

Sales Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
				Feb.28	Sundries as per Sales Book		20,670
Feb.28	Balance c/d		20,670
			20,670				20,670

Sales Return Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.28	Sundries as per Sales Return Book		1,350
				Feb.28	Balance c/d		1,350

			1,350				1,350

Purchases Return Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
				Feb.28	Sundries as per Purchases Return Book		1,380
Feb.28	Balance c/d		1,380
			1,380				1,380

Sachin’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.01	Sales		5,000	Feb.07	Sales Return		600
				Feb.28	Balance c/d		4,400

			5,000				5,000

Kushal Traders’ Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.08	Purchases Return		280	Feb.04	Purchases		2,480
Feb.28	Balance c/d		2,200

			2,480				2,480

Manish Traders’ Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.06	Sales		2,100
				Feb.28	Balance c/d		2,100
			2,100				2,100

Mukesh’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.10	Sales		3,300	Feb.22	Sales Return		250
				Feb.28	Balance c/d		3,050
			3,300				3,300

Kunal Traders’ Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.20	Purchase Return		200	Feb.14	Purchases		5,200
Feb.28	Balance c/d		5,000
			5,200				5,200

Furniture Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.15	Tarun		3,200
				Feb.28	Balance c/d		3,200
			3,200				3,200

Tarun’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
				Feb.15	Furniture		3,200
Feb.28	Balance c/d		3,200
			3,200				3,200

Naresh’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
				Feb.17	Purchases		4,060
Feb.28	Balance c/d		4,060
			4,060				4,060

Kirit & Co. Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.28	Purchases Return		900	Feb.24	Purchases		5,130
Feb.28	Balance c/d		4,230
			5,130				5,130

Shri Chand & Co. Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.25	Sales		6,270
				Feb.28	Balance c/d		6,270
			6,270				6,270

Ramesh’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.26	Sales		4,000	Feb.28	Sales Return		500
				Feb.28	Balance c/d		3,500
			4,000				4,000

Q18:The following balances of ledger of M/s Marble Traders on April 01, 2006

	Rs
Cash in hand	6,000
Cash at bank	12,000
Bills receivable	7,000
Ramesh (Cr.)	3,000
Stock (Goods)	5,400
Bills payable	2,000
Rahul (Dr.)	9,700
Himanshu (Dr.)	10,000

Transactions during the month were:

April		Rs
01	Goods sold to Manish	3,000
02	Purchased goods from Ramesh	8,000
03	Received cash from Rahul in full settlement	9,200
05	Cash received from Himanshu on account	4,000
06	paid to Remesh by cheque	6,000
08	Rent paid by cheque	1,200
10	Cash received from manish	3,000
12	Cash sales	6,000
14	Goods returned to Ramesh	1,000
15	Cash paid to Ramesh in full settlement	3,700
16	Discount received	300
18	Goods sold to Kushal	10,000
20	Paid trade expenses	200
21	Drew for personal use	1,000
22	Goods return from Kushal	1,200
24	Cash received from Kushal	100
26	Paid for stationery	60
27	Postage charges	60
28	Salary Paid	2,500
29	Goods purchased from Sheetal Traders	7,000
30	Sold goods to Kirit	6,000
	Goods purchased from Handa Traders	5,000

Answer:

Books of M/s. Marble Traders
Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
2011	Cash A/c		Dr.		6,000
Apr.01	Bank A/c		Dr.		12,000
	Bills Receivable A/c		Dr.		7,000
	Stock A/c		Dr.		5,400
	Rahul’s A/c		Dr.		9,700
	Himanshu A/c		Dr.		10,000
		To Ramesh’s A/c				3,000
		To Bills Payable A/c				2,000
		To Capital A/c (Balancing figure )				45,100
	(Balance brought from last year)

Apr.01	Manish		Dr.		3,000
		To Sales A/c				3,000
	(Goods sold to Manish)

Apr.02	Purchases A/c		Dr.		8,000
		To Ramesh				8,000
	(Goods purchased from Ramesh)

Apr.03	Cash A/c		Dr.		9,200
	Discount Allowed A/c		Dr.		500
		To Rahul				9,700
	(Cash received from Rahul and discount allowed)

Apr. 05	Cash A/c		Dr.		4,000
		To Himanshu				4,000
	(Cash received from Himanshu)

Apr.06	Ramesh		Dr.		6,000
		To Bank A/c				6,000
	(Cheque issued to Ramesh)

Apr. 08	Rent A/c		Dr.		1,200
		To Bank A/c				1,200
	(Rent paid by cheque)

Apr.10	Cash A/c		Dr.		3,000
		To Manish				3,000
	(Cash received from Manish)

Apr.12	Cash A/c		Dr.		6,000
		To Sales A/c				6,000
	(Goods sold for cash)

Apr.14	Ramesh		Dr.		1,000
		To Purchases Return A/c				1,000
	(Goods returned to Ramesh)

Apr.15	Ramesh		Dr.		4,000
		To Cash A/c				3,700
		To Discount Received A/c				300
	(Cash paid to Ramesh and discount received)

Apr.18	Kushal		Dr.		10,000
		To Sales A/c				10,000
	(Goods sold to Kushal)

Apr.20	Trade Expenses A/c		Dr.		200
		To Cash A/c				200
	(Trade expenses paid)

Apr.21	Drawings A/c		Dr.		1,000
		To Cash A/c				1,000
	(Cash withdrawn for personal use)

Apr.22	Sales Return A/c		Dr.		1,200
		To Kushal				1,200
	(Kushal returned goods)

Apr.24	Cash A/c		Dr.		6,000
		To Kushal				6,000
	(Cash received from Kushal)

Apr.26	Stationery A/c		Dr.		100
		To Cash A/c				100
	(Stationery paid)

Apr.27	Postages A/c		Dr.		60
		To Cash A/c				60
	(Postage charges paid)

Apr.28	Salaries A/c		Dr.		2,500
		To Cash A/c				2,500
	(Salary paid)

Apr.29	Purchases A/c		Dr.		7,000
		To Sheetal Traders				7,000
	(Goods purchased from Sheetal Traders)

Apr.30	Kirit		Dr.		6,000
		To Sales A/c				6,000
	(Goods sold to Kirit)

Apr.30	Purchases A/c		Dr.		5,000
		To Handa Traders				5,000
	(Goods purchased from Handa Traders)
	Total				1,35,060	1,35,060

Ledger
Cash Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.01	Balance b/d		6,000	Apr.15	Ramesh		3,700
Apr.03	Rahul		9,200	Apr.20	Trade Expenses		200
Apr.05	Himanshu		4,000	Apr.21	Drawings		1,000
Apr.10	Manish		3,000	Apr.26	Stationary		100
Apr.12	Sales		6,000	Apr.27	Postage		60
Apr.24	Kushal		6,000	Apr.28	Salaries		2,500
				Apr.30	Balance c/d		26,640
			34,200				34,200

Bank Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.01	Balance b/d		12,000	Apr.06	Ramesh		6,000
				Apr.08	Rent		1,200
				Apr.30	Balance c/d		4,800
			12,000				12,000

Bills Receivable Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.01	Balance b/d		7,000
				Apr.30	Balance c/d		7,000
			7,000				7,000

Stock Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.01	Balance b/d		5,400
				Apr.30	Balance c/d		5,400
			5,400				5,400

Rahulâ€™sAccount
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.01	Balance b/d		9,700	Apr.03	Cash		9,200
				Apr.03	Discount Allowed		500
			9,700				9,700

Himanshu’sAccount
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.01	Balance b/d		10,000	Apr.05	Cash		4,000
				Apr.30	Balance c/d		6,000
			10,000				10,000

Ramesh’sAccount

Dr.

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2011

Apr.06

Bank

6,000

Apr.01

Balance b/d

3,000

Apr.14

Purchases Return

1,000

Apr.02

Purchases

8,000

Apr.15

Cash

3,700

Apr.15

Discount Received

300

11,000

Bills Payable Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
				Apr.01	Balance b/d		2,000
Apr.30	Balance c/d		2,000
			2,000				2,000

Manishâ€™s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.01	Sales		3,000	Apr.10	Cash		3,000

			3,000				3,000

Sales Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
				Apr.01	Manish		3,000
				Apr.12	Cash		6,000
				Apr.18	Kushal		10,000
Apr.30	Balance c/d		25,000	Apr.30	Kirit		6,000
			25,000				25,000

Purchases Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.02	Ramesh		8,000
Apr.29	Sheetal Traders		7,000
Apr.30	Handa Traders		5,000	Apr.30	Balance c/d		20,000
			20,000				20,000

Rent Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.08	Bank		1,200
				Apr.30	Balance c/d		1,200
			1,200				1,200

Discount Received Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
				Apr.15	Ramesh		300
Apr.30	Balance c/d		300
			300				300

Kushal’sAccount
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.18	Sales		10,000	Apr.22	Sales Return		1,200
				Apr.24	Cash		6,000
				Apr.30	Balance c/d		2,800
			10,000				10,000

Trade Expenses Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.20	Cash		200
				Apr.30	Balance c/d		200
			200				200

Drawing’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.21	Cash
			1,000	Apr.30	Balance c/d		1,000
			1,000				1,000

Sales Return Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.22	Kushal		1,200
				Apr.30	Balance c/d		1,200
			1,200				1,200

Stationery Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.26	Cash		100
				Apr.30	Balance c/d		100
			100				100

Postages Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.27	Cash		60
				Apr.30	Balance c/d		60
			60				60

Salaries Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.28	Cash		2,500
				Apr.30	Balance c/d		2,500
			2,500				2,500

SheetalTrader’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
				Apr.29	Purchases		7,000
Apr.30	Balance c/d		7,000
			7,000				7,000

HandaTrader’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
				Apr.30	Purchases		5,000
Apr.30	Balance c/d		5,000
			5,000				5,000

Purchases Return Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
				Apr.14	Ramesh		1,000
Apr.30	Balance c/d		1,000
			1,000				1,000

Kirit’sAccount
Dr							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Apr.30	Sales		6,000
				Apr.30	Balance c/d		6,000
			6,000				6,000