Recording of Transactions 2 NCERT Solutions 

NCERT Solutions for Class 11 Recording of Transactions 2 are provided here by the top subject experts at SimplyAcad to help students. The solutions are compiled structurally to ensure clarity and better understanding. Students can use these solutions as a guide for their upcoming exams.

Recording of Transactions 2 is the continuation of chapter 3 exploring deeper details of the concepts discussed. Students can easily access the solutions of Recording of Transactions 2 by scrolling down. 

 

Short Answers for NCERT Accountancy Solutions Recording of Transactions 2 Class 11 Chapter 4

1. Briefly state how the cash book is both journal and a ledger.

A cash book functions as a journal because it is the original book of entries where all transactions are first recorded, just like a journal, and it functions as a ledger, as it records the credit and debit cash transactions of a company without the need for a separate cash account.

2. What is the purpose of contra entry?

Contra entry are those entries that impact both the debit and credit sides in accounting based on the situation. For example, if a debit entry is recorded in an account, a similar credit entry must be recorded. Its purpose is to indicate transactions that affect both cash and bank balances. These transactions have no impact on the financial position of the business and are denoted by the letter C in the L.F. column.

3. What are special purpose books?

Subsidiary books recording business transactions are known as special purpose books. Business transactions can be large in number, making it difficult to record them all in a single journal. Hence, sub-dividing journals make the recording of transactions quick, accurate and efficient. Some examples are cash books, purchases books, and sales books.

4. What is a petty cash book? How it is prepared?

Recording repetitive expenses in a cash book will burden the cashier. Hence, a separate book is created where petty expenses are recorded. Examples of such types of expenses are Stationery, Refreshments, Postage, and Conveyance. The petty cash book is maintained by the Petty cashier.

Preparation is mostly done by Imprest System as it is more convenient. In this system, the petty cashier is given a pre-defined sum of money for a period. At the end of the period, the amount spent by them is reimbursed by the cashier so that the cashier has the same amount again at the start of the period.

5. Explain the meaning of posting of journal entries?

It refers to the process of transferring journal entries to their respective ledgers. Each transaction gets recorded in a journal and is subsequently transferred to respective ledgers

6. Define the purpose of maintaining a subsidiary journal.

Many business transactions are repetitive in nature. Due to this reason, transactions which are similar in nature are recorded in special journals, also known as daybooks or subsidiary journals.

Maintaining a subsidiary journal helps has the following benefits:

1. Recording is faster and time-saving
2. Records are easily accessible
3. Proper division of labour
4. Write the difference between return inwards and return outwards.

Basis of Comparison	Return Inwards	Return Outwards
Meaning	Goods returned to business by their customers	Goods purchased by businesses are returned to the suppliers.
Balance	It has a debit balance.	It has a credit balance.
Treatment	Deducted from Sales in the Trading Account.	Deducted from Purchases in the Trading Account.
Issued	A credit note is prepared by the seller.	A debit note is prepared by the buyer.
Reduction	Reduces the payment from the Debtors.	Reduces the payment made to the Creditors.
Term	It is also known as Sales Returns.	It is also known as Purchases Returns.

8. What do you understand by ledger folio?

It refers to a column in the journal where the page number of the ledger book on which the relevant account appears is recorded; it is also abbreviated as L.F.

9. What is the difference between a trade discount and a cash discount?

Basis of Comparison	Trade Discount	Cash Discount
Meaning	Discount offered on purchase of goods.	Discount for making payment.
Recording in books	Not recorded in accounting books	Recorded in cash book either on debit or credit side depending on discount provided or received.
Purpose	Encourage an increase in sales.	Encourage on-time payment.

10. Write the process of preparing a ledger from a journal.

The following process describes the preparation of the ledger from a journal:

Locate the account to be debited in the ledger as entered in the journal

Enter the date of the transaction into the date column of the debit side.

Mention the account from which it is debited in the journal written in the particulars column.

Enter the page number of the journal in the J.F. column. The corresponding page number of the ledger account is written in the L.F. column of the journal.

Enter the amount in the amount column on the debit side.

For the credit side, follow the same procedure for crediting the entry.

11. What do you understand by the Imprest amount in the petty cash book?

An Imprest amount is a definite sum of money that is provided to a petty cashier for a certain period which can be a week or month. Reimbursement is done after the end of the period in order to start a new cycle.

 These were the few short answer type questions from Chapter 4 Recording of Transactions 2

Long Answers for NCERT Accountancy Solutions Recording of Transactions 2 Class 11 Chapter 4

1. Explain the need for drawing up the special-purpose books.

Special-purpose books are beneficial in

• Accuracy: As each journal is managed by a different accountant having specific expertise, it improves accuracy and reduces defects.
• Efficiency: Increases efficiency by dividing the workload.
• Concise Descriptions: The journal describes the purpose of recording. For example, a record in the purchase journal will be understood by default that it is a purchase-related transaction.
• Minimal Posting: Reduces the volume of posting as totals can be done periodically.
• Fraud Prevention: As recordings of different journals are assigned to a different individual, fraud prevention is prevented.
• Faster process: As multiple books are handled by multiple accountants, the recording work moves faster.

2. What is a cash book? Explain the types of cash books.

A cash book is also known as a book of original entries in which all transactions related to cash receipts and cash payments are recorded. All cash deposits and withdrawals are recorded in sequential order. Cash receipts are recorded in the cash column, bank deposits are recorded in the bank column, and all cash deposits are added in the cash column; cheque payment gets recorded on the credit side under the bank column. It serves as a principal book.

Types of cash book are:

1. Single Column Cash Book: In this type of cash book, all recordings related to cash takes place; it is useful for organisations that maintain only cash transactions. It contains records of cash receipts and cash payments.
2. Double Column Cash Book: The two-column cash book is also referred to as the double-column cash book. It contains two money columns on both sides (i.e. debit and credit); one side is for recording cash transactions, while the other is for recording bank transactions.

Cash transactions are recorded in the cash column and thus function as a cash account, whereas the bank column records all bank-related transactions, such as payments made by cheques and functions as a bank account. Some organisations prefer the double-column cash book, as it contains both cash and bank columns, and thus, it is easy to maintain instead of maintaining two separate ledgers.

Cash Book
Dr.									Cr.
Date	Particulars	L.F.	Cash ₹	Bank ₹	Date	Particulars	L.F.	Cash ₹	Bank ₹
	Cash	(C)		–		Bank	(C)	–

3. Triple Column Cash Book: Triple column cashbook is a type of cash book that has provisions for three columns which are cash, bank and discount. It is used by large firms that frequently deal with cash and bank transactions as well as which allow cash discounts. The procedure of recording data is similar to a double-column cash book. The cash and bank columns are periodically totalled and balanced, while the discount column is only totalled. Discount allowed is recorded on the debit while discount received from suppliers is recorded on the credit side.
4. Petty Cash Book: A cash book that records all those expenses that are small and hold little value is called a petty cash book. The transactions related to stamps, stationery, postage, daily wages, etc., are recorded in the petty cash book.
5. What is contra entry? How can you deal this entry while preparing a double-column cash book?

An entry that is recorded to reverse an entry on the opposite side of an account is called contra entry. For example, when a debit entry gets recorded in an account, a contra entry will be posted on the credit side. Similarly, a contra entry will be posted on the debit side if an entry gets recorded on the credit side.

Some transactions that can lead to contra entry are provided below.

1. Opening of a bank account
2. Depositing cash into the bank
3. Withdrawal from bank

These transactions are recorded in a double-column Cash Book as shown below.

Cash Book
Dr.									Cr.
Date	Particulars	L.F.	Cash ₹	Bank ₹	Date	Particulars	L.F.	Cash ₹	Bank ₹
	Cash	(C)				Bank	(C)

4. What is a petty cash book? Write the advantages of a petty cash book.

Recording repetitive expenses in a cash book will burden the cashier. Hence, a separate book is created where petty expenses are recorded. Examples of such types of expenses are Stationery, Refreshments, Postage, and Conveyance. The petty cash book is maintained by Petty cashier.

Preparation is mostly done by Imprest System, as it is more convenient. In this system, the petty cashier is given a pre-defined sum of money for a period. At the end of the period, the amount spent by them is reimbursed by the cashier so that the cashier has the same amount again at the start of the period.

The Performa of Petty Cash Book is given below.

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

Advantages of Petty Cash Book:

1. Division of labour: By delegating the work to a petty cashier, the cashier is able to look into other aspects of a firm.
2. Avoid bulky cash books: Recording repetitive transactions in a cash book make it bulky; petty cash makes it easy and avoids making a cash book bulky.
3. Less error-prone: Head cashier will be making periodic audits of the petty cash book so that it will be error-free.
4. Ease of posting: Only the petty expenses are recorded periodically, which makes posting easier.
5. Describe the advantages of sub-dividing the Journal.

Sub-dividing of Journal has the following advantages:

Accountability: As each account is handled by individual accountants, it makes them more accountable and ensures that accounts are properly maintained.

Accuracy: Each accountant will be specialised in the work assigned to them and hence fewer chances of errors.

Division of Labour: As accounts are maintained by separate accountants, it ensures faster recording and parallel recording of transactions.

Economical: As the division of labour brings in specialisation, the process becomes efficient and, thereby, becomes economical.

Ease of Audit and Analysis: The analysis of transactions which are similar in nature becomes easier.

Productivity: As the accountants gain expertise in handling the specific account, it increases their productivity.

6. What do you understand by balancing of account?

The accounts in the ledger are balanced at periodic intervals of daily, weekly, fortnightly, monthly, quarterly or any other pre-defined periodic intervals. The goal of balancing is to determine the net position of each amount. The following steps are involved in the balance of the accounts:

The debit and credit sides are totalled.

The total on the side which is higher is written on the corresponding side.

The difference between both sides is recorded on the shorter side. This makes the total on both sides equal.

In case the debit side exceeds the credit side, the difference is written on the credit side. This is called Debit Balance.

If the credit side exceeds the debit side, the difference is written on the debit side. This is called Credit Balance.

The words balance c/d are written against the amount of the difference between the two sides. Balance c/d stands for balance carried down.

The amount of balance is brought down (b/d) in the next accounting period. It is denoted with Balance b/d. This indicates that it is a continuing account till finally settled or closed. Here, Balance b/d stands for Balance Brought Down.

The accounts of expenses, losses, and gains/revenues are not balanced. Instead, these are transferred to trading and profit and loss account.

These were some important long answer type questions from Chapter 4 Recording of Transactions 2.

Numerical Questions for NCERT Accountancy Solutions Class 11 Chapter 4

1. Enter the following transactions in a simple cash book for December 2016.

 

		₹
01	Cash in hand	12,000
05	Cash received from Bhanu	4,000
07	Rent Paid	2,000
10	Purchased goods Murari for cash	6,000
15	Sold goods for cash	9,000
18	Purchase stationery	300
22	Cash paid to Rahul on account	2,000
28	Paid salary	1,000
30	Paid rent	500

The solution to this question can be represented in a cash book format as follows:

Cash book
Dr.				Cr.
Date	Receipts	L.F.	Amount ₹	Date	Payments	L.F.	Amount ₹
2016				2016
01 Dec	Balance b/d		12,000	07 Dec	Rent		2,000
05 Dec	Bhanu		4,000	10 Dec	Purchases		6,000
15 Dec	Sales		9,000	18 Dec	Stationery		300
				22 Dec	Rahul		2,000
				28 Dec	Salaries		1,000
				30 Dec	Rent		500
				31 Dec	Balance c/d		13,200
			25,000				25,000

2. Enter the following transaction in Simple cash book for December 2018.

2018

		₹
01	Cash in hand	7,750
06	Paid to Sonu	45
08	Purchased goods	600
15	Received cash from Parkash	960
20	Cash sales	500
25	Paid to D. Kumar	1,200
30	Paid rent	600

The solution to this question is as follows:

Cash book
Dr.				Cr.
Date	Receipts	L.F.	Amount ₹	Date	Payments	L.F.	Amount ₹
2018				2018
01 Dec	Balance b/d		7,750	06 Dec	Sonu		45
15 Dec	Parkash		960	08 Dec	Purchases		600
20 Dec	Sales		500	25 Dec	S.Kumar		1,200
				30 Dec	Rent		600
				31 Dec	Balance c/d		7,760
			9,210				9,210

3. Record the following transaction in a simple cash book for November 2017.

 

		₹
01	Cash in hand	12,500
04	Cash paid to Hari	600
07	Purchased goods	800
12	Cash received from Amit	1,960
16	Sold goods for cash	800
20	Paid to Manish	590
25	Paid cartage	100
30	Paid salary	1,000

The solution to this question is as follows:

Cash book
Dr.				Cr.
Date	Receipts	L.F.	Amount ₹	Date	Payments	L.F.	Amount ₹
2017				2017
01 Nov	Balance b/d		12,500	04 Nov	Hari		600
12 Nov	Amit		1,960	07 Nov		Purchases	800
16 Nov	Sales		800	20 Nov	Manish		590
				25 Nov	Cartage		100
				30 Nov	Salaries		1,000
				30 Nov	Balance c/d		12,170
			15,260				15,260

4. Prepare a double-column cash book with the help of following information for December 2016.

 

		₹
01	Started business with cash	1,20,000
03	Cash paid into the bank	50,000
05	Purchased goods from Sushmita	20,000
06	Sold goods to Dinesh and received a cheque	20,000
10	Paid to Smita cash	20,000
14	Cheque received on December 06, 2016, deposited into the bank
18	Sold goods to Rani	12,000
20	Cartage paid in cash	500
22	Received cash from Rani	12,000
27	Commission received	5,000
30	Drew cash for personal use	2,000

The solution to the question is given below.

Cash book
Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2016					2016
01 Dec	Capital		1,20,000		03 Dec	Bank	C	50,000
03 Dec	Cash	C		50,000	10 Dec	Sushmita		20,000
06 Dec	Dinesh		20,000		14 Dec	Bank	C	20,000
14 Dec	Cash	C		20,000	20 Dec	Cartage		500
22 Dec	Rani		12,000		30 Dec	Drawings	C	2,000
27 Dec	Commission		5,000		31 Dec	Balance c/d		64,500	70,000
			1,57,000	70,000				1,57,000	70,000

5. Record the following transactions in a bank column cash book for December 2016.

		₹
01	Started business with cash	80,000
04	Deposited in bank	50,000
10	Received cash from Rahul	1,000
15	Bought goods for cash	8,000
22	Bought goods by cheque	10,000
25	Paid to Shyam by cash	20,000
30	Drew from Bank for office use	2,000
31	Rent paid by cheque	1,000

The transactions can be represented in the form of a bank column cash book as follows:

Cash book
Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2016					2016
01 Dec	Capital		80,000		04 Dec	Bank	C		50,000
04 Dec	Cash	C		50,000	15 Dec	Purchases		8,000
10 Dec	Rahul		1,000		22 Dec	Purchases			10,000
30 Dec	Bank	C	2,000		25 Dec	Ram		20,000
					30 Dec	Cash	C		2,000
					31 Dec	Rent			1,000
					31 Dec	Balance c/d		5,000	37,000
			83,000	50,000				83,000	50,000

6. Prepare double-column cash book from the following information for September 2017.

 

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

The solution to this question is as follows:

Cash Book
Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2017					2017
01 Sep	Balance b/d		7,500		01 Sep	Balance b/d (Overdraft)			3,500
05 Sep	Sales		7,000		03 Sep	Wages		200
10 Sep	Cash	C		4,000	10 Sep	Bank	C	4,000
					15 Sep	Purchases			2,000
					20 Sep	Rent		500
					25 Sep	Drawings			400
					30 Sep	Salaries		1,000
30 Sep	Balance c/d (Overdraft)			1,900	30 Sep	Balance c/d		8,800
			14,500	5,900				14,500	5,900

7. Enter the following transactions in double column cash book of M/s Ambica Traders for November 2017.

		₹
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 the bank
22	Paid cartage by cheque	500
25	Cash withdrawn for personal use	2,000
30	Paid rent by cheque	1,000

The solution to this question is as follows:

M/s. Ambica Traders Cash Book
Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2017					2017
01 Nov	Capital		50,000		03 Nov	Bank	C	30,000
03 Nov	Cash	C		30,000	05 Nov	Purchases		10,000
15 Nov	Rohan		7,000		10 Nov	Office Machine		5,000
18 Nov	Sales		8,000		20 Nov	Bank	C	7,000
20 Nov	Cash	C		7,000	22 Nov	Cartage			500
					25 Nov	Drawings		2,000
					30 Nov	Rent			1,000
					30 Nov	Balance c/d		11,000	35,500
			65,000	37,000				65,000	37,000

8. Enter the following transaction in a double-column cash book of M/s Mohit Traders for January 2017.

		₹
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 the 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

The solution to this question in the form of a double-column cash book is as follows:

M/s. Mohit Traders Cash Book
Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2017					2017
01 Jan	Balance b/d		3,500		01 Jan	Balance b/d (overdraft)			2,300
10 Jan	Sales		8,000		03 Jan	Purchases		1,200
15 Jan	Cash	C		6,000	05 Jan	Wages		200
22 Jan	Sales			2,000	15 Jan	Bank	C	6,000
					25 Jan	Rent			1,200
					28 Jan	Drawings			1,000
					31 Jan	Purchases			1,000
					31 Jan	Balance c/d		4,100	2,500
			11,500	8,000				11,500	8,000

9. Prepare double-column cash book from the following transactions for the year December 2017.

 

		₹
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 the bank
12	Purchased goods and paid by cheque	20,000
15	Paid establishment expenses through the bank	1,000
18	Cash sales	7,000
20	Deposited into bank	10,000
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

The solution is represented in the following table as follows:

Dr.					Cr.
Date	Receipts	L.F.	Cash ₹	Bank ₹	Date	Payments	L.F.	Cash ₹	Bank ₹
2017					2017
01 Dec	Balance b/d		17,500	5,000	03 Dec	Purchases		3,000
05 Dec	Jasmeet		10,000		10 Dec	Bank	C	10,000
08 Dec	Sales		7,000		12 Dec	Purchases			20,000
10 Dec	Cash	C		10,000	15 Dec	Establishment Expenses			1,000
18 Dec	Sales		7,000		20 Dec	Bank	C	10,000
20 Dec	Cash	C		10,000	24 Dec	Trade Expenses		500
27 Dec	Commission			6,000	29 Dec	Rent		2,000
					30 Dec	Drawings		1,200
					31 Dec	Salaries		6,000
					31 Dec	Balance c/d		8,800	10,000
			41,500	31,000				41,500	31,000

For the month of December 2017, the cash in hand is ₹.8, 800 and the cash in bank is 10,000.

10. M/s Ruchi trader started their cash book with the following balances on July 2017: cash in hand ₹ 1,354 and balance in bank current account ₹ 7,560. He had the following transaction in the month of July, 2017:

		₹
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 the 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
31	Cash withdrawn for personal use	2,000

 

Prepare bank column cash book

The transactions can be represented in a bank column cash book as shown below.

Books of M/s. Ruchi Trader
Cash Book
Dr.									Cr.
Date	Particulars	L.F.	Cash  ₹	Bank ₹	Date	Particulars	L.F.	Cash  ₹	Bank ₹
2017					2017
Jul.01	Balance b/d		1,354	7,560	Jul.05	Purchases			6,000
Jul.03	Sales		2,300		Jul.12	Trade Expenses		700
Jul.08	Sales		10,000		Jul.18	Motor Car			15,000
Jul.15	Sales			20,000	Jul.25	Manisha (Dishonour)			10,000
Jul.20	Manisha			10,000	Jul.28	Rent		2,000
Jul.22	Sales		7,000		Jul.29	Telephone Expenses			500
					Jul.31	Drawings		2,000
					Jul.31	Balance c/d		15,954	6,060
			20,654	37,560				20,654	37,560

For the month of July, the Cash in Hand is ₹. 15,954, and the Cash in Bank is ₹ 6,060.

11. Record the following transactions during the week ending June. 30, 2017 with a weekly imprest ₹ 500.

 

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

The petty cash book can be created with the following transactions as shown below.

Petty Cash Book
Amount Received	Date	Particulars	Voucher No.	Amount Paid	Analysis of Payments					Remarks
₹	2017 Jun			₹	Postage	Telephone & Telegram	Conveyance	Stationery	Misc.
	2017
500	24 Jun	Cash Received
	24 Jun	Stationery		100				100
	25 Jun	Bus Fare		12			12
	25 Jun	Cartage		40			40
	26 Jun	Taxi Fare		80			80
	27 Jun	Wages		90					90
	27 Jun	Postage		80	80
				402	80		132	100	90
	27 Jun	Balance c/d		98
500				500
98	28 Jun	Balance b/d
402	28 Jun	Cash received

12. Prepare petty cash book from the following transactions. The imprest amount is ₹ 2,000.

July 2017		₹
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 the 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

The petty cash book can be created from the following transactions as shown below.

Petty Cash Book
Amount Received	Date	Particulars	Voucher No.	Amount Paid	Analysis of Payments					Remarks
₹	2017 July			₹	Postage	Telephone & Telegram	Conveyance	Stationery	Misc.
	2017
2000	01 Jul	Cash received
	01 Jul	Cartage		50			50
	02 Jul	STD Charges		40		40
	02 Jul	Bus fare		20			20
	03 Jul	Postage		30	30
	04 Jul	Refreshments		80					80
	06 Jul	Courier Charges		30	30
	08 Jul	Refreshments		50					50
	10 Jul	Cartage		35			35
	15 Jul	Taxi fare		70			70
	18 Jul	Stationery		65				65
	20 Jul	Bus fare		10			10
	22 Jul	Fax		30		30
	25 Jul	Telegram Charges		35		35
	27 Jul	Postage		200	200
	29 Jul	Furniture Repair		105					105
	30 Jul	Laundry		115					115
	31 Jul	Misc		100					100
				1065	260	105	185	65	450
	31 Jul	Balance c/d		935
2,000				2,000
935	01 Aug	Balance b/d
1,065	01 Aug	Cash received

The cash Balance at the end of the week is ₹.935

13. Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2017.

01	Bought from Rahul Traders as per invoice no. 20041
	40 Registers @ ₹ 60 each
	80 Gel Pens @ ₹ 15 each
	50 note books @ ₹ 20 each
	Trade discount 10%.
15	Bought from Global Stationers as per invoice no. 1132
	40 Ink Pads @ ₹ 8 each
	50 Files @ ₹ 10 each
	20 Color Books @ ₹ 20 each
	Trade Discount 5%
23	Purchased 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 @ ₹ 100 per rim
	400 drawing Sheets @ ₹ 3 each
	20 Packet water colour @ ₹ 40 per packet

From the above question, we see that Gupta Traders deals with stationery. On 23rd July, the purchase of furniture is toward the use of the company and hence, will not be considered as an entry in purchase book.

The purchase book for the above-mentioned transactions is created below.

Books of M/s Gupta Traders Purchases Book
Date	Invoice No.	Name of the Supplier (Account to be credited)	L.F.	Details ₹	Amount ₹
2017
01 Jul	20041	Rahul Traders
		40 Registers @ ₹ 60 each		2,400
		80 Gel Pens @ ₹ 15 each		1,200
		50 Note Books @ ₹ 20 each		1,000
				4,600
		Less: Trade Discount 10%		(460)	4,140
15 Jul	1132	Global Stationers
		40 Ink Pads @ ₹ 8 each		320
		50 Files @ ₹ 10 each		500
		20 Colour Books @ ₹ 20 each		400
				1,220
		Less: Trade discount 5%		(61)	1,159
25 Jul	1111	Mumbai Traders
		10 Paper rims @ ₹ 100 each		1,000
		400 Drawing Sheets @ ₹ 3 each		1,200
		20 Packets Water Colour @ ₹ 40 per pack		800	3,000
		Purchases Account			8,299

The purchase book does not contain a details column, but it is included here to help the students understand the concept.

14. Enter the following transactions in the sales (journal) book of M/s. Bansal electronics.

2014

September

01	Sold 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.
10	Sold to Arun Electronics as per bill no.4351
	5 T.V. sets (20.) B&W @ ₹ 3,000 per T.V.
	2 T.V. sets (21.) Colour @ ₹ 4,800 per T.V.
22	Sold to Handa Electronics as per bill no.4,399
	10 Tape recorders @ ₹ 600 each
	5 Walkman @ ₹ 300 each
28	Sold to Harish Trader as per bill no.4430
	10 Mixer Juicer Grinder @ ₹ 800 each.

The sales journal book of M/s. Bansal Electronics is created as shown below

Books of M/s Bansal Electronics Sales Book
Date	Bill No.	Name of the Customer (Account to be debited)	L.F.	Details ₹	Amount ₹
2014
Sep 01	4321	Amit Traders
		20 Pocket Radio @ ₹ 70 Per Radio		1,400
		2 T.V Set, B&W (6″) @ ₹ 800 Per T.V.		1,600	3,000
Sep 10	4351	Arun Electronics
		5 T.V. sets (20″) B&W @ ₹ 3,000 per T.V.		15,000
		2 T.V. sets (21″) Colour @ ₹ 4,800 per T.V		9,600	24,600
Sep 22	4399	Handa Electronics
		10 Tape Recorders @ ₹ 600 each		6,000
		5 Walkman @ ₹ 300 each		1,500	7,500
Sep 28	4430	Harish Traders
		10 Mixer Juicer Grider @ ₹ 800 each		8,000	8,000
		Sales Account			43,100

15. Prepare Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for August 2017.

		₹
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

Return Inward Book for M/s Bansal Electronics is as shown below.

Sales Return Book
Date	Credit Note  No.	Name of Customer (Account to be credited)	L.F.	Amount ₹
2017
Aug.04		M/s Gupta Traders		1,500
Aug.10		M/s Harish Traders		800
Aug 18		M/s Rahul Traders		1,200
Aug.28		Sushil Traders		1,000
		Sales Return Account		4,500

16. Prepare a purchase return (journal) book from the following transactions for May 2017.

		₹
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 ₹ 2,000 less 10% trade discount.
28	Return outwards to M/s Handa Traders	550

The purchase return journal for the transactions is shown below.

Purchases Return Book
Date	Debit Note No.	Name of Supplier   (Account to be debited)					L.F.	Amount ₹
2017
May. 05		M/s Kartik Traders						1,200
May. 10		Sahil Pvt. Ltd.						2,500
May. 17		M/s Kohinoor Trader
		List Price	2,000
		Less: 10% Trade discount	(200)					1,800
May. 28		M/s Handa Traders						550
		Purchases Return Account						6,050

17. Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of January 2017.

		₹
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 the list price of	5,700
	less 10% trade discount
25	Sold to Shri Chand goods	6,600
	less 5% trade discount
26	Sold to Ramesh Brothers	4,000
28	Return outwards to Kirit and Co.	1,000
	less 10% trade discount
28	Ramesh Brothers returned goods ₹ 500.

Subsidiary book and ledger entries for the transactions are shown below.

Journal
Purchases Book
Date	Invoice No.	Name of Supplier  (Accounts to be credited)		L.F.	Amount  ₹
2017
Jan.04		Kushal Traders			2,480
Jan.14		Kunal Traders			5,200
Jan.17		Naresh			4,060
Jan.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  ₹
2017
Jan. 01		Sachin			5,000
Jan.06		Manish Traders			2,100
Jan.10		Mukesh			3,300
Jan.25		Shri Chand	6,600
		Less: 5% Trade Discount	(330)		6,270
Jan.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  ₹
2017
Jan.07		Sachin		600
Jan.22		Mukesh		250
Jan.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 ₹
2017
Jan.08		Kushal Traders			280
Jan.20		Kunal Traders			200
Jan.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 ₹	Credit Amount ₹
2017
Jan.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  ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Jan.28	Sundries as per Purchases Book		16,870
				Jan.28	Balance c/d		16,870
			16,870				16,870

 

Sales Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
				Jan.28	Sundries as per Sales Book		20,670
Jan.28	Balance c/d		20,670
			20,670				20,670

 

Sales Return Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Jan.28	Sundries as per Sales Return Book		1,350
				Jan.28	Balance c/d		1,350
			1,350				1,350

 

Purchases Return Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
				Jan.28	Sundries as per Purchases Return Book		1,380
Jan.28	Balance c/d		1,380
			1,380				1,380

 

Sachin’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Jan.01	Sales		5,000	Jan.07	Sales Return		600
				Jan.28	Balance c/d		4,400
			5,000				5,000

 

Kushal Traders’ Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
Jan.08	Purchases Return		280	Jan.04	Purchases		2,480
Jan.28	Balance c/d		2,200
			2,480				2,480

 

Manish Traders’ Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
Jan.06	Sales		2,100
				Jan.28	Balance c/d		2,100
			2,100				2,100

 

Mukesh’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Jan.10	Sales		3,300	Jan.22	Sales Return		250
				Jan.28	Balance c/d		3,050
			3,300				3,300

 

Kunal Traders’ Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Jan.20	Purchase Return		200	Jan.14	Purchases		5,200
Jan.28	Balance c/d		5,000
			5,200				5,200

 

Furniture Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Jan.15	Tarun		3,200
				Jan.28	Balance c/d		3,200
			3,200				3,200

 

Tarun’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
				Jan.15	Furniture		3,200
Jan.28	Balance c/d		3,200
			3,200				3,200

 

Naresh’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
				Jan.17	Purchases		4,060
Jan.28	Balance c/d		4,060
			4,060				4,060

 

Kirit & Co. Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
Jan.28	Purchases Return		900	Jan.24	Purchases		5,130
Jan.28	Balance c/d		4,230
			5,130				5,130

 

Shri Chand & Co. Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Jan.25	Sales		6,270
				Jan.28	Balance c/d		6,270
			6,270				6,270

 

Ramesh’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Jan.26	Sales		4,000	Jan.28	Sales Return		500
				Jan.28	Balance c/d		3,500
			4,000				4,000

 

18. The following balances of the ledger of M/s Marble Traders on May 01, 2017:

	₹
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:

May		₹
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 Ramesh 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
	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	6,000
26	Paid for stationery	100
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

 

Journalise the above transactions and post them to the ledger.

The above transactions are journalised and posted to the ledger as shown below.

Books of M/s. Marble Traders
Journal
Date	Particulars				L.F.	Debit Amount ₹	Credit Amount ₹
2017	Cash A/c			Dr.		6,000
May.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)
May.01	Manish			Dr.		3,000
		To Sales A/c					3,000
	(Goods sold to Manish)
May.02	Purchases A/c			Dr.		8,000
		To Ramesh					8,000
	(Goods purchased from Ramesh)
May.03	Cash A/c			Dr.		9,200
	Discount Allowed A/c			Dr.		500
		To Rahul					9,700
	(Cash received from Rahul and discount allowed)
May. 05	Cash A/c			Dr.		4,000
		To Himanshu					4,000
	(Cash received from Himanshu)
May.06	Ramesh			Dr.		6,000
		To Bank A/c					6,000
	(Cheque issued to Ramesh)
May. 08	Rent A/c			Dr.		1,200
		To Bank A/c					1,200
	(Rent paid by cheque)
May.10	Cash A/c			Dr.		3,000
		To Manish					3,000
	(Cash received from Manish)
May.12	Cash A/c			Dr.		6,000
		To Sales A/c					6,000
	(Goods sold for cash)
May.14	Ramesh			Dr.		1,000
		To Purchases Return A/c					1,000
	(Goods returned to Ramesh)
May.15	Ramesh			Dr.		4,000
		To Cash A/c					3,700
		To Discount Received A/c					300
	(Cash paid to Ramesh and discount received)
May.18	Kushal			Dr.		10,000
		To Sales A/c					10,000
	(Goods sold to Kushal)
May.20	Trade Expenses A/c			Dr.		200
		To Cash A/c					200
	(Trade expenses paid)
May.21	Drawings A/c			Dr.		1,000
		To Cash A/c					1,000
	(Cash withdrawn for personal use)
May.22	Sales Return A/c			Dr.		1,200
		To Kushal					1,200
	(Kushal returned goods)
May.24	Cash A/c			Dr.		6,000
		To Kushal					6,000
	(Cash received from Kushal)
May.26	Stationery A/c			Dr.		100
		To Cash A/c					100
	(Stationery paid)
May.27	Postages A/c			Dr.		60
		To Cash A/c					60
	(Postage charges paid)
May.28	Salaries A/c			Dr.		2,500
		To Cash A/c					2,500
	(Salary paid)
May.29	Purchases A/c			Dr.		7,000
		To Sheetal Traders					7,000
	(Goods purchased from Sheetal Traders)
May.30	Kirit			Dr.		6,000
		To Sales A/c					6,000
	(Goods sold to Kirit)
May.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  ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
May.01	Balance b/d		6,000	May.15	Ramesh		3,700
May.03	Rahul		9,200	May.20	Trade Expenses		200
May.05	Himanshu		4,000	May.21	Drawings		1,000
May.10	Manish		3,000	May.26	Stationary		100
May.12	Sales		6,000	May.27	Postage		60
May.24	Kushal		6,000	May.28	Salaries		2,500
				May.30	Balance c/d		26,640
			34,200				34,200

 

Bank Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.01	Balance b/d		12,000	May.06	Ramesh		6,000
				May.08	Rent		1,200
				May.30	Balance c/d		4,800
			12,000				12,000

  

Bills Receivable Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
May.01	Balance b/d		7,000
				May.30	Balance c/d		7,000
			7,000				7,000

 

Stock Account
Dr.							Cr.
Date	Particulars	J.F.	Amount   ₹	Date	Particulars	J.F.	Amount   ₹
2017				2017
May.01	Balance b/d		5,400
				May.30	Balance c/d		5,400
			5,400				5,400

 

Rahul’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
May.01	Balance b/d		9,700	May.03	Cash		9,200
				May.03	Discount Allowed		500
			9,700				9,700

  

Himanshu’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.01	Balance b/d		10,000	May.05	Cash		4,000
				May.30	Balance c/d		6,000
			10,000				10,000

 

Ramesh’s Account

Dr.

Cr.

Date

Particulars

J.F.

Amount  ₹

Date

Particulars

J.F.

Amount  ₹

2017

2017

May.06

Bank

6,000

May.01

Balance b/d

3,000

May.14

Purchases Return

1,000

May.02

Purchases

8,000

May.15

Cash

3,700

May.15

Discount Received

300

11,000

11,000

 

Bills Payable Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
				May.01	Balance b/d		2,000
May.30	Balance c/d		2,000
			2,000				2,000

  

Capital Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount   ₹
2017				2017
				May.01	Balance b/d		45,100
May.30	Balance c/d		45,100
			45,100				45,100

  

Manish’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount   ₹	Date	Particulars	J.F.	Amount   ₹
2017				2017
May.01	Sales		3,000	May.10	Cash		3,000
			3,000				3,000

  

Sales Account
Dr.							Cr.
Date	Particulars	J.F.	Amount   ₹	Date	Particulars	J.F.	Amount   ₹
2017				2017
				May.01	Manish		3,000
				May.12	Cash		6,000
				May.18	Kushal		10,000
May.30	Balance c/d		25,000	May.30	Kirit		6,000
			25,000				25,000

  

Purchases Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount   ₹
2017				2017
May.02	Ramesh		8,000
May.29	Sheetal Traders		7,000
May.30	Handa Traders		5,000	May.30	Balance c/d		20,000
			20,000				20,000

  

Discount Allowed Account
Dr.							Cr.
Date	Particulars	J.F.	Amount   ₹	Date	Particulars	J.F.	Amount   ₹
2017				2017
May.03	Rahul		500
				May.30	Balance c/d		500
			500				500

  

Rent Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.08	Bank		1,200
				May.30	Balance c/d		1,200
			1,200				1,200

  

Discount Received Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
				May.15	Ramesh		300
May.30	Balance c/d		300
			300				300

  

Kushal’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.18	Sales		10,000	May.22	Sales Return		1,200
				May.24	Cash		6,000
				May.30	Balance c/d		2,800
			10,000				10,000

  

Trade Expenses Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.20	Cash		200
				May.30	Balance c/d		200
			200				200

  

Drawing’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.21	Cash
			1,000	May.30	Balance c/d		1,000
			1,000				1,000

  

Sales Return Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.22	Kushal		1,200
				May.30	Balance c/d		1,200
			1,200				1,200

 

Stationery Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.26	Cash		100
				May.30	Balance c/d		100
			100				100

  

Postages Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.27	Cash		60
				May.30	Balance c/d		60
			60				60

 

Salaries Account
Dr.							Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.28	Cash		2,500
				May.30	Balance c/d		2,500
			2,500				2,500

  

Sheetal Trader’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
				May.29	Purchases		7,000
May.30	Balance c/d		7,000
			7,000				7,000

 

Handa Trader’s Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
				May.30	Purchases		5,000
May.30	Balance c/d		5,000
			5,000				5,000

  

Purchases Return Account
Dr.							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
				May.14	Ramesh		1,000
May.30	Balance c/d		1,000
			1,000				1,000

  

Kirit’s Account
Dr							Cr.
Date	Particulars	J.F.	Amount  ₹	Date	Particulars	J.F.	Amount  ₹
2017				2017
May.30	Sales		6,000
				May.30	Balance c/d		6,000
			6,000				6,000