13. When the goods or any other property anywhere but the payment of premiu is insured. The amount of Policy is not recorded 'm is recorded. Journal entries : At a glance S.No. Transactions Entry 1. | Commencement of business— cash A/e/Bank A/c/Stock A/c/Asset A/e Dr. To Capital A/e/Loan A/c 2. | Cash/credit purchase of goods/asset- _|Purchases A/clAsset A/c Dr. To cash A/e/Bank A/c/Person's A/c 3. | Cash/credit sale of goods/asset— Cash A/c/Bank A/c/Person's A/c Dr. To Sales A/c/Asset A/c 4. | Cash/credit purchases return of Cash A/c/Bank A/e/Person's A/c Dr. goods/asset— To P/R A/clAsset A/c 5. | Cash/credit sales return of goods/asset-|S/R A/clAsset A/c Dr. ‘To Cash A/c/Bank A/c/Person's A/c 6. | Payment of expenses— Expenses A/c Dr. To cash A/c/Bank A/c 7. | Receipts of income- Cash A/efBank A/c Dr. ‘To Income A/e 8. | Goods given ascharity/freesamples~ | Charity A/c/Advertisementexp.A/c Dr. To Purchases A/c 9. | Goods/Cash withdrawn by owner— Drawing A/e Dr. To cash A/c/Bank A/c/Purchases A/c 10. | (a) Goods/Cash stolen or destroyed by fire-| Loss by theft/Fire A/c Dr. To Purchases A/clcash A/c (b) Claim accepted by insurance company-{Insurance Co. Dr. To Loss by theft/fire A/c.12/ Yashraj (c) Claim received— Cash A/e/Bank A/e D, To Insurance Co. " 1.| Cash received and discount allowed— Cash A/c/Bank A/c Dr Discount A/c Dr. To Person's A/c . 2.| Cash paid and discount received— Person's A/c’ Dr To Cash A/c , To discount A/c 3.| Bad debts— Bad debts A/e Dr. To Debtor 4.| Recovery of bad debts— Cash A/c/Bank A/c Dr. _| To Bad debts recovered A/c 5.| Banking transactions- (i) Office cash deposited in to bank— Bank A/c Dr. To Cash A/c (ii) Cash withdrawn from bank for office-} Cash A/c Dr. To Bank A/c (iii) Payment/drawings by chque— Purchase A/ccreditor/Exp. Ale! Asset A/ce/Drawings A/c Dr. To Bank A/c (iv) Cheque received : (a) Ifthe received cheque sent Bank A/e Dr. to bank same day- "To Sales A/oDebtor/Income A/c /Asset A/c (b) Ifa received cheque is not sent to pank same day— pr. fi sh -eceipt- | Cash A/c € Bntry onthe day ofeneae SSP "To Sales Ae/Debtor/Income/ Asset Me Dr. Go On the day when cheque sent to bank} Bank Aler dé (w) Dishonour of cheque : (@ Dishonour of received cheque— Peron A se Dr ‘*Name of the Person from whom cheque ‘wan received) () Dishonour of jsnued cheque- Bank A/c Dr.*Name of the person to whom cheque was issued) Journal / 4.13 To Person's A/c* (vi). Intereston bank deposits— Bank A/e Dr. To Interest on deposit A/c (vii) Intereston overdraft— Interest on overdraft A/c Dr. To Bank Ale (viii) Bank charges/commission charged by | Bank charges A/c/Bankcommission Ale Dr. bank— To Bank Ale (ix) Rent, interest on investment, dividend | Bank A/c Dr. etc.collected by bank on customer'sbehalf— To Rent A/c/Interest on investments AlefDividend A/c (x) Paymentof expenses from customer's | Expenses A/e Dr. account on the basis of standing To Bank A/c 2017 Jan. instructions— Illustration 8. Shri Rakesh started a business under the name ‘Bharat’ Trading Co.' Jour- nalise the following transactions- . Credit sales to Ram at 10% trade discount and 5% cash discount 1 Started business with cash % 16,000 and stock % 15,000 3 Purchased goods. 5 Sold goods to Madanlal.. 7 Cash Sales 9 Cash received from Madanlal Discount allowed to him . 12 Purchased goods from Kaushal Purchased goods from Verma for cash .... 14 17 Received from Ram Discount allowed 20 Paid to Kaushal .. 22 Paid sundry expenses 25 Goods purchased from Ratan. 26 Goods returned to Ratan. 29 Cash purchases 30 Cash sales 31 Paidrent Paid salary—" jan. | Cash A/c Stock A’e To Capital A’c (Being started businems with cash and goods) Purchases A/c To Cash A’c (Being goods purchased) Madanlal To Sales A/c (Being ponds sold on credit) Cash A/c To Sales A/c (Being cash sales) Cash A/c Discount A/c To Madanlal (Being cash recerved and allowed discount) To Sales A/c (Being goods sold worth T 10,000 at 10% trade discount and 5% cash discount on payment) Journal Dr. . | Amount 16,000 14,000 5,000 9,000 4,300 5,000 9,000 8,550 450 2,000 1,000 4,500 9,000 4,500 3,000 2,000 9,000 2,000 1,000Dr. 6,000 25 Purchases A/c To Ratan ash Dr. 1,500 26 | Ratan o To Purchases Returns A/c (Being goods returned ) 29 | Purchases A/c De a . 3,000 To Cash A/c (Being goods purchased) 30] Cash Ave Dr. 2,000 To Sales A/c 2,000 (Being godds sold) i} Rent Ave Dr. 1,000 Salary A/c Dr. 3,000 To Cash A/c (Being rent and salary paid) | Grand total 95,500_| 95,500 Illustration 4. Record the following transactions in the books of Shri Ramlal- 017 z january 1. Started business with Cash Goods Furniture 2. 3. 5. Goods sold for cash . 6. Purchased stationery 10. Goods sold to Mohan... 12. Goods returned to Raghav.. 15. Full settlement with Raghav at 10% cash discount 17. Goods sold to Banerjee. 18. Deposited in to bank 20. Cash given in charity .. 22. Withdrew cash for household expenses . 24. Commission received... 25. Banerjee returned goods. 26. Received from Banerjee in full settlement. 28. Withdrew goods for personal use . 29. Cheque issued for machinery purchased... 30. Paid Rent.. 31. Order placed to Ratnesh.», Journalise the following transa with goods worth @ 10,000. The Jan ‘2 Journal / 4.19 ond- On January 1, 2017 Kadila Stores started business bransactions for the month are Bought goods from Kailash Sold goods to Krishna Bought goods from Rajesh. Received cash from Krishna Sold goods to Suresh .. Paid interes Purchased plant Paid commission Lent to Rohan Sold goods to Palak .. Paid salarie Received the balance from Krishn: 3. Journalise the following transactions in the books of Shah Traders- 1. 2. 3. 4, 5. 6. 1. 8. 9 10. 4 2017 June 1 3 4 6 8 9 12 18 4 30 Started business... Sold goods for cash .. Paid commission by cheque Withdrew from bank for office use Sold goods to Rustam Rustam settled his account. Rent received in cash Purchased machinery from Totla Ltd. Paid carriage for bringing machine. Cheque received from Ram and deposited i into bank .., Journalise the following transactions of M/s Katiyar & Sons. Started business with cash ? 30,000, Goods worth 10,000 and Computer of? 5,000. Bought goods from Pradeep 11,500 Goods purchased from Roopal for cash 200 Sold goods to Sheetal . Goods returned by Sheetal Bought goods for cash Sold goods for cash . Stationery purchased for cash ... Goods withdrawn for personal use. Salary paid to Murtza ...10. 1. [eaten are eee = . Jou 1. 2. 3. Per gga rnalise the following transactions in the books of Naveen Stores- Started business with cash? 1,20,000, goods % 60,000 and machinery @ 14,000, Purchased furniture 8,000 from Ratan. He paid 500 carriage expense on our acco, Goods purchased of the list price of % 18,000 from Vijay for cash at 20% trade disco, and 10% cash discount. Goods of the list price of % 40,000 sold to Kriti at 20% trade discount and 10% ces discount. She paid half the amount in cash. Order of ? 20,000 received from Mukesh. Paid wages ¢ 8,000, carriage ¢ 2,000. Received 500 as discount in cash. Cash defalcated by the accountant? 1,500. Order given to the supplier Sadik to supply the goods to Mukesh as for his order. Intimation of the cash defalcation by the accountant on 7th was given to police andthe insurance co. Note : No entry will be passed on 5th, 8h and 9th, as they do not amount to transactions. Pass the journal entries for the following transactions in the books of Ravi- 2017 Feb. 1 Commenced business with cash ® 20,000 and goods ® 8,000. 6 Purchased goods worth 21,000 from Raj at 10% trade discount. 15 Commission received € 190. 20 Withdrew for personal use t 5,000 cash and goods of 1,000. 25 Paid to Ratan 5,750 in full payment of & 6,000. 28 Sold goods for € 12,000 at 10% trade discount for cash.