Basic of Accounting

(Learn Basic of Accounting in Easy Way)

Topic Covered:

• Journal (रोजनामचा)
• Ledger (खाताबही)
• Trial Balance (तलपट)
• Trading and Profit & Loss  A/c (व्यापारिक एवं लाभ हानि खाता)
• Balance Sheet (आर्थिक चिटठा)
• Practice Exercise of Journal Entries with Answer

Journal: In accounting, a journal is a record of financial transactions that lists the transactions in chronological order. A journal is used to record all of the transactions that a business engages in, including sales, purchases, payments to suppliers, and expenses.

In Hindi:

रोज के लेन- देनो को क्रमबद्ध तरीके से एक बही या पुस्तक में लिखने की प्रक्रिया को रोजनामचा या Journal कहते है|

Type of Accounts:

There are three types of account:

1. Personal A/c (व्यतिगत खाते)

2. Real A/c (वास्तविक खाते)

3. Nominal A/c (अवास्तविक या नाममात्र के खाते)

1. Personal A/c: An Account which are related to a person, firm, organization, or company, called Personal A/c.

Example: Ram’s A/c, Tally Academy A/c, IFAP Institute A/c, Bank A/c, Reliance & Co. A/c  etc.

2. Real A/c: An Account which are related to assets and things called Real A/c.

Example: Furniture A/c, Machinery A/c, computers A/c, cash A/c etc.

3. Nominal A/c: An Account which are related to Income and Expenses or Profit & Loss called Nominal A/c.

Example: Salary Expenses , Rent Expenses , Wages Expenses,  Interest Expenses, Commission Received, Stationery Expenses, Loss by Fire, Purchase A/c, Sales A/c, etc.

Rules of Accounting:

	Personal A/c	Real A/c	Nominal A/c
Dr.	The Receiver	What Comes in	Exp. & Losses
Cr.	The Giver	What goes Out	Income & Gain

Practice Exercise of Journal Entries with Answer

Practice Exercise 01. Enter the following transactions in the journal of Chaitanya Enterprises.

01.6.23        Commenced business with cash ₹ 2,75,000.

03.6.23        Purchased building for ₹ 1,00,000 in cash.

04.6.23        Sold goods ₹ 35,000 to Suresh.

06.6.23        Paid ₹ 1,500 to workers towards wages in cash.

10.6.23        Sold goods for cash ₹ 8,000.

12.6.23        Paid trade expenses ₹ 1,000 in cash.

14.6.23        Cash received from Suresh ₹ 34,500 and Discount allowed ₹ 500.

18.6.23        Purchased goods worth ₹ 27,000 from Ranjana.

19.6.23        Paid cartage ₹ 700 in cash.

21.6.23        Withdraw ₹ 6,000 cash for personal use.

22.6.23        Used goods worth ₹ 1,000 for personal purposes.

26.6.23        Paid ₹ 26,800 in cash to Ranjana and received a discount of ₹ 200.

Ans of Practice Exercise 01

Journal Entries in the book of Chaitanya Enterprises

Date	Particulars		(Dr.) Amount	(Cr.) Amount
2023	Cash A/c	Dr.	2,75,000
Jun.01	Capital A/c	Cr.		2,75,000
	(Business started with cash)
Jun.03	Building A/c	Dr.	1,00,000
	Cash A/c	Cr.		1,00,000
	(Building purchased)
Jun.04	Suresh’s A/c	Dr.	35,000
	Sales A/c	Cr.		35,000
	(Goods sold on credit to Suresh)
Jun.06	Wages A/c	Dr.	1,500
	Cash A/c	Cr.		1,500
	(Wages paid in cash)
Jun.10	Cash A/c	Dr.	8,000
	Sales A/c	Cr.		8,000
	(Goods sold for cash)
Jun.12	Trade Expenses A/c	Dr.	1,000
	Cash A/c	Cr.		1,000
	(Trade Expenses paid by cash)
Jun.14	Cash A/c	Dr.	34,500
	Discount allowed A/c	Dr.	500
	Suresh’s A/c	Cr.		35,000
	(Amount received and discount paid)
Jun.18	Purchases A/c	Dr.	27,000
	Ranjana’s A/c	Cr.		27,000
	(Goods purchased on credit from Ranjana)
Jun.19	Cartage A/c	Dr.	700
	Cash A/c	Cr.		700
	(Cartage Expenses paid)
Jun.21	Drawing A/c	Dr.	6,000
	Cash A/c	Cr.		6,000
	(Cash withdraw for personal use)
Jun.22	Drawing A/c	Dr.	1,000
	Purchases A/c	Cr.		1,000
	Good taken for personal use
Jun.26	Ranjana’s A/c	Dr.	27,000
	Cash A/c	Cr.		26,800
	Discount received	Cr.		200
	(Amount paid and discount received)
	Grand Total		5,17,200	5,17,200

What is Ledger?

A ledger is a financial record that is used to record and classify a business’s financial transactions. It is a collection of accounts that represents all the assets, liabilities, equity, revenue, and expenses of the business. Each account in the ledger represents a specific type of financial transaction, such as cash, accounts receivable, or accounts payable. The ledger is organized into debit and credit columns, and each transaction is recorded in the appropriate account and classified as a debit or credit. The ledger is used to track the financial activity of the business, and the information recorded in it is used to prepare financial statements such as the balance sheet and income statement.

Ledger posting in the book of Chaitanya Enterprises

(For the year ended 31^st March 2023)

Cash A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-01	To Capital A/c	2,75,000	Jun-03	By Buildings A/c	1,00,000
Jun-10	To Cash A/c	8,000	Jun-06	By Wages A/c	1,500
Jun-14	To Cash A/c	34,500	Jun-12	By Trade exp. A/c	700
			Jun-19	By Cartage exp. A/c	700
			Jun-21	By Drawings A/c	6,000
			Jun-30	By Balance c/d	1,81,800
		3,17,500			3,17,500
Jul-01	To Balance b/d	1,81,800

Capital A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-30	To Balance c/d	2,75,000	Jun-01	By Cash A/c	2,75,000
		2,75,000			2,75,000
			Jul-01	By Balance b/d	2,75,000

Building A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-01	To Cash A/c	1,00,000	Jun-30	By Balance c/d	1,00,000
		1,00,000			1,00,000
Jul-01	To Balance b/d	1,00,000

Sales A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-30	To Trading A/c	43,000	Jun-04	By Suresh	35,000
			Jun-10	By Cash A/c	8,000
		43,000			43,000

Purchases A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-18	To Ranjana	27,000	Jun-22	By Drawing A/c	1,000
			Jun-30	By Trading A/c	26,000
		27,000			27,000

Wages A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-06	To Cash A/c	1,500	Jun-30	By Trading A/c	1,500
		1,500			1,500

Trade expenses A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-12	To Cash	700	Jun-30	By Profit & Loss   A/c	700
		700			700

Cartage exp. A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-19	To Cash A/c	700	Jun-30	By Profit & Loss   A/c	700
		700			700

Suresh A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-04	To Sales A/c	35,000	Jun-14	By Cash A/c	34,500
				By Discount Allowed A/c	500
		35,000			35,000

Ranjana’s A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-26	To Cash A/c	26,800	Jun-18	By Purchases A/c	27,000
	To Discount Received	200
		27,000			27,000

Drawing A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
	To Cash A/c	6,000	Jun-30	By Balance c/d	7,000
	To Purchases A/c	1,000
		7,000			7,000
Jul-01	By Balance b/d	7,000

Discount Allowed A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-14	To Suresh	500	Jun-30	By Profit & Loss   A/c	500
		500			500

Discount Received A/c

Date	Particulars	Amount Dr.	Date	Particulars	Amount Cr.
Jun-30	To Profit & Loss   A/c	200	Jun-26	By Ranjana	200
		200			200

What is Trial Balance?

A trial balance is a list of all the accounts and their balances in a company’s general ledger at a specific point in time. The purpose of a trial balance is to verify that the total of all debit balances in the general ledger equals the total of all credit balances. If the trial balance is in balance, it is an indication that the accounts are in good order and that the financial statements can be prepared. If the trial balance is not in balance, it could be an indication of an error in the accounts or a problem with the underlying transactions.

Trial Balance in book of Chaitanya Enterprises

(as on 31^st March 2023)

S. no.	Particulars/Name of Accounts	Amount (Dr.)	Amount (Cr.)
1.	Cash A/c	1,81,800	——-
2.	Capital A/c	——-	2,75,000
3.	Building A/c	1,00,000	——-
4.	Sales A/c	——-	43,000
5.	Purchases A/c	26,000	——-
6.	Wages A/c	1,500	——-
7.	Trade Exp. A/c	700	——-
8.	Cartage Exp. A/c	700	——-
9.	Suresh’s A/c	——-	——-
10.	Ranjana’s A/c	——-	——-
11.	Drawing	7,000	——-
12.	Discount Allowed	500	——-
13.	Discount Received	——-	200
	Grand Total	3,18,200	3,18,200

What is Trading A/c?

A Trading account is a financial statement that provides detailed information about a company’s revenue, cost of goods sold (COGS), and gross profit for a specific period, such as a year or quarter. The trading account is used to calculate the net profit or loss for the period.

What is Profit & Loss A/c?

A Profit and Loss account, also known as an income statement, is a financial statement that provides detailed information about a company’s financial performance for a specific period, such as a year or quarter. It shows the revenues earned by the company, the costs and expenses incurred, and the resulting net income (profit or loss) for the period. The profit and loss account is used to measure a company’s financial performance and to assess whether it is generating enough revenue to cover its expenses and generate a profit.

Trading and Profit & Loss A/c in book of Chaitanya Enterprises

(For the year ended 31^st March 2023)

Particulars	Amount (Dr.)	Particulars	Amount (Cr.)
To Purchases A/c	26,000	By Sales A/c	43,000
To Wages A/c	1,500
To Gross Profit c/d	15,500
	43,000		43,000
To Trade exp. A/c	700	By Gross Profit b/d	15,500
To cartage exp. A/c	700	By Discount Received	200
To Discount Allowed A/c	500
To Net Profit transfer to Capital A/c	13,800
	15,700		15,700

Balance Sheet in book of Chaitanya Enterprises

(as on 31^st March 2023)

Liabilities	Amount	Assets	Amount
Capital A/c                                        275000 Add: Net profit                                    13,800 2,88,800	2,81,800	Building A/c	1,00,000
Less: Drawing                                         7,000		Cash A/c	1,81,800
	2,81,800		2,81,800

Practice Exercise 02. Journalise the following Transactions in the books of Anupriya.

01.11.23     Anupriya commenced business with cash ₹ 4,00,000 and goods worth               ₹ 1,00,000.

03.11.23     Opened an account with SBI Bank by depositing ₹ 3,20,000.

05.11.23     Purchased goods for ₹ 22,000 from Asha.

08.11.23     Sold goods to Manu for cash ₹ 20,000.

11.11.23     Bought goods from Tanuja for cash ₹ 30,000.

14.11.23     Sold goods for ₹ 22,000 to Monika.

17.11.23     Received cheque from Monika for ₹ 21,300 and allowed a discount of ₹ 700.

20.11.23     Issued cheque to Asha for ₹ 22,000.

23.11.23     Paid ₹ 2,500 towards rent by cheque.

24.11.23     Deposited ₹ 10,000 in bank.

25.11.23     Purchased machinery for ₹ 20,000 from Riya Industries.

27.11.23     Paid ₹ 1,000 towards the trade expenses.

28.11.23     Made payment of ₹ 20,000 to Riya industries by cheque.

29.11.23     Paid telephone expenses of ₹ 500 by cheque.

30.11.23     Paid ₹ 2,000 as salary.

Ans of Practice Exercise 02         

Journal Entries in the book of Anupriya

Date	Particulars		(Dr.) Amount	(Cr.) Amount
2023	Cash A/c	Dr.	4,00,000
Nov.01	Goods A/c	Dr.	1,00,000
	Capital A/c	Cr.		5,00,000
	(Business started with cash & goods)
Nov.03	SBI Bank A/c	Dr.	3,20,000
	Cash A/c	Cr.		3,20,000
	(Opened a Bank A/c by depositing cash)
Nov.05	Purchases A/c	Dr.	22,000
	Asha’s A/c	Cr.		22,000
	(Goods purchased on credit from Asha)
Nov.08	Cash A/c	Dr.	20,000
	Sales A/c	Cr.		20,000
	(Goods sold to Manu by cash)
Nov.11	Purchases A/c	Dr.	30,000
	Cash	Cr.		30,000
	(Goods purchased from Tanuja by cash)
Nov.14	Monika’s A/C	Dr.	22000
	Sales A/c	Cr.		22000
	(Goods sold on credit to Monika)
Nov.17	SBI Bank A/c	Dr.	21,300
	Discount Allowed A/c	Dr.	700
	Monika’s A/c	Cr.		22,000
	(Cheque received and discount allowed)
Nov.20	Asha’s A/c	Dr.	22,000
	SBI Bank A/c	Cr.		22,000
	(Amount paid by Cheque to Asha)
Nov.23	Rent Expenses A/c	Dr.	2,500
	SBI Bank A/c	Cr.		2,500
	(Rent exp. paid by Cheque)
Nov.24	SBI Bank A/c	Dr.	10,000
	Cash A/c	Cr.		10,000
	(Cash deposited in the bank)
Nov.25	Machinery A/c	Dr.	20,000
	Riya Industries	Cr.		20,000
	(Machinery purchased on credit from Riya Industries)
Nov.27	Trade Expenses A/c	Dr.	1,000
	Cash A/c	Cr.		1,000
	(Trade exp. paid)
Nov.28	Riya Industries A/c	Dr.	20,000
	SBI Bank A/c	Cr.		20,000
	(Cheque issued to Priya Industries)
Nov.29	Telephone Expenses A/c	Dr.	500
	SBI Bank A/c	Cr.		500
	(Telephone Expenses paid by cheque)
Nov.30	Salary Expenses A/c	Dr.	2,000
	Cash A/c	Cr.		2,000
	(Salary paid)
	Grand total		10,14,000	10,14,000

Practice Exercise 03. Journalise the following transactions and post them to the ledger.

01.4.23    Commenced business with Cash S 2,75,000, Furniture ₹ 55,000, and Goods worth ₹ 1,50,000.

03.4.23     Purchased goods for ₹ 25,000 from Harish.

05.4.23    Sold goods for cash ₹ 14,000.

09.4.23     Purchased machinery for cash ₹ 9,200.

12.4.23    Cash paid to Harish ₹ 10,000.

15.4.23     Paid ₹ 1,350 towards Sundry expenses.

16.4.23     Sold goods for cash ₹ 10,000.

17.4.23     Deposited cash ₹ 8,000 in bank.

19.4.23     Withdrew ₹ 4,000 for personal use.

20.4.23     Paid cash ₹ 15,000 to Harish in full settlement of his account.

22.4.23     Sold goods for ₹ 10,000 to Maneesh.

23.4.23     Paid rent in cash ₹ 12,000.

25.4.23     Paid cartage of ₹ 800.

27.4.23     Received cash from Maneesh ₹ 9,800 and allowed a discount of ₹ 200.

30.4.23     Paid ₹ 14,500 towards the Salary.

Ans of Practice Exercise 03       

Journal Entries in the book of ____________

Date	Particulars		(Dr.) Amount	(Cr.) Amount
2023	Cash A/c	Dr.	2,75,000
Apr.01	Furniture A/c	Dr.	55,000
	Goods A/c	Dr.	1,50,000
	Capital A/c	Cr.		4,80,000
	(Commenced business with cash, furniture & goods)
Apr.03	Purchases A/c	Dr.	25,000
	Harish’s A/c	Cr.		25,000
	(Goods purchased on credit from Harsha)
Apr.05	Cash A/c	Dr.	14,000
	Sales A/c	Cr.		14,000
	(Goods sold for cash)
Apr.09	Machinery A/c	Dr.	9,200
	Cash A/c	Cr.		9,200
	(Machinery purchased)
Arp.12	Harish’s A/c	Dr.	10,000
	Cash A/c	Cr.		10,000
	(Payment made to Harsha)
Apr.15	Sundry Expenses A/c	Dr.	1,350
	Cash A/c	Cr.		1,350
	(Sundry exp. paid)
Apr.16	Cash A/c	Dr.	10,000
	Sales A/c	Cr.		10,000
	(Goods sold for cash)
Apr.17	Bank A/c	Dr.	8,000
	Cash A/c	Cr.		8,000
	(Cash deposited in to Bank)
Apr.19	Drawing A/c	Dr.	4,000
	Cash A/c	Cr.		4,000
	(Drawing made for personal use)
Apr.20	Harish’s A/c	Dr.	15,000
	Cash A/c	Cr.		15,000
	(Amount paid to Harsha)
Apr.22	Maneesh’s A/c	Dr.	10,000
	Sales A/c	Cr.		10,000
	(Goods sold to Maneesh on credit)
Apr.23	Rent Exp. A/c	Dr.	12,000
	Cash A/c	Cr.		12,000
	(Rent exp. paid)
Apr.25	Cartage Exp. A/c	Dr.	800
	Cash A/c	Cr.		800
	(Cartage exp. paid)
Apr.27	Cash A/c	Dr.	9,800
	Discount Allowed A/c	Dr.	200
	Maneesh’s A/c	Cr.		10,000
	(Cash received and dis. Allowed)
Apr.30	Salary Exp. A/c	Dr.	14,500
	Cash A/c	Cr.		14,500
	(Salary paid by cash)
	Grand total		6,23,850	6,23,850

Practice Exercise 04. Journalise the following transactions in the books of M/S Anand Kumar.

01.7.23     Anand Kumar started business with cash ₹ 4,75,000.

03.7.23     Opened a current account in syndicate bank by depositing ₹ 3,25,000.

04.7.23     Purchased goods for ₹ 55,000 on credit from Parvati Traders.

06.7.23     Purchased goods for cash ₹ 20,000.

07.7.23     Sold goods to Ramayan for ₹ 24,400.

08.7.23     Paid cash ₹ 55,000 to Parvati Traders.

10.7.23     Received cash ₹ 24,000 from Ramayan and allowed him a discount of ₹ 400.

11.7.23     Paid S 2,500 towards the wages.

13.7.23     Purchased furniture worth ₹ 15,000 for office use.

14.7.23     Withdrew cash ₹ 5,000 from bank for personal use.

17.7.23     Paid ₹ 12,500 towards Rent by cheque.

19.7.23     Withdrew goods worth ₹ 2,000 for house hold purpose.

20.7.23     Withdrew cash ₹ 7,500 from bank for office use.

21.7.23     Received commission ₹ 1,750.

23.7.23     Paid ₹ 250 towards the bank charges.

24.7.23     Paid ₹ 4,500 towards insurance premium by cheque.

28.7.23     Paid ₹ 12,000 as salary.

30.7.23     Sold goods for cash ₹ 19,000.

Ans of Practice Exercise 04       

Journal Entries in the book of M/s Anand Kumar

Date	Particulars		(Dr.) Amount	(Cr.) Amount
2023	Cash A/c	Dr.	4,75,000
Jul.01	Capital A/c	Cr.		4,75,000
	(M/s Anand started business with cash)
Jul.03	Syndicate Bank A/c	Dr.	3,25,000
	Cash A/c	Cr.		3,25,000
	(Amount deposited into Bank)
Jul.04	Purchases A/c	Dr.	55,000
	Prithvi	Cr.		55,000
	(Goods purchased on cr. From Prithvi)
Jul.06	Purchases A/c	Dr.	20,000
	Cash A/c	Cr.		20,000
	(Goods purchased by cash)
Jul.07	Ramayan’s A/c	Dr.	24,400
	Sales A/c	Cr.		24,400
	(Goods sold on cr. To Narayan)
Jul.08	Prithvi	Dr.	55,000
	Cash A/c	Cr.		55,000
	(Amount paid by cash)
Jul.10	Cash A/c	Dr.	24,000
	Discount A/c	Dr.	400
	Narayan’s A/c	Cr.		24,400
	(Amount received and discount paid)
Jul.11	Wages A/c	Dr.	2,500
	Cash A/c	Cr.		2,500
	(Wages exp. paid)
Jul.13	Furniture A/c	Dr.	15,000
	Cash A/c	Cr.		15,000
	(Furniture purchased)
Jul.14	Drawing A/c	Dr.	5,000
	Syndicate Bank A/c	Cr.		5,000
	(Cash withdraw for personal use from bank)
Jul.17	Rent A/c	Dr.	12,500
	Syndicate Bank A/c	Cr.		12,500
	(Rent exp. Paid by cheque)
Jul.19	Drawing A/c	Dr.	2,000
	Purchases A/c	Cr.		2,000
	(Goods taken for personal use)
Jul.20	Cash A/c	Dr.	7,500
	Syndicate Bank A/c	Cr.		7,500
	(Amounts withdraw from bank)
Jul.21	Cash A/c	Dr.	1,750
	Commission A/c	Cr.		1,750
	(Commission received)
Jul.23	Bank Charges A/c	Dr.	250
	Syndicate Bank A/c	Cr.		250
	(Bank charges taken by bank)
Jul.24	Insurance Premium A/c	Dr.	4,500
	Syndicate Bank A/c	Cr.		4,500
	(Insurance exp. paid by cheque)
Jul.28	Salary Expenses A/c	Dr.	12,000
	Cash A/c	Cr.		12,000
	(Salary exp. paid)
Jul.30	Cash A/c	Dr.	19,000
	Sales A/c	Cr.		19,000
	(Good sold for cash)
	Grand total		10,60,800	10,60,800

Practice Exercise 05. Journalise the following transactions in the books of Arun Traders.

01.8.23    Commenced business with cash ₹ 2,50,000.

03.8.23    Open a Bank account with SBI by depositing ₹ 1,80,000.

05.8.23    Purchased furniture worth ₹ 25,000.

06.8.23    Bought goods for cash ₹ 40,000 from Rupesh Traders.

09.8.23    Purchased goods for ₹ 35,000 from Harish.

11.8.23    Sold goods for cash ₹ 40,000.

12.8.23    Sold goods on credit to Ram Gupta ₹ 22,000.

13.8.23    Paid ₹ 2,000 towards Rent.

17.8.23    Paid Trade expenses ₹ 450.

20.8.23    Received cash ₹ 22,000 from Ram Gupta.

21.8.23    Goods worth ₹ 1,000 returned to Harish.

23.8.23    Paid cash ₹ 34,000 to Harish.

25.8.23    Paid ₹ 450 towards Postage expenses.

30.7.23    Paid ₹ 15,000 as Salary.

Ans of Practice Exercise 05       

Journal Entries in the book of M/s Arun Traders

Date	Particulars		(Dr.) Amount	(Cr.) Amount
2023	Cash A/c	Dr.	2,50,000
Aug.01	Capital A/c	Cr.		2,50,000
	(Arun traders started business with cash)
Aug.03	SBI Bank A/c	Dr.	1,80,000
	Cash A/c	Cr.		1,80,000
	(Open a bank A/c by depositing Cash)
Aug.05	Furniture A/c	Dr.	25,000
	Cash A/c	Cr.		25,000
	(Furniture purchased)
Aug.06	Purchases A/c	Dr.	40,000
	Cash A/c	Cr.		40,000
	(Goods purchased by cash from Rupesh traders)
Aug.09	Purchases A/c	Dr.	35,000
	Harish A/c	Cr.		35,000
	(Goods purchased on credit from Harish)
Aug.11	Cash A/c	Dr.	40,000
	Sales A/c	Cr.		40,000
	(Goods sold for cash)
Aug.12	Ram Gupta	Dr.	22,000
	Sales A/c	Cr.		22,000
	(Goods sold on credit to Ram Gupta)
Aug.13	Rent expenses A/c	Dr.	2,000
	Cash A/c	Cr.		2,000
	(Rent exp. paid)
Aug.17	Trade expense A/c	Dr.	450
	Cash A/c	Cr.		450
	(Trade expenses paid)
Aug.20	Cash a/c	Dr.	22,000
	Ram Gupta	Cr.		22,000
	(Amount received from Ram Gupta)
Aug.21	Harish	Dr.	1,000
	Purchases Return A/c	Cr.		1,000
	(Goods returned to Harish)
Aug.23	Harish	Dr.	34,000
	Cash			34,000
	(Settlement amount paid to Harish)
Aug.25	Postage expenses A/c	Dr.	450
	Cash A/c	Cr.		450
	(Postage exp. paid in cash)
Aug.30	Salary A/c	Dr.	15,000
	Cash A/c	Cr.		15,000
	(Salary paid)
	Grand total		6,66,900	6,66,900

Practice Exercise 06. Journalise the following transactions in the books of Darpan Enterprises.

01.4.23     Darpan (Proprietor) started a business with cash ₹ 6,50,000.

03.4.23     Deposited ₹ 2,75,000 in Axis Bank.

04.4.23     Brought goods ₹ 60,000 on credit from Sanjay.

05.4.23     Purchased goods worth ₹ 20,000 by cash.

08.4.23     Returned goods worth ₹ 5,000 to Sanjay.

11.4.23     Sold goods for cash ₹ 22,000.

12.4.23     Issued cheque for ₹ 55,000 to Sanjay as settlement of account.

15.4.23     Sold goods for ₹ 25,000 to Anup.

16.4.23     Withdrew ₹ 4,000 from bank for personal use.

17.4.23     Anup returned goods worth ₹ 2,000.

20.4.23     Deposited cash ₹ 15,000 to bank.

21.4.23     Received cheque for ₹ 23,000 from Anup

24.4.23     Gave goods worth ₹ 1,000 as charity.

27.4.23     Paid ₹ 14,500 towards rent.

28.4.23     Paid ₹ 18,000 as salary.

30.4.23     Purchased machine for ₹ 35,000 by cash.

Ans of Practice Exercise 06

Journal Entries in the book of M/s Darpan Traders

Date	Particulars		(Dr.) Amount	(Cr.) Amount
2023	Cash A/c	Dr.	6,50,000
Apr.01	Capital A/c	Cr.		6,50,000
	(Darpan started business with cash)
Apr.03	Bank A/c	Dr.	2,75,000
	Cash A/c	Cr.		2,75,000
	(Amount deposited in to bank)
Apr.04	Purchases A/c	Dr.	60,000
	Sanjay’s A/c	Cr.		60,000
	(Goods purchased on credit from Sanjay)
Apr.05	Purchases A/c	Dr.	20,000
	Cash A/c	Cr.		20,000
	(Goods purchased by cash)
Apr.08	Sanjay’s A/c	Dr.	5,000
	Purchases Return	Cr.		5,000
	(Goods returned to Sanjay)
Apr.11	Cash A/c	Dr.	22,000
	Sales A/c	Cr.		22,000
	(Goods sold in cash)
Apr.12	Sanjay’s A/c	Dr.	55,000
	Bank A/c	Cr.		55,000
	(Cheque of ₹ 27,000 issued to Sanjay)
Apr.15	Anup	Dr.	25,000
	Sales A/c	Cr.		25,000
	(Goods sold to Anup on Credit)
Apr.16	Drawing A/c	Dr.	4,000
	Bank A/c	Cr.		4,000
	(Cash withdraw from bank for personal use)
Apr.17	Sales return A/c	Dr.	2,000
	Anup	Cr.		2,000
	(Goods returned by Anup)
Apr.20	Bank A/c	Dr.	15,000
	Cash A/c	Cr.		15,000
	(For Cash deposited into Bank)
Apr.21	Bank A/c	Dr.	23,000
	Anup	Cr.		23,000
	(Cheque of ₹ 23,000 received from Anup)
Apr.24	Charity A/c	Dr.	1,000
	Purchases	Cr.		1,000
	(Goods given as Charity)
Apr.27	Rent A/c	Dr.	14,500
	Cash A/c	Cr.		14,500
	(Rent expenses paid)
Apr.28	Salary exp. A/c	Dr.	18,000
	Cash A/c	Cr.		18,000
	(Salary exp. paid)
Apr.30	Machinery A/c	Dr.	35,000
	Cash A/c	Cr.		35,000
	(Machinery purchased by cash)
	Grand Total		12,24,500	12,24,500

Practice Exercise 07. Journalise the following transactions in the books of Pallavi Fashion House.

01.10.23   Pallavi Started a business with cash ₹ 5,50,000.

03.10.23   Purchased furniture worth ₹ 45,000 for office use.

04.10.23   Opened a current account in SBI Bank by depositing ₹ 4,40,000.

07.10.23   Purchased a Computer for ₹55,000 and paid by cheque.

09.10.23   Bought goods worth ₹ 65,000 from Anil.

10.10.23   Sold goods for cash ₹ 35,000.

11.10.23   Sold goods for ₹ 50,000 to Karan on credit.

12.10.23   Paid cash ₹ 25,000 to Anil.

14.10.23   Returned goods worth ₹ 5,000 to Anil.

15.10.23   Purchased stationery for cash ₹ 1,500.

17.10.23   Paid wages of ₹ 6,000.

18.10.23   Goods worth ₹ 2,000 returned by Karan.

19.10.23   Gave cheque for ₹ 35,000 to Anil.

22.10.23   Received cash ₹ 48,000 from Karan.

23.10.23   Paid ₹ 8,000 towards Insurance Premium by cheque.

28.10.23   Paid ₹ 18,000 towards Rent by cheque.

29.10.23   Purchased goods for ₹ 20,000 from Meera.

31.10.23   Sold goods for cash ₹ 25,000.

Ans of Practice Exercise 07       

Journal Entries in the book of Pallavi Fashion House

Date	Particulars		(Dr.) Amount	(Cr.) Amount
2023	Cash A/c	Dr.	5,50,000
Oct.01	Capital A/c	Cr.		5,50,000
	(Pallavi started business with cash)
Oct.03	Furniture A/c	Dr.	45,000
	Cash A/c	Cr.		45,000
	(Furniture purchased for office use)
Oct.04	Bank A/c	Dr.	4,40,000
	Cash A/c	Cr.		4,40,000
	(Opened Bank A/c by depositing cash)
Oct.07	Computer A/c	Dr.	55,000
	Bank A/c	Cr.		55,000
	(Computer purchased by cheque)
Oct.09	Purchases A/c	Dr.	65,000
	Anil	Cr.		65,000
	(Purchased goods from Anil)
Oct.10	Cash A/c	Dr.	35,000
	Sales A/c	Cr.		35,000
	(Goods sold in cash)
Oct.11	Karan	Dr.	50,000
	Sales A/c	Cr.		50,000
	(Goods sold on credit to Karan)
Oct.12	Anil	Dr.	25,000
	Cash A/c	Cr.		25,000
	(Amount paid to Anil)
Oct.14	Anil	Dr.	5,000
	Purchases Return A/c	Cr.		5,000
	(Goods returned to Anil)
Oct.15	Stationery A/c	Dr.	1,500
	Cash A/c	Cr.		1,500
	(Stationery purchased in cash)
Oct.17	Wages A/c	Dr.	6,000
	Cash A/c	Cr.		6,000
	(Paid wages to workers in cash)
Oct.18	Sales Return A/c	Dr.	2,000
	Karan	Cr.		2,000
	(Goods Returned by Karan)
Oct.19	Anil	Dr.	35,000
	Bank A/c	Cr.		35,000
	(Final Amount paid to Anil by cheque)
Oct.22	Cash A/c	Dr.	48,000
	Karan	Cr.		48,000
	(Final amount received from Karan)
Oct.23	Insurance Premium A/c	Dr.	8,000
	Bank a/c	Cr.		8,000
	(Insurance premium paid by cheque)
Oct.28	Rent A/c	Dr.	18,000
	Bank A/c	Cr.		18,000
	(Rent expenses paid by cheque)
Oct.29	Purchases A/c	Dr.	20,000
	Meera’s A/c	Cr.		20,000
	(Goods purchased from Meera on credit)
Oct.31	Cash A/c	Dr.	25,000
	Sales A/c	Cr.		25,000
	(Goods sold in cash)
	Grand Total		14,33,500	14,33,500

Practice Exercise 08. Journalise the following transactions in the books of Nachiket Electrical.

01.5.23    Nachiket started a business with the following assets and liabilities-

Cash ₹ 25,000, Bank ₹ 2,90,000, Stock ₹ 60,000, due to Ravi ₹ 15,000, due from Satyam ₹ 18,000.

02.5.23    Sold goods for ₹ 35,000 to Mahesh.

03.5.23    Sold goods for cash ₹ 15,500.

05.5.23    Sold goods for ₹ 6,000 to Manisha.

07.5.23    Purchased goods for ₹ 40,000 from Rupak.

08.5.23    Mahesh returned goods worth ₹ 2,500.

10.5.23    Received cash ₹ 32,500 from Mahesh.

13.5.23    Issued a cheque for ₹ 15,000 to Ravi.

14.5.23    Received cash ₹ 6,000 from Manisha.

16.5.23    Received cheque for ₹ 18,000 from Satyam.

17.5.23    Made a payment of ₹ 28,000 to Rupak.

19.5.23    Paid cartage of ₹ 800.

21.5.23    Paid ₹ 16,800 as salary by cheque.

22.5.23    Sold goods for cash ₹ 5,000.

25.5.23    Issued a cheque for ₹ 12,000 to Rupak.

28.5.23    Nachiket took goods worth ₹ 5,000 for personal use.

31.5.23    Paid ₹ 750 towards General expenses.

Ans of Practice Exercise 08       

Journal Entries in the book of Nachiket Electricals

Date	Particulars		(Dr.) Amount	(Cr.) Amount
2023	Cash A/c	Dr.	25,000
May.01	Bank A/c	Dr.	2,90,000
	Stock A/c	Dr.	60,000
	Satyam ‘s A/c	Dr.	18,000
	Ravi ‘s A/c	Cr.		15,000
	Capital A/c	Cr.		3,78,000
	(Balance brought in from old ledgers)
May.02	Mahesh	Dr.	35,000
	Sales A/c	Cr.		35,000
	(Goods sold to Mahesh on credit)
May.03	Cash A/c	Dr.	15,500
	Sales A/c	Cr.		15,500
	(Goods sold in cash)
May.05	Maneesha	Dr.	6,000
	Sales A/c	Cr.		6,000
	(Goods sold to Maneesha on credit)
May.07	Purchases A/c	Dr.	40,000
	Rupak	Cr.		40,000
	(Goods purchased on credit from Rupak)
May.08	Sales Return A/c	Dr.	2,500
	Mahesh	Cr.		2,500
	(Goods returned by Mahesh)
May.10	Cash A/c	Dr.	32,500
	Mahesh	Cr.		32,500
	(Final Amount received from Mahesh)
May.13	Ravi’s A/c	Dr.	15,000
	Bank A/c	Cr.		15,000
	(Issued cheque to Ravi)
May.14	Cash A/c	Dr.	6,000
	Maneesha	Cr.		6,000
	(Cash received from Sheena)
May.16	Bank A/c	Dr.	18,000
	Satyam’s A/c	Cr.		18,000
	(Cheque received from Satyam)
May.18	Rupak	Dr.	28,000
	Cash A/c	Cr.		28,000
	(Made a payment to Rupa)
May.19	Cartage Expenses A/c	Dr.	800
	Cash A/c	Cr.		800
	(Cartage exp. paid)
May.21	Salary exp. A/c	Dr.	16,800
	Cash A/c	Cr.		16,800
	(Salary exp. paid)
May.22	Cash A/c	Dr.	5,000
	Sales A/c	Cr.		5,000
	(Goods sold in cash)
May.25	Rupa	Dr.	1,2000
	Bank A/c	Cr.		1,2000
	(Made final payment by cheque)
May.28	Drawing A/c	Dr.	5,000
	Purchases A/c	Cr.		5,000
	(Goods taken for personal use)
May.31	General exp. A/c	Dr.	750
	Cash A/c	Cr.		750
	(General exp. paid)
	Grand Total		6,31,850	6,31,850

Practice Exercise 09. Rachit Enterprises furnish the following transactions for the month of April 2023.

01.4.23    Business started with cash ₹ 10,00,000.

02.4.23    Goods purchased from Mohan ₹ 140,000.

05.4.23    Stationery purchased for cash ₹ 2,000.

06.4.23    Opened a Bank account with HDFC Bank by depositing cash ₹ 8,50,000.

08.4.23    Goods sold to Priya for ₹ 55,000.

10.4.23    Received a cheque for ₹ 55,000 from Priya.

11.4.23    Sold goods to Shrikant ₹ 25,000.

15.4.23    Shrikant pays ₹ 25,000 by cheque.

16.4.23    Goods purchased for ₹ 26,000 on credit from Neelu.

18.4.23    Insurance paid by cheque ₹ 18,000.

19.4.23    Paid ₹16,000 towards rent by cash.

20.4.23    Goods costing ₹ 2,500 given as charity.

23.4.23    Purchased office furniture for ₹ 14,500 in cash.

24.4.23    Cash withdrawn for household purposes ₹ 5,000.

25.4.23    Interest received in cash ₹ 4,000.

27.4.23    Cash sales ₹ 6,000.

28.4.23    Commission paid ₹2,000 by cheque.

29.4.23    Telephone bill paid by cheque ₹ 2,500.

30.4.23    Payment of salaries in cash ₹ 19,500.

Ans of Practice Exercise 09

Journal Entries in the book of Rachit Enterprises

Date	Particulars		(Dr.) Amount	(Cr.) Amount
2023	Cash A/c	Dr.	10,00,000
Apr.01	Capital A/c	Cr.		10,00,000
	(M/s Rachit started business with cash)
Apr.02	Purchases A/c	Dr.	1,40,000
	Mohan	Cr.		1,40,000
	(Goods purchased on Credit)
Apr.05	Stationery A/c	Dr.	2,000
	Cash A/c	Cr.		2,000
	(Stationery purchased)
Apr.06	Bank A/c	Dr.	8,50,000
	Cash A/c	Cr.		8,50,000
	(Cash deposited into HDFC bank)
Apr.08	Riya	Dr.	55,000
	Sales A/c	Cr.		55,000
	(Goods sold on credit to Riya)
Apr.10	Bank A/c	Dr.	55,000
	Riya	Cr.		55,000
	(Cheque received from Riya)
Apr.11	Shrikant	Dr.	25,000
	Sales A/c	Cr.		25,000
	(Goods sold to Shrikant on credit)
Apr.15	Cash A/c	Dr.	25,000
	Shrikant	Cr.		25,000
	(Cash received from Shrikant)
Apr.16	Purchases A/c	Dr.	26,000
	Neelu	Cr.		26,000
	(Purchases from Neelu on credit
Apr.18	Insurance premium A/c	Dr.	18,000
	Bank A/c	Cr.		18,000
	(Insurance premium paid by cheque)
Apr.19	Rent A/c	Dr.	16,000
	Cash A/c	Cr.		16,000
	(Rent expenses paid)
Apr.20	Charity A/c	Dr.	2,500
	Purchases A/c	Cr.		2,500
	(Goods given as charity)
Apr.23	Furniture A/c	Dr.	14,500
	Cash A/c	Cr.		14,500
	(Furniture purchased)
Apr.24	Drawing A/c	Dr.	5,000
	Cash A/c	Cr.		5,000
	(Cash taken for personal use)
Apr.25	Cash A/c	Dr.	4,000
	Interest receive A/c	Cr.		4,000
	(Commission received)
Apr.27	Cash A/c	Dr.	6,000
	Sales A/c	Cr.		6,000
	(Goods sold in Cash)
Apr.28	Commission A/c	Dr.	2,000
	Bank A/c	Cr.		2,000
	(Commission Paid)
Apr.29	Telephone exp.	Dr.	2,500
	Bank A/c	Cr.		2,500
	(Telephone exp. paid)
Apr.30	Salaries a/c	Dr.	19,500
	Cash A/c	Cr.		19,500
	(Salaries paid in cash)
	Grand Total		22,52,000	22,52,000

Practice Exercise 10.   Record the following transactions in a journal.

01.8.23    Business started with cash of ₹ 8,00,000.

02.8.23    Deposited of ₹ 6,00,000 in ICICI Bank A/c.

04.8.23    Purchased plants and machinery worth ₹ 3,50,000 from Ramesh & Co. by making immediate payment of ₹ 50,000 in cash.

06.8.23    Purchased goods worth ₹ 45,000 for cash and ₹ 55,000 on credit from Ramnath Traders.

10.8.23    Issued a cheque for ₹ 3,00,000 to Ramesh & Co. for the purchase of plants and machinery.

16.8.23    Goods sold for cash ₹ 80,000.

20.8.23    Proprietor withdraw ₹ 20,000 cash for personal use.

25.8.23    Paid ₹ 3,000 by cheque towards Insurance.

26.8.23    Paid salary of ₹ 17,500 in cash.

30.8.23    Purchased Furniture worth ₹ 32,000 in cash.

31.8.23    Took a loan of ₹ 2,00,000 from Bank.

Ans of Practice Exercise 10

Journal Entries in the book of ………………..

Date	Particulars		(Dr.) Amount	(Cr.) Amount
2023	Cash A/c	Dr.	8,00,000
Aug.01	Capital A/c	Cr.		8,00,000
	(Business started with cash)
Aug.02	Uti Bank A/c	Dr.	6,00,000
	Cash A/c	Cr.		6,00,000
	(Cash deposited into Bank)
Aug.04	Plants & Machinery A/c	Dr.	3,50,000
	Cash A/c	Cr.		50,000
	Ramesh & company A/c	Cr.		3,00,000
	(Plants & Machinery of worth 2,50,000 purchased and 50,000 paid immediately)
Aug.06	Purchases A/c	Dr.	1,00,000
	Cash A/c	Cr.		45,000
	Ram & company	Cr.		55,000
	(Goods purchased of ₹ 45,000 by cash and    ₹ 55,000 on credit from Ram Traders)
Aug.10	Ramesh & company A/c	Dr.	3,00,000
	Bank A/c	Cr.		3,00,000
	(Full and final amount paid by cheque to Ramesh & company)
Aug.16	Cash A/c	Dr.	80,000
	Sales A/c	Cr.		80,000
	(Goods sold in cash)
Aug.20	Drawing A/c	Dr.	20,000
	Cash A/c	Cr.		20,000
	(Cash withdraw for personal use)
Aug.25	Insurance premium A/c		3,000
	Bank A/c			3,000
	(Insurance premium paid by cheque)
Aug. 26	Salaries a/c		17,500
	Cash A/c			17,500
	(Salaries paid in cash)
Aug.30	Furniture A/c		32,000
	Cash A/c			32,000
	(Furniture purchased)
Aug.31	Bank A/c	Dr.	2,00,000
	Bank Loan A/c	Cr.		2,00,000
	(Loan taken from bank)
	Grand Total		25,02,500	25,02,500