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

VSAT 2022

Class 11 Accountancy NCERT Solutions Chapter 4 Recording of Transactions 2

Accountancy Class 11 Chapter 4- Recording of Transactions 2 deals with preparation, posting and recording of business transactions in different accounts like cash book, a ledger account, journal accounting, etc. The recording is a major accounting element in Accountancy which helps maintain and store books with financial details. It's a sequence of steps, beginning with analyzing and classifying each transaction based on its nature and passing entries in a journal as and when transactions occur, followed by posting in particular ledger accounts. 

Vedantu’s NCERT Solutions for Class 11 Accountancy covers Chapter 4 Recording of transactions 2 comprehensively. It is designed for quick and convenient learning. You can easily download the Vedantu app or visit our website for NCERT Accountancy book Class 11 Solutions PDF.

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Access NCERT Solutions for Class 11 Accountancy Chapter 4 – Recording of transaction II part-1

Access NCERT Solutions for Class 11 Accountancy Chapter 4 – Recording of transaction II

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

Ans: The preparation of the journal entries when the journal entry is posted directly from the source documents to the cashbook. The cash book also has the bank column to balance out the cash column. This hence serves as the basis of the ledger account as well when the separate cash and bank accounts are no need to be maintained; hence the cash book is both a journal and a ledger in this manner.


2. What is the purpose of contra entry?

Ans: A contra entry is an entry during which the deposit made or cash is withdrawn happens in a simultaneous manner. made when the debit and credit of a transaction is bank and cash. i.e. When a deposit is formed or cash is withdrawn the entry is claimed to be contra entry. During a double column cash book, Contra entry is found on each side of the account with the letter “C” in the LF column. This suggests that the opposite account which is affected by this transaction is on the opposite side of the account. Also, Contra entry doesn't affect the record in any way because take advantage hand reduces and Cash at the bank increases or vice versa.


3. What are special purpose books?

Ans: The special purpose books are considered to be the sub-divisions of a Journal book. Any business undergoes a large number of transactions throughout the year. These transactions are repetitive in nature and that they occur.

frequently. The journal entry for every one of those transactions has got to be passed as and when these transactions occur. Hence the special purpose books like Purchase Books and Sales Books are prepared and maintained so as to record these transactions directly without making journal entries. These thus save the time and efforts of an entity to undergo entries for such repetitive transactions.


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

Ans: Every business has got to undergo petty expenses such postage, telephone, stationery etc. rather than making the journal entries for these petty transactions as they occur whenever, the petty cashbook is maintained by the entities which directly record such transactions. There are two sorts of petty cash books:

i. Original System: during this system, a specific amount of sum is given to the cashier so as to undergo such petty transactions. The cashier makes petty expenses out of this amount and records them as they're spent. After when the whole amount is spent, the report is handed over to the cashier for such expenses.

ii. Imprest System: during this system, a specific fixed amount of sum is provided to the petty cashier within the beginning of any accounting period. After the passage of a certain interval of your time, the petty cash book is checked and therefore the petty cashier is given the quantity spent to offer the petty cashier the fixed amount of sum during a necessitated manner. This fixed amount of sum is named Imprest cash. 


5. Explain the meaning of posting journal entries?

Ans: The transfer of the recorded transactions from the journal entries to the ledger is understood because of the posting of journal entries. The journal entries are made so as to record the massive number of transactions of the business at regular intervals. The posting process of the journal entries to the ledger accounts is mentioned because of the classifying phase of the accounting.


6. Define the purpose of maintaining a subsidiary journal.

Ans: The purpose of the subsidiary journal is to attenuate the burden and complexity of recording the voluminous transactions of routine nature once they are posted directly within the subsidiary books rather than making journal entries for an equivalent whenever within the books of accounts. Thus the transaction of the business like purchase and sales which occurs within the day to day are posted within the subsidiary books directly. This further allows the business to possess a fast look at such transactions and verify them as per the necessity of the business. The aim of maintaining the subsidiary books are as follows:

  • It gives the chance for the business to divide work between the workers of the organization who gain specialization in their own field.

  • This allows the business to save lots of their time and therefore the efforts when the entries are directly posted within the books of the accounts rather than making separate entries for an equivalent whenever as journal entries.   


7. Write the difference between return inwards and return outwards.

Ans: The difference between return inwards and return outwards are as follows:

Basis of

Difference

Return Inwards

Return Outwards

Definition

It is the return of the goods which come within the entity. For e.g., Goods sold to the customers returned to it.

It is the return of the goods during which the returned goods leave the entity. For e.g., Goods purchased are returned to the suppliers.

Document

This leads to the preparation of the Credit note by the seller.

This leads to the preparation of the Debit note by the buyer.

Effect

It reduces debtors in the balance sheet and the Sales in the trading

account.

It reduces the creditors in the balance sheet and the Purchases in the trading account.

Balance

The Return Inwards/Sales return shows a debit balance.

The Return Outward/ Purchase return shows a credit balance.


8. What do you understand by ledger folio?

Ans: The Ledger folio (L.F.) number is mentioned because the reference number denotes the pagination of the corresponding ledger account. This hence allows a private to see the first entry posted within the Ledger Account, allowing the due tracking and therefore the examination of the transaction. This reduces the complexity to travel through the massive number of the transactions within the day to day which is posted on the day to day basis so as to seem after the special transaction.


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

Ans: The difference between trade discount and cash discount are as follows:

Basis of

Difference

Trade Discount

Cash Discount

Timing


The trade discount is made at the time of making the trade i.e. at the time of sale or purchase.

The cash discount is made at the time of making the payment.

Purpose

The deduction is made so as to spice up sales.

The cash discount is made to encourage the early payment of

the dues.

Deduction

This marks the deduction from the price of products.

This doesn't lead to the deduction from the price listed.

Recording in

books

This type of discount is not made a neighbourhood of the books and is directly shown within the bill/invoice.

This type of discount is shown distinctively through the separate entry within the books. The entry thus made

debits the discount allowed and credits the discount received.


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

Ans: The process of preparing a ledger from a journal are:

  1. Recording the transactions because of the journal entries and identifying the debit and credit transactions from them.

  2. Preparing the ledger account in a systematic manner by keeping in mind the format of the ledger. The columns of the ledger thus must include the subsequent columns: Date, Particulars, JF and amount on each side of a sheet.

  3. The left side of the account is that the accounting and hence must comprise of the date and therefore the account to be debited within the particulars column. The Journal Folio number and therefore the Amount must be duly specified following this.

  4. The proper hand side of the account must encompass the credit entries and must contain the date and therefore the particular to say the account to be credited, alongside the quantity.


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

Ans: Imprest amount is that the fixed amount of sum which is given to the petty cashier to form petty expenses for the required period of your time. The petty cash book is checked at regular intervals and therefore the petty cashier is given the reimbursement to take care of the fixed amount or Imprest amount. This amount is provided within the beginning of the accounting period which is to be searched for the whole accounting year.


12. Explain the need for drawing up the special purpose books.

Ans: Following are the necessity for maintaining the special purpose books:

  1. The special-purpose books helps the business to determine the accountability within the organization because the individual delegated with the task of maintaining their respective special-purpose book has got to maintain his/her own book and hence is responsible for the factual correctness of the business.

  2. The upkeep of the special purpose books allows the organization to realize the advantage of quickly recording the transactions associated with the special purpose book within the books because the entries in them are made in a much easier manner.

  3. It helps in achieving the efficiency of the accountants once they gain specialization within the domain of their respective special-purpose book.

  4. It helps the business to realize simplification when the repetitive transactions like purchase and therefore the sales are directly posted within the special purpose books rather than making journal entries of them.

  5. The upkeep of the special purpose books further gives the advantage for the business to simply track the transactions once they don't need to examine the journal entries for the transactions of which the books are maintained.


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

Ans: Cash books are often mentioned as a special purpose book for maintaining the cash and therefore the bank transactions of the business where within the accounting it records the transactions. Within the accounting of the cash book, the transaction handling the deposit of the quantity within the bank and therefore the cash receipts are recorded and therefore the accounting records the payment made up of bank and cash by the business. It’s considered to be the book of original entries which directly posts the entries directly from the source documents. It's further also considered to be Ledger as one can directly with the cash and therefore the bank balances of the business at any given point of your time. The cash book is usually maintained on a monthly basis. There are four sorts of cash books

i. Simple Cash Book: this sort of money book records only the cash transactions incurred by the business where within the accounting receipts and within the accounting, the payments are recorded.

ii. Double Column Cash Book: this sort of money book records the cash and therefore the bank transaction made by the business. It thus has two columns on all sides of the cash book. These sorts of cash books record the contra entries during which both the cash and therefore the bank side is debited and credited.

iii. Triple Column Cash Book: this sort of money book records the discount allowed and received by the business and thus comprises the extra column for an equivalent.

iv. Fund Book: The fund Book is maintained for the aim of recording the petty expenses made by the business-like postage charges, telephone and stationery bills etc.


14. What is contra entry? How can you deal with this entry while preparing the double column cash book?

Ans: The Contra entry is made when the deposit or withdrawal made in the bank through the cash happens in a simultaneous manner. Thus the effect of the contra entry happens on both sides of the cash book – debit and credit. It is denoted by the letter “C” in the Ledger Folio column. It is important to note that the contra entries do not affect the balance of the balance sheet because as with the loss in Cash in Hand there is a rise in the balance of the bank and vice versa.

The following is an example when cash is withdrawn from Bank:

Cash A/c Dr           XXX

To Bank A/c           XXX

(Being Cash withdrawn)

This entry is illustrated in the cash book below:

Dr Cash Book Cr

Date

Particulars

L.F

Cash

Bank

Date

Particulars

L.F

Cash

Bank

01.01.17

Bank

C

XXX


01.01.

17

Cash

C


XXX












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

Ans: The fund book is the cash book that records the petty expenses made by the business-like postage charges, stationery, electricity bill etc. The one that handles and maintains the fund book is named petty cashier.

The Fund Book is Maintained in Two Ways.

i. Original System: Under this technique, a specific amount of sum is given to the cashier who spends it on the petty expenses and records an equivalent within the petty cash book. The petty cashier reports the small print of an equivalent when the quantity held by him/her is spent.

ii. Imprest System: Under this technique, the petty cashier is given the actual fixed amount of sum at the start of every accounting period of which he/she is required to form expenses. After every certain duration of your time, the fund book is checked and therefore the amount spent on the petty expenses is given such that the fixed balance of the determined cash for the petty expenses is held by the petty cashier. This fixed amount of sum is mentioned as Imprest cash. 


The Advantages of Maintaining a Fund Book are as Follows:

  1. There are petty expenses that the business incurs and thus the upkeep of the fund book makes it simpler and easier for recording the transactions instead of making journal entries for an equivalent.

  2. The petty expenses are often controlled by the business by handing the determined amount of the petty expense amount to the person who has the responsibility to spend it judiciously and further report the expense to the cashier.

  3. The fund book helps the business to realize the division of the work when the responsibility of maintaining the accounts is with the petty cashier only.

  4. This thus allows the chief cashier to make sure the effectiveness of the method of recording of the transactions of the petty nature.


16. Describe the advantages of sub-dividing the Journal.

Ans: The advantages of subdividing the journal are as follows:

  1. The subdivision of the journal makes it liable for the business to delegate the responsibility upon individuals to handle the responsibility of their respective books of accounts. This hence makes them accountable to make sure the correctness and therefore the accuracy of their respective book. It thus acts as a check on the fraudulent participation of the workers of the organization.

  2. The subdivision of the journal creates the division of labour when the roles and therefore the responsibilities are delegated upon the individuals within the organization to maintain their respective book. This thus reduces the complexity of the task of maintaining accounts.

  3. The creation of the separate books for the separate sorts of transactions save time for the business when such transactions are often directly recorded within the books rather than making the journal entries for an equivalent.

  4. The subdivision of the journal entries allows the corporate to realize the efficient results when everyone conferred the responsibility of maintaining their books make them efficient in their task and thus they gain expertise.

  5. The recording of the separate transactions within the separate books makes it easier for the business to trace the transactions of the separate nature directly by browsing their books. For instance, so as to work out the credit purchase made by the organization on any date can be directly looked through by browsing the acquisition books rather than looking at the journal entries containing voluminous transactions.


17. What do you understand by the balancing of accounts?

Ans: The balancing of the account means making the quantities accounting adequate to the amount within the accounting. this is often done on regular basis from time to time by the business. The following is that the steps in balancing of account:

  • Step 1: Total the debit and therefore the accounting of the account and determine which amount is higher by tallying both of them.

  • Step2: the entire of the sides comprising the upper amount either on the credit or on the accounting of the account has got to be written because of the grand total amount.

  • Step 3: Determine the difference of the quantity of the lower side with the grand total to work out the balancing figure. The balancing figure has got to be written as Balance c/d.

  • Step 4: the quantity of the balance c/d are going to be posted within the side whichever sides feature a lower total

  • Step 5: This amount of Balance c/d has got to be brought down within the subsequent accounting period and treated as Balance b/d


18. Enter the following transactions in a simple cash book for December 2014:

01 Cash in hand                                                           12000

05 Cash received from Bhanu                                    4000

07 Rent paid                                                                  2000

10 Purchased goods from Murari for cash               6000

15 Sold goods for cash                                                  9000

18 Purchase stationery                                                   300

22 Cash paid to Rahul on account                               2000

28 Paid salary                                                                  1000

30 Paid rent                                                                      500

Ans:

                                                                  Cashbook

   Dr                                                                                                                               Cr

Date

Particulars

LF

Amount(Rs)

Date

Particulars

LF

Amount(Rs)

01.12.16


05.12.16


15.12.16












To Balance

b/d
To Bhanu A/c


To Sales A/c

















12000


4000


9000










07.12.16


10.12.16


18.12.16



22.12.16


28.12.16


30.12.16


31.12.16


Rent A/c


Purchase A/c


Stationery Expenses A/c


Rahul A/c


Salary A/c


Rent A/c


 Balance A/c









2000


6000


300



2000

1000


500


13200


25000

25000




19. Record the following transaction in a simple cash book for

November 2016:

                                                                    Rs

01 Cash in hand                                     12500

04 Cash paid to Hari                               600

07 Purchased goods                               800

12 Cash received from Amit                 1960

16 Sold goods for cash                           800

20 Paid to Manish                                   590

25 Paid cartage                                        100

31 Paid salary                                           1000

Ans:

                                                              Cashbook

Dr                                                                                                                                 Cr

Date

Particulas

L

F

Amount

(Rs)

Date

Particulars

L

F

Amount

(Rs)

01.11.16 


12.11.16


16.11.16









To Balance

b/d

To Amit

A/c

To Sales

A/c









12500


1960


800







04.11.16


07.11.16


20.11.16


25.11.16


30.11.16


30.11.16



Hari A/c


Purchases A/c


Manish A/c


Cartage A/c


Salary A/c


Balance c/d




600


800


590


100


1000


12170

15260

15260




20. Enter the following transaction in the Simple cash book for December 2017:

                                                                 Rs.

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 S.Kumar                             1,200

30 Paid rent                                            600

Ans:

Cashbook

   Dr                                                                                                                                             Cr

Date

Particulars

L

F

Amount

(Rs)

Date

Particulars

L

F

Amount

(Rs)

01.12.17


15.12.17


20.12.17








To Balance b/d

To Prakash A/c

To Sales A/c









7750


960


500






06.12.17


08.12.17


25.12.17


30.12.17


30.12.17




By Sonu A/c


By Purchases A/c

By S.Kumar A/c  


By Rent A/c


By Balance c/d





45


600



1200


600


6765

9210

9210




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

2016:

                                                                         Rs.

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

Ans:

Cashbook

Dr                                                                                                                                        Cr

Date

Particulars

L

F

Cash

(Rs)

Bank

(Rs)

Date

Particulars

L

F

Cash

(Rs)

Bank

(Rs)

01.12.16


04.12.16

10.12.16


30.12.16












To Capital A/c

To Cash

To Rahul A/c

To Bank











C

80000


   

1000

   
2000












50000













04.12.16

15.12.16



22.12.16



25.12.16


30.12.16

31.12.16


31.12.16





By Bank

By Purchases A/c

By Purchases A/c

By Shyam A/c

By Cash

By Rent A/c

By Balance c/d (B/f)




50000

  8000




 

2000




  

5000





10000




 
  2000

   1000


37000

83000

50000

83000

50000






22. Prepare a double column cash book with the help of the following information

for December 2016:


                                                                                                  Rs.

01 Started business with cash                                         1,20,000

03 Cash paid into bank                                                         50,000

05 Purchased goods from Sushmita                                  20,000

06 Sold goods to Dinker and received a cheque             20,000

10 Paid to Sushmita cash                                                     20,000

14 Cheque received on December 06. 2016 deposited into

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

Ans:

Cashbook

Dr                                                                                                                   Cr

Date

Particu

lars

L

F

Cas

h

(Rs)

Ban

k

(Rs)

Date

Particu

lars

L

F

Cas

h

(Rs)

Ban

k

(Rs)

01.12.16


03.12.16

06.12.16


14.12.16

22.12.16


27.12.16







To Capital

A/c

To Cash

To Dinker A/c

To Cash

To Rani A/c

To Commission A/c






120000



20000



12000


5000







50000



20000








3.12.16

10.12.16


14.12.16

20.12.16


30.12.16




31.12.16





By Bank

By Sushmita A/c

By Bank

By Cartage A/c

By Drawings A/c

By Balance c/d





50000

20000


20000

500



2000



64500













70000



157000

70000

157000

70000






23. Enter the following transactions in the double column cash book of M/s Ambica

Traders for July 2017:

                                                                                               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 the bank

22 Paid cartage by cheque                                                500

25 Cash withdrawn for personal use                             2,000

30 Paid rent by cheque                                                     1,000

Ans:

Cashbook

Dr                                                                                                                                      Cr

Date

Particulars

L F

Cash (Rs)

Bank (Rs)

Date

Particulars

L F

Cash (Rs)

Bank (Rs)

01.07.17


03.07.17

15.07.17

18.07.17

20.07.17










Capital A/c

Cash

Rohan A/c

Sales A/c

Cash













C












50000


7000

8000











30000



7000









03.07.17

05.07.17


10.07.17


20.07.17

22.07.17


25.07.17


30.07.17

31.07.17




Bank

Purchases A/c

Machinery A/c

Bank

Cartage A/c

Drawings A/c

Rent

Balance c/d




30000

10000


5000


7000



2000



11000








500




1000

35500


65000

37000

65000

37000






24. Prepare double column cash book from the following

information for

July 2017:

                                                                               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 the bank for personal use                 400

30 Salary paid                                                               1,000


Cashbook

  Dr                                                                                                            Cr                           

Date

Particulars

L F

Cash (Rs)

Bank (Rs)

Date

Particulars

L F

Cash (Rs)

Bank (Rs)

01.0 7.17

05.0 7.17

10.0 7.17



31.0 7.17







Balance b/d

Sales A/c

Cash





Balance c/d








7500 

7000














4000








1900



01.07.17


03.0 7.17


10.0 7.17



15.0 7.17

20.0 7.17


25.0 7.17

31.0 7.17





Balance b/d

Wages A/c

Bank

Purchase A/c

Rent A/c

Drawings A/c

Salary A/c

Balance c/d







200


4000



500



1000


8800

3500





2000



400

14500

5900

14500

5900






25. Enter the following transaction in a double column cash

book of M/s.Mohit

Traders for January 2017:

                                                                                                              Rs.

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 a cheque which was deposited into             2,000

bank same day

25 Paid rent by cheque                                                                1,200

28 Drew from the bank for personal use                                 1,000

31 Bought goods by cheque                                                        1,000

Books of M/s.Mohit Traders

Cashbook

Dr                                                                                                              Cr              

Date

Particulars

L F

Cash (Rs)

Bank (Rs)

Date

Particulars

L F

Cash (Rs)

Bank (Rs)

01.01.17


10.01.17

15.01.17

22.01.17











Balance b/d

Sales A/c

Cash

Sales A/c












3500

800














6000

2000










01.01.17


03.01.17


05.01.17

15.01.17

25.01.17

28.01.17


31.01.17


31.01.17




Balance b/d Purchases A/c

Wages A/c

Bank

Rent A/c

Drawings A/c

Purchases A/c

Balance c/d






1200


200

6000






4100


2300






1200

1000


1000


2500

11500

8000

11500

8000






26. Prepare double column cash book from the following

transactions for the year August 2017:

                                                                                         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 the 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

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
Ans:

Cashbook

Dr                                                                                                                Cr

Date

Particulars

L F

Cash (Rs)

Bank (Rs)

Date

Particulars

L F

Cash (Rs)

Bank (Rs)

01.08.17

05.08.17

08.08.17

10.08.17

18.08.17 20.08.17

27.08.17













Balance b/d


Jasmeet A/c

Sales A/c


Cash


Sales A/c


Cash


Commission A/c















17500

10000

7000




7000
















5000



10000





10000

6000












03.08.17


10.08.17

12.08.17


15.08.17


20.08.17

24.08.17


29.08.17

30.08.17

31.08.17

31.08.17




Purchases A/c


Bank


Purchases A/c


Establishment


Expenses

Bank

Trade expenses A/c


Rent A/c


Drawing s A/c

Salary A/c


Balance c/d






3000



10000






10000


500


2000




6000


10000






2000



1000










1200




8800


41500

31000

41500

31000





                                                                                                                       

27. M/s Ruchi traders started their cash book with the

following balances on

July 2017: cash in hand Rs. 1,354 and balance in the bank

current account

Rs.7,560. He had the following transaction in the month of

July 2017:                                                                          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 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

Ans:

Books of M/s.Ruchi Traders

Cashbook

Dr                                                                                                              Cr 

Date

Particulars

L F

Cash (Rs)

Ban k (Rs)

Date

Particulars

L F

Cash (Rs)

Ban k (Rs)

01.07.17


03.07.17

08.07.17

15.07.17

20.07.17


22.0 7.17











Balance b/d

Sales A/c

Sales A/c

Sales A/c

Manis ha A/c

Sales A/c












1354

2300

10000

7560



20000


10000

7000








05.0 7.17

12.0 7.17

18.0 7.17

25.0 7.17

28.0 7.17

29.0 7.17

31.0 7.17

31.0 7.17



Purchases A/c

Trade 

expense

Motor

Car A/c

Manisha A/c

Rent A/c


Telephone

Expenses

Drawings A/c

Balance c/d






700






2000







10954

6000




15000


10000




500



2000


11060

13654

44560

13654

44560






28. Prepare petty cash book from the following transactions.

The Imprest amount

is Rs.2.000.

2017

                                                                          Rs.

January

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

18 Statloneiy                                                      65

20 Bus fares                                                       10

22 Fax charges                                                   30

25 Telegrams charges                                       35

127 Postage stamps                                         200

29 Repair on furniture                                      105

30 Laundry expenses                                       115

31 Miscellaneous expenses                             100

Ans:

Petty cash book

Amount Received

Date

Particulars

Voucher  No

Amount  Paid

Analysis of payments

Remars

  













Postage

Tele phon e & Tele gram

Conveyance

Stati oner y

Misc


2000


















































01.01.17


01.01.17

02.01.17


02.01.17

03.01.17

04.01.17


06.01.17

08.01.17

10.01.17 

15.01.17

18.01.17 

20.01.17

22.01.17

25.01.17

27.01.17

29.01.17

30.01.17


31.01.17



31.01.17



01.02.17

01.02.17





Cash received


Cartage


STD Charges


Bus Fare


Postage


Refreshment courier

Charges


Refreshments 

Cartage


Taxi Fare


Stationery

Bus Fare


Fax charges

Telegram charges

Postage

Stamps

Repairs


Laundry Expenses

Misc. Expenses




Balance c/d



Balance b/d

Cash received









50


40



20


30



80



30


50

35


70


65


10


30


35


200


105











30






30















200







40






















30


35






50





20










50

35


70


65


10

















80




















105


115



100









115



100

1065


935







260

105

185

65

450

















2000

2000


935

1065





29. Record the following transactions during the week ending

Dec.30, 2014, with a weekly imprest Rs.500

2017                                                Rs.

January

24 Stationery                                 100

25 Bus fare                                      12

25 Cartage                                       40

26 Taxi fare                                      80

27 Wages to casual labour             90

29 Postage                                       80

Ans:

Petty cash book

Amount received

Date

Particulars

Voucher no

Amount paid

Analysis of payments

Remarks




500
















24.12.17

24.12.17

25.12.17

26.12.17

26.12.17

27.12.17



29.12.17


30.12.17



01.01.18

01.01.18




Balance b/d


Stationery Expenses

Bus Fare


Cartage


Taxi Fare


Wages to casual labour 


Postage



Balance c/d




Balance b/d


Cash received











100


12


40


80



90



80

Stationery

Conveyance

Postage

Misc





100






12


40


80
















80













90

402


  98


100

132

80

90














500

500

 

98

 

402







 

30. Enter the following transaction in a double column cash

book of M/s Mohit Traders for January 2017:

                                                                                       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 a cheque which was deposited into

bank same day

                                                                                       2,000

25 Paid rent by cheque                                                   1,200

28 Drew from the bank for personal use                               1,000

31 Bought goods by cheque                                           1,000 

Ans:


Books of M/s Gupta Traders 

Purchases Book

Date

Invoice No.

Name of the supplier (Account to be credited)

L.F

Details

Amount(Rs)


01.07.17











15.07.17












25.07.17

















20041











1132













1111



















Rahul Traders 40 Registers @ Rs.60 each

80 Gel Pens @ Rs.15 each  

50 notebooks @Rs.20 each



Less: Trade Discount @ 10%


Global Stationers 40 Ink Pads @ RS.8 each

50 Files @ Rs.10 each

20 Colour book @ Rs.20each



Less: Trade Discount @ 5%



Mumbai Traders 10 paper rim @ Rs.100 per rim

400 drawing sheets @ Rs.3 each

20 Packets water colours @

Rs.40 per pocket

Purchases Account
















2400


1200


1000









4140

















1159















3000

4600


460









320

500


400

1220


   

  61






1000


1200


800


3000





8299



Note: Purchase book contains details about only credit purchases. Cash purchases will be recorded in cash book. Also, only trading goods will be booked. Purchase of Assets will not a form part of the purchase book. Here Furniture (asset) purchase is hence not recorded in Purchases book.


31. Enter the following transactions in sales (journal) book of M/s. Bansal electronics: 2014 September 01 Sold to Amit Traders as per bill no. 4321 20 Packet 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. @ 3000 per T.V.  2 T.V. sets (21”) Colour @Rs. 4800 per T.V. 

22  Sold to Handa Electronics as per bill no. 4399 10 tape recorders @ Rs. 600 each 5 Walkman @ Rs. 300 each 28 Sold to Harish Traders as per bill no. 4430 10 mixer juicer grinder @Rs. 800 each.

Ans:


Books of M/s. Bansal electronics

Sales Book

Date

Invoice No

Name of the Customer (Account to be debited) (Rs)

L F

Details

Amount No

01.09.14






10.09.14







22.09.1 4





28.09.1 4 








4321






4351







4399






4430







Amit Traders 20 pocket radio @ Rs.70 per radio 

 2 T.V set-B&W-6" @ Rs.800 per TV 


Arun Electronics 

5 T.V sets-B&W-20" @ Rs.3000 per TV 

 2 T.V sets-Colour-21" @ Rs.4800 per TV 


Handa Electronics 10tape recorders @ RS.600 each 

5 walkman @ Rs.300 each 


Harish Trader 10 mixer juicer grinder @ Rs.800 each 



Sales Account





1400


1600




15000


9600





6000


1500 



8000





3000






24600







7500



8000




43100



32. Prepare a purchases return (journal) book from the

following transaction for April 2017.

2017

April Rs.

05   Returned goods to M/s Kartik Traders                     1200

10   Goods returned to Sahil Pvt. Ltd. 2500

17   Goods returned to M/s Kohinoor Traders for

       list price Rs. 2000 less 10% trade discount.

28   Return outwards to M/s Handa Traders 550

       (Ans. Total of purchases returns book Rs. 6150)

Ans:


Purchase Returns Book

Date

Debit Note No.

Name of the Supplier (Account to be debited) 

L F

Details

Amount (Rs)

05.04.17



10.04.1 7  


17.04.1 7



28.04.1





M/S Karthik traders 


Sahil Pvt Ltd 


 Kohinoor Traders List Price 

Less:   Trade Discount @ 10% 


Handa Traders 



Purchases Returns Account 






2000


200

1200


2500





1800



550




6050



33. Prepare Return Inward Journal (Book) from the following

transactions of M/s Bansal Electronics for July 2017:

2017 Rs.

July

04 M/s Gupta Traders returned the goods 1500

10 Goods returned from M/s Harish Traders 800

18 M/s Rahul Traders returned the goods, not as per

specifications 1200

28 Goods returned from Sushil Traders 1000 

Ans:


Books of M/s. Bansal electronics

Sales Return Book

Date

Credit Note No.

Name of the Customer(Account to be credited) (Rs)

L F

Details

Amount 

(Rs)

04.07.17

10.07.17

18.07.17

28.07.17





M/S.Gupta Traders 

M/s.Harish Traders 

Rahul Traders 

Sushil Traders 


Sales return account 4500



1500

800

1200

1000


4500



34. Prepare proper subsidiary books and post them to the

ledger form the following transactions for the month of

February 2017:

2017                                                                   Rs.

February

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.             5,700

for a list price of

less 10% trade discount

25 Sold to Shri Chand goods                           6600

less 5% trade discount

26 Sold to Rarnesh Brothers                           4,000

28 Return outwards to Kirit and Co.                1,000 

less 10% trade discount

28 Ramesh Brothers returned goods Rs.         500

Ans:

Journal

Purchases Book

Date

Name of Supplier (Accounts to be credited) 

Invoice No.

L.F

Amount (Rs)

2017

Feb.04

Feb.14

Feb.17

Feb.24






Kushal Traders 

Kunal Traders  

Naresh 

Kirit and Co. 

Less: Trade Discount 10% 





2,480

5,200

4,060


5,130

Purchase account




16,870


Sales Book

Date

Name of Supplier (Accounts to be debited)

Invoice No.

L.F

Amount (Rs)

2017 Feb. 01

Feb.06

Feb.10

Feb.25

Feb.26






Sachin 

Manish Traders 

Mukesh 

Shri Chand

Less: 5% Trade Discount


Ramesh Brothers 




5,000

2,100

3,300

6,270



4,000

Sales account



20,670


Sales Return Book

Date 

Name of Customer (Accounts to be credited) 

Credit Note

L.F

Amount(Rs)

2017 Feb.07

Feb.2

Feb.28 


 

Sachin  

Mukesh 

Ramesh Brothers  




600

250

500

Sales Return Account 



1,350


Purchases Return Book

Date

Name of Customer (Accounts to be debited)

Debit Note

L.F

Amount(Rs)

2017 Feb.08

Feb.20

Feb.28





 Kushal Traders  

 Kunal Traders  

 Kirit and Co.

 Less: 10% Trade Discount 





280

200


900


Purchases Return A/c 



1,380


Journal Proper


Date

              Particulars

L.F

Debit Amount (Rs) 

Credit Amount (Rs)

2017 Feb.15




Furniture A/c Dr. 

To Tarun 

(Furniture purchased from Tarun)


3,200




             

3,200





Ledger

Purchases Account

Dr                                                                                                         Cr

Date

Particular

J.F

Amount(Rs)

Date

Particular

J.F

Amount

(Rs)

2017 Feb.28





Sundries as per Purchases Book 





16,870




2017 


Feb.28



Balance c/d








16,870


16,80

16,870




    

Sales Account 

Dr                                                                                                                Cr

Date 

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2017 



Feb.28



 



Balance c/d 







20,670


2017 Feb.28






Sundries as per Sales Book







20,670



20,670

20,670




                                                                                                                                       

Sales Return Account

     Dr                                                                                                    Cr                                

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

2017 Feb.28




Sundries as per Sales Return Book






1,350



2017

 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

2017 




Feb.28



 




Balance c/d








1,380

2017 Feb.28







Sundries as per Purchases Return Book






1,380




1,380

1,380




Sachin’s Account

Dr                                                                                                                Cr                                                   

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2017 



Feb.01




Sales 





5,000

2017 Feb.07

Feb.28


Sales Return Balance c/d 



600

4,400



5,000

5,000




Kushal Traders’ Account 

Dr                                                                                                                Cr

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2017 Feb.08

Feb.28






Purchases Return 

Balance c/d 







280

2,200


2017

Feb.04







Purchases 








2,480




2,480

2,480




Manish Traders’ Account

Dr                                                                                                                Cr                               

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2017 Feb.06






Sales 







2,100



2017


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)

2017 Feb.10







Sales








3,300

2017

Feb.22

Feb.28






Sales Return Balance c/d 





    

   250

3,050


3,300

3,300




Kunal Traders’ Account

Dr                                                                                                                Cr

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2017

Feb.20


Feb.28





Purchase Return 

Balance c/d



 




5,200

5,000


2017

Feb.14







Purchases 








5,200




5,200

5,200




Furniture Account 

Dr                                                                                                                Cr

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2017 Feb.15




 

Tarun






3,200

2017


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)

2017 


Feb.28



Balance c/d




3,200


2017 Feb.15


 Furniture 



3,200

3,200

3,200




Naresh’s Account 

Dr                                                                                                                Cr

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2017 Feb.28






Purchases 







4,060

2017 


Feb.17






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)

2017 Feb.28


Feb.28




Purchases Return 

 Balance c/d 






900

4230

2017

Feb.24


Purchases 







5,130

5,130

5,130




Shri Chand & Co. Account

Dr                                                                                                                Cr

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2017 

Feb.25




Sales






6,270



2017 


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)

2017 Feb.26






Sales 







4,000



2017 Feb.28


Feb.28



Sales Return  Balance c/d







500

3500

4,000

4,000




34. The following balances of ledger of M/s Marble Traders

on April 01. 2017the 

2017                                                                               Rs.

April 

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 Rarnesh 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 Kirti                                                         6,000

Goods purchased from Handa Traders                              5,000

Journalise the above transactions and post them to the

Ans:

ledger.
Journal Entries in the books of Marble Traders

Date

    Particulars 

LF

Debit (Rs)

Credit (Rs)  


01.04.17





02.04.17





03.04.17






05.04.17





06.04.17






08.04.17




10.04.17




12.04.17




14.04.17







15.04.17







18.04.17




20.04.17





21.04.17





22.04.17





24.04.17




26.04.17





27.04.17





28.04.17




29.04.17





30.04.17




30.04.17


Manish A/c Dr To Sales A/c  (Being goods sold accounted) 


Purchases A/c Dr To Ramesh A/c (Being Purchases in credit)


Cash A/c  Dr Discount allowed A/c To Rahul A/c 

(Being full settlement received from Rahul)


Cash A/c DrTo Himanshu A/c (Being amount received on account)

Ramesh A/c  Dr Advances A/c Dr To Bank A/c 

(Being cheque issued to Ramesh)  


Rent A/c Dr To Bank A/c  (Being Rent paid)  


Cash A/c Dr To Manish A/c  (Being cash received) 


Cash A/c Dr To Sales A/c  (Being Sales accounted)


 Ramesh A/c Dr To Purchases  Returns A/c 

 (Being goods returned accounted)



Ramesh A/c  Dr To Cash A/c  To Discount received A/c  (Being Cash paid and discount received accounted)


 Kushal A/c Dr To Sales A/c  (Being Sales accounted)


Trade expense A/c Dr  To Cash A/c  (Being Trade expense paid) 


Drawings A/c Dr To Bank A/c  

(Being cash drawn for personal use) 


Sales returns A/c Dr  To Kushal A/c  (Being goods returned accounted) 


Cash A/c Dr  To Kushal A/c (Being Cash received)


Stationery expense A/c  Dr To Cash A/c  (Being stationery bought)


Postage A/c Dr To Cash A/c (Being Postage expenses accounted)  


Salary A/c  Dr To Cash A/c  (Being Salary paid)


Purchases A/c  Dr To Sheetal traders A/c (Being Purchases in credit)


 Kirit A/c Dr  To Sales A/c (Being Sales accounted)


 Purchases A/c Dr To Handa Traders A/c 

(Being Purchases in credit)




3000




8000



9200

500





4000




3000

3000




1200




3000




6000




1000





4000






10000




200




1000




1200




6000




100




60




2500




7000




6000




5000





7000





6000




5000



3000




8000




9700





4000





6000




1200




3000




6000




1000





3700

  300





10000




200




1000




1200




6000




100




60




2500




7000




6000




5000





7000





6000




5000


Ledger Accounts

Cash A/c 

       Dr                                                                                                        Cr

Date

Particulars 

LF

Amount

(Rs)

Date

Particulars

LF

Amount

(Rs)

01.04.17



03.04.17


05.04.17



24.04.17













To Balance B/d

To  Rahul  A/c

To Himanshu A/c

To Kushal A/c














6000



9200



4000


6000











15.04.17



20.04.17



21.04.17




26.04.17


27.04.17


28.04.17

30.04.17






By Ramesh A/c


By Trade expense A/c


By Drawings A/c 


By Stationery


 By Postage


 By Salary 

By Balance c/d 






3700



200



1000




100


60


2500

17640




25200

25200




Bank A/c

     Dr                                                                                                       Cr

Date

Particulars

LF

Amount(Rs)

Date

Particulars

LF

Amount(Rs)

01.04.17


10.04.17


12.04.17



To Balance B/d

To Manish A/c

To Sales A/c




12000


3000


6000








06.04.17



08.04.17


30.04.17




By Ramesh A/c

By Rent A/c

By Balance c/d




6000



1200



13800

21000

21000




Bills receivable A/c

 Dr                                                                                                               Cr

Date

Particulars

LF

Amount(Rs)


Date

Particulars

LF

Amount(Rs)


01.04.17

To Balance B/d


7000


30.04.17

By Balance c/d


7000

7000

7000





Ramesh A/c

Dr                                                                                                              Cr

Date

Particulars

LF

Amount(Rs)

Date

Particulars

LF

Amount(Rs)

06.04.17


14.04.17




15.04.17

To Bank   A/c

To Purchase returns A/c

To Cash A/c To discount received A/c


6000


1000




3700



300



01.04.17


02.04.17

By Balance b/d

By Purchases A/c


3000


8000

11000

11000




Bills Payable A/c 

 Dr                                                                                                               Cr

Date

Particulars

LF

Amount(Rs)

Date

Particulars

LF

Amount(Rs)

30.04.17

To balance c/d


2000



01.04. 17

By Balance  b/d 


2000

2000

2000




Stock A/c  

Dr                                                                                                               Cr

Date

Particulars

LF

Amount(Rs)

Date

Particulars

LF

Amount(Rs)

01.04.17

To Balance B/d 


5400



30.04. 17

By Balance c/d


5400

5400

5400




Rahul A/c  

Dr                                                                                                               Cr

Date

Particulars

LF

Amount(Rs)

Date

Particulars

LF

Amount(Rs)

01.04 .17






To Balance B/d








9700






03.04 .17

By Cash A/c 

By discount allowed A/c





 



9200

  500





9700

9700




Himanshu A/c 

 Dr                                                                                                              Cr

Date

Particulars

LF

Amount(Rs)

Date

Particulars

LF

Amount(Rs)

01.04.17






To Balance B/d








10000




30.04.17






By Cash A/c  By Balance c/d 





4000

6000



10000

10000




Manish A/c 

Dr                                                                                                    Cr

Date

Particulars

LF

Amount(Rs)


Date

Particulars

LF

Amount(Rs)


01.04. 17

To Sales A/c 


3000

10.04. 17

By Cash A/c 


3000

3000

3000




Sales A/c

Dr                                                                                         Cr

Date

Particulars

LF

Amount(Rs)

Date

Particulars

LF

Amount(Rs)







30.04.17









To Balance










25000

01.04.17


12.04.17


18.04.17


30.04.17

By Manish A/c 

By Cash A/c 

By Kushal A/c 

By Kirit A/c 



3000


6000


10000

6000





25000

25000




Discount Allowed A/c

 Dr                                                                                                               Cr

Date

Particulars

LF

Amount(Rs)


Date

Particulars

LF

Amount(Rs)


03.04.17



To Rahul A/c






500


30.04.17



By Balance c/d






500



500

500




Rent A/c

  Dr                                                                                                            Cr

Date

Particulars

LF

Amount(Rs)

Date

Particulars

LF

Amount(Rs)

08.04.17

To Bank A/c  


1200

30.04. 17