Question

Journalise the following transaction in the Books of the M/s Bhanu Traders and Post them into the Ledger.

December 2017		₹
1.	Started business with cash	92,000
2.	Deposited into bank	60,000
3.	Bought goods on credit from Himani	40,000
6.	Purchased goods from cash	20,000
8.	Returned goods to Himani	4,000
10.	Sold goods for cash	20,000
14.	Cheque given to Himani	36,000
17.	Goods sold to M/s Goyal Traders	3,50,000
19.	Drew cash from bank for personal use	2,000
21.	Goyal traders returned goods	3,500
22.	Cash deposited into bank	20,000
26.	Cheque received from Goyal Traders	31,500
28.	Goods given as charity	2,000
29.	Rent paid	3,000
30.	Salary paid	7,000
31.	Office machine purchased for cash	3,000

Answer 1

Books of M/s. Bhanu Traders Journal
Date	Particulars	L.F.	Debit  Amount Rs	Credit Amount Rs
2017
Dec.01	Cash A/c   ...Dr.		92,000	-
	To Capital A/c		-	92,000
	(Being started business with cash)
Dec.02	Bank A/c   ...Dr.		60,000	-
	To Cash A/c		-	60,000
	(Being cash deposited into bank)
Dec.04	Purchase A/c   ...Dr.		40,000	-
	To Himani		-	40,000
	(Being goods purchased from Himani)
Dec.06	Purchase A/c   ...Dr.		20,000	-
	To Cash A/c		-	20,000
	( Being goods purchased for cash)
Dec.08	Himani A/c   ...Dr.		4,000	-
	To Purchases Return A/c		-	4,000
	(Being goods returned to Himani)
Dec.10	Cash A/c   ...Dr.		20,000	-
	To Sales A/c		-	20,000
	(Being goods sold for cash)
Dec.14	Himani   ...Dr.		36,000	-
	To Bank A/c		-	36,000
	(Being cheque given to Himani)
Dec.17	M/s. Goyal Traders A/c   ...Dr.		3,50,000	-
	To Sales A/c		-	3,50,000
	(Goods sold to M/s. Goyal Traders)
Dec.19	Drawing A/c   ...Dr.		2,000	-
	To Bank A/c		-	2,000
	(Being cash withdrawn from bank for personal use)
Dec.21	Sales Return A/c   ...Dr.		3,500	-
	To M/s. Goyal Traders		-	3,500
	(Being goods returned by Goyal Traders)
Dec.22	Bank A/c   ...Dr.		20,000	-
	To Cash A/c		-	20,000
	(Cash deposited into bank)
Dec.26	Bank A/c   ...Dr.		31,500	-
	To M/s. Goyal Traders		-	31,500
	(Being cheques received from M/s. Goyal Traders)
Dec.28	Charity A/c   ...Dr.		2,000	-
	To Purchase A/c		-	2,000
	(Being goods given as charity)
Dec.29	Rent A/c   ...Dr.		3,000	-
	To Bank A/c		-	3,000
	(Rent paid) see note
Dec.30	Salaries A/c   ...Dr.		7,000	-
	To Cash A/c		-	7,000
	(Being Salary paid)
Dec.31	Office Machine A/c   ...Dr.		3,000	-
	To Cash A/c		-	3,000
	(Being office machinery purchased)
	Total		6,94,000	6,94,000

 

Dr.	Cash Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.01	To Capital A/c	92,000	Dec.02	By Bank A/c	60,000
Dec.10	To Sales A/c	20,000	Dec.06	By Purchase A/c	20,000
			Dec.22	By Bank A/c	20,000
			Dec.30	By Salary A/c	7,000
			Dec.31	By Machinery A/c	3,000
			Dec.31	Balance c/d	2,000
		1,12,000			1,12,000

 

Dr.	Capital Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
			Dec.01	By Cash A/c	92,000
Dec.31	Balance b/d	92,000
		92,000			92,000

 

Dr.	Bank Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.02	To Cash A/c	60,000	Dec.14	By Himani A/c	36,000
Dec.22	To Cash A/c	20,000	Dec.19	By Drawing A/c	2,000
Dec.26	To Goyal Traders A/c	31,500	Dec.29	By Rent A/c	3,000
			Dec.31	Balance c/d	70,500
		1,11500			1,11,500

Note: For transaction on December 29, 2017, it has been assumed that the rent of Rs. 3,000 is paid through cheque.

If instead the rent would have been paid in cash, the cash account would have shown a credit (negative) which cannot happen.

Dr.	Purchase Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.04	To Himani A/c	40,000	Dec.28	By Himani A/c	2,000
Dec.06	To Cash A/c	20,000
			Dec.31	Balance c/d	58,000
		60,000			60,000

 

Dr.	Himani's Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.08	To Purchases Return A/c	4,000	Dec.04	By Purchase A/c	40,000
Dec.14	To Bank A/c	36,000
		40,000			40,000

 

Dr.	Sales Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.31	To Trading A/c (b/f)	3,70,000	Dec.10	By Cash A/c	20,000
			Dec.17	By M/s Goyal Traders A/c	3,50,000
		3,70,000			3,70,000

 

Dr.	M/s. Goyal Traders Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.17	To Sales A/c	3,50,000	Dec.21	By Sales Return A/c	3,500
			Dec.26	By Bank A/c	31,500
			Dec.31	By Balance c/d	3,15,000
		3,50,000			3,50,000

 

Dr.	Purchases Return Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
			Dec.08	By Himani A/c	4,000
Dec.31	To Balance b/d	4,000
		4,000			4,000

 

Dr.	Drawing Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.19	To Bank A/c	2,000
			Dec.31	By Balance c/d	2,000
		2,000			2,000

 

Dr.	Sales Return Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.21	To M/s. Goyal Traders  A/c	3,500
			Dec.31	By Balance c/d	3,500
		3,500			3,500

 

Dr.	Charity Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec. 28	To Purchases A/c	2,000
			Dec. 31	By Balance c/d	2,000
		2,000			2,000

 

Dr.	Rent Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.29	To Cash A/c	3,000
			Dec.31	By Balance c/d	3,000
		3,000			3,000

 

Dr.	Salary Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.30	To Cash A/c	7,000
			Dec.31	By Balance c/d	7,000
		7,000			7,000

 

Dr.	Machinery Account				Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
Dec.31	To Cash A/c	3,000
			Dec.31	By Balance c/d	3,000
		3,000			3,000