Page 38 - DEBK-XI(2020)

Journal 8.7

2. Journalise the following transactions in the Journal of a firm:

(i) Car purchased for business use ` 10,000.
(ii) Cash received from a debtor ` 5,000 whose account was written off as bad
debts during the last month.

(iii) Goods costing ` 16,000 were sold at a profit of 20% on sale price to
Amrit and allowed 10% discount on immediate payment.
(iv) Cash embezzled by an employee ` 2,000.

(v) A machine which stood in the books for ` 85,000 on 1st April, 2019 was sold
for ` 51,000 in exchange for a new machine costing ` 1,76,000 supplied by
D.K. Suppliers on 1st June, 2019.
(vi) Cash of ` 24,000 invested in shares of SAIL and payment made
through bank.

(vii) Sold goods to Bhanu for ` 26,400 and freight ` 700 (to be charged from
customer).
(viii) Received an order for 100 Kgs of goods @ ` 450 per kg from Shiv Bros.

(ix) Bought from M/s. Kamath Bros. 200 cases of goods @ ` 350 per case less
Trade Discount of 10%. Purchase terms provide that 15% cash discount will
be allowed provided that payment is made within 15 days of purchase. 60%
of the invoice was paid immediately.

(x) Received interest from bank ` 2,500 on fixed deposits.
(xi) Income tax paid ` 5,000.

(xii) Goods (cost ` 3,000, sales price ` 4,000) taken away by the proprietor for his
personal use.
(xiii) Placed an order with Manoj for the supply of goods of the list price of
` 1,00,000. In this connection, issued a cheque of 10% of the list price as an
advance.

(xiv) Paid life insurance premium ` 3,500.
(xv) Paid rent of building ` 80,000 by cheque, half of the building is used by the
proprietor for residential use.

(xvi) Paid ` 9,000 to Mohan on his account for ` 10,000.
(xvii) Cheque of ` 20,000 received from Arun (Debtor) and endorsed to Ramesh
(Creditor) was dishonoured.
(xviii) Goods costing ` 10,000 destroyed in fire.