Page 51 - DEBK-XI(2020)

9.2 Double Entry Book Keeping — CBSE XI

Solved Questions
1. From the following transactions of M/s. Wise & Active, write up the Journal in
proper form, post the Ledger and prepare a Trial Balance:
2020 `
Jan. 1 Assets: Cash in Hand ` 200; Cash at Bank ` 6,800; Stocks of Goods ` 4,000;
Machinery ` 10,000; Furniture ` 1,000; M/s. Narain Bros. owe ` 1,500;
M/s. B.K. Bros. owe ` 2,500. Liabilities: Bank Loan ` 5,000; sum owing to Jacob Bros. Ltd., ` 2,000
Jan. 2 Bought goods on credit from Samuel & Co. 1,000
Jan. 3 Sold goods for cash to Dhiraj & Co. 400
Jan. 4 Sold goods to Narain Bros. on credit 1,000
Jan. 5 Received from Narain Bros. in full settlement of amount due on January 1 1,450
Jan. 6 Payment made to Jacob Bros. Ltd. by cheque; 975
they allowed discount 25
Jan. 9 Old furniture sold for cash 100
Jan. 10 Bought goods for cash 750
Jan. 11 B.K. Bros. paid by cheque; cheque deposited in the bank 2,500
Paid for repairs of machinery 100
Jan. 13 Bought goods from Jacob Bros. Ltd. 1,000
Paid cartage on these goods 50
Jan. 16 Received cheque from Narain Bros. and the cheque deposited in bank 950
Discount allowed to them 50
Jan. 17 Paid cheque to Jacob Bros. Ltd. 1,000
Jan. 18 Bank intimates that cheque of Narain Bros. has been returned unpaid
Jan. 19 Sold goods for cash to Kay Bros. 600
Jan. 21 Cash deposited in bank 500
Jan. 24 Paid Municipal Taxes in cash 100
Jan. 25 Borrowed from Urania Ltd. for erecting own premises. Money
deposited with bank for the time being 10,000
Jan. 27 Old newspapers sold 20
Jan. 28 Paid for advertisements 100
Jan. 31 Paid rent by cheque 150
Jan. 31 Paid salaries for the month 300
Jan. 31 Drew out of bank for personal use 250
Jan. 31 Narain Bros. becomes insolvent, a dividend of 50 paise in the rupee is received
Jan. 31 An old amount written off as bad debt during last year is recovered 150
Solution: In the Books of M/s. Wise & Active
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2020
Jan. 1 Cash A/c ...Dr. 2 200
Bank A/c ...Dr. 3 6,800
Stock A/c ...Dr. 4 4,000
Machinery A/c ...Dr. 5 10,000
Furniture A/c ...Dr. 6 1,000
Narain Bros. ...Dr. 7 1,500
B.K. Bros. ...Dr. 8 2,500
To Bank Loan A/c 9 5,000
To Jacob Bros. Ltd. 10 2,000
To Capital A/c 1 19,000
(Being the assets and liabilities brought forward from last year, capital found
by deducting liabilities from assets, i.e., ` 19,000 = ` 26,000 – ` 7,000)
Jan. 2 Purchases A/c ...Dr. 4 1,000
To Samuel & Co. 11 1,000
(Being the goods purchased from Samuel & Co. as per their bill No. .... dated....)
Total c/f 27,000 27,000