Practical Problem 04

Q.4 Journalise the following transactions and prepare Cash A/c only.  
1Hardik started business with Cash Rs 15,000 and Machinery Rs 20,000
4 Purchased goods for Rs 9,000 less 10% Cash Discount.
4Purchased goods for Rs 9,000 less 10% Cash Discount.
9Sold goods to Amar Rs 3,000
12Distributed goods worth Rs 700 as free samples.
14Bought Stationery for Rs 550 for office use.
18Received Rs 950 from Dhanashree, a customer, whose account was earlier written off as a bad debts.
21Abhiram invoiced us goods worth Rs 3,000.
24Settled Abhiram’s account, he allowed 5% cash discount.
27Exchanged goods worth 2,500 against Furniture of the same amount.
29Withdrawn cash from ATM Rs 5,000 for office use and Rs 3,000 for personal use.
Solution :-          
Date Particulars L.FDebit Amount Credit Amount    
Jul-01Cash A/c                           Dr  15,000    
 Machinery A/c                  Dr  20,000    
            To Capital A/c  35,000   
 (Being started bussiness with cash and machinery )      
4Purchases A/c                   Dr  9,000    
             To Cash A/c   8,100   
             To Discount A/c    900   
 ( Being purchased goods at 10% cash discount)       
9Amar’s A/c                     Dr         3,000    
               To Sales A/c   3,000   
 ( Being Sold goods to amar on credit)      
12Advertisement A/c               Dr  700    
            To Goods distributed as free samples A/c   700   
 ( Being  goods distributed as free samples )      
14Stationery A/c                      Dr   550    
                   To Cash A/c   550   
 ( Being Purchased stationery )       
18Cash A/c                                  Dr  950    
             To  Bad Debtd Recovery A/c   950   
 ( Being the amount previously written off as bad debts now recovered from Dhanashree)      
21Purchases A/c                                 Dr  3,000    
             To Abhiram’s A/c   3,000   
 ( Being Purchased goods from abhiram on credit )      
24Abhiram’s A/c                                Dr  3,000    
                 To Cash A/c   2,850   
                 To Discount Received A/c   150   
 ( Being paid to Abhiram in full settlement of his account & discount received at 5%)       
27Furniture A/c               Dr 2,500    
           To Sales A/c   2,500   
 ( Being exchanged goods against furniture of the same amount )      
29Cash A/c                                          Dr  5,000    
 Drawings A/c                                Dr  3,000    
         To Bank A/c   8,000   
 ( Being cash withdrawn from bank for office & personal use)       
                              Total  65,70065,700   
Dr                                                                                                                   Cash A/c                                                                                                               Cr 
Date Particulars J.LAmount Date Particulars J.LAmount 
2019     2019   
Jul-01To Capital A/c 15,000Jul-04By Purchases A/c  8,100
18To Bad Debts Recovery A/c  95014By  Stationery A/c  550
29To Bank A/c  5,00024By  Abhiram ‘ s A/c  2,850
    31By Balance c/d   9,450
   20,950   20,950
Aug-01To Balance b/d  9,450