Practical Problem 07

Q.7 Journalise the following transactions; post them into Ledger for February 2019
1 Sunil Started business with stock of goods Rs 20,000 and Cash Rs 1,70,000 out of which Rs 50,000 borrowed from his friend Kedar@10 p.a.
5 Placed an order for goods worth Rs 7,000 with Mohan for which advance Rs 5,500 was paid.
9 Purchased Stationery for office use Rs 4,500
12 Goods distributed as free samples Rs 2,000
17 Paid Freight Rs 400 on behalf of Mr. Dev.
24 Received Goods from Mohan as per our order dated 5th Feb and settled his account.
27 Bought goods from Shekhar on two months credit for Rs 7,000 at 20% Trade Discount with instructions to send them to Sagar.
28 Sent to Sagar Outward Invoice for goods supplied by Shekhar. at list price less 10% Trade Discount.


Solution:-
In the books of sunil
Journal Entries
Date	Particulars		L.F	Debit Amount	Credit Amount
Date	Particulars		L.F	Debit Amount	Credit Amount
2019
Feb-01	Stock of GoodsA/c Dr			20,000
	Cash A/c Dr			1,70,000
	To Capital A/c				1,40,000
	To Kedar’s Loan A/c				50,000
	( Being business started with stock of goods ,cash &loan taken from kedar at 10% p.a )



5	Advance to mohan A/c Dr			5,500
	To Cash A/c				5,500
	( Being advance given to mohan for order placed for goods )
	( Being advance given to mohan for order placed for goods )

9	Stationery A/c Dr			4,500
	To Cash A/c				4,500
	(Being purchased stationery )

12	Advertisement A/c Dr			2,000
	To Goods distributed as free samples A/c				2,000
	( Being Goods distributed as free samples )

17	Mr.Dev ‘sA/c Dr			400
	To Cash A/c				400
	( Being paid freight on behalf of Mr.dev)

24	Purchases A/c Dr			7,000
	To Cash A/c				1,500
	To Advance to mohanA/c				5,500
	(Being received goods from Mohan as per order dated 5th Feb & Settled his account)


27	Purchases A/c Dr			5,600
	To shekar’s A/c				5,600
	( Being purchased goods from shekar at
	29% trade discount )

28	Sagar’s A/c Dr			6,300
	To Sales A/c				6,300
	( Being sold goods to sagar at 10% trade discount )

	Total			2,21,300	2,21,300

Dr Stock of Goods Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-01	To Capital A/c		20,000	Feb-28	By Balance c/d		20,000
			20,000				20,000
Mar-01	To Balance b/d		20,000


Dr Cash A/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-01	To Capital A/c		1,20,000	Feb-05	By Advance to mohan A/c		5,500
	To Kedar’s Loan A/c		50,000	9	By Stationery A/c		4,500
				17	By Mr . Dev A/c		400
				24	By Purchases A/c		1,500
				28	By Balance c/d		1,58,100
			1,70,000				1,70,000
Mar-01	To Balance b/d		1,58,100


Dr Capital A/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-28	To Balance c/d		1,40,000	Feb-01	By Stock of Goods		20,000
				1	By Cash a/c		1,20,000
			1,40,000				1,40,000
				Mar-01	By Balance b/d		1,40,000


Dr Kedar’s Loan a/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-28	To Balance c/d		50,000	Feb-01	By Cash A/c		50,000
			50,000				50,000
				Mar-01	By Balance b/d		50,000



Dr Advance to mohanA/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-05	To Cash A/c		5,500	Feb-24	By Purchases A/c		5,500
			5,500				5,500


Dr Stationery A/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-09	To Cash A/c		4,500	Feb-28	By Balance c/d		4,500
			4,500				4,500
Mar-01	To Balance b/d		4,500


Dr Advertisement A/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-12	To Goods distributed as free samples A/c		2,000	Feb-28	By Balancre c/d		2,000
			2,000				2,000
Mar-01	To Balance b/d		2,000


Dr Goods Distributed as free Sample Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-28	To Balance c/d		2,000	Feb-12	By Advertisement A/c		2,000
			2,000				2,000
				Mar-01	By Balance b/d		2,000


Dr Mr. Dev’s A/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-17	To cash A/c		400	Feb-28	By Balancre c/d		400
			400				400
Mar-01	To Balance b/d		400


Dr Purchases A/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-24	To cash A/c		1,500	Feb-28	By Balancre c/d		12,600
24	To Advance to mohan A/c		5,500
27	To Shekar’s A/c		5,600
			12,600				12,600
Mar-01	To Balance b/d		12,600


Dr Shekar’s A/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-28	To Balance c/d		5,600	Feb-27	By Purchases A/c		5,600
			5,600				5,600
				Mar-01	By Balance b/d		5,600


Dr Sagar’s A/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-28	To Sales A/c		6,300	Feb-28	By Balancre c/d		6,300
			6,300				6,300
Mar-01	To Balance b/d		6,300


Dr Sales A/c Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2019				2019
Feb-28	To Balance c/d		6,300	Feb-28	By Sagar’s A/c		6,300
			6,300				6,300
				Mar-01	By Balance b/d		6,300

Practical Problem 07

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