Journalise the following transactions and prepare Cash Account only. In the Books of Hardik.
Journalise the following transactions and prepare Cash Account only. In the Books of Hardik.
2019 July,
1. Hardik started business with cash Rs.15,000 and machinery Rs.20,000
4. Purchased goods for Rs.9,000 less 10% cash discount.
9. Sold goods to Amar Rs.3,000
12. Distributed goods worth Rs.700 as free samples.
14. Bought stationery for Rs.550 for office use.
18. Received Rs. 950 from dhanashree, a customer, whose account was earlier written off as a bad debts.
21. Abhiram invoiced us goods worth Rs.3,000
24. Settled Abhiram's account, he allowed 5% cash discount.
27. Exchanged goods worth 2,500 against furniture of the same amount.
29. Withdrawn cash from ATM Rs.5,000 for office use and Rs.3,000 for personal use.
Solution:
In the Books of Hardik.
Date
Particulars
L.F
Debit
Credit
2019 July 1
Cash A/c Dr.
Machinery A/c Dr.
To Capital A/c
[Being stared Business with cash]
15,000
20,000
35,000
4
Purchase A/c Dr.
To Discount Received
To Cash A/c
[Being Purchase Goods @ 10 % Cash Discount]
9,000
900
8,100
9
Amar A/c Dr.
To Sales A/c
[Being Sold goods to Amar]
3,000
3,000
12
Advertisement A/c Dr.
To Goods Distributed as free sampleA/c
[Being Distributed goods as free sample]
700
700
14
Stationery A/c Dr.
To Cash A/c
[Being Bought stationery for office use]
550
550
18
Cash A/c Dr.
To Bad
Debts Recovered A/c
[Being the amount previously written off as bad debts now recovered]
950
950
21
Purchase A/c Dr.
To Abhiram A/c
[Being Purchase goods from abhiram]
3,000
3,000
24
Abhiram A/c Dr.
To Discount Received
To Cash A/c
[Being Settled Abhiram account and allowed @5% C.D]
3,000
150
2,850
27
Furniture A/c Dr.
To sales A/c
[Being Exchanged goods against Furniture at same amount]
2,500
2,500
29
Drawing A/c Dr.
Cash A/c Dr.
To Bank A/c
[Being cash withdrawn from ATM for office use and personal use]
3,000
5,000
8,000
Dr. Cash Account Cr.
Date
Particulars
J.F
Amt
Date
Particulars
J.F
Amt
2019 July 1
To Capital A/c
15,000
2019 July 4
By Purchase A/c
8,100
18
To Bad Debts recovered A/c
950
14
By Stationery A/c
550
To Bank A/c
24
By Abhiram A/c
2,850
31
By Balance c/d
9,450
20,950
20,950
Aug.
1
To Balance b/d
9,450
Explanation:Journalise the following transactions and prepare Cash Account only. In the Books of Hardik.
2019 July,
1. Hardik started business with cash Rs.15,000 and machinery Rs.20,000
4. Purchased goods for Rs.9,000 less 10% cash discount.
9. Sold goods to Amar Rs.3,000
12. Distributed goods worth Rs.700 as free samples.
14. Bought stationery for Rs.550 for office use.
18. Received Rs. 950 from dhanashree, a customer, whose account was earlier written off as a bad debts.
21. Abhiram invoiced us goods worth Rs.3,000
24. Settled Abhiram's account, he allowed 5% cash discount.
27. Exchanged goods worth 2,500 against furniture of the same amount.
29. Withdrawn cash from ATM Rs.5,000 for office use and Rs.3,000 for personal use.
Solution:
In the Books of Hardik.
Date | Particulars | L.F | Debit | Credit |
2019 July 1 | Cash A/c Dr. Machinery A/c Dr. To Capital A/c [Being stared Business with cash] |
| 15,000 20,000 |
35,000 |
4 | Purchase A/c Dr. To Discount Received To Cash A/c [Being Purchase Goods @ 10 % Cash Discount] |
| 9,000 |
900 8,100
|
9 | Amar A/c Dr. To Sales A/c [Being Sold goods to Amar] |
| 3,000 |
3,000
|
12 | Advertisement A/c Dr. To Goods Distributed as free sampleA/c [Being Distributed goods as free sample] |
| 700 |
700 |
14 | Stationery A/c Dr. To Cash A/c [Being Bought stationery for office use] |
| 550 |
550 |
18 | Cash A/c Dr. To Bad Debts Recovered A/c [Being the amount previously written off as bad debts now recovered] |
| 950 |
950 |
21 | Purchase A/c Dr. To Abhiram A/c [Being Purchase goods from abhiram] |
| 3,000 |
3,000 |
24 | Abhiram A/c Dr. To Discount Received To Cash A/c [Being Settled Abhiram account and allowed @5% C.D] |
| 3,000 |
150 2,850 |
27 | Furniture A/c Dr. To sales A/c [Being Exchanged goods against Furniture at same amount] |
| 2,500 |
2,500
|
29 | Drawing A/c Dr. Cash A/c Dr. To Bank A/c [Being cash withdrawn from ATM for office use and personal use] |
| 3,000 5,000 |
8,000
|
Dr. Cash Account Cr.
Date | Particulars | J.F | Amt | Date | Particulars | J.F | Amt |
2019 July 1 | To Capital A/c |
| 15,000 | 2019 July 4 | By Purchase A/c |
| 8,100 |
18 | To Bad Debts recovered A/c |
| 950 | 14 | By Stationery A/c |
| 550 |
| To Bank A/c |
|
| 24 | By Abhiram A/c |
| 2,850 |
|
|
|
| 31 | By Balance c/d |
| 9,450 |
|
|
| 20,950 |
|
|
| 20,950 |
Aug. 1 | To Balance b/d |
| 9,450 |
|
|
|
|
4) Purchased goods for Rs. 9,00 less 10% Cash Discount.
Journal Explanation: Goods are purchased on cash and received 10% cash discount on it. Therefore On debit side Purchase Account and On credit side Cash Account and Discount Received Account will come.
Ledger Explanation: For Cash Account only, Goods are coming inside the business whenever goods or anything related to business bought in the business it should be credited to credit side of cash account. And for other account it Depends on the transaction.
9) Sold goods to Amar Rs. 3,000.
Journal Explanation: Goods are sold to Amar on credit, in the transaction the word credit is not given and the person who has purchased goods from Mr. Hardik whose name is given therefore we assume that Amar has purchased goods on credit. So, the entry is Amar a/c debit to Sales A/c Refer Personal Account Formula.
Ledger Explanation: In the ledger of cash account this transaction will not be stated because there is no use of money this type of transaction is called monetary transactions.
12) Distributed goods worth Rs.700 as free sample.
Journal Explanation: Goods distributed as free sample means the proprietor as Advertised the goods That means for the business point it is an expense for the business therefore it will be Journalized as On debit side Advertisement expense and On credit side cash account because every expense for the business is always debited on debit side only.
Ledger Explanation: For Cash Account only, All the expense occurs in the business will be credited to cash account.
14) Bought Stationery for Rs.550 for office use.
Journal Explanation: Purchased stationery by cash at Rs.550 it is an expense for the business hence it will be debited to debit side and On credit side cash account.
ledger Explanation: For Cash Account only, All the expense occurs in the business will be credited to cash account.
18) Received Rs.950 from Dhanashree, a customer, whose account was earlier written off as a bad debts.
Journal Explanation: Received cash from Dhanashree who is a customer of Mr. Hardik and her account is written as bad debts in the Books Mr. Hardik. So, the money is recovered from Dhanashree. Therefore Cash is received by proprietor and the bad debts which as written firstly is know recovered.
Ledger Explanation: For Cash Account only, On the Debit side bad Debts recovered account is stated because cash is received by Mr. Hardik. .
21) Abhiram invoiced us goods worth Rs.3,000.
Journal Explanation: Abhiram invoiced goods that means purchased goods from Mr. Abhiram. Hence give the Journal entry of Purchase of goods.
Ledger Explanation: For Cash Account only, No entry in Cash Account because goods are purchased on credit from Mr. Abhiram.
24) Settled Abhiram's account, he allowed 5% cash Discount.
Journal Explanation: On debit side Abhiram account because he is the receiver of the cash and On credit side Discount received account and cash account.
Ledger Explanation: For Cash Account only, On credit side Abhiram account because proprietor is the receiver of cash from Abhiram.
27) Exchanged goods worth 2,500 against Furniture of the same amount.
Journal Explanation: On Debit Side Furniture Account and On Credit Side Sales Account. because Goods are exchanged against Furniture.
Ledger Explanation: For Cash Account only, No entry in Cash Account because cash is not used in purchased goods. This type of transaction is called monetary transactions.
29) Withdrawn cash from ATM Rs.5,000 for office use and Rs.3,000 for personal use.
Journal Explanation: On debit side Drawing Account and cash Account On credit side Bank Account because proprietor withdrawn cash from ATM for personal use and office use.
Ledger Explanation: For Cash Account only, bank account debited to cash account
 |
| Journalise the following transactions and prepare Cash Account only. In the Books of Hardik. |
Sir/ma'am in the plzz clarify my doubt that you have passed journal entry for 24 that we settled abhiram a/c by giving him 2850 then how in ledger abhiram AC came to the debit side it should be in credit side as the journal entry was abhiram AC Dr to cash ac. I.e by abhiram to cash not cash to abhiram
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