Recording of Transactions-II

complete process of recording the transactions, posting to ledger and balancing there of. Details Apr. Commenced business with cash Rs. , , .

Apr. Deposited in bank Rs. , . Apr.

Purchased for cash furniture Rs. , ; Land Rs. , . Apr.l Paid cheque to M/s Malika & Brothers for purchase of electric wires and plugs Rs.

, . Apr. Bought of M/s Handa Co. vide invoice no.

: Immersion Heaters , Watt of Smg. Ltd. @ Rs. , and (ii) Tube lights @ Rs.

. trade discount @ . %. Apr.l Purchased stationery for cash Rs.

, . Apr. Loan from M/s Dayal Traders. @ % Rs.

, and deposited money in the bank on the next day. Apr. Paid cartage Rs. and other charges Rs.

. Apr. Bought of M/s Burari. Ltd.

on account vide Invoice No. : Table lamps (Universal) @ Rs. : (ii) Electric kettles (General) @ Rs. .

(iii) Electric iron@ Rs. . trade discount %. Apr.

Sales to M/s Ramneek on account vide invoice no. : Immersion heaters1000 watt @ Rs. . (ii) Table lamps @ Rs.

: (iii) Electric irons @ . Apr. Sales to M/s Kapadia on credit vide invoice no. Immersion heaters @ : (ii) Tube lights @ Rs.

. Apr. Return inwards from Ramneek : Immersion heaters, (ii) Electric iron. Apr.

Paid rent by cheque Rs. , . Apr. Purchased from M/s Rungta.

for cash: Immersion heaters watt @ Rs. . Apr. Returned goods to Burari Ltd.

: Table lamps (Universal) (ii) Electric kettles (iii) Electric iron. Apr. Purchased on account furniture from quality Furniture Ltd. Rs.

, . Apr. Paid for advertisement Rs. , .

Apr. Sales to M/s Daman on account vide invoice no. : Electric kettles (General) @ Rs. .

Apr. Purchased from M/s Kochhar Co. on credit vide invoice no. : Electric Mixers @ Rs.

. (ii) Electric irons (Special) @ Rs. . trade discount %.

Apr. Sales to M/s Ramneek on account vide bill no. : Electric Mixers @ Rs. .

Apr. Received cheque of Rs. , from M/s Ramneek for full and final settlement of claim. The cheque deposited in bank after two days.

Apr. Purchased from M/s Burari Ltd. on credit vide invoice no. : Electric kettles @ Rs.

(ii) Electric lamps @ Rs. trade discount @ %. Apr. Sales to M/s Nutan on account vide invoice no.

: Electric Mixers @ Rs. . Apr. Cash sales of Electric wires and plugs Rs.

, , cash discount allowed Rs. . Apr. Cash purchases from M/s Hitesh: Electric fans @ Rs.

. Apr. Paid electricity bill Rs. , .

Apr. Made full and final payment to M/s Burari Ltd. by cheque discount allowed by them Rs. .

Apr. Purchased stationery on account from M/s Mohit Mart Rs. , . Apr.

Sales to M/s Daman on account vide Invoice No. : Table lamps @ Rs. (ii) Immersion heaters watt @ Rs. .

Apr. Deposited in bank Rs. , . Withdrew Rs.

, for personal use. Paid telephone bill Rs. by cheque. Paid insurance Rs.

, by cheque. Paid to M/s Handa Co. Rs. , by cheque; and Rs.

, to M/s Kochhar and co. by cheque who allowed Rs. , as discount. Purchases (Journal) Book Invoice Name of the Supplier No.

(Account to be credited) Apr. Handa Co. , Apr. Burari Ltd.

, Apr. Kochhar Co. , Apr. Burari Ltd.

, , Sales (Journal) Book Invoice Name of the Customer No. (Account to be debited) Apr. Ramneek , Apr. Kapadia , Apr.

Daman , Apr. Ramneek , Apr. Nutan , Apr. Daman , , Purchases Return (Journal) Book Debit Name of the Supplier (Account to be debited) Apr.

Burari Ltd. Sales Return (Journal) Book Credit Name of the customer (Account to be credited) Apr. Ramneek Journal Proper Debit Credit Apr. Furniture A/c , To Quality Furniture A/c , (Purchase of furniture on credit) Apr.

Burari Ltd A/c To Discount A/c (Discount received) Apr. Stationery A/c , To Mohit Mart A/c , (Purchase of Stationery items on credit) Kochhar A/c , To Discount A/c , (Discount received) Total , , Cash Book Particulars L.F. Apr. April Capital , , C , C , Furniture , % Loan , Land , C , , Ramneek , Stationery , C , Miscellaneous expenses , C , C , Rent , Advertisement , C , , Electric , charges Burari Ltd.

, C , Drawings , Telephone , charges Insurance , Handa Co. , Kochhar & Co. , Balance c/d , , , , , , , , May Balance b/d , , The recorded transactions will be posted in the ledger. Capital Account Apr.

Balance c/d , , Apr. , , , , , , % Loan Account Balance c/d , April , , , Ramneek’s Account Apr. , April10 Sales return Apr. , April21 , , , Sales Account Apr.

, Sundries , , Furniture Account Apr. , Balance c/d , Apr. Quality , Furniture , , Land Account Apr. , Apr.

Balance c/d , , , Purchases Account Apr. , Apr. Apr. , Sundries , , Stationery Account Apr.

, Apr. Mohit mart , , Miscellaneous Expenses Account Apr. Rent Account Apr. , , Advertisement Account Apr.

, , Electric Charges Account Apr. , , Drawings Account , , Telephone Charges Account , , Insurance Account , , Quality Furniture Account Balance c/d , Apr. Furniture , , , Mohit Mart Account Balance c/d , Apr. Stationery , , , Purchases Return Account Sundries Handa Company Account , Apr.

, , , Burari Ltd. Account Apr. Apr. , return Apr.

, Apr. , Discount , , Kochhar Account , Apr. , Discount , , , Sales Return Account Sundries . Kapadia Account Apr.

, Balance c/d , , , Daman Account Apr. , Balance c/d , Apr. , , , Nutan Account Apr. , Balance c/d , , , Discount Received Account Apr.

Burari Ltd Kochhar , , Test Your Understanding - II . Fill in the Correct Words : (a) Cash book is a ......... journal. (b) In Journal proper, only.........discount is recorded.

(c) Return of goods purchased on credit to the suppliers will be entered in ...... Journal. (d) Assets sold on credit are entered in ......... (e) Double column cash book records transaction relating to .........and .........

(f) Total of the debit side of cash book is .........than the credit side. (g) Cash book does not record the .........transactions. (h) In double column cash book .........transactions are also recorded. Credit balance shown by a bank column in cash book is .........

(j) The amount paid to the petty cashier at the beginning of a period is known as .........amount. (k) In purchase book goods purchased on .........are recorded. . State whether the following statements are True or False : (a) Journal is a book of secondary entry.

(b) One debit account and more than one credit account in a entry is called compound entry. (c) Assets sold on credit are entered in sales journal. (d) Cash and credit purchases are entered in purchasejJournal. (e) Cash sales are entered in sales journal.

(f) Cash book records transactions relating to receipts and payments. (g) Ledger is a subsidiary book. (h) Petty cash book is a book having record of big payments. Cash received is entered on the debit side of cash book.

(j) Transaction recorded both on debit and credit side of cash book is known as contra entry. (k) Balancing of account means total of debit and credit side. (l) Credit purchase of machine is entered in purchase journal. Key Terms Introduced in the Chapter • Posting • Sales (Journal) Book • Day books • Balancing of Accounts • Cash book • Purchase (Journal) book • Petty Cash book • Purchases return (Journal) Book • Sales return (Journal) Book Summary with Reference to Learning Objectives .

Journal : Basic book of original entry. . Cash book : A book used to record all cash receipts and payments. .

Petty cash book : A book used to record small cash payments. . Purchase journal : A special journal in which only credit purchases are recorded . Sales journal : A special journal in which only credit sales are recorded .

Purchases Return Book : A book in which return of merchandise purchased is recorded. . Sales Return Book : A special book in which returns of merchandise sold on credit are recorded. Questions For Practice Short Answers .