JOURNAL ENTRY PROBLEMS AND SOLUTIONS , B. TECH MEFA SUBJECT

JOURNAL ENTRY PROBLEMS AND SOLUTIONS

PROBLEM 1:

On April 01, 2016 NEES started business with Rs. 100,000 and other transactions for the month are:

2. Purchase Furniture for Cash Rs. 7,000.

8. Purchase Goods for Cash Rs. 2,000 and for Credit Rs. 1,000 from Khalid Retail Store.

14. Sold Goods to Khan Brothers Rs. 12,000 and Cash Sales Rs. 5,000.

18. Owner withdrew of worth Rs. 2,000 for personal use.

22. Paid Khalid Retail Store Rs. 500.

26. Received Rs. 10,000 from Khan Brothers.

30. Paid Salaries Expense Rs. 2,000

SOLUTION:

PROBLEM -2

Mr. Nirmal has the following transactions in the month of April.

Write Journal Entries for the transactions.

10^th April	:	Commenced business with a capital of 1,00,000
11^th April	:	Purchased goods from Veeru for 20,000
13^th April	:	Purchased Goods for Cash 15,000
14^th April	:	Purchased Goods from Abhiram for cash 9,000
16^th April	:	Bought Goods from Shyam on credit 12,000
17^th April	:	Sold goods worth 15,000 to Tarun
19^th April	:	Sold goods for cash 20,000
20^th April	:	Sold goods to Utsav for cash 6,000
21^st April	:	Sold goods to Pranav on credit 17,000
22^nd April	:	Returned goods to Veeru 3,000
23^rd April	:	Goods returned from Tarun 1,000
25^th April	:	Goods taken by the proprietor for personal use 1,000
26^th April	:	Bought Land for 50,000
27^th April	:	Purchased machinery for cash 45,000
28^th April	:	Bought computer from Intel Computers for 25,000
28^th April	:	Cash sales 15,000
29^th April	:	Cash purchases 22,000
30^th April	:	Bought furniture for proprietor's residence and paid cash 10,000

SOLUTION :

Journal in the books of Mr. Nirmal for the period from 1^st to 30^th April
Date	Particulars				L/F	Amount (Dr)	Amount (Cr)
April 10^th	Cash a/c To Capital a/c	Dr			– –	1,00,000	1,00,000
April 10^th	[Being the amount received from Mr. Nirmal in cash, the proprietor as his capital contribution				– –	1,00,000	1,00,000
11^th	Goods/Stock a/c To Veeru a/c	Dr			– –	20,000	20,000
11^th	[Being the value of stock purchased from Mr. Veeru on credit				– –	20,000	20,000
13^th	Goods/Stock a/c To Cash a/c	Dr			– –	15,000	15,000
13^th	[Being the value of stock purchased for cash				– –	15,000	15,000
14^th	Goods/Stock a/c To Cash a/c	Dr			– –	9,000	9,000
14^th	[Being the value of stock purchased for cash from Mr. Abhiram				– –	9,000	9,000
16^th	Goods/Stock a/c To Shyam a/c	Dr			– –	12,000	12,000
16^th	[Being the value of stock purchased from Mr. Shyam on credit				– –	12,000	12,000
17^th	Tarun a/c To Goods/Stock a/c	Dr			– –	15,000	15,000
17^th	[Being the value of stock sold on credit to Mr. Tarun				– –	15,000	15,000
19^th	Cash a/c To Goods/Stock a/c	Dr			– –	20,000	20,000
19^th	[Being the value of goods sold for cash				– –	20,000	20,000
20^th	Cash a/c To Goods/Stock a/c	Dr			– –	6,000	6,000
20^th	[Being the value of stock sold to Mr. Utsav for cash				– –	6,000	6,000
21^st	Pranav a/c To Goods/Stock a/c	Dr			– –	17,000	17,000
21^st	[Being the value of stock sold to Mr. Pranav on credit				– –	17,000	17,000
22^nd	Veeru a/c To Goods/Stock a/c	Dr			– –	3,000	3,000
22^nd	[Being the value of goods returned to Mr. Veeru				– –	3,000	3,000
23^rd	Goods/Stock a/c To Tarun a/c	Dr			– –	1,000	1,000
23^rd	[Being the value of stock returned by Mr. Tarun				– –	1,000	1,000
25^rd	Drawings a/c To Goods/Stock a/c	Dr			– –	1,000	1,000
25^rd	[Being the value of stock taken by the proprietor				– –	1,000	1,000
26^th	Land a/c To Cash a/c	Dr			– –	50,000	50,000
26^th	[Being the amount paid for land purchased				– –	50,000	50,000
27^th	Machinery a/c To Cash a/c	Dr			– –	45,000	45,000
27^th	[Being the amount paid for the purchase of machinery]				– –	45,000	45,000
28^th	Computers a/c To Intel Computers a/c	Dr			– –	25,000	25,000
28^th	[Being the value of a computer purchased from M/S Intel Computers on credit				– –	25,000	25,000
29^th	Cash a/c To Goods/Stock a/c		Dr	– –		15,000	15,000
29^th	[Being the value of stock sold for cash			– –		15,000	15,000
29^th	Goods/Stock a/c To Cash a/c		Dr	– –		22,000	22,000
29^th	[Being the value of stock purchased for cash			– –		22,000	22,000
30^th	Drawings a/c To Cash a/c		Dr	– –		10,000	10,000
30^th	[Being the amount of cash paid for furniture purchased for proprietor's residence			– –		10,000	10,000

JOURNAL PROBLEMS

PROBLEM 1:

On March 2017, Farhan Rahim, starts wholesaling business. Following transactions as follows:

1. He started business with capital of Rs. 15,000 and Land worth Rs. 10,000.

8. Bought goods from Bilal and Friends Rs. 1,000 and by cash from XYZ Co. Rs 2,000.

13. Sold goods to Rehman & sons Rs. 1,500 and sale by cash Rs. 5,000.

17. Gave away charity of cash Rs. 50 and merchandising worth Rs. 30.

21. Paid Bilal and Friends cash Rs. 975; discount received Rs. 25.

28. Received cash from Rehman & Sons Rs. 1,450; allowed him discount of Rs. 50.

PROBLEM 2:

Shah Sauood Marine is a boat repair yard. During August 2016, its transactions included the following:

03. Loan taken from Habib Bank Ltd. of Rs. 25,000. Rs. 20,000 withdrawn for business and remaining in the bank a/c.

06. Paid rent for the month of August Rs. 4,400 and accrued rent expenses was Rs. 600.

12. At request of Kiwi Insurance, Inc, made repairs on boat of Jon Seaways. Sent bill for Rs. 5,620 for services rendered to Kiwi Insurance Inc. (credit Repair Service Revenue).

18. Made repairs to boat of Dennis Copper and collected in full the charge of Rs. 2,830.

20. Placed Advertisement in The Dawn of Rs. 165, payment to be made within 30 days.

25. Received a check for 5,620 from Kiwi Insurance Inc representing collection of the receivable of August 12.

30. Sent check to The Dawn in payment of the liability incurred on August 20.

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NARAYANA ENGG COLLEGE ,NELLORE