Question
Enter the following transactions in proper Subsidiary Books and post them into Ledger:
2017
 
March 2
Purchased from Navrang Traders for ₹ 8,300
March 3
Sold goods to Rohan for ₹ 3,200
March 5
Bought of Ruchi Traders for ₹ 12,100
March 8
Rohan returns the goods for ₹ 600
March 10 Purchased goods from Jaipur Stores of the list price of ₹ 15,400 less 5% Trade Discount
March 12 Sold goods to Arun Traders for ₹ 18,000 less 15% Trade Discount
March 12 Bought of Amit Traders for ₹ 10,000
March 16 Purchased Machinery from Kirloskar Ltd. ₹ 20,000
March 18 Returned goods to Jaipur Stores for ₹ 800 less 5% Trade Discount
March 19 Arun Traders returned goods for ₹ 3,000, less 15% Trade Discount
March 20 Sales to Kalpna & Co. for ₹ 14,700
March 22 Purchased goods from Navrang Traders ₹ 25,000
March 25 Returns outward to Navrang Traders for ₹ 1,200
March 26 Sales to Rupa Traders for ₹ 10,000 less 10% Trade Discount
March 29 Returns inward from Kalpana & Co. for ₹ 2,000

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Distinguish between ‘revenue reserve’ and ‘capital reserve’.
Journalise the following transactions in the books of Prakash:
  1. Opened a current account with Punjab National Bank ₹ 1,00,000.
  2. Received a cheque of ₹ 12,900 from Chandradev and allowed discount ₹ 300 to him. The cheque was deposited into Bank on the same day.
  3. Purchased machinery for ₹ 1,00,000, payment made by cheque. Installation charge of machinery ₹ 6,000 paid in cash.
  4. Purchased a horse for business for ₹ 20,000.
  5. Sold goods to Gokul at a list price of ₹ 4,000. Trade discount 10% and cash discount 5%. He paid the amount on the same day and availed the cash discount.
  6. Purchased goods for ₹ 10,000 and paid ₹ 400 for carriage on these goods.
  7. Additional cash introduced by the proprietor ₹ 40,000.
  8. Purchased stationery ₹ 800 and postal stamps ₹ 100.
  9. Withdrawn from bank ₹ 20,000.
  10. Received an order to supply goods of ₹ 40,000 from Manu and received ₹ 10,000 as an advance together with the order.
  11. Cash ₹ 10,000 and goods worth ₹ 4,000 were stolen.
  12. Purchased goods from Devendra for ₹ 40,000 and the payment was made by cheque.
  13. Sold $\frac{1}{4}\text{th}$ of the above goods at a profit of 25% on cash.
Explain the following concept:
Business Entity Concept.
Calculate the due dates of the bills in the following cases:
 
Date of the Bills
Period
I.
1st February, 2017
2 months
II.
31st January, 2017
3 months
III.
30th September, 2017
2 months
IV.
30th September, 2017
3 months
V.
29th December, 2017
2 months
VI.
31st December, 2017
2 months
VII.
15th July, 2017
30 days
VIII.
27th January, 2016
1 month
On which side will the increase in the following accounts be recorded? Also mention the nature of account:
  1. Furniture
  2. Wages paid
  3. Rent Received
  4. Cash
  5. Proprietor's Account
  6. Debtor
  7. Prepaid Insurance
  8. Outstanding Salary.
Enter the following transactions in the Journal of M/s. Karim Bros., Prop. Shri Karim Khan, Kolkata, post to the Ledger:
Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Prepare Accounting Equation from the following and also prepare a Balance Sheet:
  1. Raghu started business with Cash ₹ 1,50,000.
  2. Bought goods for cash ₹ 80,000 and on credit for ₹ 40,000.
  3. Goods costing ₹ 75,000 sold at a profit of $33\frac{1}{3}\%.$ Half the payment received in cash.
  4. Goods costing ₹ 10,000 sold for ₹ 12,000 on credit.
  5. Paid for Rent ₹ 2,000 and for salaries ₹ 4,000.
  6. Goods costing ₹ 20,000 sold for ₹ 18,500 for Cash.
Prepare Accounting Equation from the following:
  1. Started business with cash ₹ 75,000 and goods ₹ 25,000.
  2. Paid for Rent ₹ 2,000.
  3. Bought goods for cash ₹ 30,000 and on credit for ₹ 44,000.
  4. Goods costing ₹ 50,000 sold at a profit of 25%, out of which ₹ 27,500 received in Cash.
  5. Purchased a Motor-cycle for personal use ₹ 20,000.
Do you agree that a Sales Book is used to record invoices issued to customers in respect of goods sold on credit and not cash? Give reasons.
What do you understand by 'debit' and 'credit? Do you think 'debit' always stands for decrease in amount and credit for increase?