Question
What are ‘Books of Original Entry'?

Answer

The books in which a transaction is recorded for the first time from a source document are called 'Books of Original Entry'. Journal is one of the basic books of original entry in which transactions are originally recorded in a chronological (day-to-day) order according to the principles of double entry system.

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Enter the following transactions in proper Subsidiary Books and post them into Ledger:
2017
 
March 2
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March 3
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March 5
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2017
 
March 4
Purchased building for ₹ 1,50,000 and incurred expenses of ₹ 10,000 on its purchase.
March 10
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March 15
Paid ₹ 500 for repairing the office furniture.
March 18
Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 2,000.
March 20
Purchased the following items for business: Iron Safe ₹ 15,000; Filing Cabinet ₹ 5,000; Computer ₹ 12,000; Postage ₹ 200 and Stationery ₹ 150
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March 31
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March 31
Outstanding wages at the end of the year ₹ 6,000.
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Journalise the following transactions, post them into Ledger, balance the accounts and prepare a Trial Balance:
2017
 
March 1
Shyam Sunder & Sons commenced business with cash
80,000
March 2
Purchased goods for cash
36,000
March 3
Machinery purchased for cash
4,000
March 4
Purchased goods from: Raghu
22,000
Dilip
30,000
March 6
Returned goods to Raghu
4,000
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17,500
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March 13
Received cash from Mahesh Chand & Co.
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Discount allowed
200
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Paid cash to Dilip
14,850
Discount received
150
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25,000
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Sold goods for cash to Sudhir Ltd.
18,000
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1,500
March 26
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2,000
March 28
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5,000
March 28
Purchased a fan for Proprietor's house
1,200