Problems and Solutions of Journal Entries

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Date

Particular

L. F.

Debit

Credit

Jan 1:

Cash a/c  Dr.

50000

Furniture a/c Dr.

25000

Stock a/c Dr.

20000

   To capital a/c

95000

(Being started business with cash, furniture, and stock)

Jan 5:

Purchase a/c Dr.

200000

    To cash a/c

200000

(Being purchased goods on cash)

Jan 7:

Purchase a/c Dr.

50000

    To Mr. Bhatta a/c

50000

(Being purchased goods on credit from Mr. Bhatta)

Jan 9:

Purchased a/c Dr.

60000

    To cash a/c

50000

    To creditors a/c

10000

(Being purchased goods on cash and credit)

Jan 10:

Cash a/c Dr.

150000

   To sales a/c

(Being sold goods on cash)

150000

Jan 11:

Mr. Shrestha a/c Dr.

35000

   To sales a/c

35000

(Being sold goods on credit to Mr. Shrestha)

Jan 14:

Debtors a/c Dr.

7000

   To sales a/c

7000

(Being sold goods on credit)

Jan 18:

Cash a/c Dr.

2000

Mr. Acharya a/c Dr.

3500

    To sales a/c

(Being sold goods for cash and on credit to Mr. Acharya)

5500

Total

602500

602500

Date

Particular

L.F.

Debit

Credit

2064

Cash a/c Dr.

200000

April 1

   To capital a/c

200000

(Being started business with cash)

1

Bank a/c Dr

180000

   To Cash a/c

180000

(Being cash deposited in the bank)

2

Furniture a/c Dr

8500

Office Equipment a/c Dr

25000

    To bank a/c

33500

(Being purchased furniture and computer and payment made through cheque)

3

Purchased a/c Dr

45000

   To Cash a/c

15000

   To M/s Basu & Co. a/c

30000

(Being goods purchased for cash and on credit from M/s Basu and CO

4

Cash a/c Dr

25000

   To Sales a/c

25000

(Being goods sold for cash to M/s Arbind & Co.)

5.

M/s Basu a/c Dr

30000

   To Cash a/c

29000

    To Discount a/c

1000

(Being paid cash to M/s Basu for full settlement and received discount)

6.

Cash a/c Dr.

10000

M/S Asha Traders a/c Dr

25000

    To Sales a/c

35000

(Being goods sold to M/s Asha Traders for cash and on credit)

7.

Cash a/c Dr.

24500

Discount a/c Dr.

500

   To M/S Asha Traders a/c

25000

(Being a cheque received from M/s Asha Traders for full settlement)

8.

Office Equipment a/c

4400

   To M/s Ugratara Electrics Suppliers

4400

(Being purchased two table fans from M/s. Ugratara Electrics Goods Suppliers on credit)

9.

Loss by theft a/c

   To Office Equipment a/c

(Being stolen of one table fan)

Total

580100

580100

Date

Particular

L.F.

Debit

Credit

May 1

Cash a/c Dr.

15000

   To capital a/c

15000

(Being started business with cash)

2

Cash a/c Dr.

5000

   To sales a/c

5000

(Being goods purchased for cash)

3

Purchased a/c Dr.

1000

   To Mr. Agrawal a/c

1000

(Being purchased goods from Agrawal)

5

Mr. Agrawal a/c Dr.

1000

   To cash a/c

1000

(Being cash paid to Mr. Agrawal)

9

Postage a/c Dr.

120

   To cash a/c

120

(Being paid for postage)

11

Bank a/c Dr.

7000

   To cash a/c

7000

(Being cash deposited into the bank)

14

Ram a/c Dr.

1500

   To sales a/c

1500

(Being sold goods on credit from Ram)

15

Cash a/c Dr.

1000

   To Ram a/c

1000

(Being cash received from Ram)

19

Telephone expenses a/c Dr.

60

   To cash a/c

60

(Being cash paid for telephone expenses)

24

Furniture a/c Dr.

30000

   To cash a/c

30000

(Being purchased furniture)

29

Cash a/c Dr.

900

   To sales a/c

900

(Being gold sold for cash)

30

Ram a/c Dr.

500

   To cash a/c

500

(Being cash received for cash)

31

Salaries a/c Dr.

150

   To cash a/c

150

(Being the payment of salaries)

31

Government securities a/c

500

   To cash a/c

500

(Being government securities purchased)

31

Advertising a/c Dr.

150

   To Bank a/c

150

(Being paid for advertising by cheque)

Total

77380

77380

Aug. 1

Started business with cash

190000

Aug. 3

Bought goods: For cash

5000

                           From Karan

5000

                           From Janak

5000

Aug. 10

Paid wages

100

Paid Karan

2000

Paid Janak

5000

Aug. 14

Sold goods for cash (Cost 5000)

6000

Aug. 16

Sold goods to Rabin (Cost 3000)

2500

Aug. 18

Sold goods to Gopal on credit

3500

Aug. 20

Cash received from Rabin in full settlement

2400

Aug. 31

Bought furniture

1000

Paid for repairs

250

Date

Particular

L. F.

Debit

Credit

Aug. 1

Cash a/c Dr.

190000

   To capital a/c

190000

(Being started business with cash)

Aug. 3

Purchased a/c Dr.

15000

    To cash a/c

5000

    To Karan a/c

5000

    To Janak a/c

5000

(Being purchased goods on cash and from Karan, and Janak on credit)

Aug. 10

Wages a/c Dr.

100

Karan a/c Dr.

2000

Janak a/c Dr.

5000

    To cash a/c

7100

(Being cash paid for Wages, Karan, and Janak)

Aug. 14

Cash a/c Dr.

6000

   To sales a/c

6000

(Being sales goods on cash)

Aug. 16

Rabin a/c Dr.

2500

    To sales a/c

2500

(Being sold goods to Rabin)

Aug. 18

Gopal a/c Dr.

3500

   To sales a/c

3500

(Being goods sold to Gopal on credit)

Aug. 20

Cash a/c Dr.

2400

Discount a/c Dr.

100

    To Rabin a/c

2500

(Being cash received from Rabin and discount allowed to him)

Aug. 31

Furniture a/c Dr.

1000

Repairs a/c Dr.

250

   To cash a/c

1250

(Being cash paid for furniture and repair)

Total

227850

227850

Date

Particular

L.F.

Debit

Credit

a.

Cash a/c Dr.

50000

   To capital a/c

50000

(Being commencement of business with cash)

b.

Purchase a/c Dr.

25000

   To Kiran a/c

25000

(Being purchased goods on credit from Kiran)

c.

Cash a/c Dr.

975

Discount a/c Dr.

25

   To Mrs. Rita a/c

1000

(Being cash received from Mrs. Rita and allowed a discount)

d.

Cash a/c Dr.

1200

Loss on sales of furniture a/c

300

   To furniture a/c

1500

(Being furniture has been sold incurring a loss)

e.

Bharat a/c Dr.

1000

  To purchase return a/c

1000

(Being goods returned by Mr. Bharat as being not according to order)

f.

Installation charged a/c Dr.

900

   To cash a/c

900

(Being paid installation charge)

g.

Bad debts a/c Dr.

1000

   To Hira a/c

1000

(Being amount due from Hira has been written off as bad debts.)

h.

Cash a/c Dr.

2700

  To furniture a/c

2700

(Being unused furniture were disposed)

i

Discount a/c Dr.

500

   To Mr. Varun a/c

500

(Being discount allowed to Mr. Varun)

j.

Cash a/c Dr.

3000

  To loan a/c

3000

(Being received loan from a bank)

Total

86600

86600

Date

Particular

L.F.

Debit

Credit

a

Goods lost by accident a/c Dr.

1000

   To purchase a/c

1000

(Being lost of goods by accident and no claim is admitted by an insurance company)

b

Loss of cash by theft a/c Dr.

1500

Insurance receivable a/c Dr.

3500

   To Cash a/c

5000

(Being cash stolen by peon and insurance company admitted partial claim)

c

Insurance receivable a/c Dr.

10000

  To Purchase a/c

10000

(Being goods lost by fire and the insurance company admitted the full claim)

d

Debtor a/c Dr.

600

   To Cash a/c

600

(Being late supply to the customer and claim received)

Total

16600

16600

Date

Particular

L.F.

Debit

Credit

a

Life insurance premium a/c Dr.

12000

   To cash a/c

12000

(Being paid cash for the life insurance premium of a proprietor)

b.

Cash a/c Dr.

20000

Accrued commission a/c Dr.

5000

   To Commission a/c

25000

(Being received the commission and still to be received)

c.

Cash a/c Dr.

25000

   To rent a/c

25000

(Being received rent in advance)

d.

Cash a/c Dr.

5000

  To outstanding commission a/c

5000

(Being received cash for previous recorded outstanding commission)

e.

Cash a/c Dr.

20000

  To Earn advance rent received

20000

(Being earned advance rent received)

f.

Computer a/c Dr.

20000

   To debtors a/c

19000

    To loss a/c

1000

(Being sold old computer with loss)

g.

Drawing a/c Dr.

15000

   To Bank a/c

15000

(Being withdrew cash from the bank for personal use)

h.

Salary a/c Dr.

35000

  To bank a/c

25000

  To outstanding salary a/c

10000

(Being paid salary by cheque and still due)

i.

Advance insurance premium a/c Dr

9000

  To cash a/c

9000

(Being paid insurance premium in advance

j.

Salary outstanding a/c Dr.

25000

  To cash a/c

25000

(Being paid for salary outstanding)

k.

Cash a/c Dr.

5000

  To bad debts recovered a/c

5000

(Being a bad debt recovered which was previously written off)

Total

196000

196000

Date

Particular

L.F.

Debit

Credit

a

Interest on Loan a/c Dr.

250

   To Loan a/c

250

(Being lost of goods by accident and no claim is admitted by an insurance company)

b.

Salaries a/c Dr.

4000

   To Cash a/c

4000

(Being salaries paid to clerk)

c.

Depreciation a/c Dr.

400

   To Furniture a/c

400

(Being depreciation charged on furniture)

d.

Cash a/c Dr.

8000

Loss a/c Dr.

1000

   To equipment a/c

9000

(Being sold old equipment for cash at a loss)

e.

Cash a/c Dr.

5000

  To Unearned Commission a/c

5000

(Being commission received in advance)

f.

Cash a/c Dr.

4000

  To Furniture a/c

3600

  To Profit and Loss a/c

400

(Being furniture sold for cash at a profit)

g.

Outstanding Salary a/c Dr.

5000

   To Cash a/c

5000

(Being outstanding salary paid for cash)

h.

Interest on capital a/c Dt.

5000

   To Capital a/c

5000

(Being interest on capital provided @ 5% of capital)

Date

Particular

L.F.

Debit

Credit

a.

Depreciation a/c Dr.

1000

   To Furniture

1000

   To Machinery a/c

(Being depreciation charged on machinery and furniture)

b.

Bad Debt a/c Dr.

4000

   To Debtor's a/c

4000

(Being bad debt written off)

c.

Cash a/c Dr.

3150

   To Bad debts recovered a/c

3150

(Being bad debt recovered)

d.

Wages a/c Dr.

4000

Salary a/c Dr.

20000

   To Cash a/c

24000

(Being wages and salary paid)

e.

Drawings a/c Dr.

   To Bank a/c

(Being furniture purchased for private use and paid by cheque)

Date

Particular

L.F.

Debit

Credit

a

Cash a/c Dr.

50000

   To capital a/c

50000

(Being a business started with cash)

b

Bank a/c Dr

40000

  To Cash a/c

40000

(Being cash deposited into a bank)

c

Machinery a/c Dr.

10000

  To Bank a/c

10000

(Being recorded the purchase of machinery and payment made by cheque)

d

Machinery a/c Dr

400

   To cash a/c

400

(Being installation charges paid on machinery)

Date

Particular

L.F.

Debit

Credit

March

Purchased a/c Dr

15000

1

   To cash a/c

5000

   To credit a/c

10000

(Being purchased goods for cash and on credit)

March

Debtors a/c Dr.

3

   To sales a/c

5000

(Being sold goods on account)

5000

March

Bank a/c Dr

4900

5

Discount a/c Dr

100

   To debtor a/c

5000

(Being cheque received from a debtor for full settlement of his account)

March

Creditors a/c Dr

10000

10

   To cash a/c

8000

   To Discount a/c

2000l

(Being paid to the creditor for full settlement of his account)

March

Shital's a/c Dr

23000

11

   To sales a/c

23000

(Being goods sold on credit to Shital)

March

Bank a/c Dr

5000

14

  To cash a/c

5000

(Being cheque received from Shital deposited in the bank)

March

Shital a/c Dr

5000

17

   To Bank a/c

5000

(Being Shital's cheque was dishonored and returned to her)

March

A service charge of bank a/c Dr

200

21

   To bank a/c

200

(Being Bank charged for service charge)

Date

Particular

L.F.

Debit

Credit

July

Bank a/c Dr.

250000

1

   To capital a/c

250000

(Being started business with depositing cash into the bank)

July

Purchase a/c Dr

15000

3

   To bank a/c

5000

   To creditors a/c

10000

(Being purchased goods and giving cheque and rest balance on credit)

July

Cash a/c Dr

2000

6

Loss on sales of goods a/c Dr

1000

    To sales a/c

3000

(Being sold goods for cash at loss)

July

Destroyed goods by fire a/c Dr

1500

10

   To purchase a/c

1500

(Being fire occurred and destroyed goods)

Date

Particular

L.F.

Debit

Credit

a.

Shyam's a/c Dr

25000

   To Ram's a/c

25000

(Being goods sold on credit to Ram)

b.

Bills Receivable a/c Dr

25000

   To Shyam's a/c

25000

(Being received accepted bills from Shyam for 2 months)

c.

Cash a/c Dr

25000

   To Bills Receivable a/c

25000

(Being cash received from Shyam on bills on due date)

d.

Purchased a/c Dr

30000

   To Mahesh

30000

(Being goods purchased on credit from Mahesh)

e.

Mahesh a/c Dr

30000

  To Bills payable a/c

30000

(Being accepted of bills drawn by Mahesh for 3 months)

f.

Bills Payable a/c Dr

30000

   To Cash a/c

30000

(Being cash paid on bills on due date)

Date

Particular

L.F.

Debit

Credit

April

Mohan's a/c Dr

18000

15

   To sales a/c

18000

(Being goods sold to Mohan)

April

Bills receivable a/c Dr

18000

15

   To Mohan's a/c

18000

(Being bill drew upon Mohan)

April

Rajesh's a/c Dr

20

   To Bills receivable a/c

(Being bill drew upon Mohan endorsed to Rajesh)

June

18

No entry

Date

Particular

L.F.

Debit

Credit

April

Purchased a/c Dr

50000

15

   To Bishal's a/c

50000

(Being goods purchased from Bishal)

April

Bishal's a/c Dr

18000

15

   To Bills payable a/c

18000

(Being bills payable to Bishal)

April

20

No entry

June

Bills payable a/c Dr

18000

18

  To Cash a/c

18000

(Being amount of bills payable paid)

Date

Particular

L.F.

Debit

Credit

a

Bills Receivable a/c Dr

150000

   To Mr. Basnet

150000

(Being received of accepted bills by Mr. Basnet)

b

Bank a/c Dr

149687.50

Discount a/c Dr

312.50

    To Bills Receivable a/c

150000

(Being discounted the bills @ 5% p.a for 15 days)

c

Bills Receivable a/c Dr

150150

   To bank a/c

150150

(Being bills dishonored and reimbursing the bill amount including noting charge to the bank)