Debit

Credit
 Modern Approach
Assets Liabilities Capital

Debit Credit

Credit Debit

Expenses Incomes(Revenue)
Mohan Introduced capital by cheque

Bank A/C Dr.

To Capital A/C
Mohan Started business with cash

Cash A/C Dr. Asset

To Capital A/C Capital
Mohan Started business by cash 10000 and
personal delivery van 40000

Cash A/C Dr. 10000

Delivery Van Dr. 40000
To Capital A/C 50000
Deposited cash into Bank

Bank A/C Dr. Asset

To Cash A/C Asset
Drew cash from bank for Office use

Cash A/C Dr. Asset

To Bank A/C Asset
Goods returned to Ram

Ram’s A/C Dr. Liability

To Purchase Return A/C Expense
Sold Goods to Hari

Hari’s A/C Dr. Asset

To Sales A/C Revenue
Goods returned by Hari

Sales Return A/C Dr. Revenue

To Hari’s A/C Asset
Purchased goods from Ram for cash

Purchases A/C Dr. Expense

To Cash A/C Asset
Sold Goods to Hari 6000, he paid 2000
immediately by cheque

Bank A/C Dr. 2000

Hari’s A/C Dr. 4000
To Sales A/C 6000
Purchased Machinery and paid by cheque

Machinery A/C Dr. Asset

To Bank A/C Asset
Purchased Machinery from sohan

Machinery A/C Dr. Asset

To Sohan’s A/C Liability
Rent paid to Amit

Rent A/C Dr. Expense

To Cash A/C Asset
Old newspaper sold

Cash A/C Dr. Asset

To Sundry Income A/C Income
Commission received

Cash A/C Dr. Asset

To Commission A/C Income
Took a loan from Anita and deposited in
bank

Bank A/C Dr. Asset

To Loan A/C Liability
Rent is due but not paid

Rent A/C Dr. Expense

To Rent outstanding A/C Liability

Paid cash for outstanding Rent

Rent outstanding A/C Liability
To cash A/C
Paid cartage

Cartage A/C Dr.

To Cash A/C
Paid Mobile and internet charges

Mobile & internet charges A/C Dr.

To Cash A/C
Purchased calculator

Stationery A/C Dr.

To Cash A/C
Paid `5000 for salaries & `3000 for rent.

Salaries A/C Dr. 5000

Rent A/C Dr. 3000
To Cash A/C 8000
Received `4500 from sohan in full
settlement of his account for ` 5000

Cash A/C Dr. 4500

Discount allowed A/C Dr. 500
To Sohan’s A/C 5000
Received `4500 from sohan on his account
for ` 5000

Cash A/C Dr. 4500

To Sohan’s A/C 4500
Paid `6000 to sohan in full settlement of his
account for ` 7000

Sohan’s A/C Dr. 7000

To Cash A/C 6000
To discount received A/C 1000
Paid `4500 to sohan in full settlement of his
dues, received discount 10%

Sohan’s A/C Dr. 5000

To Cash A/C 4500
To discount received A/C 500
Amount payable to sohan =
4500 x 100
90
= 5000
Drew for Private use

Drawings A/C Dr. Capital

To Cash A/C Asset
Paid Rent ` 5000 of building by cheque half of the
building is used for residential use by proprietor

Drawings A/C Dr. 2500

Rent A/C Dr. 2500
To Bank A/C 5000
Sold goods to Ram ` 5000
Received cheque from Ram ` 4500 in full settlement

Ram Dr. 5000

To Sales A/C 5000
Bank A/C Dr. 4500
Discount allowed A/C Dr. 500
To Ram 5000
Placed an order for printers 15000, amount
advanced 5000

Advance for printer A/C Dr. 5000 Asset

To Cash A/C 5000
Sold personal Car and brought money into
business ` 4500

Cash A/C Dr. 4500

To capital A/C 4500
Bank charges charged by Bank

Bank charges A/C Dr.

To Bank A/C
Dividend collected by Bank

Bank A/C Dr.

To Dividend A/C
Bank allows interest

Bank A/C Dr.

To Interest A/C
Cheque received from kumar
Bank A/C Dr.
To Kumar’s A/C

Cheque of kumar returned unpaid

Kumar’s A/C Dr.
To Bank A/C
Received Cheque from Mohan after
banking hours
Cheques in Hand A/C Asset
To Mohan’s A/C Asset

Deposited Mohan’s Cheque into bank

next day
Bank A/C Asset
To Cheques in Hand A/C Asset
Goods given as Charity
Charity A/C Dr.
To Purchases A/C
Goods given as Free Samples

Advertisement A/C Dr.

To Purchases A/C
Goods Withdrawn by Proprietor

Drawings A/C Dr.

To Purchases A/C
Goods Lost by Fire

Loss by fire A/C Dr.

To Purchases A/C
Goods Lost in transit

Loss in transit A/C Dr.

To Purchases A/C
Goods used in making Furniture

Furniture A/C Dr.

To Purchases A/C
Insured Goods costing 100000 were Lost by Fire. Insurance
claim admitted for 25000 and cheque received.

Loss by fire A/C Dr. 100000

To Purchases A/C 100000
Insurance co. A/C Dr. 100000
To Loss by fire A/C 100000
Bank A/C Dr. 25000
Loss by fire A/C (P/L A/C) Dr. 75000
To Insurance Co. A/C 100000
Placed an order with Raj for supply of goods
of the list price ` 100000. In this connection,
we paid 10% as an advance.

Advance to Raj A/C 10000

To Cash A/C 10000
Received an order From Raj for supply of
goods of the list price ` 100000.

No Entry
Received an order From Raj for supply of
goods of the list price ` 100000. In this
connection, he paid 25000 as an advance by
Cheque.

Bank A/C 25000

To Advance from Raj A/C 25000
Shyam became insolvent. A first and final
compensation of 75 paise in a rupee was
received from him. He owed me ` 1000.
1000 × 75 / 100 = 750
Cash A/C Dr. 750
Bad debt A/C Dr. 250
To Shyam’s A/C 1000
Amount due from Mohan ` 2000 is not
recoverable

Bad debt A/C Dr. 2000

To Mohan’s A/C 2000
Received cash 250 for a bad debt
written off last year

Cash A/C Dr. 250

To Bad debt recovered A/C 250
Paid wages for installation of
Machinery

Machinery A/C Dr.

To Cash A/C
Paid Customs Duty on Import of
New Machinery

Machinery A/C Dr.

To Cash A/C
Received commission 5000 half of which is in
advance
Cash A/C Dr. 5000
To Commission 2500 Income
To Commission Recd in Adv 2500 Liab
Charge Depreciation on Machinery

Depreciation A/C Dr. Expense

To Machinery A/C Asset
Out of Rent paid ` 2000 is in
advance

Prepaid Rent A/C 2000 Asset

To Rent A/C 2000 Expense
Started business by introducing capital in cash
10000 and by cheque 5000

Cash A/C Dr. 10000

Bank A/C Dr. 5000
To capital A/C 15000
Purchased goods 40000 and paid
carriage 5000

Purchases A/C Dr. 40000

Carriage A/C Dr. 5000
To cash A/C 45000
Purchased Machinery 40000 and
paid carriage 5000

Machinery A/C Dr. 45000

To cash A/C 45000
Paid Income tax
Drawings A/C Dr.
To cash A/C
Allow Interest on Capital (expense)

Interest on capital A/C Dr. Expense

To capital A/C Capital
Interest on Drawings (income)

Drawings A/C Dr. Capital

To Interest on drawings A/C Income
Paid 25000 to bank as installment , 20000 towards
principal and 5000 as interest

Bank loan A/C Dr. 20000

Interest A/C Dr. 5000
To cash A/C 25000
Took a loan from bank

Bank A/C Dr.

To Bank Loan A/C
Repaid Bank Loan

Bank Loan A/C Dr.

To Bank A/C
Opened current account in Bank ` 5000

Bank A/C Dr. 5000

To Cash A/C 5000
Transferred ` 5000 to the firms bank
account from savings account

Bank A/C Dr. 5000

To Capital A/C 5000
Paid life insurance premium for employees.

Employee benefit expenses A/C Dr.

To Cash A/C
Sold goods to Mayank 100000, payable 25% by
cheque at the time of sale and balance after 30 days
25000
Total Sales 100000
75000

Bank A/C Dr. 25000

Mayank Dr. 75000
To Sales A/C 100000
Sold his personal car for 100000 and
deposited in his savings account.

No Entry
Paid to petty cashier

Petty Cash A/C Dr. 5000

To Cash A/C 5000
Goods sold to Ravi ` 100000, less
10% Trade discount.
Total sales 100000
Less: Trade discount 10% 10000
90000

Ravi’s A/C Dr. 90000

To Sales A/C 90000
Goods sold to Ravi ` 100000, less 10%
Trade discount, 10% cash discount. He
paid the amount immediately.
Total sales 100000
Less: Trade discount 10% 10000
90000
Less : Cash Discount 10% 9000
81000

Cash A/C Dr. 81000

Discount allowed A/C Dr. 9000
To Sales A/C 90000
Goods sold to Ravi ` 100000, less 10%
Trade discount, 10% cash discount. He
paid 50% amount immediately.
Total sales 100000
Less: Trade discount 10% 10000 45000 Credit
90000
45000 Cash
Less : Cash Discount 10% 4500
40500
Cash A/C Dr. 40500
Discount allowed Dr. 4500
Ravi’s A/C Dr. 45000
To Sales A/C 90000
Goods purchased from shyam ` 40000, less
10% trade discount, 10% cash discount. we
paid half amount immediately.
Total Purchases 40000
Less: Trade discount 10% 4000 18000 Credit
36000
18000 Cash
Less : Cash Discount 10% 1800
16200
Purchases A/C Dr. 36000
To Cash A/C 16200
To discount received A/C 1800
To Shyam’s A/C 18000
Goods sold to Ram for cash costing `
100000 at profit of 10% on cost , less 5%
Trade discount.
Cost price 100000
Add: 10% Profit 10000
110000
Less : 5% Trade disc 5500
104500
Cash A/C Dr. 104500
To Sales A/C 104500
If trade discount is allowed at the time of
purchase or sales, it will be calculated at the time
of returns too.
Purchased a Machinery for ` 25,00,000 by making a
down payment of 10%

Machinery Dr. 25,00,000

To Cash A/C 2,50,000
To Vendors 22,50,000
Repaid bank loan 35,000 including interest 3,000
Bank loan Dr. 32,000
Interest Dr. 3,000
To Bank A/C 35,000
Paid Insurance premium for stock 15,000 and self 7,000
Insurance premium A/C 15,000
Drawings A/C 7,000
To Cash A/C 22,000
Construction of power back room
Building Dr.
To Cash A/C
Interest Accrued but not received

Accrued Interest A/C Dr. Asset

To Interest A/C Income
 GST
(Goods & Service Tax)
When Goods are purchased When Goods are Sold
Or
At the time of Expenses

— Input CGST — Output CGST

— Input SGST — Output SGST
or or
— Input IGST — Output IGST
Goods sold to Rakesh, Delhi 10000 plus CGST & SGST 6% each
Rakesh’s A/C Dr. 11200
To Sales A/C 10000
To Output CGST A/C 600
To Output SGST A/C 600
Goods sold to Rishabh, Ghaziabad 10000 plus IGST 12%
Rishabh’s A/C Dr. 11200
To Sales A/C 10000
To Output IGST A/C 1200
Goods purchased from Ram, Delhi 10000 plus CGST & SGST 6% each
Purchases A/C Dr. 10000
Input CGST A/C Dr. 600
Input SGST A/C Dr. 600
To Ram’s A/C 11200
Goods purchased from Mohan, Noida 10000 plus IGST 12%
Purchases A/C Dr. 10000
Input IGST A/C Dr. 1200
To Mohan’s A/C 11200
Goods returned to Ram 1000
Ram’s A/C Dr. 1120
To Purchase Return A/C 1000
To Input CGST A/C 60
To Input SGST A/C 60
Goods returned to Mohan 1000
Mohan’s A/C Dr. 1120
To Purchase Return A/C 1000
To Input IGST A/C 120
Goods sold to Rakesh, Delhi 10000 plus CGST & SGST 6% each
Rakesh’s A/C Dr. 11200
To Sales A/C 10000
To Output CGST A/C 600
To Output SGST A/C 600
Goods sold to Rishabh, Ghaziabad 10000 plus IGST 12%
Rishabh’s A/C Dr. 11200
To Sales A/C 10000
To Output IGST A/C 1200
Goods returned by Rakesh 1000
Sales Return A/C Dr. 1000
Output CGST A/C Dr. 60
Output SGST A/C Dr. 60
To Rakesh’s A/C 1120
Goods returned by Rishabh 1000
Sales Return A/C Dr. 1000
Output IGST A/C Dr. 120
To Rishabh’s A/C 1120
Goods purchased from Ram, Delhi of ` 1,00,000 less 10% trade discount
plus CGST & SGST 6% each
Purchases A/C Dr. 90000
Input CGST A/C Dr. 5400
Input SGST A/C Dr. 5400
To Ram’s A/C 100800

List price 1,00,000

Less: TD 10% 10,000
Taxable value 90,000
Add : CGST 5,400
SGST 5,400
Invoice value 1,00,800
Goods purchased from Ram, Delhi of ` 1,00,000 less 10% trade discount
plus CGST & SGST 6% each. Paid immediately and availed 5% cash discount.
Purchases A/C Dr. 90000
Input CGST A/C Dr. 5130
Input SGST A/C Dr. 5130
To Cash A/C 95760
To Discount received A/C 4500

List price 1,00,000

Less: TD 10% 10,000
Purchase value 90,000
Less: CD 5% 4,500
Taxable value 85,500
Add : CGST 5,130
SGST 5,130
Invoice value 95,760
Goods purchased from Ram, Delhi of ` 1,00,000 less 10% trade discount
plus CGST & SGST 6% each. Paid half amount immediately and availed
5% cash discount.
Purchases A/C Dr. 90000
Input CGST A/C Dr. 5265
Input SGST A/C Dr. 5265
To Cash A/C 47880
To Ram’s A/C 50400
To Discount received A/C 2250
Cash Credit
List price 50,000 50,000
Less: TD 10% 5,000 5,000
Purchase value 45,000 45,000
Less: CD 5% 2,250 --
Taxable value 42,750 45,000
Add : CGST 2,565 2,700
SGST 2,565 2,700
Invoice value 47,880 50,400
Paid Telephone expenses 1000 plus CGST & SGST 6% each

Telephone Exp A/C Dr. 1000

Input CGST A/C Dr. 60
Input SGST A/C Dr. 60
To Cash A/C 1120
Purchased Computer from Gurugram 10000 plus IGST 12%

Computer A/C Dr. 10000

Input IGST A/C Dr. 1200
To Cash A/C 11200
Furniture purchased for cash 22400 including CGST
& SGST 6% each
Furniture A/C Dr. 20000
Input CGST A/C Dr. 1200
Input SGST A/C Dr. 1200
To Cash A/C 22400

22400 × 100
112
= 20000
Paid Rent 4480, including CGST & SGST 6% each.

Rent A/C Dr. 4000

Input CGST A/C Dr. 240
Input SGST A/C Dr. 240
To Cash A/C 4480

4480 × 100 = 4000

112
 In the books of Ram
Journal
Date Particulars LF Debit (`) Credit (`)
Apr 1 Cash A/C Dr. 100000
To Capital A/C 100000
(being started business with cash)
2 Purchases A/C Dr. 25000
To Cash A/C 25000
(being goods purchased)
3 Purchases A/C Dr. 18000
To Pankaj’s A/C 18000
(being goods purchased on credit)
5 Naresh’s A/C Dr. 9000
To Sales A/C 9000
(being sold goods to Naresh)
Total c/f 152000 152000
 Total b/f 152000 152000
7 Pankaj’s A/C Dr. 12000
To Purchase Return A/C 12000
(being goods returned to pankaj)
9 Sales Return A/C Dr. 1400
To Naresh’s A/C 1400
(being goods returned by Naresh)
10 Ajay’s A/C Dr. 6000
To Cash A/C 6000
(being cash paid to Ajay)
12 Cash A/C Dr. 2700
To Commission A/C 2700
(being Commission received)
Total c/f 174100 174100
 Total b/f 174100 174100
15 Furniture A/C Dr. 7000
To Cash A/C 7000
(being Furniture purchased)
16 Rent A/C Dr. 5000
To Cash A/C 5000
(being Rent paid)
19 Cash A/C Dr. 6000
To Sales A/C 6000
(being cash sales)
24 Cash A/C Dr. 7000
To Sales A/C 7000
(being cash sales)
Total c/f 199100 199100
 Total b/f 199100 199100
30 Cash A/C Dr. 5000
To Naresh’s A/C 5000
(being cash received from Naresh)
30 Salaries A/C Dr. 10000
To Cash A/C 10000
(being salaries paid)
Total 214100 214100
 In the books of Gurman
Journal
Date Particulars LF Debit (`) Credit (`)
1.6.23 Cash A/C Dr. 100000
To Capital A/C 100000
(being started business with cash)
3 Purchases A/C Dr. 10000
To Harish’s A/C 10000
(being goods purchased on credit)
5 Purchases A/C Dr. 8000
To Cash A/C 8000
(being goods purchased)
8 Purchases A/C Dr. 7000
To Cash A/C 7000
(being goods purchased)
Total c/f 125000 125000
 Total b/f 125000 125000
10 Kailash’s A/C Dr. 2000
To Sales A/C 2000
(being sold goods to Kailash)
12 Cash A/C Dr. 1500
To Sales A/C 1500
(being cash sales)
14 Sales Return A/C Dr. 500
To Kailash’s A/C 500
(being goods returned by Kailash)
16 Harish’s A/C Dr. 360
To Purchase Return A/C 360
(being goods returned to Harish)
Total c/f 129360 129360
 Total b/f 129360 129360
18 Machinery A/C Dr. 8000
To Sohan’s A/C 8000
(being Machinery purchased)
19 Harish’s A/C Dr. 5000
To Cash A/C 5000
(being cash paid to Harish)
25 Drawings A/C Dr. 5000
To Cash A/C 5000
(being cash withdrawn for personal use)
30 Cash A/C Dr. 200
To Sundry Income A/C 200
(being old newspaper sold)
30 Bank A/C Dr. 50000
To Loan A/C 50000
(being loan from Mohan)
Total 197560 197560
 In the books of Amitabh
Journal
Date Particulars LF Debit (`) Credit (`)
1.5.23 Cash A/C Dr. 80000
To Capital A/C 80000
(being started business with cash)
2 Furniture A/C Dr. 10000
To Cash A/C 10000
(being furniture purchased for cash)
5 Bank A/C Dr. 30000
To Cash A/C 30000
(being deposited in bank)
6 Purchases A/C Dr. 5000
To Cash A/C 5000
(being goods purchased)
Total c/f 125000 125000
 Total b/f 125000 125000
8 Purchases A/C Dr. 4500
To Hari’s A/C 4500
(being goods purchased)
10 Purchases A/C Dr. 3000
To Cash A/C 3000
(being goods purchased)
12 Purchases A/C Dr. 4000
To Ajay’s A/C 4000
(being goods purchased)
14 Cash A/C Dr. 7000
To Sales A/C 7000
(being cash sales)
Total c/f 143500 143500
 Total b/f 143500 143500
15 Karim’s A/C Dr. 6500
To Sales A/C 6500
(being sold goods to Karim)
16 Cash A/C Dr. 5000
To Sales A/C 5000
(being cash sales)
19 Cash A/C Dr. 5000
To Bank A/C 5000
(being withdrew from bank)
Total c/f 160000 160000
 Total b/f 160000 160000
20 Cash A/C Dr. 5000
To Karim’s A/C 5000
(being karim paid the amount)
29 Drawings A/C Dr. 6000
To Cash A/C 6000
(being paid rent for residence)
30 Drawings A/C Dr. 3000
To Cash A/C 3000
(being purchased cycle for son)
30 Ajay’s A/C Dr. 4000
To Cash A/C 3800
To Discount Received A/C 200
(being Paid to Ajay)
Total 178000 178000
2023
 4 In the books of …..
Journal
Date Particulars LF Debit (`) Credit (`)
Apr 5 Salaries A/C Dr. 30000
Rent A/C Dr. 10000
Wages A/C Dr. 8000
To Bank A/C 48000
7 Purchases A/C Dr. 27000
To Cash A/C 26460
To Disc Recd A/C 540
15 Raju’s A/C Dr. 12000
To Cash A/C 5000
To Bank A/C 7000
Total Purchases 30000
Less: Trade discount 10% 3000
27000
Less: Cash discount 2% 540
26460
April 18
Cash A/C Dr. 1940
Discount allowed Dr. 60
Roma’s A/C Dr. 2000
To Sales A/C 4000
Total sales 5000
Less: Trade discount 20% 1000 2000 Credit
4000
2000 Cash
Less : Cash Discount 3% 60
1940
Date Particulars LF Debit (`) Credit (`)
20 Bank A/C Dr. 5000
Ramesh’s A/C Dr. 3000
To Sales A/C 8000
25 Cash A/C Dr. 10000
Delivery Van A/C Dr. 50000
To Capital A/C 60000
26 Anil’s A/C Dr. 1000
To Cash A/C 975
To Discount recd A/C 25
30 Raju’s A/C Dr. 3000
To Cash A/C 1000
To Bank A/C 2000
30 Mohan’s A/C Dr. 5000
To Cash A/C 4800
To Discount recd A/C 200
2023
5 In the books of…….
Journal
Date Particulars LF Debit (`) Credit (`)
1 Cash A/C Dr. 2500
Bad Debt A/C Dr. 2500
To Mohan’s A/C 5000
2 Bad Debt A/C Dr. 8000
To Ramesh’s A/C 8000
3 Cash A/C Dr. 7500
Bad Debt A/C Dr. 7500
To Shyam’s A/C 15000
4 Cash A/C Dr. 10000
To Bad Debt Recovered A/C 10000
2023
6 In the books of…….
Journal
Date Particulars LF Debit (`) Credit (`)
1 Bank A/C Dr. 30000
To Cash A/C 30000
3 Cash A/C Dr. 10000
To Bank A/C 10000
7 Wages A/C Dr. 7000
To Bank A/C 7000
10 Bank A/C Dr. 8500
Discount Allowed A/C Dr. 500
To Deewan’s A/C 9000
12 Telephone Exp A/C Dr. 1000
To Bank A/C 1000
14 Deewan’s A/C Dr. 9000
To Bank A/C 8500
To Discount Allowed A/C 500
Date Particulars LF Debit (`) Credit (`)
16 Bank Charges A/C Dr. 400
To Bank A/C 400
17 Bank A/C Dr. 8000
To Sales A/C 8000
19 Insurance premium A/C Dr. 1800
To Bank A/C 1800
25 Bank A/C Dr. 2500
To Dividend A/C 2500
 In the books of…….
7 Journal
Date Particulars LF Debit (`) Credit (`)
1 Bank A/C Dr. 10000
To Cash A/C 10000
2 Cash A/C Dr. 5000
To Bank A/C 5000
5 Cheques in hand A/C Dr. 11880
Discount Allowed A/C Dr. 120
To Ramesh’s A/C 12000
7 Bank A/C Dr. 11880
To Cheques in hand A/C 11880
9 Ramesh’s A/C Dr. 12020
To Bank A/C 11900
To Discount allowed A/C 120
20 Bank A/C Dr. 12080
To Ramesh A/C 12020
To Interest Recd A/C 60
Date Particulars LF Debit (`) Credit (`)
21 Bank A/C Dr. 8000
To Raja’s A/C 8000
23 M/S Lal & sons A/C Dr. 5000
Bank Charges A/C Dr. 700
To Bank A/C 5700
28 Bank A/C Dr. 3800
Discounting charges A/C Dr. 200
To Cheques in hand A/C 4000
30 Cheques in hand A/C Dr. 1000
To Shyam’s A/C 1000
30 Cash A/C Dr. 3500
Bank A/C Dr. 3500
To Sales A/C 7000
2023
8
In the books of…….
Journal
Date Particulars LF Debit (`) Credit (`)
1 Drawings A/C Dr. 1000
To Purchases A/C 1000
2 Advertisement A/C Dr. 500
To Purchases A/C 500
3 Charity A/C Dr. 300
To Purchases A/C 300
4 Furniture A/C Dr. 5000
To Purchases A/C 5000
5 Loss by Fire A/C Dr. 3500
To Purchases A/C 3500
6 Loss in transit A/C Dr. 2000
To Purchases A/C 2000
2023
 9 In the books of……
Journal
Date Particulars LF Debit (`) Credit (`)
Apr 1 Repairs A/C Dr. 1000
To Cash A/C 1000
2 Machinery A/C Dr. 42500
To Cash A/C 42500
3 Machinery A/C Dr. 2500
To Cash A/C 2500
4 Machinery A/C Dr. 5000
To Cash A/C 5000
5 Machinery A/C Dr. 18000
To Cash A/C 18000
6 Machinery A/C Dr. 2500
To Cash A/C 2500
10 Date Particulars LF Debit (`) Credit (`)
1 Accrued Interest A/C Dr. 10000
To Interest A/C 10000
2 Salary A/C Dr. 50000
To Salary Outstanding A/C 50000
3 Prepaid Rent A/C Dr. 5000
To Rent A/C 5000
4 Depreciation A/C Dr. 10000
To Furniture A/C 10000
5 Furniture A/C Dr. 4000
To Purchases A/C 4000
6 Bank A/C Dr. 20000
To Commission A/C 10000
To Commission recd in Adv A/C 10000
7 Interest on capital Dr. 8000
To Capital 8000
8 Drawings Dr. 1500
To Interest on Drawings 1500
 2023

Date Particulars LF Debit (`) Credit (`)

1 Apr Cash A/C Dr. 60000
Bank A/C Dr. 40000
Stock A/C Dr. 150000
Furniture A/C Dr. 43000
X’s A/C Dr. 35000
Y’s A/C Dr. 50000
Z’s A/C Dr. 60000
To Loan from vikas A/C 60000
To A’s A/C 22500
To B’s A/C 30000
To Capital A/C 325500
(being balances of last year brought Forward)
 12 In the books of Pankaj
Journal
Date Particulars LF Debit (`) Credit (`)
a Cash A/C Dr. 2,00,000
Bank A/C Dr. 8,00,000
To Capital A/C 10,00,000
b Machinery A/C Dr. 25,00,000
To Cash A/C 2,50,000
To Vendors A/C 22,50,000
c Machinery A/C Dr. 48,000
To Cash A/C 48,000
d Purchases A/C Dr. 3,00,000
To Chhabra & Sons A/C 3,00,000
e Cash A/C Dr. 50,000
To Bank A/C 50,000
Date Particulars LF Debit (`) Credit (`)
f Bank Loan A/C Dr. 32,000
Interest A/C Dr. 3,000
To Bank A/C 35,000
g Samuel’s A/C Dr. 40,000
To Sales A/C 40,000
h Cash A/C Dr. 39,750
Discount Allowed A/C Dr. 250
To Samuel’s A/C 40,000
i Rent A/C Dr. 37,500
To Bank A/C 37,500
j Depreciation A/C Dr. 3,82,200
To Machinery A/C 3,82,200
25,48,000 x 15%
 13 In the books of Aakash
Journal
Date Particulars LF Debit (`) Credit (`)
a Cash A/C Dr. 3,00,000
Bank A/C Dr. 40,00,000
Furniture A/C Dr. 4,00,000
To Capital A/C 47,00,000
b Purchases A/C Dr. 30,00,000
To Bhushan Traders A/C 15,00,000
To Bank A/C 15,00,000
c Bhushan Traders A/C Dr. 1,20,000
To Purchases Return A/C 1,20,000
d Pawan A/C Dr. 4,00,000
To Sales A/C 4,00,000
Date Particulars LF Debit (`) Credit (`)
e Bhushan Traders A/C Dr. 1,50,000
To Cash A/C 1,47,000
To Disc Recd A/C 3,000
f Sales Return A/C Dr. 80,000
To Pawan A/C 80,000
g Cash A/C Dr. 1,20,000
To Sales A/C 1,20,000
h Advertisement A/C Dr. 20,000
To Purchases A/C 20,000
i Drawings A/C Dr. 37,500
To Cash A/C 37,500
j Drawings A/C Dr. 10,000
To Purchases A/C 10,000
 14 In the books of Tejvir
Journal
Date Particulars LF Debit (`) Credit (`)
a Cash A/C Dr. 5,00,000
To Capital A/C 5,00,000
b Bank A/C Dr. 3,00,000
To Cash A/C 3,00,000
c No entry
d Purchases A/C Dr. 3,00,000
To Cash A/C 1,50,000
To Bank A/C 1,50,000
e Carriage A/C Dr. 5,000
To Cash A/C 5,000
f Bank Charges A/C Dr. 2,000
To Bank A/C 2,000
Date Particulars LF Debit (`) Credit (`)
g Furniture A/C Dr. 20,000
To Purchases A/C 15,000
To Cash A/C 5,000
h Dividend A/C Dr. 5,000
To Bank A/C 5,000
i Bank A/C Dr. 35,000
To Capital A/C 35,000
 15 In the books of Surekhs
Journal
Date Particulars LF Debit (`) Credit (`)
a Cash A/C Dr. 500000
To Capital A/C 500000
b Purchases A/C Dr. 300000
To Goyalson’s A/C 150000
To Cash A/C 150000
c Cash A/C Dr. 60000
Sonika’s A/C Dr. 40000
To Sales A/C 100000
d Sales Return A/C Dr. 10000
To Sonika’s A/C 10000
e Goyalson’s A/C Dr. 150000
To Cash A/C 149000
To Discount Recd A/C 1000
f Bad Debt A/C Dr. 30000
To Sonika’s A/C 30000
g Rent A/C Dr. 5000
Drawings A/C Dr. 10000
To Cash A/C 15000
 16 In the books of Muskaan
Journal
Date Particulars LF Debit (`) Credit (`)
a Cash A/C Dr. 3,00,000
Stock A/C Dr. 5,00,000
Building A/C Dr. 25,00,000
To Capital A/C 33,00,000
b Building A/C Dr. 1,00,000
To Cash A/C 1,00,000
c Insurance A/C Dr. 15,000
Drawings A/C Dr. 7,000
To CashA/C 22,000
d Loss by Fire A/C Dr. 80,000
To Purchases A/C 80,000
Insurance co. A/C Dr. 80,000
To Loss by Fire A/C 80,000
Date Particulars LF Debit (`) Credit (`)
e Cash A/C Dr. 25,000
To Commission A/C 20,000
To Commission Recd in adv A/C 5,000
f Bank A/C Dr. 64,000
Loss by Fire A/C (P/L A/C) Dr. 16,000
To Insurance co. A/C 80,000
g Salaries A/C Dr. 70,000
To Cash A/C 48,000
To Salaries outstanding A/C 22,000
h Depreciation A/C Dr. 2,60,000
To Building A/C 2,60,000
 17 In the books of Ramesh
Journal
Date Particulars LF Debit (`) Credit (`)
Apr 1 Cash A/C Dr. 100000
To Capital A/C 100000
2 Bank A/C Dr. 20000
To Cash A/C 20000
3 Purchases A/C Dr. 50000
To Cash A/C 50000
4 Cash A/C Dr. 10000
To Bank A/C 10000
13 Krishna’s A/C Dr. 15000
To Sales A/C 15000
20 Purchases A/C Dr. 22500
To Shyam’s A/C 22500
22 Sales Return A/C Dr. 2000
To Krishna A/C 2000
24 Cash A/C Dr. 12500
Discount Allowed A/C Dr. 500
To Krishna’s A/C 13000
28 Shyam’s A/C Dr. 22500
To Cash A/C 21500
To Discount Recd A/C 1000
30 Cash A/C Dr. 80000
To Sales A/C 80000
30 Rent A/C Dr. 5000
To Cash A/C 5000
30 Salary A/C Dr. 10000
To Cash A/C 10000
Total 350000 350000
 18 In the books of Rahul
Journal
Date Particulars LF Debit (`) Credit (`)
Jan 1 Cash A/C Dr. 200000
To Capital A/C 200000
2 Bank A/C Dr. 60000
To Cash A/C 60000
3 Purchases A/C Dr. 20000
To S. Singh & Co. A/C 20000
3 Cartage A/C Dr. 300
To Cash A/C 300
4 Furniture A/C Dr. 2000
Advance for Printer A/C Dr. 5000
Stationery A/C Dr. 1000
To cash A/C 8000
4 Computer A/C Dr. 13000
To Bank A/C 13000
6 Mobile & Internet charges A/C Dr. 5700
To cash A/C 5700
8 Cash A/C Dr. 4000
To Sales A/C 4000
9 Sharda & Co. A/C Dr. 10000
To Sales A/C 10000
9 Cartage A/C Dr. 200
To Cash A/C 200
15 Singh & co. A/C Dr. 17500
To Cash A/C 17500
25 Ray & Co.A/C Dr. 5600
To Sales A/C 5600
27 Bank A/C Dr. 9750
Discount Allowed A/C Dr. 250
To Sharda & Co. A/C 10000
31 Electricity Ch A/C Dr. 1000
To Cash A/C 1000
31 Salary A/C Dr. 1500
To Cash A/C 1500
31 Drawings A/C Dr. 7500
To Cash A/C 7500
 19 In the books of Singh Enterprises, Delhi
Journal
Date Particulars LF Debit (`) Credit (`)
Jun 1 Cash A/C Dr. 50000
To Capital A/C 50000
2 Bank A/C Dr. 200000
To Capital A/C 200000
3 Bank A/C Dr. 50000
To Loan from Ram’s A/C 50000
4 Purchases A/C Dr. 15000
To Cash A/C 15000
11 M/S Hari A/C Dr. 12000
To Sales A/C 12000
13 Advance for Machinery A/C. Dr. 40000
To Bank A/C 40000
17 Cash A/C Dr. 10000
To M/S Hari A/C 10000
20 Furniture A/C Dr. 22400
To Bank A/C 22400
27 Rent A/C Dr. 28000
To Bank A/C 28000
27 Cash A/C Dr. 80000
To Capital A/C 80000
27 Loss by Fire A/C Dr. 2000
To Purchases A/C 20000
30 Employee benefit expenses A/C Dr. 5000
To Cash A/C 5000
30 Salary A/C Dr. 20000
To Cash A/C 20000
 20 In the books of Rakesh Agencies, Delhi
Journal
Date Particulars LF Debit (`) Credit (`)
Jan 1 Cash A/C Dr. 50000
To Capital A/C 50000
2 Purchases A/C Dr. 10000
To Cash A/C 10000
5 Purchases A/C Dr. 60000
To Mohan’s A/C 60000
7 Bank A/C Dr. 10000
To Cash A/C 10000
10 Furniture A/C Dr. 2000
To Cash A/C 2000
15 Cash A/C Dr. 8000
To Sales A/C 8000
20 Ram’s A/C Dr. 60000
Bank A/C Dr. 39200
Discount allowed A/C Dr. 800
To Sales A/C 100000
25 Cash A/C Dr. 3500
To Sales A/C 3500
27 Mohan’s A/C Dr. 3000
To Cash A/C 3000
28 Sales Return A/C Dr. 5000
To Ram’s A/C 5000
31 Salary A/C Dr. 9000
To Cash A/C 9000
31 Petty cash A/C Dr. 3000
To Cash A/C 3000
31 Mohan A/C Dr. 3000
To Purchase Return A/C 3000
Total sales 125000
Less: Trade discount 20% 25000 60000 Credit
100000
40000 Bank
Less : Cash Discount 2% 800
39200
 In the books of Suresh
21 Journal
Date Particulars LF Debit (`) Credit (`)
Apr 1 BankA/C Dr. 60000
To Capital A/C 60000
2 Purchases A/C Dr. 24000
To Bank A/C 24000
3 Mukand & co. A/C Dr. 6700
To Sales A/C 6700
4 Cash A/C Dr. 10900
To Sales A/C 10900
5 Sundry Exp A/C Dr. 3000
To Cash A/C 3000
8 Furniture & Fittings A/C Dr. 4000
To Bank A/C 4000
9 Purchases A/C Dr. 10600
To Ramesh & Bros A/C 10600
11 Ramesh & Bros A/C Dr. 1500
To Purchase Return A/C 1500
12 Ramesh & Bros. A/C Dr. 9100
To Bank A/C 8500
To Discount Recd A/C 600
12 Loss by Fire A/C Dr. 5000
To Purchases A/C 5000
12 Insurance co. A/C Dr. 5000
To Loss by Fire A/C 5000
20 Bank A/C. Dr. 4000
Loss by fire A/C(P/L A/C) 1000
To Insurance co. A/C 5000
30 Interest A/C Dr. 200
To Bank A/C 200
30 Cash A/C Dr. 50000
To Loan from Riddhi A/C 50000
30 Cash A/C Dr. 3000
To Mukand & co. A/C 3000
30 Cash A/C Dr. 10000
To Capital A/C 10000
30 Cash A/C Dr. 4800
To Sales A/C 4800
Sold goods costing 20000 to sunil at a profit of 20% on
Sales less 20% Trade discount & paid cartage 150(to be
charged from customer)
cost + profit = sales
let the sales be x
20000 + 20x = x
100
20000 + x = x
5
100000 + x = 5x
100000 = 4x
x = 25000
 Total Sales 25000
Less: Trade discount 20% 5000
20000

Date Particulars LF Debit (`) Credit (`)

Sunil A/C Dr. 20150
To Sales A/C 20000
To Cartage A/C 150
Cartage A/C Dr. 150
To Cash A/C 150
 22 In the books of R.K & Co.
Journal
Date Particulars LF Debit (`) Credit (`)
1 Purchases A/C Dr. 16000
To Bank A/C 16000
2 Purchases A/C Dr. 17000
To Cash A/C 17000
3 Purchases A/C Dr. 24000
To Amrit’s A/C 24000
4 Purchases A/C Dr. 35000
To Cash A/C 35000
5 Amrit’s A/C Dr. 8000
To Purchases Return A/C 8000
6 Bank A/C Dr. 36000
To Sales A/C 36000
 7 Cash A/C Dr. 27000
To Sales A/C 27000
8 Pawan’s A/C Dr. 18000
To Sales A/C 18000
9 Yamini A/C Dr. 23000
To sales A/C 23000
10 Bhupesh’s A/C Dr. 10800
To Sales A/C 10800
11 Bank A/C Dr. 56250
To Sales A/C 56250
12 Sales Return A/C Dr. 9000
To Aman’s A/C 9000
10 Total Sales 10000 11 Total Sales 50000
Add: Profit 20% 2000 Add: Profit 25% 12500
12000 62500
Less: Trade discount 10% 1200 Less: Trade discount 10% 6250
10800 56250
 23 In the books of Bhushan Agencies
Journal
Date Particulars LF Debit (`) Credit (`)
1 Cash A/C Dr. 20000
Discount Allowed A/C Dr. 500
To Bharat’s A/C 20500
2 Bank A/C Dr. 35000
Discount Allowed A/C Dr. 750
To Vikas’s A/C 35750
3 Cash A/C Dr. 38000
Discount Allowed A/C Dr. 2000
To Akhil’s A/C 40000
4 Bank A/C Dr. 50000
To Amrit’s A/C 50000
5 Suresh’s A/C Dr. 40000
To Cash A/C 39200
To Discount Recd A/C 800
6 Mehar’s A/C Dr. 26000
To Bank A/C 25000
To Discount Recd A/C 1000
7 Yogesh’s A/C Dr. 25000
To Bank A/C 25000
8 Purchases A/C Dr. 100000
To Bank A/C 97000
To Disc Recd A/C 3000
9 Purchases A/C Dr. 60000
To Akash & Co. A/C 30000
To Cash A/C 29100
To Discount Recd A/C 900
10 Bank A/C Dr. 29400
Disc allowed A/C Dr. 600
To Sales A/C 30000
11 Vimal’s A/C Dr. 30000
Cash A/C Dr. 29400
Discount Allowed A/C Dr. 600
To Sales A/C 60000
 5
Paid `39200 to suresh in full settlement of his dues,
received discount 2%

Suresh’s A/C Dr. 40000

To Cash A/C 39200
To discount received A/C 800
Amount payable to Suresh
39200 x 100
98
= 40000
9 30000 Credit
Total Purchases 60000
30000 Cash
Less : Cash Discount 3% 900
29100

11
30000 Credit
Total sales 60000
30000 Cash
Less : Cash Discount 2% 600
29400
 Books of Bhushan Agencies:

Date Particulars LF Debit (`) Credit (`)

Mittal bros A/C Dr. 270000
To Sales A/C 270000
Sales Return A/C Dr. 27000
To Mittal Bros A/C 27000
Cash A/C Dr. 235710
Disc allowed A/C Dr. 7290
To Mittal Bros A/C 243000

Total Sales(100 x 3000) 300000 Sales Return (10 x 3000) 30000

Less: Trade discount 10% 30000 Less: Trade discount 10% 3000
270000 27000
Date Particulars LF Debit (`) Credit (`)
4.1 Gupta Shawls A/C Dr. 15000
To Sales A/C 15000
14.1 Cash A/C Dr. 7500
To Gupta Shawls A/C 7500
10.2 Cash A/C Dr. 7500
To Gupta Shawls A/C 7500

Total Sales 20000

Less: Trade discount 25% 5000
15000
24 1 Cash A/C Dr. 7500
Bad Debt A/C Dr. 2500
To Shyam 10000
10000 × 75 / 100 = 7500
2 Cash A/C Dr. 5000
To Bad Debt Recovered A/C 5000
3 Rent A/C Dr. 8000
To Rent Outstanding A/C 8000
4 Salary A/C Dr. 10000
To Salary Outstanding A/C 10000
5 Advance to Rakesh Dr. 10000
To Bank A/C 10000
Supplied goods costing 3600 to sanjay.
Issued invoice at 20% above cost less 10%
trade discount
Cost price 3600
Add: 20% profit 720
4320
Less : 10% trade disc. 432
3888
6 Sanjay’s A/C Dr. 3888
To Sales A/C 3888
7 Outstanding printing A/C 1000
To cash A/C 1000
25
Charity A/C Dr. 500
To Purchases A/C 500
Bank A/C Dr. 25000
Mayank Dr. 75000
To Sales A/C 100000
Cash A/C Dr. 975
Discount all A/C Dr 25
To Harikrishna 1000
Cash A/C Dr. 600
Bad Debt A/C Dr. 400
To Rajan 1000
1000 × 60/ 100 = 600
Drawings A/C Dr. 1500
To Interest on drawings A/C 1500
Cash A/C Dr. 40000
To Sales A/C 40000
Cartage A/C Dr. 100
To Cash A/C 100
Drawings A/C Dr. 15000
To Cash A/C 15000