Page 54 - ISCDEBK-XI

Journal 7.9

Advanced Level Question

Illustration 4.
Pass Journal entries in the books of Puneet, Delhi for the following:
(i) Received an order from Karan & Co. for supply of goods of ` 50,000.
(ii) Received an order from AK & Co. for goods of ` 1,00,000 along with a cheque for
` 25,000 as advance.
(iii) Paid to staff ` 40,000 against outstanding salary of ` 60,000.

(iv) Sold goods to Bharat, Kaithal (Haryana) of ` 10,000 out of which 1/5th were returned
being defective.
(v) Cheque of ` 20,000 issued by Feroz was dishonoured.
(vi) Received 40 paise in a rupee from Feroz against the above dues.
(vii) Received a cheque of ` 25,000 from Mohan after banking hours.
(viii) Purchased goods from Barun of Chandigarh of ` 10,000 and sold them to Arun of
Shimla (HP) at ` 20,650.
(ix) Arun returned goods of ` 5,900, which were returned to Barun.
(x) Puneet Purchased 10 TV sets @ ` 20,000 per set. It sold all the sets @ ` 25,000 per set.

(xi) Paid insurance of ` 12,000 for a period of one year.
(xii) Sold personal car for ` 1,00,000 and invested the amount in the firm.
(xiii) Goods costing ` 1,00,000 were destroyed in fire. Insurance company admitted the
claim for ` 75,000.
(xiv) Purchased machinery for ` 50,000 and paid cartage and installation charges thereon
` 5,000 and ` 10,000 respectively.
(xv) Goods costing ` 40,000 sold to Amit at a profit of 20% on sales less 10% Trade Discount
and received a cheque under 2% cash discount.

(xvi) Purchased machinery from New Machinery House for ` 50,000 and paid it by means
of a bank draft. Paid bank charges ` 50.

Solution: JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
(i) No Entry

(ii) Bank A/c ...Dr. 25,000
To Advance from AK & Co. A/c 25,000
(Being the advance received against the order of ` 1,00,000)

(iii) Outstanding Salaries A/c ...Dr. 40,000
To Bank A/c 40,000
(Being the outstanding salaries paid)