Page 57 - ISCDEBK-XI

7.12 Double Entry Book Keeping—ISC XI

2. Mohan was carrying on business as a cloth dealer. On 1st April, 2022 his assets were: Furniture and Office
Equipment, ` 12,500; Stock of Cloth ` 1,25,000; Cash in Hand ` 2,250; Bank Balance ` 42,500; Amount due
from B ` 6,000; Amount due from G ` 7,500. On that date he owed ` 10,000 to M and ` 7,250 to P. His
transactions during April, 2022 were as follows:
Date Particulars `
2022
April 1 Sold cloth on credit to G ............................................................................................................................................. 2,500
April 2 Purchased cloth from A on credit............................................................................................................................... 10,000
April 3 Paid rent for the month of March by cheque ........................................................................................................ 1,500
April 4 Purchases of cloth (paid by cheque) ......................................................................................................................... 4,000
Cash sales ............................................................................................................................................................................ 2,250
April 5 Cheque received from B ................................................................................................................................................ 4,900
Allowed him discount .................................................................................................................................................... 100
April 6 Paid for stationery............................................................................................................................................................ 250
April 8 Drew cash for personal use .......................................................................................................................................... 2,500
April 10 Drew cash from Bank for office ................................................................................................................................... 7,500
April 12 B’s cheque returned dishonoured by Bank which charges ` 25 for expenses
April 13 Purchased goods on credit from M ........................................................................................................................... 12,500
April 15 Sent cheque to M in full settlement of amount due on 1st April ................................................................... 9,750
Sent cheque to P .............................................................................................................................................................. 7,250
April 16 Sold goods on credit to G ............................................................................................................................................. 9,000
April 17 Paid telephone charges ................................................................................................................................................. 2,400
April 18 Cash sales ............................................................................................................................................................................ 5,500
Paid for advertising ......................................................................................................................................................... 1,750
April 20 Paid income-tax ................................................................................................................................................................ 9,500
Received letter from P saying that he has not received the cheque;
cancelled the cheque and paid cash.
April 21 B becomes insolvent; only 50% received from his estate
April 22 Cash purchases ................................................................................................................................................................. 4,500
April 24 Purchased filing cabinet and paid by cheque ....................................................................................................... 2,500
April 27 Paid salaries for the month ........................................................................................................................................... 10,000
Journalise the transactions. Note that cheques received are immediately sent to the Bank.
3. Journalise the following transactions in the books of Shiv Mohan. On 1st April, 2022, his assets and liabilities
were as follows:
Assets: Furniture—` 5,000; Machinery—` 10,000; Stock—` 4,000; Cash in Hand—` 550; Cash at Bank—
` 7,450; Debtors: Ramesh—` 1,000; and Suresh—` 2,000.
Liabilities: Creditors: Ram & Co.—` 4,500; Ranjeet & Co.—` 2,000; and Shyam Sunder—` 1,500.

Date Particulars `
2022
April 1 Purchased Goods from Ajay Kumar .............................................................................................................................. 4,500
April 3 Sold Goods for Cash ........................................................................................................................................................... 1,500
April 5 Withdrew from Bank for personal use ......................................................................................................................... 2,500
April 10 Sold Goods on Credit to Mukesh ................................................................................................................................... 1,700
April 15 Paid for Postage ................................................................................................................................................................... 100
April 16 Received Cash from Rakesh ............................................................................................................................................. 2,200
April 16 Deposited in Bank ............................................................................................................................................................... 2,800
April 17 Paid telephone charges .................................................................................................................................................... 250
April 18 Cash Sales ............................................................................................................................................................................... 1,500
April 20 Purchased Government Securities ................................................................................................................................ 5,000