Golden Rules of Prof.

Pallavi Ingale
9850861405
Accounts pallavingale7207@gmail.com
Methods of Recording accounting
information
 Important
Elements of
Double Entry
Book-keeping
System:
4. Stock of Goods
A/c
Learning of
accounting with
help of Problems
1) From the following transactions find out
• 1) Two aspects 2) Two accounts 3) Classify the
accounts
1) Commenced business with Cash Rs. 20,000.
2) Purchased goods on credit from Ajay Rs. 10,000.
3) Cash Sales Rs. 7,000.
4) Received commission Rs. 500.
5) Paid Rent Rs. 800.
 1) Two aspects
Transaction Aspect I Aspect II
Commenced 1) Cash comes in Proprietor is giver
business with Cash
Rs. 20,000.
Purchased goods on 2) Purchases is an Ajay is giver
credit from Ajay Rs. expenditure
10,000.
 1) Two aspects
Transaction Aspect I Aspect II
Cash Sales Rs. 3) Cash comes in Sales is an income
7,000.
Received 4) Cash comes in Commission
commission Rs. 500. received is an
income
Paid Rent Rs. 800. 5) Rent is an Cash goes out
expenses
 Two Two accounts
Transaction
aspects Classification
2) Two 1. Cash comes in Cash A/c Real A/c
accounts and
Classify the Proprietor (Capital) Capital A/c Personal A/c
is the giver
accounts
2. Purchases is an
expense Purchases A/c Nominal A/c

Ajay is giver Ajay A/c Personal A/c

 Two
Transaction Two aspects accounts
Classification
2) Two 3. Cash comes in Cash A/c Real A/c
accounts Sales is an income Sales A/c Nominal A/c
and 4 Cash comes in Cash A/c Real A/c
Classify the
Commission is an Commission
accounts income A/c Nominal A/c

5 Rent is an expense Rent A/c Nominal A/c

Cash goes out Cash A/c Real A/c

 Journal of ___________________________

Date Particulars L.F. Debit Credit

1) Cash A/c ----------------------------Dr 20,000
To Capital A/C 20,000
(Being Business started with capital )
2) Purchase A/C ----------------------Dr. 10,000
To Ajay A/C 10,000
(Being Goods purchased from Ajay)
3) Cash A/C -------------------------Dr. 7,000
To Sales A/c 7,000
(Being sales done on cash basis)
Continue from previous one….

Date Particulars L. Debit Credit

F.
4) Cash A/C -------------------------Dr. 500
To Commission received A/C 500
(Being Commission received)
5) Rent A/C -------------------------Dr. 800
To Cash A/C 800
(Being Rent paid)
38,300 38,300
2) From the following transactions find out Two
Aspects ,Two Accounts and Classify the Accounts.

1) Started business with Cash Rs. 50,000.

2) Purchased Machinery on credit from Avinash Rs. 20,000.
3) Purchased goods Rs. 5,000 from Rahul on cash.
4) Sold goods to Aniket Rs. 6,000 on credit.
5) Paid Salary Rs. 1,000.
6) Sold old Tables for Rs. 3,000.
 Journal of ___________________________
Dat Particulars L.F. Debit Credit
e
1) Cash A/c ----------------------------Dr 50,000
To Capital A/C 50,000
(Being Business started with capital )
2) Machine A/C ----------------------Dr. 20,000
To Avinash A/C 20,000
(Being Machine purchased from
Avinash)
3) Purchase A/C -------------------------Dr. 5,000
To Cash A/c 5,000
(Being Goods Purchase on cash basis)
Continue from previous one….
Date Particulars L. Debit Credit
F.
4) Sales A/C -------------------------Dr. 6,000
To Aniket A/C 6,000
(Being Goods Purchase on Credit)
5) Salary A/C -----------------------Dr. 1,000
To Cash A/C 1,000
(Being Rent paid)
6) Cash A/c -----------------------Dr. 3,000
To Tables A/c 3,000
(Being Old tables sold with cash)
85,000 85,000
 3) Journalise the following transactions in the
books of Narendra General Stores .
• 2019 April 1 Narendra commenced business with Cash Rs. 80,000
• 3 Purchased goods from Kiran Rs. 40,000 on credit
• 5 Paid rent Rs. 2,000
• 10 Sold goods to Mr.Vikas Rs. 5,500 on credit
• 15 Purchased Furniture of Rs. 30,000
• 18 Received a Bearer Cheque of Rs. 25,000 from Mr.Vikas
• 21 Paid to Kiran by Cheque of Dena Bank Rs. 20,000
• 30 Paid Salary Rs. 5000
 Journal of Narendra General Stores
Date Particulars L.F. Debit Credit
1-4-19 Cash A/c ----------------------------Dr 80,000
To Capital A/C 80,000
(Being Business started with capital )
2-4-19 Purchase A/C ----------------------Dr. 40,000
To Kiran A/C 40,000
(Being Goods Purchase on cash
basis)
5-4-19 Rent A/C -------------------------Dr. 2,000
To Cash A/c 2,000
(Being rent paid by cash)
 Continue from previous one….

Date Particulars L.F. Debit Credit

10-4-19 Vikas A/c ----------------------------Dr 5,500
To Sales A/C 5,500
(Being goods sold to cash Vikas on
credit)
15-4-19 Furniture A/C ----------------------Dr. 30,000
To Cash A/C 30,000
(Being Furniture purchased by cash )
18-4-19 Cash A/C -------------------------Dr. 25,000
To Vikas A/c 25,000
(Being received bearer cheque from
Vikas)
 Continue from previous one….

Date Particulars L.F Debit Credit

.
21-4-19 Kiran A/c ----------------------------Dr 20,000
To Dena Bank A/C 20,000
(Being paid to Kiran by Cheque)
30-4-19 Salary A/C ----------------------Dr. 5,000
To Cash A/C 5,000
(Being paid for salary)
2,62,400 2,62,400
 4) Journalise the following transactions in the books of Sankalp
General Stores
• 2019 July 1 Started business with Cash Rs. 1,00,000, Stock of
Goods worth Rs. 50,000 and Computer Rs. 50,000.
4 Purchased goods from Karina on credit Rs. 10,000 at 5%
trade discount.
10 Sold goods to Priyanka Rs. 20,000 at 10% trade discount.
13 Paid into State Bank of India Rs. 50,000.
15 Goods worth Rs. 2,000 lost by theft.
18 Paid for Rent Rs. 4,000.
20 Received Cash of Rs. 17,500 from Priyanka in full
settlement of her account.
25 Paid for Stationery purchased Rs. 8,000.
 Journal of Sankalp General Stores
Date Particulars L.F. Debit Credit
1-7-19 Cash A/c ----------------------------Dr 1,00,000
Stock of Goods A/c 50,000
Computer A/c 50,000
To Capital A/C 2,00,000
(Being started business with Cash, Goods
and Computer)
4-7-19 Purchase A/C ----------------------Dr. 9,500
To Karina A/C 9,500
(Being purchased goods from Karina on
credit at 5% trade discount)
 Continue from previous one….
Date Particulars L.F. Debit Credit
10-7-19 Priyanka A/c ------------------------Dr. 18,000
To Sale A/c 18,000
(Being goods sold to Priyanka on credit at
10% trade discount)
13-7-19 State Bank of India A/c ------------Dr. 50,000
To Cash A/c 50,000
(Being cash deposited into State Bank of
India)
15-7-19 Loss by theft A/c -------------------Dr. 2,000
To Goods Lost A/c or Purchases A/c 2,000
(Being goods lost by theft)
 Continue from previous one….
Date Particulars L.F. Debit Credit
18-7-19 Rent A/C ------------------------Dr. 4,000
To Cash A/c 4,000
(Being Rent paid by cash)
20-7-19 Cash A/c ------------------------Dr. 17,500
Discount Allowed A/c -------------Dr. 500
To Priyanka A/c 18,000
(Being cash received from Priyanka and
discount allowed)
25-7-19 Stationary A/c -------------------Dr. 8,000
To Cash A/c 8,000
(Being paid for stationery)
3,09,500 3,09,500
5) Journalise the following transactions in the books of Rajkumar Grocery Seller.
2019 April 1 Rajkumar started business with Cash Rs. 2,00,000, Building Rs.
2,00,000 and borrowed loan from Rakesh Rs. 50,000.
4 Deposited Cash into Dena Bank Rs. 50,000.
7 Purchased Computer from Brijesh of Rs. 30,000 and paid by Cheque.
10 Cash Sales Rs. 90,000..
12 Goods sold on credit to Ganesh Rs. 10,000 at 5% Trade Discount.
15 Ganesh returned goods of Rs. 950.
18 Goods taken by Rajkumar for his personal use Rs. 1,000.
20 Paid Telephone Charges Rs. 500 and Taxi Fare Rs. 200.
22 Paid Transport Charges Rs. 5,000.
24 Paid Audit Fees Rs. 5,000 by Cheque.
26 Purchased Furniture of Rs. 70,000 and amount paid by cheque .
28 Sold Motor Car worth Rs 1,00,000 and Sales proceeds credited to our
account.
30 Paid cash to Kavita Rs. 15,500,who allowed us discount Rs 500.
 Journal of Rajkumar Grocery Seller
Date Particulars L.F. Debit Credit
1-4-19 Cash A/c ----------------------------Dr 2,50,000
Building A/c 2,00,000
To Capital A/c 4,00,000
To Rakesh's loan A/c 50,000
(Being started business with Cash, Building
and loan from Rakesh)
4-4-19 Dena Bank A/C ----------------------Dr. 50,000
To Cash A/C 50,000
(Being cash deposited into Dena Bank)
7-7-19 Computer A/c----------------------Dr 30,000
To Dena Bank A/c 30,000
(Being purchased computer @ 18% GST and paid by cheque)
 Continue from previous one….
Date Particulars L.F. Debit Credit
10-4-19 Cash A/c ------------------------Dr. 90,000
To Sale A/c 90,000
(Being goods sold for cash)
12-4-19 Ganesh A/c ------------Dr. 9,500
To Sale A/c 9,500
(Being good sold on 5% trade discount)
15-4-19 Sales return / Return Inward A/c -Dr. 950
To Ganesh A/c 950
(Being goods lost by theft)
18-4-19 Drawing A/c ------------Dr. 1000
To Goods withdrawn A/c 1000
(Being goods withdrawn by Rajkumar for personal use)
 Continue from previous one….
Date Particulars L. Debit Credit
F.
20-4-19 Telephone charges A/c -------------Dr. 500
Conveyance A/c --------------------Dr. 200
To Cash A/c 700
(Being Payment done for Telephone and taxi
fare)
22-4-19 Transport Charges A/c ------------Dr. 5,000
To Cash A/c 5,000
(Being paid for transport charges)
24-4-19 Audit fees ------------------------Dr. 5,000
To Dena Bank A/c 5,000
(Being paid for Audit fees)
Date Particulars L. Debit Credit
F.
26-4-19 Furniture A/c -------------Dr. 70,000
To Dena Bank A/c 70,000
(Being Furniture purchased and Cheque
issued/given)
28-4-19 Dena Bank A/c ------------Dr. 1,00,000
To Motor Car A/c 1,00,000
(Being sold Motor car and received cheque)
24-4-19 Kavita A/c------------------------Dr. 16,000
To Cash A/c 15,500
To Discount Received A/c 500
(Being paid to Kavita and discount received)
8,60,200 8,60,200
 6) Journalise the following transactions in the books of Rajwade Trading Company
2019 May 1 Started business with Cash Rs. 1,00,000,Bank Balance Rs.
2,00,000 and Building Rs. 2,00,000
3 Purchased goods from Ram of Rs. 50,000.
5 Sold goods to Rakesh of Rs. 70,000 for Cash.
7 Paid for Repairs Rs. 5,000.
10 Placed an order with Ranveer and Sons for goods Rs. 60,000
15 Paid for Wages Rs. 15,000.
18 Purchased goods from Mohan of Rs. 10,0000.
20 Paid for Conveyance Expenses Rs. 7,000.
25 Purchased goods from Kishor of Rs. 50,000 and paid half the amount by
Cheque.
30 Purchased Machinery of Rs. 50,000 at and half the amount paid
immediately by Cheque.
31 Withdrew from Bank Rs. 10,000 for personal use.
7) Journalise the following transactions in the books of Raymond for the Month of
April 2019
2019 April 1 Purchased goods from Kajal worth Rs. 2,00,000 at 5% Trade Discount
and ½ amount paid by cheque.
4 Purchased Shares of Mahindra Company Rs. 60,000 and Rs. 1,000 paid as
Brokerage.
9 Sold goods to Ravikant worth Rs. 60,000 at 10% Trade Discount and 1/3 amount
received by cash at 5% Cash Discount.
10 Paid College Fees of proprietor’s son Rs. 1,000.
12 Purchased Computer of Rs. 50,000
15 Paid Transport charges on the above computer of Rs. 2,000.
20 Paid for Salary Rs. 15,000.
26 Paid for Rent Rs. 5,000 and Rs. Advertisement 15,000.
27 Sold goods to Salman Rs. 20,000.
30 Purchased Goods for Rs. 1,00,000 paid by cheque.
30 Wages Outstanding Rs. 20,000.