Chapter – 8

Journal
Unsolved Problems (S.C. Sharma)
1. Classify the following account into personal, real or nominal accounts:
(1) Bank (2) Purchases (3) Wages (4) Drawing (5) Cartage (6) Capital (7) Creditors
(8) Trade Mark (9) Debtors (10) Advertisement (11) Salary outstanding
(12) Bad debt recovered (13) Cash (14) Prepaid Rent (15) Discount allowed (16) Stock
(17) Bank charges (18) Interest on capital (19) Sales (20) Commission received.
[Ans. Personal A/c = 1, 4, 6, 7, 9, 11, 14; Real A/c = 8, 13, 16;
Nominal A/c = 2, 3, 5, 10, 12, 15, 17, 18, 19, 20]
2(A). Enter the following transactions in the journal of Gopi:
2022 ₹
Jan. 1 Commenced business with cash 40,000
Jan. 4 Bought goods from Ram 25,000
Jan. 6 Sold goods for cash 16,000
Jan. 10 Bought goods from Mohan for cash 8,000
Jan. 15 Bought furniture 10,000
Jan. 17 Paid cash to Ram 18,000
Jan. 20 Sold goods to Hari 15,000
Jan. 24 Cash received from Hari 13,000
Jan. 28 Paid salary to Mohan 2,000
Jan. 29 Received commission 500
Jan. 30 Withdrew cash for personal use 4,000
Jan. 31 Paid rent to landlord, Amit 3,000
[Ans. Total = ₹1,54,500]
2(B). Record the following transactions in the journal of Raman:
2022 ₹
May 1 Started business with cash 50,000
May 3 Bought goods for cash 8,000
May 6 Sold goods to Mohan 9,000
May 9 Bought goods from Sumit 11,000
May 12 Sold goods to Ramesh for cash 4,000
May 15 Bought furniture for cash 8,000
May 20 Paid wages to Gopal 3,000
May 23 Withdrew goods for personal use 1,000
May 27 Paid rent in cash 2,500
May 29 Cash received from Mohan 8,000
May 30 Paid cash to Sumit 10,000
[Ans. Total = ₹1,14,500]
3. Record the following transactions in the journal of Ratnakar:
2022 ₹
June 1 Started business with cash 80,000
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 June 3 Bought goods from Sunil 50,000
June 7 Cash deposited into bank 12,000
June 11 Sold goods to Rajan 15,000
June 15 Withdrew cash from bank for office 10,000
June 19 Bought furniture from Ram and issued cheque 8,000
June 25 Returned goods to Sunil 2,000
June 27 Paid cash to Sunil 10,000
June 29 Cash received from Rajan 12,000
[Ans. Total = ₹1,99,000]
4. Pass Journal entries to record the following transactions in the books of Mohan Agencies:
2022
Jan. 4 Bought goods from Kapil ₹30,000 less trade discount 10%
Jan 7 Returned goods to Kapil of list price ₹5,000.
Jan 10 Paid cash to Kapil under 2% cash discount for paying within
fixed period.
[Ans. Total = ₹54,000]
5. Pass journal entries in the books of Shyam:
2021
Dec 1 Sold goods to Amar of the list price ₹50,000 less 15% trade discount.
Dec 5 Amar returned goods of list price ₹6,000 being defective.
Dec 8 Amar paid the amount due under a cash discount of 2%.
Dec 12 Sold goods to Karan of list price ₹40,000 at 10% trade discount and
2% cash discount. Karan paid cash for only 40% value of goods.
[Ans. Total = ₹1,21,000]
6(A). Record the following transactions in the journal of Mohan: 2021
2021
Dec 2 Bought goods from Amit of the list price ₹20,000 at 15% trade discount.
Dec 5 Sold goods to Gopal of the list price ₹12,000 at 10% trade discount.
Dec 8 Goods returned to Amit of list price ₹4,000.
Dec 12 Gopal returned goods of list price ₹3,000.
Dec 18 Paid cash to Amit 13,000 and received discount ₹600.
Dec 24 Received cash ₹8,000 from Gopal in full settlement of his account.
[Ans. Total = ₹55,600]
6(B). Journalize the following transaction:
2022
May 2 Paid salaries ₹3,000, Wages ₹2000, and Rent ₹1000.
May 5 Bought goods from Naveen for ₹20,000 of which goods worth ₹12,000
was on credit.
May 9 Sold goods of the list price ₹10,000 to Raman at 10% trade discount
and 2% cash discount. Raman agreed to make prompt payment.
May 13 Withdrew cash ₹4,000 from bank for office use and ₹2,000 for personal
use.
May 17 Paid ₹11,200 to Naveen and received discount ₹800.
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 May 22 Received interest ₹200 and commission ₹500.
[Ans. Total = ₹53,700]
7. Journalise the following transactions:
2022
June 1 Paid wages ₹5,000
June 1 Paid salaries ₹3,000
June 1 Paid stationery ₹1,000
June 4 Bought goods from Ram of list price ₹15,000 less 10% trade discount
and 2% cash discount for making cash payment.
June 10 Sold goods of list price ₹20,000 at 10% trade discount and 2% cash
discount to Mohan. Mohan paid the amount promptly.
June 14 Received interest ₹600 and commission ₹400.
June 18 Withdrew cash for office use ₹3,000 and ₹1,000 for personal use
from bank.
June 20 Paid to Sohan ₹14,200 in full settlement of his account ₹14,500.
[Ans. Total = ₹60,000]
8. Record Journal entries in the books of Mohan Stores:
2021
Dec 1 Commenced business with cash. ₹90,000
Dec 3 Bought goods from Krishna of list price ₹25,000 less trade
discount 20%.
Dec 6 Gopal sold goods to us for cash. ₹9,000
Dec 9 Sold goods to Geeta of list price ₹15,000 less 10% trade discount.
Dec 13 Geeta returned goods of list price. ₹3,000
Dec 15 Ram bought goods from us. ₹10,000
Dec 18 Paid salary ₹4,000 and stationery ₹1,000.
Dec 21 Paid ₹19,300 to Krishna in full settlement of his account.
Dec 23 Received cash ₹10,500 from Geeta and allowed her discount ₹300.
Dec 27 Received dividend ₹500 and interest ₹400.
Dec 29 Bought goods of list price ₹12,000 less 15% trade discount and
2% cash discount for making cash payment.
Dec 30 Amar bought goods from us ₹10,000. He paid ₹9,800 on the spot to
avail cash discount.
Dec 31 Bought goods from Ram ₹12,000 and paid 40% amount immediately.
[Ans. Total = ₹2,14,100]
9(A). Record the following transactions in the books of Raj General Store:
2021
Jan. 1 Commenced business with cash ₹50,000;
goods ₹30,000 and furniture ₹20,000 [Hint: Goods be treated as Stock.]
Jan 4 Bought goods from Amit of list price ₹30,000 less trade discount 15%.
Jan 7 Returned defective goods to Amit of the list price ₹5,000.
Jan 10 Settled the account of Amit by paying cash under discount of 2%.
Jan 15 Sold goods to Mohan of the list price ₹20,000 less 15% trade discount

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 and 2% cash discount. Mohan paid 40% price of goods promptly.
Jan 20 Mohan returned goods of list price ₹3,000.
Jan 23 Mohan paid ₹7,500 in full settlement of his account.
Jan 27 Paid freight ₹500; carriage ₹400 and stationery ₹600.
[Ans. Total = ₹1,79,700]
9(B). Record the following transactions in the journal of Amit:
2022
Jan 3 Bought goods from Gopi of list price ₹ 40,000 less Trade
Discount 10%.
Jan 6 Deepak sold us goods of list price ₹30,000 less 15% trade discount.
Jan 9 Goods returned to Gopi of list price ₹5,000.
Jan 13 Goods returned to Deepak of list price ₹4,000.
Jan 15 Settled the account of Gopi under a cash discount of 2%.
Jan 19 Paid Deepak 22,000 in full settlement of his account.
[Ans. Total = ₹1,23,000]
10. Journalise the following transactions:
i. Raman who owed us ₹2,000 was declared insolvent and paid ₹40 paisa in a rupee.
ii. Received cash from Gopal ₹400 whose account was written off as bad debt last year.
iii. Gopi is declared bankrupt. Received from his official receiver ₹60 paisa in a rupee on a
debt of ₹1,500.
[Ans. Total = ₹3,900]
11. Journalise the following transactions:
i. Goods costing ₹1,000 (Sales price ₹1,500) were destroyed by fire.
ii. Goods of ₹2,000 were distributed as free samples.
iii. Goods costing ₹3,000 was damaged by fire and insurance company admitted a claim of
₹ 2,000.
iv. Withdrew cash ₹2,500 and goods costing₹3,000 for personal use.
v. Goods worth ₹1,500 and cash amounting ₹500 were given for charity.
[Ans. Total = ₹16,500]
12. Enter the following transactions in the journal of Mohan:
2022
Jan 1 Started business with cash ₹80,000 and goods ₹40,000.
[Hint: Goods be treated as stock]
Jan 3 Paid into bank for opening a bank current account. ₹50,000
Jan 6 Bought goods from Ram and paid by cheque. ₹10,000
Jan 9 Sold goods to Amar and received cheque. ₹12,000
Jan 11 Cheque received from Amar deposited in the bank.
Jan 15 Withdrew cash by cheque for personal use. ₹3,000
Jan 17 Took a bank loan. ₹40,000
Jan 19 Paid salary ₹2,000 and rent ₹1,000 by cheque.
Jan 21 Interest allowed by bank. ₹300
Jan 25 Ram who owed us ₹1,000 met with an accident and nothing could
be recovered.
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 Jan 27 Cheque received from Amit for ₹8,000 in full settlement of his
account ₹8,200.
Jan 29 Cheque of Amit endorsed to Sohan in full settlement of his claim for
₹8,150.
[Ans. Total = ₹2,67,650]
13. Enter the following transactions in the journal:
i. Bought goods of list price ₹15,000 from Ravi at trade discount 10% and 2% cash
discount and he paid 40% amount by cheque.
ii. Sold goods to Mohit of list price ₹20,000 less 10% trade discount and 2% cash discount.
Received a cheque of 60% amount and banked on the same date.
iii. Withdrew cash from bank ₹5,000 for office use and ₹2,000 for personal use.
iv. Paid fire insurance premium ₹1,000 of office and life insurance premium ₹5,000 of the
owner.
v. Recovered cash ₹500 from Suresh for bad debt written off last year.
vi. Goods sold to Aakash for ₹25,000 allowing him trade discount 20% and cash discount
2%. He paid 50% amount by cheque which was banked.
vii. Ram who owed us ₹1,000, was declared insolvent and 40% amount could be recovered
from him.
[Ans. Total = ₹66,000]
14(A). Pass opening entry of Rohit as on 1-4-2022 from the following details:
Assets: Cash ₹5,000, Bank ₹12,000, Debtors ₹35,000 (Ashok ₹8,000, Balbir ₹7,000, Hari
₹20,000), Stock ₹25,000, Furniture ₹38,000.
Liabilities: Creditors ₹30,000 (Mohan ₹15,000, Kapil ₹9,000 and Amar ₹6,000), Bank loan
₹20,000, Capital ₹65,000.
(B) Following balances appeared in the books of Vijay General Store on 1-4-2022.
Assets: Cash ₹8,000, Bank ₹10,500, Debtors ₹25,000 (A ₹10,000, B ₹8,000 and C ₹7,000),
Stock ₹24,500, Furniture ₹12,000.
Liabilities: Creditors ₹22,000 (X ₹8,000, Y ₹5,000 and Z ₹9,000), Bank Loan ₹15,000.
Following transactions took place during April:
2022
Apr 3 Bought Goods from X for ₹20,000 at a trade discount of 10%.
Apr 7 Sold goods of list price ₹15,000 at a trade discount of 10% to A.
Apr 9 Received a cheque from B for * 6,000.
Apr 11 Cheque of B deposited into bank.
Apr 14 B's cheque returned dishonoured.
Apr 15 Got a cheque from A for ₹23,000 and banked in full settlement of
his account.
Apr 18 Paid X by cheque ₹15,000.
Apr 23 Bought goods from Amar of list price ₹10,000 less 10% trade
discount.
Apr 25 Sold goods bought from Amar to Mohan at profit of 20%.
Apr 26 Goods costing ₹1,000 were distributed as free samples and home
goods costing ₹500 were given as charity.
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 Apr 28 Bank charges were ₹200.
Apr 29 Paid rent ₹3,000, salary 2,000 by cheque.
Enter these transaction in the journal. [Ans. Capital 43,000 and Total 1,94,500]

15. Journalise the following transactions:

i. Bought Plant costing ₹32,000 from Mohan Stores and paid carriage ₹1,000 and
installation charges ₹2,000.
ii. Bought goods of list price ₹20,000 less trade discount 10% and cash discount 2% from
Hari for cash and also paid carriage charges ₹500.
iii. Purchased a second-hand machine for ₹15,000 spent ₹4,500 on its repair and carriage
charges paid ₹500.
iv. Paid repair charges of office furniture ₹1,500.
v. Goods costing ₹4,000 were used for making furniture and paid wages of carpenter
₹1,000.
[Ans. Total = ₹80,000]