Skip to main content

NCERT solutions for Class 11 chapter 3 - Recording of Transactions

Chapter 3
Recording of Transactions  

Short Answer
   State the three fundamental steps in the accounting process.

   Why is the evidence provided by source documents important to accounting?

   Should a transaction be first recorded in a journal or ledger? Why?

   Are debits or credits listed first in journal entries? Are debits or credits indented?

   Why are some accounting systems called double accounting systems?

   Give a specimen of an account.

   Why are the rules of debit and credit same for both liability and capital?

   What is the purpose of posting J.F numbers that are entered in the journal at the time entries are posted to the accounts?

   What entry (debit or credit) would you make to:

(a) increase revenue
(b) decrease in expense,
(c) record drawings
(d) record the fresh capital introduced by the owner.

   If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or as a credit?

Long Answer
   Describe the events recorded in accounting systems and the importance of source documents in those systems?

   Describe how debits and credits are used to analyse transactions

   Describe how accounts are used to record information about the effects of transactions?

   What is a journal? Give a specimen of journal showing at least five entries.

   Differentiate between source documents and vouchers

   Accounting equation remains intact under all circumstances. Justify the statement with the help of an example

   Explain the double entry mechanism with an illustrative example.

Long Answer
   Prepare accounting equation on the basis of the following:

(a) Harsha started business with cash ₹ 2,00,000
(b) Purchased goods from Naman for cash ₹ 40,000
(c) Sold goods to Bhanu costing ₹ 10,000/- ₹ 12,000
(d) Bought furniture on credit ₹ 7,000

   Prepare accounting equation from the following:

Kunal started business with cash ₹ 2,50000
He purchased furniture for cash ₹ 35,000
He paid commission ₹ 2,000
He purchases goods on credit ₹ 40,000
He sold goods (Costing ₹ 20,000) for each ₹ 26,000

   Mohit has the following transactions, prepare accounting equation:

(a)Business started with cash₹ 1,75,000
(b)Purchased goods from Rohit₹ 50,000
(c)Sales goods on credit to Manish (Costing ₹ 17,500)₹ 20,000
(d)Purchased furniture for office use₹ 10,000
(e)Cash paid to Rohit in full settlement₹ 48,500
(f)Cash received from Manish₹ 20,000
(g)Rent paid₹ 1,000
(h)Cash withdrew for personal use₹ 3,000

   Rohit has the following transactions:

(a)Commenced business with cash₹ 1,50,000
(b)Purchased machinery on credit₹ 40,000
(c)Purchased goods for cash₹ 20,000
(d)Purchased car for personal use₹ 80,000
(e)Paid to creditors in full settlement₹ 38,000
(f)Sold goods for cash costing ₹ 5,000₹ 4,500
(g)Paid rent₹ 1,000
(h)Commission received in advance₹ 2,000

Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital.

   Use accounting equation to show the effect of the following transactions of M/s Royal Traders:

(a)Started business with cash₹ 1,20,000
(b)Purchased goods for cash₹ 10,000
(c)Rent received₹ 5,000
(d)Salary outstanding₹ 2,000
(e)Prepaid Insurance₹ 1,000
(f)Received interest₹ 700
(g)Sold goods for cash (Costing ₹ 5,000)₹ 7,000
(h)Goods destroyed by fire₹ 500

   Show the accounting equation on the basis of the following transaction:

(a)Udit started business with: 
 (i) Cash₹ 5,00,000
 (ii) Goods₹ 1,00,000
(b)Purchased building for cash₹ 2,00,000
(c)Purchased goods from Himani₹ 50,000
(d)Sold goods to Ashu (Cost ₹ 25,000)₹ 36,000
(e)Paid insurance premium₹ 3,000
(f)Rent outstanding₹ 5,000
(g)Depreciation on building₹ 8,000
(h)Cash withdrawn for personal use ₹ 20,000
(i)Rent received in advance₹ 5,000
(j)Cash paid to himani on account₹ 20,000
(k)Cash received from Ashu₹ 30,000

   Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:

(a)Started business with cash₹ 1,20,000
(b)Rent received₹ 10,000
(c)Invested in shares₹ 50,000
(d)Received dividend₹ 5,000
(e)Purchase goods on credit from Ragani₹ 35,000
(f)Paid cash for household Expenses ₹ 7,000
(g)Sold goods for cash (costing ₹ 10,000)₹ 14,000
(h)Cash paid to Ragani₹ 35,000
(i)Deposited into bank₹ 20,000

   Show the effect of following transaction on the accounting equation:
(a)Manoj started business with 
 (i) Cash₹ 2,30,000
 (ii) Goods₹ 1,00,000
 (iii) Building₹ 2,00,000
(b)He purchased goods for cash₹ 50,000
(c)He sold goods (costing ₹ 20,000)₹ 35,000
(d)He purchased goods from Rahul₹ 55,000
(e)He sold goods to Varun (Costing ₹ 52,000)₹ 60,000
(f)He paid cash to Rahul in full settlement₹ 53,000
(g)Salary paid by him₹ 20,000
(h)Received cash from Varun in full settlement₹ 59,000
(i)Rent outstanding₹ 3,000
(j)Prepaid Insurance₹ 2,000
(k)Commission received by him₹ 13,000
(l)Amount withdrawn by him for personal use₹ 20,000
(m)Depreciation charge on building₹ 10,000
(n)Fresh capital invested₹ 50,000
(o)Purchased goods from Rakhi₹ 6,000

   Transactions of M/s Vipin Traders are given below.
Show the effects on Assets, Liabilities and Capital with the help of accounting Equation:

(a)Business started with cash₹ 1,25,000
(b)Purchased goods for cash₹ 50,000
(c)Purchase furniture from R.K. Furniture₹ 10,000
(d)Sold goods to Parul Traders (Costing ₹ 7,000 vide bill no. 567)₹ 9,000
(e)Paid cartage₹ 100
(f)Cash Paid to R.K. furniture in full settlement₹ 9,700
(g)Cash sales (costing ₹ 10,000)₹  12,000
(h)Rent received₹ 4,000
(i)Cash withdrew for personal use₹ 3,000

   Bobby opened a consulting firm and completed these transactions during November, 2017:

(a) Invested ₹ 4,00,000 cash and office equipment with ₹ 1,50,000 in a business called Bobbie Consulting.
(b) Purchased land and a small office building. The land was worth ₹ 1,50,000 and the building worth ₹ 3,50,000. The purchase price was paid with ₹ 2,00,000 cash and a long-term note payable for ₹ 3,00,000.
(c) Purchased office supplies on credit for ₹ 12,000
(d) Bobbie transferred title of motor car to the business. The motor car was worth ₹ 90,000.
(e) Purchased for ₹ 30,000 additional office equipment on credit.
(f) Paid ₹ 75,00 salary to the office manager
(g) Provided services to a client and collected ₹ 30,000
(h) Paid ₹ 4,000 for the month’s utilities.
(i) Paid supplier created in transaction c.
(j) Purchase new office equipment by paying ₹ 93,000 cash and trading in old equipment with a recorded cost of ₹ 7,000.
(k) Completed services of a client for ₹ 26,000. This amount is to be paid within 30 days
(l) Received ₹ 19,000 payment from the client created in transaction k
(m) Bobby withdrew ₹ 20,000 from the business.

Analyse the above stated transactions and open the following T-accounts: Cash, client, office supplies, motor car, building, land, long-term payables, capital, withdrawals, salary, expense and utilities expense.

   Journalise the following transactions in the books of Himanshu:

Dec.01Business started with cash75,000
Dec.07Purchased goods for cash10,000
Dec.09Sold goods to Swati5,000
Dec.12Purchased furniture3,000
Dec.18Cash received from Swati In full settlement4,000
Dec.25Paid rent1,000
Dec.30Paid salary1,500

   Enter the following Transactions in the Journal of Mudit:
Jan.01Commenced business with cash1,75,000
Jan.02Goods purchased for cash75,000
Jan.03Sold goods to Ramesh30,000
Jan.04Paid wages500
Jan.06Sold goods for cash10,000
Jan.10Paid for trade expenses700
Jan.12Cash received from Ramesh29,500
 Discount allowed500
Jan.14Goods purchased for Sudhir27,000
Jan.18Cartage paid1,000
Jan.20Drew cash for personal use5,000
Jan.22Goods use for household2,000
Jan.25Cash paid to Sudhir 26,700 26,700
 Discount allowed300

   Journalise the following transactions:

Dec.01Hema started business with cash1,00,000
Dec.02Open a bank account with SBI30,000
Dec.04Purchased goods from Ashu20,000
Dec.06Sold goods to Rahul for cash15,000
Dec.10Bought goods from Tara for cash40,000
Dec.13Sold goods to Suman20,000
Dec.16Received cheque from Suman19,500
 Discount allowed500
Dec.20Cheque given to Ashu on account10,000
Dec.22Rent paid by cheque2,000
Dec.23Deposited into bank16,000
Dec.25Machine purchased from Parigya10,000
Dec.26Trade expenses2,000
Dec.28Cheque issued to Parigya10,000
Dec.29Paid telephone expenses by cheque1,200
Dec.31Paid salary4,500

   Jouranlise the following transactions in the books of Harpreet Bros:

(a) ₹ 1,000 due from Rohit are now bad debts.
(b) Goods worth ₹ 2,000 were used by the propriet
(c) Charge depreciation @ 10% p.a for two month on machine costing `30,000.
(d) Provide interest on capital of ₹ 1,50,000 at 6% p.a. for 9 months
(e) Rahul become insolvent, who owed is ₹ 2,000 a final dividend of 60 paise in a rupee is received from his estate.

   Prepare Journal from the transactions given below:

(a)Cash paid for installation of machine₹ 500
(b)Goods given as charity₹ 2,000
(c)Interest charge on capital @7% p.a. when total capital were₹ 70,000
(d)Received ₹ 1,200 of a bad debts written-off last year 
(e)Goods destroyed by fire₹ 2,000
(f)Rent outstanding₹ 1,000
(g)Interest on drawings ₹ 900
(h)Sudhir Kumar who owed me ₹ 3,000 has failed to pay the amount. He pays me a compensation of 45 paise in a rupee. 
(i)Commission received in advance ₹ 7,000


   Journalise the following transactions, post to the ledger:

Nov.01Business started with 
 (i) Cash1,50,000
 (ii) Goods50,000
Nov.03Purchased goods from Harish30,000
Nov.05Sold goods for cash12,000
Nov.08Purchase furniture for cash5,000
Nov.10Cash paid to Harish on account15,000
Nov.13Paid sundry expenses200
Nov.15Cash sales15,000
Nov.18Deposited into bank5,000
Nov.20Drew cash for personal use1,000
Nov.22Cash paid to Harish in full settlement of account14,700
Nov.25Good sold to Nitesh7,000
Nov.26Cartage paid200
Nov.27Rent paid1,500
Nov.29Received cash from Nitesh6,800
 Discount allowed200
Nov.30Salary paid3,000

   Journalise the following transactions is the journal of M/s. Goel Brothers and post them to the ledger:

Jan.01Started business with cash1,65,000
Jan.02Opened bank account in PNB80,000
Jan.04Goods purchased from Tara22,000
Jan.05Goods purchased for cash30,000
Jan.18Goods sold to Naman12,000
Jan.10Cash paid to Tara22,000
Jan.15Cash received from Naman11,700
 Discount allowed300
Jan.16Paid wages200
Jan.18Furniture purchased for office use5,000
Jan.20Withdrawn from bank for personal use4,000
Jan.22Issued cheque for rent3,000
Jan.23Goods issued for household purpose2,000
Jan.24Drawn cash from bank for office use6,000
Jan.26Commission received1,000
Jan.27Bank charges200
Jan.28Cheque given for insurance premium3,000
Jan.29Paid salary7,000
Jan.30Cash sales10,000

   Give journal entries of M/s Mohit traders, Post them to the Ledger from the following transactions:

1.Commenced business with cash1,10,000
2.Opened bank account with H.D.F.C.50,000
3.Purchased furniture20,000
7.Bought goods for cash from M/s Rupa Traders30,000
8.Purchased good from M/s Hema Traders42,000
10.Sold goods for cash30,000
14.Sold goods on credit to M/s. 2020 Gupta Traders12,000
16.Rent paid4,000
18.Paid trade expenses1,000
20.Received cash from Gupta Traders12,000
22.Goods return to Hema Traders2,000
23.Cash paid to Hema Traders40,000
25.Bought postage stamps100
30.Paid salary to Rishabh4,000

   Journalise the following transaction in the Books of the M/s Bhanu Traders and Post them into the Ledger.

1.Started business with cash92,000
2.Deposited into bank60,000
3.Bought goods on credit from Himani40,000
6.Purchased goods from cash20,000
8.Returned goods to Himani4,000
10.Sold goods for cash20,000
14.Cheque given to Himani36,000
17.Goods sold to M/s Goyal Traders3,50,000
19.Drew cash from bank for personal use2,000
21.Goyal traders returned goods3,500
22.Cash deposited into bank20,000
26.Cheque received from Goyal Traders31,500
28.Goods given as charity2,000
29.Rent paid3,000
30.Salary paid7,000
31.Office machine purchased for cash3,000

   Journalise the following transaction in the Book of M/s Beauti traders. Also post them in the ledger.

1.Started business with cash2,00,000
2.Bought office furniture30,000
3.Paid into bank to open an current account1,00,000
5.Purchased a computer and paid by cheque2,50,000
6.Bought goods on credit from Ritika60,000
8.Cash sales30,000
9.Sold goods to Karishna on credit25,000
12.Cash paid to Mansi on account30,000
14.Goods returned to Ritika2,000
15Stationery purchased for cash3,000
16.Paid wages1,000
18.Goods returned by Karishna2,000
20.Cheque given to Ritika28,000
22.Cash received from Karishna on account15,000
24.Insurance premium paid by cheque4,000
26.Cheque received from Karishna8,000
28.Rent paid by cheque3,000
29.Purchased goods on credit from Meena Traders20,000
30.Cash sales14,000

   Journalise the following transaction in the books of Sanjana and post them into the ledger:

January 2017 
1.Cash in hand6,000
 Cash at bank55,000
 Stock of goods40,000
 Due to Rohan6,000
 Due from Tarun10,000
3.Sold goods to Karuna15,000
4.Cash sales10,000
6.Goods sold to Heena5,000
8.Purchased goods from Rupali30,000
10.Goods returned from Karuna2,000
14.Cash received from Karuna13,000
15.Cheque given to Rohan6,000
16.Cash received from Heena3,000
20.Cheque received from Tarun10,000
22.Cheque received from to Heena2,000
25.Cash given to Rupali18,000
26.Paid cartage1,000
27.Paid salary8,000
28.Cash sale7,000
29.Cheque given to Rupali12,000
30.Sanjana took goods for Personal use4,000
31.Paid General expense500


Record journal entries for the following transactions in the books of Anudeep of Delhi:
(a) Bought goods ₹ 2,00,000 from Kanta of Delhi (CGST @ 9%, SGST @ 9%)
(b) Bought goods ₹ 1,00,000 for cash from Rajasthan (IGST @ 12%)
(c) Sold goods ₹ 1,50,000 to Sudhir of Punjab (IGST @ 18%)
(d) Paid for Railway Transport Rs. 10,000 (CGST @ 5%, SGST @ 5%)
(e) Sold goods ₹ 1,20,000 to Sidhu of Delhi (CGST @ 9%, SGST @ 9%)
(f) Bought Air-Condition for office use ₹ 60,000 (CGST @ 9%, SGST @ 9%)
(g) Sold goods ₹ 1,50,000 for cash to Sunil to Uttar Pradesh (IGST 18%)
(h) Bought Motor Cycle for business use ₹ 50,000 (CGST 14%, SGST @ 14%)
(i) Paid for Broadband services ₹ 4,000 (CGST @ 9%, SGST @ 0%)
(j) Bought goods ₹ 50,000 from Rajesh, Delhi (CGST @ 9%, SGST @ 9%)


Popular posts from this blog

Explain the Role of ‘Justice Party’ in Boycotting of Council Elections |

answer source Question Read the source given below and answer the questions that follows: Source : The Movement in the Towns The movement started with middle-class participation in the cities. Thousands of students left government-controlled schools and colleges, headmasters and teachers resigned, and lawyers gave up their legal practices. The council elections were boycotted in most provinces except Madras, where the Justice Party, the party of the non-Brahmans, felt that entering the council was one way of gaining some power–something that usually only Brahmans had access to. The effects of non-cooperation on the economic front were more dramatic. Foreign goods were boycotted, liquor shops picketed, and foreign cloth burnt in huge bonfires. The import of foreign cloth halved between 1921 and 1922, its value dropping from Rs. 102 crore to Rs. 57 crore. In many places merchants and traders refused to trade in foreign goods or finance foreign trade. As the boycott movement spread

Arun and Vijay Are Partners In A Firm Sharing Profits And Losses In The Ratio of 5:1, Machinery Reflected In The Balance Sheet Is Overvalued -

Arun and Vijay are partners in a firm sharing profits and losses in the ratio of 5:1.  Balance Sheet (Extract)  Liabilities Amount (Rs.) Assets Amount (Rs.) Machinery 40,000 If the value of machinery reflected in the balance sheet is overvalued by 33 `1/3`%, find out the value of Machinery to be shown in the new Balance Sheet:  (A) ₹ 44,000  (B) ₹48,000  (C) ₹ 32,000  (D) ₹30,000  SOLUTION (D) ₹30,000  Explanation: Machinery is overvalued Value by 33 `1/3`% of 40,000 Here, 33 `1/3`% as a fraction = `\frac{33\frac{1}{3}}{100}` Converting the mixed fraction to an improper fraction, we get = `\frac{\frac{100}{3}}{100}`  = `100/300` Simplifying this, we get = `100/300` = `1/3` = `100/300` of z = 40,000-z Because, 40,000 is overvalued Value, we will minus the real value from 40,000. = `"100x"/"300"` + `"300z"/"300"` = 40,000 = `"400z"/"300"` = 40,000 = 40,000 `\times` `300/400` = z ∴ z = 30,000 4 5

Choose the Option that Best Captures the Central Idea of the Passage From the Given Quotes -Bzziii

Hector Plus Specs, Features and Price The MG Hector Plus has 1 Diesel Engine and 1 Petrol Engine on offer. The Diesel engine is 1956 cc while the Petrol engine is 1451 cc . It is available with Automatic & Manual transmission.Depending upon the variant and fuel type the Hector Plus has a mileage of . The Hector Plus is a 6 seater 4 cylinder car and has length of 4720mm, width of 1835mm and a wheelbase of hector plus horsepower is 105 to 125 kW MG Hector Plus is currently available in Petrol and Diesel engines. The 1451 cc Petrol engine generates a power of 141bhp@5000rpm and a torque of 250nm@1600-3600rpm. The 1956 cc Diesel engine generates a power of 167.67Bhp@3750rpm and a torque of 350nm@1750-2500rpm. MG Hector Plus is available in both Automatic & Manual transmission. In configurations, MG Hector Plus has a dimensions of 4720 mm in length, 1835 mm in width and 1760 mm^3 mm in height. Choose the option that best captures the central idea of the passage from