11th | Ts grewal 2022-2023 | Question 5 To 8 | ch:8 Journal

Bad Debts and Bad Debts Recovered

Question 5: Pass Journal entries for the following transactions:

2022

April 1 Mohan is declared insolvent. Received first and final dividend from his official Receiver 50 paise in a rupee against a debt of ` 5,000

April 2 `8,000 due from Ramesh is not recoverable

April 3 Shyam, who owed 15,000 became insolvent and 50% is received from his estate

April 4 Received 10,000 in cash from Sohan for bad debts written off last year

 

Answer:

Journal
Date	Particulars		L.F.	Debit `	Credit `
2022
Apr 01	Cash  A/c Bad debts A/c  To Mohan’s A/c	Dr. Dr.		5,.000	5,000
	(Being Mohan is declared insolvent. Received first and final dividend from his official Receiver 50 paise in a rupee against a debt of ` 5,000)
Apr 02	Bad debts A/c  To Mohan’s A/c	Dr.		8,000	8,000
	(Being78,000 due from Ramesh is not recoverable)
Apr 03	Cash  A/c Bad debts A/c  To Shyam’s A/c	Dr. Dr.		7,500 7,500	15,000
	(Being Shyam, who owed 15,000 became insolvent and 50% is received from his estate)
Apr 04	Cash A/c	Dr.		10,000
	To Bad debts recovered A/c				10,000
	(Being Received 10,000 in cash from Sohan for bad debts written off last year)

 

Banking Transactions

 

Question 6:

Pass necessary Journal entries for the following transactions:

2022	`
April 1: Deposited in bank	30,000
April 3: Cash withdrawn from bank	10,000
April 7: Wages paid by cheque.	7,000
April 10: Cheque received from Deewan 78,500 and discount allowed to him 500. Cheque is deposited in bank on the same day.
April 12: As per standing instructions, Bank paid Telephone bill	1,000
April 14: Deewan's cheque returned by the bank as dishonored
April 16: Charges debited by bank	400
April 17: Goods sold and sale proceeds deposited in bank	8,000
April 19: Bank has paid insurance premium as per our standing instructions	1,800
April 25: Dividend collected by Bank.	2,500

Answer:

Journal
Date	Particulars		L.F.	Debit `	Credit `
2022	Bank A/c	Dr.		30,000
Apr 01	To Cash A/c (Being Cash Deposited in bank)				30,000
Apr 03	Cash A/c	Dr.		10,000
	To Bank A/c				10,000
	(Being Cash withdrawn from bank)
Apr 07	Wages A/c	Dr.		7,000
	To Bank A/c				7,000
	(Being Wages paid by cheque.)
Apr 10	Bank A/c	Dr.		8,500
	Discount Allowed A/c  To Deewan’s A/c	Dr.		500	9,000
	(Being Cheque received from Deewan 78,500 and discount allowed to him 500. Cheque is deposited in bank on the same day.)
Apr 12	Telephone Expenses A/c	Dr.		1,000
	To Bank A/c (Being Telephone bill paid by bank, As per standing instructions)				1,000
Apr 14	Deewan’s A/c	Dr.		8,500
	To Bank A/c				8,500
	(Being Deewan's cheque returned by the bank as dishonored)
Apr 16	Bank charges A/c	Dr.		400
	To Bank A/c				400
	(Being Charges debited by bank)
Apr 17	Bank A/c	Dr.		8,000
	To Sales A/c				8,000
	(Being Goods sold and sale proceeds deposited in bank)
Apr 19	Insurance premium A/c	Dr.		1,800
	To Bank A/c				1,800
	(Being Bank has paid insurance premium as per our standing instructions)
Apr 25	Bank A/c	Dr.		2,500
	To Dividend A/c				2,500
	(Being Dividend collected by Bank.)

 

Question 7:

Pass the necessary Journal entries for the following transactions:

2022	`
April 01: Deposited in bank for opening a Current Account.	10,000
April 02: Withdrawn from bank.	5,000
April 05: Received a cheque from Ramesh to whom goods were sold for ` 12,000 last year Allowed him 1% discount on payment.
April 07: Ramesh's cheque deposited in bank.
April 09: Ramesh's cheque dishonored (bank charges 20).
April 20: Ramesh settled his account by issuing cheque including `60 for interest.	12,080
April 21: Cash directly deposited by Raja (Customer) in bank account.	8,000
April 23: Bank draft got issued in favour of M/s Lal &Sons `5,000. Bank charges `700.
April 28: A bill of exchange of ` 4,000 (due after one month) discounted from bank for `3,800.
April 30: Received a cheque of `1,000 from Shyam after banking hours.
April 30: Goods sold for cash 7,000 and half of the sale proceeds deposited in bank.

 

Answer:

Journal
Date	Particulars		L.F.	Debit `	Credit `
2022	Bank A/c	Dr.		10,000
Apr 01	To Cash A/c (Being Deposited in bank for opening a Current Account.)				10,000
Apr 02	Cash A/c	Dr.		5,000
	To Bank A/c				5,000
	(Being Withdrawn from bank.)
Apr 05	Cheque in hand A/c	Dr.		11,880
	Discount Allowed A/c			120
	To Ramesh’s A/c				12,000
	(Being Received a cheque from Ramesh to whom goods were sold for ` 12,000 last year Allowed him 1% discount on payment.)
Apr 07	Bank A/c	Dr.		11,880
	To Chaque in hand A/c				11,880
	(Being Ramesh's cheque deposited in bank.)
Apr 09	Ramesh’s  A/c	Dr.		12,000
	Bank charges A/c	Dr.		20
	To Bank A/c				11,900
	To Discount Allowed A/c				120
	(Being Ramesh's cheque dishonored (bank charges 20).)
Apr 20	Cheque in hand A/c	Dr.		12,080
	To Ramesh’s  A/c  To Interest received A/c				12,020 60
	(Being Ramesh settled his account by issuing cheque including `60 for interest.)
Apr 21	Bank A/c	Dr.		8,000
	To Raja’s A/c				8,000
	(Being Cash directly deposited by Raja (Customer) in bank account.)
Apr 23	M/s Lal & Sons’s A/c	Dr.		5,000
	Bank Charges A/c	Dr.		700
	To Bank A/c				5,700
	(Being Bank draft got issued in favour of M/s Lal &Sons `5,000. Bank charges `700.)
Apr 28	Bank A/c	Dr.		3,800
	Discounting charges A/c	Dr.		200
	To Bills receivable A/c				4,000
	(Being A bill of exchange of ` 4,000 (due after one month) discounted from bank for `3,800.)
Apr 30	Cheque in hand  A/c	Dr.		1,000
	To Shyam’s  A/c				1,000
	(Being Received a cheque of `1,000 from Shyam after banking hours.)
Apr 30	Bank A/c	Dr.		3,500
	Cash A/c	Dr.		3,500
	To Sales A/c				7,000
	(Being Goods sold for cash 7,000 and half of the sale proceeds deposited in bank.)

 

Question 8:

Pass necessary Journal entries for the following transactions:

2022	`
April 1: Goods withdrawn by owner for personal use.	1,000
April 2: Goods distributed as sample.	500
April 3: Goods Given as Charity.	300
April 4: Timber used for making office furniture ` 5,000 (Assume that the firm is a timber merchant)
April 5: Goods destroyed by fire.	3,500
April 6: Goods lost in transit.	2,000
Transactions Relating to Fixed Assets.

Answer:

Journal
Date	Particulars		L.F.	Debit `	Credit `
2022	Drawings A/c	Dr.		1,000
Apr 01	To Purchases A/c (Being Goods withdrawn by owner of 1,000 for personal use.)				1,000
Apr 02	Sample  A/c	Dr.		500
	To Purchases A/c				500
	(Being Goods distributed as sample.)
Apr 03	Charity A/c	Dr.		300
	To Purchases A/c				300
	(Being Goods Given as Charity.)
Apr 04	Furniture A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Being Timber used for making office furniture)
Apr 05	Loss by fire  A/c	Dr.		3,500
	To Purchases A/c				3,500
	(Being Goods destroyed by fire.)
Apr 06	Loss by fire  A/c	Dr.		2,000
	To Purchases A/c				2,000
	(Being Goods lost in transit.)

 

Class : 11th | Ts Grewal solution 2022-2023

Chapter 8: Journal

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Question no. 5 To 8

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