NCERT Solution For Class 11 Accountancy Chapter 3 Recording Of Transactions 1 Download Free PDF (2022)

NCERT Solutions are said to be an extremely helpful book while preparing for the CBSE Class 11 Accountancy examinations. This study material contains deep knowledge and the Solutions collated by the subject matter experts are no distinct.

NCERT Solution for Class 11 commerce Accountancy Chapter 3 – Recording of Transactions – 1 furnishes us with an all-inclusive data to all the concepts. As the students would have to learn the basic fundamentals about the subject of Accountancy in class 11, this curriculum for class 11 is a comprehensive study material; which explains the concepts in an effective way.

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Short Answers for NCERT Solution for Class 11 Accountancy Chapter 3 – Recording of Transactions – 1

1. State the three fundamental steps in the accounting process.

The fundamental steps of the accounting process are:

1. Identifying and analyzing the business transactions.

2. Recording of the business transactions.

3. Classifying and summarizing their effect and communicating the same to the interested users of business information.

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

Importance of source documents in accounting is due to following reasons:

1. It provides evidence of the transaction that has taken place.

2. It acts as a backup in times of auditing and tax assessment

3. It acts as a primary legal evidence as journal entries are based on data from source documents.

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

The practice of recording a transaction in the journal in the first instance provides for a complete record of each transaction and also keeps a track of all debits and credits related to each transaction.

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

Debit gets recorded in the journal first before credit, but both debit and credit are recorded into the journal before being recorded in ledger. Debit entry is recorded without any margin, indent or spacing. However, for a credit entry some spacing, margin or indent is essential. The symbol Dr. is for debit entry is right aligned.

5. Why are some accounting systems called double accounting systems?

Accounting systems are called double accounting systems as they have two aspects to each transaction. Every transaction is recorded in debit and credit sides simultaneously.

6. Give a specimen of an account.

The specimen of an account can be represented as:

NCERT Solution For Class 11 Accountancy Chapter 3 Recording Of Transactions 1 Download Free PDF (92)

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

Liability is towards creditors while capital is also a liability of a business towards its owners. Hence the same rules of debit and credit apply to both liability and capital.

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

The number entered in ledger at the time of posting entries into each account is called J.F Number. It determines if transactions are properly posted or not. It is recorded at the time of posting. The purpose of posting J.F in ledger is to locate entries in journal book and also to ensure that recording has been done in books of original entry.

9. 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.

a. Increase in revenue

Credit as increase in revenue increases capital

b. Decrease in expense

It will be credited.

c. Record drawings

Drawings must be debited as it results in decrease of capital

d. Record of fresh capital introduced by the owner

Increase in capital will be credited as it increases liability of business towards owners.

10. 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?

Transactions that have a decreasing effect on an asset is always recorded on the credit side and transactions that have a decreasing effect on the liabilities are recorded on the debit side.

Long Answers for NCERT Solution for Class 11 Accountancy Chapter 3 – Recording of Transactions – 1

1. Describe the events recorded in accounting systems and the importance of source documents in those systems?

Events that are recorded into the accounting system are those events that can be measured in monetary terms. Some examples include installation of machinery after purchase, payment of salary to employees. Importance of source documents in accounting system are as follows:

1. It provides evidence of the transaction that has taken place.

2. It acts as a backup in times of auditing and tax assessment

3. It acts as a primary legal evidence as journal entries are based on data from source documents.

4. It protects against faulty transactions

5. It helps in resolving conflict related to any transaction.

2. Describe how debits and credits are used to analyse transactions.

All transactions must be measured in monetary terms for being recorded. All such transactions have a dual aspect i.e. both debit and credit. Therefore when recording transaction both the debit and credit amount should be the same. In recording of transactions debit and credit determines whether it should be placed in left or right side of the account. Amount entered on the left side is debit and is represented by notation Dr. while, credit is recorded on the right side of an account, abbreviated as Cr.

For recording transactions, accounts are classified into following types:

  • Assets
  • Liabilities
  • Capital
  • Expenses/Losses
  • Revenues/Gains

Following rules are used for recording transaction to an account:

For Assets/ Expenses or Losses: Increase in Assets, Expenses or losses is debited while decrease is credited. For Liabilities/Capital/Revenues or Gains the increase is credited, while decrease is debited.

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

All monetary transactions contain a source document and these transactions get recorded in the journal. Thus each transaction is in one place and helps link the credit and debit transactions. This process is known as journalising. These recorded transactions get moved to individual ledgers which is called as principal book of entry through posting. Following steps are taken while posting the accounts. Let’s understand it with an example.

The journal has an entry in Books of Wadia Bros where in goods worth of Rs.5, 000 are sold to Raheja Bros. on credit on 15-Mar-2019 and payment of Rs.5, 000 received from Raheja Bros on 20-Mar-2019.

Dr.Wadia Bros A/CCr.
DateParticularsJ.F.Amount
DateParticularsJ.F.Amount
15 Mar 2019Sales235,00020 Mar 2019Cash255,000

Following steps are included:

  • Identify this account’s page in the ledger
  • If this entry is the first one on the ledger account page, the balance carried forward (balance C/F) from the previous page, if any, is brought forward (balance b/f) to this page.
  • Fill the date in the column in which sales occurred on the debit side.
  • Fill details of transaction.
  • Record page number of journal in J.F column in which transaction occurs
  • Fill monetary value in the amount column. Which is Rs.5,000
  • Enter the date on which the transaction occurred
  • Enter particulars of the transaction.
  • Enter the page number on which this transaction appears in the journal.
  • Enter the monetary value of the transaction in the Amount column. In this case it is Rs.5,000
  • Calculate the totals of both debit and credit side of the transaction.
  • If this is the last transaction entry in the ledger account, compute the difference in the amounts and enter the balance c/f. This should be carried over to the next page.

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

A journal is the book of original entry which records transactions as they take place, such an entry into the journal must contain a source document. Maintaining a journal ensures all transactions are recorded and in one place and debit and credit for each transaction is linked properly. A journal consists of the following sections

Date− Transaction date based on when transaction has taken place.

Particulars− Details of transaction recorded

L.F.− Page number of ledger where entry is posted.

Debit Amount− Debited amount as per transaction.

Credit Amount− Credit amount as per transaction

DateDetails
01.5.2019Business started with cash Rs.1,00,000
01.5.2019Goods purchased from Harish for Rs.20,000
01.5.2019Stationary purchased for cash for Rs.2,200
02.5.2019Opened a bank account with SBI for Rs. 30,000
02.5.2019Goods sold to for Rs.10,000
03.5.2019Received a cheque of Rs.10,000 from Sachin
Books of Sajal
DateParticularsL.FDebit
Amount
Rs.
Credit
Amount
Rs.
2019

May.01

Cash A/c Dr.

To Capital A/c

(Business started with cash)

1,00,0001,00,000
May.01Purchases A/c Dr.

To Manisha A/c

(Goods purchased on credit)

20,00020,000
May.01Stationary A/c Dr.

To Cash A/c

(Purchase of Stationary for cash)

2,2002,200
May.02Bank A/c Dr.

To Cash A/c

(Opened a bank account with SBI)

30,00030,000
May.02Priya A/c Dr.

To Sales A/c

(Goods sold to Sachin on credit)

10,00010,000
May.03Bank A/c Dr.

To Sachin A/c

(Cheque received from Sachin)

10,00010,000
Total c/f1,72,2001,72,200

5. Differentiate between source documents and vouchers.

Basis of ComparisonSource DocumentsVouchers
MeaningIt contains details of transactionsSource document considered as evidence of transaction is called voucher
PurposeAccounting voucher preparationAnalysis of monetary transactions.
RecordingBase document for accounting voucher preparationBase document for transaction recording
PreparationPrepared at a time when an event or a transaction occurs.Prepared either when an event or a transaction occurs, or at a later time.
Legality/ValidityLegal evidence for transactionAuthenticity of transaction is validated
Prepared ByPerson conducting the transaction or having authority to do so.Person having the authority only
ExamplesCash memo, pay-in-slip invoice, etc.Cash memo, cash vouchers, transfer vouchers, pay-in-slip (if used as evidence), invoice, debit note, credit note, etc.

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

As per accounting assets of a business always equal the sum of its capital and liabilities.

Assets = Capital + Liabilities

The accounting equation depicts the fundamental relationship that exists among the components of the balance sheet, it is also referred to as the Balance Sheet Equation. Balance sheet is a statement of liabilities, capital and assets.

At any given point of time, resources of the business must be equal to the claims of those who have financed those resources. Resources of the business are provided by proprietors and outsiders. The claim of the proprietors is called as capital and that of the outsiders is known as liabilities.

Consider an example

Mohit started a business with a cash of Rs. 6, 00,000.

Opened a bank account with an amount of Rs. 5, 80,000.

Bough furniture for Rs. 60,000 and issued cheque for the same.

Bought Plant and Machinery from Ramlal for the business for Rs. 1, 25,000 and an advance of Rs. 10,000 in cash is given.

The transactions upon tabulation shows that the accounting equation remains same

Transaction
No.
Assets=LiabilitiesCapitalTotal
CashBankFurniturePlant and MachineryTotal
16,00,0006,00,000=6,00,0006,00,000
6,00,0006,00,000=6,00,0006,00,000
2(5,80,000)5,80,000
20,0005,80,0006,00,000=6,00,0006,00,000
3(60,000)60,000
20,0005,20,00060,0006,00,000=6,00,0006,00,000
4(20,000)20,000
5,20,00060,00020,0006,00,000=6,00,0006,00,000
Total6,00,000=6,00,000

7. Explain the double entry mechanism with an illustrative example.

In a double entry mechanism, every transaction impacts and gets recorded in two accounts. While recording the transactions in double entry, it is ensured that the total debit amount must equal to the total credit amount.

(Video) Simple Journal Entries | Recording of Transaction - 1 | NCERT Chapter 3 | Accounts | CBSE | Class 11

The increase of an item is recorded on left side abbreviated as Dr and decrease is recorded on right side abbreviated as Cr.

The following rules are taken into consideration when recording a transaction into an account.

For Assets or Expenses/Losses:

Increase is debited and Decrease is credited.

For Liabilities/Capital/Revenues or Gains:

Increase is credited and Decrease is debited

Let us understand this with one example

Ronit started a business with a cash of Rs. 4, 00,000

Cash Account
(1) 4,00,000
Capital Account
(1) 4,00,000

This transaction increases cash in one hand while increasing capital on another. Therefore cash account is debited and capital account credited.

Numerical Answers for NCERT Solution for Class 11 Accountancy Chapter 3 – Recording of Transactions – 1

1 .Prepare accounting equation on the basis of the following:

(a) Harsha started business with cash Rs 2, 00,000

(b) Purchased goods from Naman for cash Rs 40,000

(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000

(d) Bought furniture on credit Rs 7,000

The solution is as follows:

S.No.ExplanationAssets=Liabilities+Capital
Cash+Stock+Debtors+FurnitureCreditors
(a)Increase in cash2,00,000=
Increase in capital2,00,000
2,00,000=NIL+2,00,000
(b)Increase in stock40,000
Decrease in cash(40,000)
1,60,000+40,000=NIL+2,00,000
(c)Increase in debtors12,000
Decrease in stock(10,000)
Profit2,000
1,60,000+30,000+12,000=NIL2,02,000
(d)Increase in furniture7,000
Increase in creditors7,000
1,60,000+30,000+12,000+7,000=7,000+2,02,000

2. Prepare accounting equation from the following:

Rs
(a)Kunal started business with cash2,50,000
(b)He purchased furniture for cash35,000
(c)He paid commission2,000
(d)He purchases goods on credit40,000
(e)He sold goods (costing Rs 20,000) for cash26,000

The solution is as follows:

S.No.ExplanationAssetsLiabilities+Capital
Cash+Furniture+Stock=Creditors
(a)Increase in cash2,50,000
Increase in capital2,50,000
2,50,000=NIL+2,50,000
(b)Increase in furniture35,000
Decrease in cash(35,000)
2,15,000+35,000=NIL+2,50,000
(c)Decrease in capital (Expense)(2,000)
Decrease in cash(2,000)
2,13,000+35,000=NIL+2,48,000
(d)Increase in stock40,000
Increase in creditors40,000
2,13,000+35,000+40,000=40,000+2,48,000
(e)Increase in cash26,000
Decrease in stock(20,000)
Increase in capital (Profit)6,000
2,39,000+35,000+20,000=40,000+2,54,000

3. Mohit has the following transactions, prepare accounting equation:

Rs
(a)Business started with cash1,75,000
(b)Purchased goods from Rohit50,000
(c)Sales goods on credit to Manish (Costing Rs 17,500)20,000
(d)Purchased furniture for office use10,000
(e)Cash paid to Rohit in full settlement48,500
(f)Cash received from Manish20,000
(g)Rent paid1,000
(h)Cash withdrew for personal use3,000

The solution is as follows:

S.No.ExplanationAssetsLiabilities+Capital
Cash+Stock+DebtorsFurniture=Creditors
(a)Increase in cash1,75,000
Increase in capital1,75,000
1,75,000=NIL+1,75,000
(b)Increase in stock50,000
Increase in creditors (Rohit)=50,000+1,75,000
1,75,000+50,000=50,000+1,75,000
(c)Increase in debtors (Manish)20,000
Decrease in stock(17,500)
Increase in capital (Profit)2,500
1,75,000+32,500+20,000=50,000+1,77,500
(d)Increase in furniture10,000
Decrease in cash(10,000)
1,65,000+32,500+20,000+10,000=50,000+1,77,500
(e)Decrease in creditors (Rohit)(50,000)
Decrease in dash(48,500)
Increase in capital

(Discount received)

1,500
1,16,500+32,500+20,000+10,000=NIL+1,79,000
(f)Increase in cash20,000
Decrease in debtors (Manish)(20,000)
1,36,500+32,500+NIL+10,000=NIL+1,79,000
(g)Decrease in capital (Expense)(1,000)
Decrease in cash1,000
1,35,500+32,500+NIL+10,000=NIL+1,78,000
(h)Decrease in capital (Drawings)(3,000)
Decrease in cash(3,000)
1,32,500+32,500+NIL+10,000=NIL+1,75,000

4. Rohit has the following transactions:

Rs
(a)Commenced business with cash1,50,000
(b)Purchased machinery on credit40,000
(c)Purchased goods for cash20,000
(d)Purchased car for personal use80,000
(e)Paid to creditors in full settlement38,000
(f)Sold goods for cash costing Rs 5,0004,500
(g)Paid rent1,000
(h)Commission received in advance2,000

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

The solution is as follows:

S.No.ExplanationAssetsLiabilities+Capital
Cash+Machinery+Stock=Creditors+UnaccruedIncome
(a)Increase in cash1,50,000
Increase in capital1,50,000
1,50,000=NIL+1,50,000
(b)Increase in machinery40,000
Increase in creditors=40,000
1,50,000+40,000=40,000+1,50,000
(c)Increase in stock20,000
Decrease in cash(20,000)
1,30,000+40,000+20,000=40,000+1,50,000
(d)Decrease in cash(80,000)
Decrease in capital (Drawings)(80,000)
50,000+40,000+20,000=40,000+70,000
(e)Decrease in creditors(40,000)
Decrease in cash(38,000)
Increase in capital

(Discount received)

2,000
12,000+40,000+20,000=NIL+72,000
(f)Increase in cash4,500
Decrease in stock(5,000)
Decrease in capital (Loss)(500)
16,500+40,000+15,000=NIL+71,500
(g)Decrease in cash(1,000)
Decrease in capital (Expense)(1,000)
15,500+40,000+15,000=NIL+70,500
(h)Increase in cash2,000
Increase inunaccruedincome=2,000
17,500+40,000+15,000=NIL+2,000+70,500

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

Rs
(a)Started business with cash1,20,000
(b)Purchased goods for cash10,000
(c)Rent received5,000
(d)Salary outstanding2,000
(e)Prepaid Insurance1,000
(f)Received interest700
(g)Sold goods for cash (costing Rs 5,000)7,000
(h)Goods destroyed by fire500

Solution:

S.No.ExplanationAssets=Liabilities+Capital
Cash+Stock+Prepaid ExpensesOutstanding Expenses
(a)Increase in cash1,20,000
Increase in capital1,20,000
1,20,000=NIL+1,20,000
(b)Increase in stock10,000
Increase in cash(10,000)=
1,10,000+10,000=NIL+1,20,000
(c)Increase in cash5,000
Increase in capital (Profit)5,000
1,15,000+10,000=NIL+1,25,000
(d)Increase in outstanding expenses=2,000
Decrease in capital (Expense)(2,000)
1,15,000+10,000=2,000+1,23,000
(e)Increase in prepaid expenses1,000
Decrease in cash(1,000)
1,14,000+10,000+1,000=2,000+1,23,000
(f)Increase in cash700
Increase in capital (Profit)700
1,14,700+10,000+1,000=2,000+1,23,700
(g)Increase in cash7,000
Decrease in stock(5,000)
Increase in capital (Profit)2,000
1,21,700+5,000+1,000=2,000+1,25,700
(h)Decrease in stock(500)
Decrease in capital (Loss)=(500)
1,21,700+4,500+1,000=2,000+1,25,200

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

(a)Udit started business with:Rs
(i)Cash5,00,000
(ii)Goods1,00,000
(b)Purchased building for cash2,00,000
(c)Purchased goods from Himani50,000
(d)Sold goods to Ashu (Cost Rs 25,000)36,000
(e)Paid insurance premium3,000
(f)Rent outstanding5,000
(g)Depreciation on building8,000
(h)Cash withdrawn for personal use20,000
(i)Rent received in advance5,000
(j)Cash paid to Himani on account20,000
(k)Cash received from Ashu30,000

The solution is as follows:

S.No.ExplanationAssets=Liabilities+Capital
Cash+Stock+Building+DebtorsCreditors+Outstanding Expenses+UnaccruedIncome
(a)Increase in cash5,00,000
Increase in stock1,00,000
Increase in capital6,00,000
5,00,000+1,00,000=NIL+6,00,000
(b)Increase in building2,00,000
Decrease in cash(2,00,000)=
3,00,000+1,00,000+2,00,000=NIL+6,00,000
(c)Increase in stock50,000
Increase in creditors=50,000
3,00,000+1,50,000+2,00,000=50,000+6,00,000
(d)Increase in debtors36,000
Decrease in stock(25,000)
Increase in capital (Profit)11,000
3,00,000+1,25,000+2,00,000+36,000=50,000+6,11,000
(e)Decrease in cash(3,000)
Decrease in capital (Expense)(3,000)
2,97,000+1,25,000+2,00,000+36,000=50,000++6,08,000
(f)Decrease in capital (Expense)5,000
Increase in liabilities(5,000)
2,97,000+1,25,000+2,00,000+36,000=50,000+5,000+6,03,000
(g)Decrease in building(8,000)
Decrease in capital(8,000)
2,97,000+1,25,000+1,92,000+36,000=50,000+5,000+5,95,000
(h)Decrease in cash(20,000)
Decrease in capital(20,000)
2,97,000+1,25,000+1,92,000+36,000=50,000+5,000+5,75,000
(i)Increase in cash5,000
Increase in liability5,000
2,82,000+1,25,000+1,92,000+36,000=50,000+5,000+5,000+5,75,000
(j)Decrease in creditors(20,000)
Decrease in cash(20,000)
2,62,000+1,25,000+1,92,000+36,000=30,000+5,000+5,000+5,75,000
(k)Increase in cash30,000
Decrease in debtors(30,000)
2,92,000+1,25,000+1,92,000+6,000=30,000+5,000+5,000+5,75,000

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

Rs
(a)Started business with cash1,20,000
(b)Rent received10,000
(c)Invested in shares50,000
(d)Received dividend5,000
(e)Purchase goods on credit from Ragani35,000
(f)Paid cash for house hold Expenses7,000
(g)Sold goods for cash (costing Rs 10,000)14,000
(h)

(i)

Cash paid to Ragani

Deposited into bank

35,000

20,000

The solution is as follows:

S.No.ExplanationAssets=Liabilities+Capital
Cash+Stock+Investment+BankCreditors
(a)Increase in cash1,20,000
Increase in capital1,20,000
1,20,000+=NIL+1,20,000
(b)Increase in cash10,000
Increase in capital (Income)=10,000
1,30,000=NIL+1,30,000
(c)Decrease in investment50,000
Decrease in cash(50,000)=
80,000+50,000=NIL+1,30,000
(d)Increase in cash5,000
Increase in capital (Income)5,000
85,000+50,000=NIL+1,35,000
(e)Increase in stock35,000
Increase in creditor (Ragani)35,000
85,000+35,000+50,000=35,000+1,35,000
(f)Decrease in capital(7,000)
Decrease in cash(7,000)
78,000+35,000+50,000=35,000+1,28,000
(g)Increase in cash14,000
Decrease in stock(10,000)
Increase in capital (Profit)4,000
92,000+25,000+50,000=35,000+1,32,000
(h)Decrease in creditors (Ragani)(35,000)
Decrease in cash(35,000)
57,000+25,000+50,000=NIL+1,32,000
(i)Decrease in cash(20,000)
Increase in bank20,000
37,000+25,000+50,000+20,000=NIL+1,32,000

8. Show the effect of following transaction on the accounting equation:

Rs
(a)Manoj started business with
(i) Cash2,30,000
(ii) Goods1,00,000
(iii) Building2,00,000
(b)He purchased goods for cash50,000
(c)He sold goods(costing Rs 20,000)35,000
(d)He purchased goods from Rahul55,000
(e)He sold goods to Varun (Costing Rs 52,000)60,000
(f)He paid cash to Rahul in full settlement53,000
(g)Salary paid by him20,000
(h)Received cash from Varun in full settlement59,000
(i)Rent outstanding3,000
(j)Prepaid Insurance2,000
(k)Commission received by him13,000
(l)Amount withdrawn by him for personal use20,000
(m)Depreciation charge on building10,000
(n)Fresh capital invested50,000
(o)Purchased goods from Rakhi6,000

The solution is as follows:

S.No.ExplanationAssets=Liabilities+Capital
Cash+Stock+Building+Debtors+Prepaid ExpensesCreditors+Outstanding Expenses
(a)Increase in cash, stock and building2,30,000+1,00,000+2,00,000
Increase in capital5,30,000
2,30,000+1,00,000+2,00,000=+5,30,000
(b)Increase in stock50,000
Decrease in cash(50,000)
1,80,000+1,50,000+2,00,000=+5,30,000
(c)Increase in cash35,000
Decrease in stock(20,000)
increase in capital (Profit)15,000
2,15,000+1,30,000+2,00,000+5,45,000
(d)Increase in stock55,000
Increase in creditors=55,000
2,15,000+1,85,000+2,00,000=55,000+5,45,000
(e)Increase in debtors60,000
Decrease in stock(52,000)
Increase in capital (Profit)8,000
2,15,000+1,33,000+2,00,000+60,000=55,000+5,53,000
(f)Decrease in creditors=(55,000)
Decrease in cash(53,000)
Increase in capital (Discount received)2,000
1,62,000+1,33,000+2,00,000+60,000=NIL+5,55,000
(g)Decrease in cash(20,000)
Decrease in capital(20,000)
1,42,000+1,33,000+2,00,000+60,000=NIL+5,35,000
(h)Increase in cash59,000
Decrease in capital (Discount allowed)(1,000)
Decrease in debtors60,000
2,01,000+1,33,000+2,00,000+NIL=NIL++5,34,000
(i)Increase in outstanding Expenses3,000
decrease in capital (Expense)(3,000)
2,01,000+1,33,000+2,00,000+NIL=NIL+3,000+5,31,000
(j)Decrease in prepaid expenses2,000
Decrease in cash(2,000)
1,99,000+1,33,000+2,00,000+NIL2,000=NIL+3,000+5,31,000
(k)Increase in cash13,000
increase in capital (Income)13,000
2,12,000+1,33,000+2,00,000+NIL+2,000=NIL+3,000+5,44,000
(l)Decrease in capital(20,000)
Decrease in cash(20,000)
1,92,000+1,33,000+1,90,000+NIL+2,000=NIL+3,000+5,24,000
(m)Decrease in capital(10,000)
Decrease in building(10,000)
1,92,000+1,33,000+1,90,000+NIL+2,000=NIL+3,000+5,14,000
(n)Increase in cash50,000
Increase in capital50,000
2,42,000+1,33,000+1,90,000+NIL+2,000=NIL+3,000+5,64,000
(o)Increase in stock10,000
Increase in creditors10,000
2,42,000+1,43,000+1,90,000+NIL+2,000=10,000+3,000+5,64,000

9. Transactions of M/s. Vipin Traders are given below.

Show the effects on Assets, Liabilities and Capital with the help of accounting Equation.

Rs
(a)Business started with cash1,25,000
(b)Purchased goods for cash50,000
(c)Purchase furniture from R.K. Furniture10,000
(d)Sold goods to Parul Traders (costing Rs 7,000 vide bill no. 5674)9,000
(e)Paid cartage100
(f)Cash Paid to R.K. furniture in full settlement9,700
(g)Cash sales (costing Rs 10,000)12,000
(h)Rent received4,000
(i)Cash withdrew for personal use3,000

The solution is as follows:

S.No.ExplanationAssets=Liabilities+Capital
Cash+Stock+Furniture+DebtorsCreditors
(a)Increase in cash1,25,000
Increase in capital1,25,000
1,25,000+=NIL+1,25,000
(b)Increase in stock50,000
Decrease in cash(50,000)=
75,000+50,000=NIL+1,25,000
(c)Increase in furniture10,000=
Increase in creditors=10,000
75,000+50,000+10,000=10,000+1,25,000
(d)Increase in debtors9,000
Decrease in stock(7,000)
Increase in capital (Profit)2,000
75,000+43,000+10,000+9,000=10,000+1,27,000
(e)Decrease in capital (Cartage Expenses)(100)
Decrease in cash(100)
74,900+43,000+10,000+9,000=10,000+1,26,900
(f)Decrease in creditors=(10,000)
Decrease in cash(9,700)
Increase in capital (Discount-received)300
65,200+43,000+10,000+9,000=NIL+1,27,200
(g)Increase in cash12,000
Decrease in stock(10,000)
Increase in capital (Profit)2,000
77,200+33,000+10,000+9,000=NIL+1,29,200
(h)Increase in cash4,000
Increase in capital (Income)4,000
81,200+33,000+10,000+9,000=NIL+1,33,200
(i)Decrease in capital(3,000)
Decrease in cash(3,000)
78,200+33,000+10,000+9,000=NIL+1,30,200

10. Bobby opened a consulting firm and completed these transactions during November, 2014

Invested ₹ 4,00,000 cash and office equipment with ₹ 1,50,000 in a business called Bobbie Consulting.

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 ₹ 8,00,000

Purchased office supplies on credit for ₹ 12,000

Bobbie transferred title of motor car to the business. The motor car was worth ₹ 90,000.

Purchased for ₹ 30,000 additional office equipment on credit.

Paid ₹ 7,500 salary to the office manager.

Provided services to a client and collected ₹ 30,000

Paid ₹ 4,000 for the month’s utilities.

Paid supplier created in transaction c.

Purchase new office equipment by paying ₹ 93,000 cash and trading in old equipment with a recorded cost of ₹ 7,000

Completed services of a client for ₹ 26,000. This amount is to be paid within 30 days.

Received ₹ 19,000 payment from the client created in transaction k.

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.

  1. Invested ₹4, 00,000 cash and office equipment with ₹1, 50,000 in a business called Bobbie Consulting.
DrCash AccountCr
4,00,000
DrOffice Equipment AccountCr
1,50,000
DrCapital AccountCr
4,00,000
1,50,000
  1. 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 ₹8, 00,000

Analysis of Transaction:The land purchased is an asset. An increase in the asset has to be debited.

DrLand AccountCr
1,50,000
  1. Similarly the purchase of building increases the asset and hence should be debited.
DrBuilding AccountCr
3,50,000
  1. For purchasing the above two assets, another asset i.e. cash is spent and hence decreased. And a decrease in the asset should be credited.
DrCash AccountCr
4,00,0002,00,000
  1. At the same time there is a long term note payable for ₹8,00,000. This is a liability. An increase in the liability should be credited.
DrLong term payable AccountCr
8,00,000
  1. Purchased office supplies on credit for ₹12,000Analysis of transaction:Purchase of office supplies is an expense and hence an increasse in the expenses should be debited.
DrOffice Supplies AccountCr
12,000
  1. For purchasing the office supplies, a liability is created and hence the accounts payable will be increased and an increased liability should be credited.
DrAccounts payableCr
12,000
  1. Bobbie transferred title of motor car to the business. The motor car was worth ₹90,000.Analysis of the transaction:Motor car will be an asset and hence an increase in the asset should be debited.
DrMotor car accountCr
90,000
  1. Transferring the title of the motor car will increase the capital. An increase in the capital should be credited.
DrCapital AccountCr
4,00,000

1,50,000

90,000

  1. Purchased for ₹30,000 additional office equipment on credit.Analysis of the transaction:Office equipment is an asset and hence an increase in the asset will be debited.
DrOffice Equipment AccountCr
1,50,000

30,000

  1. This office equipment is purchased on credit and hence the liability of the accounts payable account will be increased. An increase in the liability should be credited.
DrAccounts payableCr
12,000

30,000

  1. Paid ₹7,500 salary to the office manager.Analysis of the transaction:Salary is an expense and hence an increase in the expense should be debited.
DrSalary AccountCr
7,500
  1. Payment of salary will reduce the cash. A decrease in the cash asset should be credited.
DrCash AccountCr
4,00,0002,00,000

7,500

  1. Provided services to a client and collected ₹30,000Analysis of the transaction:Providing services for cash should be debited to the cash account.
DrCash AccountCr
4,00,000

30,000

2,00,000

7,500

  1. This should be credited to the capital account.
DrCapital AccountCr
4,00,000

1,50,000

90,000

30,000

(Video) Recording of Transactions-I | Accounting Equation: Concept | Class 11 Accounts | Vedantu Commerce

  1. Paid ₹4,000 for the month’s utilities.Analysis of the transaction:Monthly utilities is an expense and hence an increase in the expense should be debited.
DrExpenses AccountCr
4,000
  1. On the otherhand the payment of the expenses will reduce the cash. And hence a decrease in the cash asset should be credited.
DrCash AccountCr
4,00,000

30,000

2,00,000

7,500

4,000

  1. Paid supplier created in transaction c.Analysis of the transaction:There is a decrease in the liability and hence it should be debited.
DrAccounts payableCr
12,00012,000

30,000

  1. As this liability is paid out through cash, it’ll reduce the cash asset. A decrease in the cash asset shoud be credited.
DrCash AccountCr
4,00,000

30,000

2,00,000

7,500

4,000

12,000

  1. Purchase new office equipment by paying ₹93,000 cash and trading in old equipment with a recorded cost of ₹7,000Analysis of the transaction:Buying the new office equipment will increase the assets and hence should be debited.
DrOffice Equipment AccountCr
1,50,000

30,000

93,000

  1. However, for buying this office equipment, the old equipment of ₹7,000 is traded out. Thus there is a decrease in the asset and hence it should be credited.
DrOffice Equipment AccountCr
1,50,000

30,000

93,000

7,000

Also, the rest of the amount is i.e 93,000 – 7,000 = 86,000 is paid out in case. Thus there is a decrease in the cash asset and hence it should be credited.

DrCash AccountCr
4,00,000

30,000

2,00,000

7,500

4,000

12,000

86,000

  1. Completed services of a client for ₹26,000. This amount is to be paid within 30 days.Analysis of the transaction:Completion of services has created revenue.
DrAccounts ReceivableCr
26,000
  1. As this is a sale, the sales account should be credited.
DrSales AccountCr
26,000
  1. Received ₹19,000 payment from the client created in transaction k.Analysis of the transaction:There is revenue and hence should be credited.
DrAccounts ReceivableCr
26,00019,000

This is bringing in cash and hence the cash account should be debited.

DrCash AccountCr
4,00,000

30,000

19,000

2,00,000

7,500

4,000

12,000

86,000

Bobby withdrew ₹20,000 from the business.

Analysis of the transaction:There is withdrawal and hence the drawings account i.e. expenses should be debited.

DrDrawings AccountCr
20,000

The drawings will reduce the cash and hence the cash asset should be credited.

DrCash AccountCr
4,00,000

30,000

19,000

2,00,000

7,500

4,000

12,000

86,000

20,000

11. Journalise the following transactions in the books of Himanshu:

2017Rs
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

The solution is as follows:

Books of Himanshu

Journal

DateParticularsL.F.Debit

Amount

Rs

Credit Amount

Rs

2017
Dec.01Cash A/cDr.75,000
To Capital A/c75,000
(Started business with cash)
Dec.07Purchases A/cDr.10,000
To Cash A/c10,000
(Goods purchased for cash)
Dec.09SwatiDr.5,000
To Sales A/c5,000
(Goods sold on credit)
Dec.12Furniture A/cDr.3,000
To Cash A/c3,000
(Furniture purchased for cash)
Dec.18Cash A/cDr.4,000
Discount Allowed A/cDr.1,000
To Swati5,000
(Cash received from Swati and discount allowed)
Dec.25Rent A/cDr.1,000
To Cash A/c1,000
(Rent paid in cash)
Dec.30Salaries A/cDr.1,500
To Cash A/c1,500
(Salary paid in cash)
Total1,00,5001,00,500

12. Enter the following Transactions in the Journal of Mudit :

2017Rs
Jan.01Commenced business with cash1,75,000
Jan.01Building1,00,000
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 house hold2,000
Jan.25Cash paid to Sudhir26,700
Discount allowed300

The solution is as follows:

Books ofMudit

Journal

DateParticularsL.F.Debit Amount

Rs

Credit Amount Rs
2017
Jan.01Building A/cDr.1,00,000
Cash A/cDr.1,75,000
To Capital A/c2,75,000
(Commenced business with cash and building)
Jan.02Purchases A/cDr.75,000
To Cash A/c75,000
(Goods purchased for cash)
Jan.03RameshDr.30,000
To Sales A/c30,000
(Goods sold toRamesh)
Jan.04Wages A/cDr.500
To Cash A/c500
(Wages paid in cash)
Jan.06Cash A/cDr.10,000
To Sales A/c10,000
(Goods sold for cash)
Jan.10Trade Expenses A/cDr.700
To Cash A/c700
(Trade expenses paid in cash)
Jan.12Cash A/cDr.29,500
Discount Allowed A/cDr. 500
ToRamesh30,000
(Cash received fromRameshand discount

allowed to him)

Jan.14Purchases A/cDr.27,000
ToSudhir27,000
(Goods purchased fromSudhiron credit)
Jan.18Cartage A/cDr.1,000
To Cash A/c1,000
(Cartage paid in cash)
Jan.20Drawings A/cDr.5,000
To Cash A/c5,000
(Cash drawn for personal use)
Jan.22Drawings A/cDr.2,000
To Purchases A/c2,000
(Goods drawn from business for households use)
Jan.25SudhirDr.27,000
To Cash A/c26,700
To Discount Received A/c 300
(Cash paid toSudhirand discount received)
Total4,83,2004,83,200

13. Journalise the following transactions:

2017Rs
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

The solution is as follows:

Books ofHema
Journal
DateParticularsL.F.Debit Amount RsCredit Amount Rs
2017
Dec.01Cash A/cDr.1,00,000
To Capital A/c1,00,000
(Started business with cash)
Dec.02Bank A/cDr.30,000
To Cash A/c30,000
(Bank account opened with SBI)
Dec.04Purchases A/cDr.20,000
ToAshu20,000
(Goods purchased fromAshu)
Dec.06Cash A/cDr.15,000
To Sales A/c15,000
(Goods sold for cash)
Dec.10Purchases A/cDr.40,000
To Cash A/c40,000
(Goods purchased for cash)
Dec.13SumanDr.20,000
To Sales A/c20,000
(Goods goods toSuman)
Dec.16Bank A/cDr.19,500
Discount Allowed A/cDr. 500
ToSuman20,000
(Cheque received fromSumanand discount allowed)
Dec.20AshuDr.10,000
To Bank A/c10,000
(Cheque forwarded toAshu)
Dec.22Rent A/cDr.2,000
To Bank A/c2,000
(Rent paid by cheque)
Dec.23Bank A/cDr.16,000
To Cash A/c16,000
(Cash deposited into bank)
Dec.25Machinery A/cDr.10,000
ToParigya10,000
(Machinery purchased fromParigya)
Dec.26Trade Expenses A/cDr.2,000
To Cash A/c2,000
(Trade expenses paid)
Dec.28ParigyaDr.10,000
To Bank A/c10,000
(Cheque issued toParigya)
Dec.29Telephone Expenses A/cDr.1,200
To Bank A/c1,200
(Telephone expenses paid through cheque)
Dec.30Salaries A/cDr.4,500
To Cash A/c4,500
(Salary paid)
Total3,00,7003,00,700

14. Jouranlise the following transactions in the books of Harpreet Bros.:

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

The solution is as follows:

Books ofHarpreetBros.
Journal
S. No.ParticularsL.F.Debit Amount RsCredit Amount Rs
(a)Bad Debt A/cDr.1,000
ToRohit(Debtors)1,000
(Due fromRohitbecame bad debt)
(b)Drawings A/cDr.2,000
To Purchases A/c2,000
(Goods withdrawn by proprietor for personal use)
(c)Depreciation A/cDr.500
To Machinery A/c500
(Depreciation charged on machinery for two

months)

(d)Interest on Capital A/cDr.6,750
To Capital A/c6,750
(Interest on capital at 6% due for 9 months)
(e)Bad Debt A/cDr. 800
Cash A/cDr. 1,200
ToRahul(Debtor)2,000
(Received fromRahul60paisein a rupee and rest amount considered as bad debt)
Total12,25012,250

15. Prepare Journal from the transactions given below:

Rs
(a)Cash paid for installation of machine500
(b)Goods given as charity2,000
(c)Interest charge on capital @ 7% p.a. when total capital were70,000
(d)Received Rs 1,200 of a bad debts written-off last year.
(e)Goods destroyed by fire2,000
(f)Rent outstanding1,000
(g)Interest on drawings900
(h)Sudhir Kumar who owed me Rs 3,000 has failed to pay the amount. He pays me a compensation of 45 paise in a rupee.
(i)Commission received in advance7,000

Solution:

Journal
S. No.ParticularsL.F.Debit Amount

Rs

Credit Amount

Rs

(a)Machinery A/cDr.500
To Cash A/c500
(Cash paid for installation of machinery)
(b)Charity A/cDr.2,000
To Purchases A/c2,000
(Goods given as charity)
(c)Interest on Capital A/cDr.4,900
To Capital A/c4,900
(Interest on capital charged @ 7% p.a.)
(d)Cash A/cDr.1,200
ToBad Debt Recovered A/c1,200
(Cash received on from debtors which was

previously written off as bad)

(e)Goods Destroyed by Fire A/cDr.2,000
To Purchases A/c2,000
(Goods destroyed by fire)
(f)Rent A/cDr.1,000
To Rent Outstanding A/c1,000
(Rent due but not paid)
(g)Drawings A/cDr.900
To Interest on Drawings A/c900
(Interest allowed on drawings)
(h)Cash A/cDr.1,350
Bad Debt A/cDr.1,650
ToSudhirKumar3,000
(SudhirKumar declared insolvent and cash

received from him 45paisein a rupee in full

settlement)

(i)Commission A/cDr.7,000
To Commission Received in Advance A/c7,000
(Commission received in advance)
(Note: If it is assumed, commission in

advance already credited as commission)

OR
Cash A/cDr.7,000
To Commission Received in Advance7,000
(Commission received in Advance)
(Note: If it is assumed, commission in advance

not already credited as commission)

Total22,50022,500

16. Journalise the following transactions, post to the ledger:

2017Rs
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

Solution:

Journal
DateParticularsL.F.Debit Amount RsCredit Amount

Rs

2017
Nov.01Cash A/cDr.1,50,000
Stock A/cDr. 50,000
To Capital A/c2,00,000
(Started business with cash and goods)
Nov.03Purchases A/cDr.30,000
To Harish30,000
(Goods purchased from Harish)
Nov.05Cash A/cDr.12,000
To Sales A/c12,000
(Goods sold for cash)
Nov.08Furniture A/cDr.5,000
To Cash A/c5,000
(Furniture purchased for cash)
Nov.10Harish A/cDr.15,000
To Cash A/c15,000
(Cash paid to Harish)
Nov.13Sundry Expenses A/cDr.200
To Cash200
(Sundry expenses paid)
Nov.15Cash A/cDr.15,000
To Sales A/c15,000
(Goods sold for cash)
Nov.18Bank A/cDr.5,000
To Cash A/c5,000
(Cash deposited into bank)
Nov.20Drawings A/cDr.1,000
To Cash A/c1,000
(Cash drawn for personal use)
Nov.22HarishDr.15,000
To Cash A/c14,700
To Discount Received A/c300
(Payment made to Harish and discount received)
Nov.25NiteshDr.7,000
To Sales A/c7,000
(Goods sold toNitesh)
Nov.26Cartage A/cDr.200
To Cash A/c200
(Cartage paid)
Nov.27Rent A/cDr.1,500
To Cash A/c1,500
(Rent paid)
Nov.29Cash A/cDr.6,800
Discount Allowed A/c 200
ToNitesh7,000
(Cash received fromNiteshand discount allowed)
Nov.30Salaries A/cDr.3,000
To Cash A/c3,000
(Salary paid)
Total3,16,9003,16,900
Ledger
Cash Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Nov.01Capital1,50,000Nov.08Furniture5,000
Nov.05Sales12,000Nov.10Harish15,000
Nov.15Sales15,000Nov.13Sundry Expenses200
Nov.29Nitesh6,800Nov.18Bank5,000
Nov.20Drawings1,000
Nov.22Harish14,700
Nov.26Cartage200
Nov.27Rent1,500
Nov.30Salaries3,000
Nov.30Balance c/d1,38,200
1,83,0001,83,000
Capital Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Nov.01Cash1,50,000
Nov.01Stock50,000
Nov.30Balance c/d2,00,000
2,00,0002,00,000
Stock Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Nov.01Capital50,000
Nov. 30Balance c/d50,000
50,00050,000
Cartage Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Nov.26Cash200
Nov.30Balance c/d200
200200
Rent Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Nov.27Cash1,500
Nov.30Balance c/d1,500
1,5001,500
Salaries Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Nov.30Cash3,000
Nov.30Balance c/d3,000
3,0003,000
Furniture Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Nov.08Cash5,000
Nov.30Balance c/d
5,0005,000
(Video) Class-11 Recording Transactions in Accounts | Oswaal Important Questions | Kuldeep Sir | Kelvin
Nitesh’sAccount
DrCr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Nov.25Sales7,000Nov.29Cash6,800
Nov.29Discount Allowed200
7,0007,000
Sales Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Nov.05Cash12,000
Nov.15Cash15,000
Nov.30Balanced c/d34,000Nov.25Nitesh7,000
34,00034,000
Purchases Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Nov.03Harish30,000
Nov.30Balance c/d30,000
30,00030,000
Harish’s Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Nov.10Cash15,000Nov.03Purchases30,000
Nov.22Cash14,700
Nov.22Discount Received300
30,00030,000
Sundry Expenses Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Nov.13Cash200
Nov.30Balance c/d200
200200
Bank Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Nov.18Cash5,000
Nov.30Balance c/d5,000
5,0005,000
Drawings Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Nov.20Cash1,000
Nov.30Balance c/d1,000
1,0001,000
Discount Received Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Nov.22Harish300
Nov.30Balance c/d300
3003,00
Discount Allowed Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Nov.29Nitesh200
Nov.30Balance c/d200
200200

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

2017Rs
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.08Goods 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 house hold 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

Solution:

Books of M/s Goel Brothers
Journal
DateParticularsL.F.Debit Amount

Rs

Credit Amount

Rs

2017
Jan.01Cash A/cDr.1,65,000
To Capital A/c1,65,000
(Started business with cash)
Jan.02Bank A/cDr.80,000
To Cash A/c80,000
(Bank account opened with PNB)
Jan.04Purchases A/cDr.22,000
To Tara22,000
(Goods purchased from Tara)
Jan.05Purchases A/cDr.30,000
To Cash A/c30,000
(Goods purchased for cash)
Jan.08NamanDr.12,000
To Sales A/c12,000
(Sale of goods to Naman)
Jan.10TaraDr.22,000
To Cash A/c22,000
(Cash paid to Tara)
Jan.15Cash A/cDr.11,700
Discount Allowed A/cDr. 300
To Naman12,000
(Cash received from Naman and discount allowed)
Jan.16Wages A/cDr.200
To Cash A/c200
(Wages paid)
Jan.18Furniture A/cDr.5,000
To Cash A/c5,000
(Furniture purchased for cash)
Jan.20Drawings A/cDr.4,000
To Bank A/c4,000
(Cash drawn from bank for personal use)
Jan.22Rent A/cDr.3,000
To Bank A/c3,000
(Rent paid through cheque)
Jan.23Drawings A/cDr.2,000
To Purchases A/c2,000
(Goods drawn for household purpose)
Jan.24Cash A/cDr.6,000
To Bank A/c6,000
(Cash drawn from bank)
Jan.26Cash A/cDr.1,000
To Commission A/c1,000
(Commission received)
Jan.27Bank Charges A/cDr.200
To Bank A/c200
(Bank charged charges)
Jan.28Insurance A/cDr.3,000
To Bank A/c3,000
(Insurance paid through cheque)
Jan.29Salaries A/cDr.7,000
To Cash A/c7,000
(Salary paid)
Jan.30Cash A/cDr.10,000
To Sales A/c10,000
(Cash received for sale of goods)
Total3,84,4003,84,400
Ledger
Cash Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Jan.01Capital1,65,000Jan.02Bank80,000
Jan.15Naman11,700Jan.05Purchases30,000
Jan.24Bank6,000Jan.10Tara22,000
Jan.26Commission1,000Jan.16Wages200
Jan.30Sales10,000Jan.18Furniture5,000
Jan.29Salaries7,000
Jan.31Balance c/d49,500
1,93,7001,93,700
Capital Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.01Cash1,65,000
Jan.31Balance c/d1,65,000
1,65,0001,65,000
Bank Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.02Cash80,000Jan.20Drawings4,000
Jan.22Rent3,000
Jan.24Cash6,000
Jan.27Bank charges200
Jan.28Insurance3,000
Jan.31Balance c/d63,800
80,00080,000
Tara’s Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.10Cash22,000Jan.04Purchases22,000
22,00022,000
Purchases Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Jan.04Tara22,000Jan.23Drawings2,000
Jan.05Cash30,000Jan.31Balance c/d50,000
52,00052,000
Sales Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Jan.08Naman12,000
Jan.31Balanced c/d22,000Jan.30Cash10,000
22,00022,000
Naman’s Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Jan.08Sales12,000Jan.15Cash11,700
Jan.15Discount Allowed300
12,00012,000
Discount Allowed Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.15Naman300
Jan.31Balance c/d300
300300
Wages Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.16Cash200
Jan.31Balance c/d200
200200
Furniture Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.18Cash5,000
Jan.31Balance c/d5,000
5,0005,000
Drawings Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.20Bank4,000
Jan.23Purchases2,000Jan.31Balance c/d6,000
6,0006,000
Rent Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.22Bank3,000
Jan.31Balance c/d3,000
3,0003,000
Commission Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Jan.26Cash1,000
Jan.31Balance c/d1,000
1,0001,000
Bank Charges Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.27Bank200
Jan.31Balance c/d200
200200
Insurance Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Jan.28Bank3,000
Jan.31Balance c/d3,000
3,0003,000
Salaries Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.29Cash7,000
Jan.31Balance c/d7,000
7,0007,000

18. Give journal entries of M/s. Mohit traders; post them to the Ledger from the following transactions:

August, 2017Rs
1Commenced business with cash1,10,000
2Opened bank account with H.D.F.C.50,000
3Purchased furniture20,000
7Bought goods for cash from M/s. Rupa Traders30,000
8Purchased good from M/s. Hema Traders42,000
10Sold goods for cash30,000
14Sold goods on credit to M/s. Gupta Traders12,000
16Rent paid4,000
18Paid trade expenses1,000
20Received cash from Gupta Traders12,000
22Goods return to Hema Traders2,000
23Cash paid to Hema Traders40,000
25Bought postage stamps100
30Paid salary to Rishabh4,000

Solution:

Books of M/s. Mohit Traders
Journal
DateParticularsL.F.Debit Amount RsCredit Amount Rs
2017
Aug.01Cash A/cDr.1,10,000
To Capital A/c1,10,000
(Commenced business with cash)
Aug.02Bank A/cDr.50,000
To Cash A/c50,000
(Bank account opened with H.D.F.C)
Aug.03Furniture A/cDr.20,000
To Cash A/c20,000
(Furniture purchased)
Aug.07Purchases A/cDr.30,000
To Cash A/c30,000
(Goods purchased for cash)
Aug.08Purchases A/cDr.42,000
To M/s. Hema Traders42,000
(Goods purchased from M/s. Hema Traders)
Aug.10Cash A/cDr.30,000
To Sales A/c30,000
(Goods sold for cash)
Aug.14M/s. Gupta TradersDr.12,000
To Sales A/c12,000
(Goods sold to M/s. Gupta traders)
Aug.16Rent A/cDr.4,000
To Cash A/c4,000
(Rent paid in cash)
Aug.18Trade Expenses A/cDr.1,000
To Cash A/c1,000
(Trade expenses paid in cash)
Aug.20Cash A/cDr.12,000
To M/s. Gupta Traders12,000
(Cash received from M/s. Gupta Traders)
Aug.22M/s. Hema TradersDr.2,000
To Purchases Return A/c2,000
(Goods returned to Hema traders)
Aug.23M/s. Hema TradersDr.40,000
To Cash A/c40,000
(Cash paid to Hema traders)
Aug.25Postage Stamps A/cDr.100
To Cash A/c100
(Postage stamps purchased)
Aug.30Salaries A/cDr.4,000
To Cash A/c4,000
(Salaries paid in cash)
Total3,57,1003,57,100
Cash Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Aug.01Capital1,10,000Aug.02Bank50,000
Aug.10Sales30,000Aug.03Furniture20,000
Aug.20M/s. Gupta Traders12,000Aug.07Purchases30,000
Aug.16Rent4,000
Aug.18Trade Expenses1,000
Aug.23M/s. Hema Traders40,000
Aug.25Postage Stamps100
Aug.30Salaries4,000
Aug.31Balance c/d2,900
1,52,0001,52,000
Capital Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Aug.01Cash1,10,000
Aug.31Balance c/d1,10,000
1,10,0001,10,000
Bank Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Aug.02Cash50,000
Aug.31Balance c/d50,000
50,00050,000
Furniture Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Aug.03Cash20,000
Aug.31Balanced c/d20,000
20,00020,000
Purchases Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Aug.07Cash30,000
Aug.08M/s. Hema Traders42,000Aug.31Balance c/d72,000
72,00072,000
M/s. Hema Traders Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Aug.22Purchases Return2,000Aug.08Purchases 42,000
Aug.23Cash40,000
42,00042,000
Sales Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Aug.10Cash30,000
Aug.31Balance c/d42,000Aug.14M/s. Gupta Traders12,000
42,00042,000
M/s. Gupta Traders Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Aug.14Sales12,000
Aug.20Cash12,000
12,00012,000
Rent Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Aug.16Cash4,000
Aug.31Balance c/d4,000
4,0004,000
Trade Expenses Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Aug.18Cash1,000
Aug.31Balance c/d1,000
1,0001,000
Purchases Return Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Aug.22M/s. Hema Traders2,000
Aug.31Balance c/d2,000
2,0002,000
Postage Stamps Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Aug.25Cash100
Aug.31Balance c/d100
100100
Salaries Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Aug.30Cash4,000
Aug.31Balance c/d4,000
4,0004,000

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

December, 2017Rs
1Started business with cash92,000
2Deposited into bank60,000
4Bought goods on credit from Himani40,000
6Purchased goods from cash20,000
8Returned goods to Himani4,000
10Sold goods for cash20,000
14Cheque given to Himani36,000
17Goods sold to M/s. Goyal TradeRs3,50,000
19Drew cash from bank for personal use2,000
21Goyal traders returned goods3,500
22Cash deposited into bank20,000
26Cheque received from Goyal Traders31,500
28Goods given as charity2,000
29Rent paid3,000
30Salary paid7,000
31Office machine purchased for cash3,000

Solution:

Books of M/s.BhanuTraders
Journal
DateParticularsL.F.Debit Amount

Rs

Credit Amount Rs
2017
Dec.01Cash A/cDr.92,000
To Capital A/c92,000
(Started business with cash)
Dec.02Bank A/cDr.60,000
To Cash A/c60,000
(Cash deposited into bank)
Dec.04Purchases A/cDr.40,000
ToHimani40,000
(Goods purchased fromHimani)
Dec.06Purchases A/cDr.20,000
To Cash A/c20,000
(Goods purchased for cash)
Dec.08HimaniDr.4,000
To Purchases Return A/c4,000
(Goods returned toHimani)
Dec.10Cash A/cDr.20,000
To Sales A/c20,000
(Goods sold for cash)
Dec.14HimaniDr.36,000
To Bank A/c36,000
(Cheque given toHimani)
Dec.17M/s.GoyalTraders A/cDr.35,000
To Sales A/c35,000
(Goods sold to M/s.GoyalTraders)
Dec.19Drawings A/cDr.2,000
To Bank A/c2,000
(Cash withdrawn from bank for personal use)
Dec.21Sales Return A/cDr.3,500
To M/s.GoyalTraders3,500
(Goods returned byGoyalTraders)
Dec.22Bank A/cDr.20,000
To Cash A/c20,000
(Cash deposited into bank)
Dec.26Bank A/cDr.31,500
To M/s.GoyalTraders31,500
(Cheque received from M/s.GoyalTraders)
Dec.28Charity A/cDr.2,000
To Purchases A/c2,000
(Goods given as charity)
Dec.29Rent A/cDr.3,000
To Bank A/c3,000
(Rent paid)see note
Dec.30Salaries A/c7,000
To Cash A/c7,000
(Salaries paid)
Dec.31Office Machine A/c3,000
To Cash A/c3,000
(Office machinery purchased)
Total6,94,0006,94,000
Cash Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.01Capital92,000Dec.02Bank60,000
Dec.10Sales20,000Dec.06Purchases20,000
Dec.22Bank20,000
Dec.30Salaries7,000
Dec.31Office Machine3,000
Dec.31Balance c/d2,000
1,12,0001,12,000
Capital Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.01Cash92,000
Dec.31Balance c/d92,000
92,00092,000
Bank Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Dec.02Cash60,000Dec.14Himani36,000
Dec.22Cash20,000Dec.19Drawings2,000
Dec.26GoyalTraders31,500Dec.29Rent(see note)3,000
Dec.31Balance c/d70,500
1,11,50011,500

.

Purchases Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.04Himani40,000Dec.28Charity2,000
Dec.06Cash20,000Dec.31Balance c/d58,000
60,00060,000
Himani’sAccount
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.08Purchases Return4,000Dec.04Purchases 40,000
Dec.14Bank36,000
40,00040,000
(Video) Recording of transactions ||11th Theory ch 03 NCERT Accounts
Sales Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.10Cash20,000
Dec.31Balance c/d55,000Dec.17M/s.GoyalTraders35,000
55,00055,000
M/s.GoyalTraders Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Dec.17Sales35,000Dec.21Sales Return3,500
Dec.26Bank31,500
35,00035,000
Purchases Return Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.08Himani4,000
Dec.31Balance c/d4,000
4,0004,000
Drawings Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.19Bank2,000
Dec.31Balance c/d2,000
2,0002,000
Sales Return Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Dec.21M/s.GoyalTraders3,500
Dec.31Balance c/d3,500
3,5003,500
Charity Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.28Purchases2,000
Aug.31Balance c/d2,000
2,0002,000
Rent Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.29Cash3,000
Dec.31Balance c/d3,000
3,0003,000
Salaries Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount

Rs

20172017
Dec.30Cash7,000
Dec.31Balance c/d7,000
7,0007,000
Office Machine Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Dec.31Cash3,000
Dec.31Balance c/d3,000
3,0003,000

Question 20-

Journalise the following transaction in the Book of M/s. Beauti tradeRs also post them in the ledger.

Dec. 2017Rs
1Started business with cash2,00,000
2Bought office furniture30,000
3Paid into bank to open an current account1,00,000
5Purchased a computer and paid by cheque2,50,000
6Bought goods on credit from Ritika60,000
8Cash sales30,000
9Sold goods to Karishna on credit25,000
12Cash paid to Mansi on account30,000
14Goods returned to Ritika2,000
15Stationery purchased for cash3,000
16Paid wages1,000
18Goods returned by Karishna2,000
20Cheque given to Ritika28,000
22Cash received from Karishna on account15,000
24Insurance premium paid by cheque4,000
26Cheque received from Karishna8,000
28Rent paid by cheque3,000
29Purchased goods on credit from Meena Traders20,000
30Cash sales14,000

Solution:

Books ofBeautiTraders
Journal
DateParticularsL.F.Debit Amount RsCredit Amount Rs
2017
Dec.01Cash A/cDr.2,00,000
To Capital A/c2,00,000
(Started business with cash)
Dec.02Office Furniture A/cDr.30,000
To Cash A/c30,000
(Office furniture purchased)
Dec.03Bank A/cDr.1,00,000
To Cash A/c1,00,000
(Opened a current account)
Dec.05Computer A/cDr.2,50,000
To Bank A/c2,50,000
(Computer purchased and payment made through cheque)
Dec.06Purchases A/cDr.60,000
ToRitika60,000
(Goods purchased fromRitikaon credit)
Dec.08Cash A/cDr.30,000
To Sales A/c30,000
(Goods sold for cash)
Dec.09KrishnaDr.25,000
To Sales A/c25,000
(Goods sold to Krishna)
Dec.12MansiDr.30,000
To Cash A/c30,000
(Cash paid toMansion account)
Dec.14RitikaDr.2,000
To Purchases Return A/c2,000
(Goods returned toRitika)
Dec 15Stationery A/cDr.3,000
To Cash A/c3,000
(Stationery purchased for cash)
Dec 16Wages A/cDr.1,000
To Cash A/c1,000
(Wages paid)
Dec 18Sales Return A/cDr.2,000
To Krishna2,000
(Goods returned by Krishna)
Dec 20RitikaDr.28,000
To Bank A/c28,000
(Cheque issued toRitika)
Dec 22Cash A/cDr.15,000
To Krishna15,000
(Cash received from Krishna on account)
Dec 24Insurance A/cDr.4,000
To Bank A/c4,000
(Insurance premium paid through cheque)
Dec 26Bank A/cDr.8,000
To Krishna8,000
(Cheque received from Krishna)
Dec 28Rent A/cDr.3,000
To Bank A/c3,000
(Rent paid through cheque)
Dec 29Purchases A/cDr.20,000
ToMeenaTraders20,000
(Goods purchased on credit fromMeenaTraders)
Dec 30Cash A/cDr.14,000
To Sales A/c14,000
(Goods sold for cash)
Total8,25,0008,25,000
Ledger
Cash Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Dec.01Capital2,00,000Dec.02Office Furniture30,000
Dec.08Sales30,000Dec.03Bank1,00,000
Dec.22Krishna15,000Dec.12Mansi30,000
Dec.30Sales14,000Dec.15Stationery3,000
Dec.16Wages1,000
Dec.31Balance c/d95,000
2,59,0002,59,000
Capital Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.1Cash2,00,000
Dec.31Balance c/d2,00,000
2,00,0002,00,000
Office Furniture Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Dec.2Cash30,000
Dec.31Balance c/d30,000
30,00030,000
Bank Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.03Cash1,00,000Dec.05Computer2,50,000
Dec.26Krishna8,000Dec.20Ritika28,000
Dec.24Insurance4,000
Dec.28Rent3,000
Dec.31Balance c/d (over draft)1,77,000
2,85,0002,85,000
Computer Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Dec.05Bank2,50,000
Dec.31Balance c/d
2,50,0002,50,000
Purchases Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.06Ritika60,000
Dec.29MeenaTraders20,000
Dec.31Balance c/d80,000
80,00080,000
Ritika’sAccount
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.14Purchases Return2,000Dec.06Purchases60,000
Dec.20Bank28,000
Dec.31Balance c/d30,000
60,00060,000
Meena’sAccount
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.29Purchases20,000
Dec.31Balance c/d20,000
20,00020,000
Sales Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.08Cash30,000
Dec.09Krishna25,000
Dec.31Balance c/d69,000Dec.30Cash14,000
69,00069,000
Krishna’s Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Dec.09Sales25,000Dec.18Sales Return2,000
Dec.22Cash15,000
Dec.26Bank8,000
25,00025,000
Mansi’sAccount
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Dec.12Cash30,000
Dec.31Balance c/d30,000
30,00030,000
Purchases Return Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Dec.14Ritika2,000
Dec.31Balance c/d2,000
2,0002,000
Stationery Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Dec.15Cash3,000
Dec.31Balance c/d3,000
3,0003,000
Wages Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Dec.16Cash1,000
Dec.31Balance c/d1,000
1,0001,000
Sales Return Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Dec.18Krishna2,000
Dec.31Balance c/d2,000
2,0002,000
Insurance Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount Rs
20172017
Dec.24Bank4,000
Dec.31Balance c/d4,000
4,0004,000
Rent Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Dec.28Bank3,000
Dec.31Balance c/d3,000
3,0003,000

Question 21-

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

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

Solution:

Books ofSanjana
Journal Entries
S.No.ParticularsL.F.Debit Amount RsCredit Amount Rs
2017
Jan.01Cash A/cDr.6,000
Bank A/cDr.55,000
Stock A/cDr.40,000
TarunDr.10,000
ToRohan6,000
To Capital A/c1,05,000
(Balance brought from the last month)
Jan.03KarunaDr.15,000
To Sales A/c15,000
(Goods sold toKaruna)
Jan.04Cash A/cDr.10,000
To Sales A/c10,000
(Goods sold for cash)
Jan.06HeenaDr.5,000
To Sales A/c5,000
(Goods sold to Henna)
Jan.08Purchases A/cDr.30,000
ToRupali30,000
(Goods purchased fromRupali)
Jan.10Sales Return A/cDr.2,000
ToKaruna2,000
(Goods returned byKaruna)
Jan.14Cash A/cDr.13,000
ToKaruna13,000
(Cash received fromKaruna)
Jan.15RohanDr.6,000
To Bank A/c6,000
(Cheque issued toRohan)
Jan.16Cash A/cDr.3,000
ToHeena3,000
(Cash received fromHeena)
Jan.20Bank A/cDr.10,000
ToTarun10,000
(Cheque received fromTarun)
Jan.22Bank A/cDr.2,000
ToHeena2,000
(Cheque received fromHeena)
Jan.25RupaliDr.18,000
To Cash A/c18,000
(Payment made toRupali)
Jan.26Cartage A/cDr.1,000
To Cash A/c1,000
(Cartage paid)
Jan.27Salaries A/cDr.8,000
To Cash A/c8,000
(Salaries paid)
Jan.28Cash A/cDr.7,000
To Sales A/c7,000
(Goods sold for cash)
Jan.29RupaliDr.12,000
To Bank A/c12,000
(Cheque issued toRupali)
Jan.30Drawings A/cDr.4,000
To Purchases A/c4,000
(Goods drawn for personal use)
Jan.31General Expenses A/cDr.500
To Cash A/c500
Total2,57,5002,57,500
Ledger
Cash Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.01Balance b/d6,000Jan.25Rupali18,000
Jan.04Sales10,000Jan.26Cartage1,000
Jan.14Karuna13,000Jan.27Salaries8,000
Jan.16Heena3,000Jan.31General Expenses500
Jan.28Sales7,000Jan.31Balance c/d11,500
39,00039,000
Capital Account
Dr.Cr.
DateParticularsJ.F.Amount

Rs

DateParticularsJ.F.Amount

Rs

20172017
Jan.01Balance b/d1,05,000
Jan.31Balance c/d1,05,000
1,05,0001,05,000
Bank Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.01Balance b/d55,000Jan.15Rohan6,000
Jan.20Tarun10,000Jan.29Rupali12,000
Jan.22Heena2,000Jan.31Balance c/d49,000
67,00067,000
Stock Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.01Balance b/d40,000
Jan.31Balance c/d40,000
40,00040,000
Rohan’sAccount
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.15Bank6,000Jan.01Balance b/d6,000
6,0006,000
Tarun’sAccount
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.01Balance b/d10,000Jan.20Bank10,000
10,00010,000
Sales Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.03Karuna15,000
Jan.04Cash10,000
Jan.06Heena5,000
Jan.31Balance c/d37,000Jan.28Cash7,000
37,00037,000
Karuna’sAccount
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.03Sales15,000Jan.10Sales Return2,000
Jan.14Cash13,000
15,00015,000
Heena’sAccount
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.06Sales5,000Jan.16Cash3,000
Jan.22Bank2,000
5,0005,000
Purchases Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.08Rupali30,000Jan.30Drawings4,000
Jan.31Balance c/d26,000
30,00030,000
Rupali’sAccount
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.25Cash18,000Jan.08Purchases30,000
Jan.29Bank12,000
30,00030,000
Sales Return Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.10Karuna2,000
Jan.31Balance c/d2,000
2,0002,000
Cartage Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.26Cash1,000
Jan.31Balance c/d1,000
1,0001,000
Salaries Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.27Cash8,000
Jan.31Balance c/d8,000
8,0008,000
Drawings Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.30Purchases4,000
Jan.31Balance c/d4,000
4,0004,000
General Expenses Account
Dr.Cr.
DateParticularsJ.F.Amount RsDateParticularsJ.F.Amount Rs
20172017
Jan.31Cash500
Jan.31Balance c/d500
500500

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

Solution:

DateParticularsL.F.Dr. Rs.Cr. Rs.
(a)Purchases A/cDr2,00,000
Input CGST A/cDr18,000
Input SGST A/c 18,000
To Kanta2,36,000
(Being goods purchased on credit locally)
(b)Purchases A/cDr1,00,000
Input IGST A/cDr 12,000
To Cash A/c1,12,000
(Being goods purchased in cash from Rajasthan)
(c)Sudhir A/cDr1,77,000
To Sales A/c1,50,000
To Output IGST A/c27,000
(Being goods supplied on credit to Punjab)
(d)Transport Charges A/cDr10,000
Input CGST A/cDr 500
Input SGST A/c500
To Bank A/c11,000
(e)Sidhu A/cDr1,41,600
To Sales A/c 1,20,000
To Output CGST A/c 10,800
To Output SGST A/c 10,800
(Being goods sold on credit locally)
(f)Air Conditioner A/cDr 60,000
Input CGST A/cDr5,400
Input SGST A/cDr5,400
To Bank A/c 70,800
(Being goods purchased locally)
(g)Cash A/cDr1,77,000
To Sales A/c1,50,000
To Output IGST A/c27,000
(Being goods supplied on credit to Uttar Pradesh)
(h)Motor Cycle A/cDr 50,000
Input CGST A/cDr7,000
Input SGST A/cDr7,000
To Bank A/c 64,000
(Being motorcycle purchased locally for office use)
(i)Internet Charges A/cDr 4,000
Input CGST A/cDr360
Input SGST A/cDr360
To Bank A/c 4,720
(Being broadband charges paid)
(j)Purchases A/cDr50,000
Input CGST A/cDr4,500
Input SGST A/cDr4,500
To Rajesh 59,000
(Being goods purchased on credit locally)
(k)Purchases A/cDr50,000
Input CGST A/cDr4,500
Input SGST A/cDr4,500
To Rajesh 59,000
(Being goods purchased on credit locally)
(h)Output IGST A/cDr54,000
Output CGST A/cDr12,000
Output SGST A/cDr12,000
To Input IGST A/c 12,000
To Input CGST A/c 33,000
To Input SGST A/c 33,000
(Being GST set off and excess of CGST and SGST to be claimed as a refund)

Working Note 1

ParticularsIGSTCGSTSGST
Output54,00012,00012,000
Input12,00035,76035,760
Excess42,000-23,760-23,760
Set off-42,00021,00021,000
PayableNil -2,760( Refund)-2,760 (Refund)

Concepts covered in this chapter –

  • Business Transactions and Source Document
  • Preparation of Accounting Vouchers
  • Accounting Equation
  • Using Debit and Credit
  • Rules of Debit and Credit
  • Books of Original Entry
  • Journal
  • The Ledger
  • Classification of Ledger Accounts
  • Posting from Journal

Conclusion

NCERT solutions for Class 11 Accountancy Chapter 3 provides a wide degree of illustrative examples, which assists the students to comprehend and learn quickly. The above mentioned are the illustrations for class 11 CBSE syllabus. For more solutions and study materials of NCERT solutions for class 11 Accountancy, visit BYJU’S or download the app for more information.

Videos

1. Class 11 | chapter 3 | question no. 3 | accounting equation | ncert solution
(Unite classes)
2. Chapter 3 Recording of Transactions-1 || Ledger . Lecture 13 CLASS 11 Accountancy
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3. Chapter 3 - Recording Transactions (Basic Accounting Equation), Part 1
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4. Class 11 Journal Entry Oneshot with Updated Syllabus | Class 11 Accounts Oneshot | Kelvin Commerce
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6. Accounting Equation [Problems With Solutions] | Accounting Equation - Trick | Class 11 | Accounts
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