DK Goel Solutions Chapter 9 Books of Original Entry Journal
Read below DK Goel Solutions Class 11 Chapter 9 Books of Original Entry Journal. These answers and solutions to questions given in chapter have been prepared based on the latest Class 11 DK Goel Accountancy book issued for current academic year.
This chapter in DK Goel Accountancy Class 11 highlights a crystal clear picture instilling the knowledge about journal entries within the students.
DK Goel Solutions Class 11 Chapter 9 also includes a lot of good quality questions which are very well designed and can be very helpful to understand the concepts for Class 11 students of Accountancy.
DK Goel Solutions Class 11 Chapter 9 solutions are free and will help you to prepare for Class 11 Accountancy
Books of Original Entry Journal DK Goel Class 11 Accountancy Solutions
Students can refer below for solutions for all questions given in your DK Goel Accountancy Textbook for Class 11 in Chapter 9
Very Short Questions for DK Goel Solutions Class 11 Chapter 9
Question 1: What is a journal?
Solution 1: Journal is a main entry book or an original entry book in which the event is first entered in a linear order or sequence. As all transactions are originally documented in it, the document is called the Book of Original Entry.
Question 2: Why is the journal called a book of original entry?
Solution 2: All the transactions are recorded firstly in the journal so it is called book of original entry.
Question 3: What is journalising?
Solution 3: The process by which the transaction is reported in the journal is called journalising.
Question 4: Give one advantage of journal.
Solution 4: The benefit of a report is the compilation of financial data in chronological order.
Question 5: Give one limitation of a journal.
Solution 5: The journal’s only drawback is that it is difficult to document all the heavy and cumbersome transactions.
Question 6: What is a narrative?
Solution 6: Every transaction has a short summary after each entry is known as the narrative.
Question 7: What is ledger folio or L.F.?
Solution 7: Ledger Folio or L.F. It’s the number of the page where the journal poses. In the document, the page number is registered.
Question 8: What is compound journal entry?
Solution 8: When, on the same day, two or more purchases belonging to one individual account take place. In this case, only one entry is passed, instead of logging different entries. This form of journal entry is known as the journal entry compound.
Question 9: What is opening entry?
Solution 9: The first entry in the Journal is moved to the preceding year’s closing balances ledger. The opening entry is called it. The balance sheet prepared at the end of the year displays each asset and liability’s closing balances and forms the basis for this opening entry.
Question 10: What entry is passed for withdrawing of goods by the proprietor for personal use?
Solution 10: Below is the Journal of withdrawing of goods by the proprietor
Drawings A/c | Dr. | ||||
To Purchases A/c | |||||
(Being goods withdrawing by the owner) |
Question 11: Which account should be debited, if wages are paid for the installation of a machine?
Solution 11: Machine account is debited if wages are paid for the installation of a machine.
Practical Question for DK Goel Solutions Class 11 Chapter 9
Question 1: Prepare a journal of Manohar Lal & sons from the following transactions:-
2018 | Amount | |
March 1 | Manohar Lal & Sons started a business with cash | 60,000 |
March 2 | Purchased furniture for cash | 10,000 |
March 4 | Purchased goods for cash | 25,000 |
March 5 | Bought goods from Kamlesh | 15,000 |
March 10 | Paid cash to Kamlesh | 15,000 |
March 16 | Purchased goods from Sohan | 6,000 |
March 18 | Purchased goods from Sohan for cash | 8,000 |
March 20 | Paid rent for the office | 1,000 |
Solution 1:

Point in Mind DK Goel Solutions Class 11 Chapter 9 :-
Journal is a prime entry book or an original entry book in which the transaction is first entered in a linear order or sequence. As all transactions are originally documented in it, the document is called the Book of Original Entry.
Question 2: Prepare Journal of M/s Tripathi Bros from the following transactions:-
2018 | Amount | |
Jan. 6 | Sold goods for Cash | 36,000 |
Jan. 8 | Sold goods to Hari | 30,000 |
Jan. 14 | Received cash from Hari | 18,000 |
Jan. 26 | Received Commission | 750 |
Jan. 27 | Paid Salary to Gopal | 1200 |
Jan. 28 | Received cash from Hari | 12,000 |
Jan. 29 | Withdrew cash from office personal use | 4,000 |
Jan. 30 | Wages paid | 7,200 |
Jan. 30 | Bought Machinery for cash | 8,000 |
Solution 2:

Point in Mind DK Goel Solutions Class 11 Chapter 9 :- The first entry in the Journal is passed to record closing balances of the previous year. It is called the opening entry. The Balance Sheet prepared at the end of the year shows the closing balances of each asset and liability and forms the basis for this opening entry.
Question 3: Prepare Journal of Sahil Bros. from the following transactions:-
2016 | Amount | |
Oct.1 | Purchased goods from Anil for cash | 40,000 |
Oct.3 | Purchased goods from Atul | 75,000 |
Oct.6 | Returned goods to Atul | 3,000 |
Oct.8 | Paid cash to Atul | 50,000 |
Oct.10 | Sold goods to Charu | 1,00,000 |
Oct.12 | Charu returned 20% of goods | |
Oct.15 | Paid rent | 2,000 |
Oct.20 | Sahil withdrew for personal use | 10,000 |
Solution 3:

Working Note:-
1.) Sale = 1,00,000
Sales Return = Rs. 1,00,000 × 20% = Rs. 20,000
Question 4: Enter the following transactions in the Journal of Ganesh Bros.
2017 | Amount | |
March 3 | Sold goods to Dev | 1,00,000 |
March 5 | Received from Dev in full settlement of his account | 98,000 |
March 6 | Sold goods to Manmohan | 80,000 |
March 8 | Manmohan returned goods | 1,000 |
March 15 | Received from Manmohan in full settlement of his account | 78,200 |
March 16 | Received cash from Ramdiscount allowed | 19,500500 |
March 20 | Paid cash to Pawan and discount received from him | 4,700 |
March 25 | Sold goods to Varun of the list price of Rs. 25,000 at 20% trade discount |
Solution 4:

Working Note:-
List price = Rs. 25,000
Calculation of Trade discount:-
Trade discount = 20%
Trade Discount = Rs. 25,000 × 20%
Trade Discount = Rs. 5,000
Calculation Sales:-
Sales = Rs. 25,000 – Rs. 5,000
Sales = Rs. 20,000
Question 5: Pass Journal entries in the books of Hari Shankar & Co. from the following:-

Solution 5:

Working Note:-
1.) Calculation of discount
Discount Amount = Rs. 10,000 × 5% = Rs. 500
Amount paid to Gopal = Rs. 10,000 – Rs. 500
= Rs. 9,500
Question 6: Prepare a journal of Marutinandan stores
2017
Oct 1 Purchased goods from Ghanshyam of the list price of Rs. 50,000 at 15% trade discount.
Oct 3 Returned goods to Ghanshyam of the list price of Rs. 2,000
Oct 6 Paid cash to Ghanshyam Rs. 40,000 in full settlement of his account
Oct 8 Purchased goods from Raghu of the list price of Rs. 60,000 at 10% trade discount.
Oct 10 Returned goods to Raghu of the list price of Rs. 5,000.
Oct 12 Paid cash to Raghu Rs. 49,000 in full settlement of his account.
Solution 6:

Working Note:-
1.) Calculation of selling price
List price = Rs. 50,000 and Trade discount = 15%
Trade Discount = Rs. 50,000 × 15%
Trade Discount = Rs. 7,500
Sales = Rs. 50,000 – Rs. 7,500
Sales = Rs. 42,500
2.) Calculation of selling price
List price = Rs. 60,000 and Trade discount = 10%
Trade Discount = Rs. 60,000 × 10%
Trade Discount = Rs. 6,000
Sales = Rs. 60,000 – Rs. 6,000
Sales = Rs. 54,000
Point in mind:-
The following are the two advantages of allowing Trade Discount:
1.) Increased sales due to high quantity involved in sales.
2.) Increased customer base due to low prices and discount offers.
Question 7: Prepare a journal of the following transaction
2017
Jan 6 Sold goods to Muskan of the list price of Rs. 2,00,000 at trade discount of 20%
Jan 8 Muskan returned goods of the list price of Rs. 5,000
Jan 15 Received from Muskan the full payment under a cash discount of 4%
Solution 7:

Working Note:-
1.) Calculation of selling price
List price = Rs. 2,00,000 and Trade discount = 20%
Trade Discount = Rs. 2,00,000 × 20%
Trade Discount = Rs. 40,000
Sales = Rs. 2,00,000 – Rs. 40,000
Sales = Rs. 1,60,000
Question 8: Prepare a journal of the following transaction of Raja Ram
2017
March 3 Bought goods for cash of the list price of Rs. 80,000 at 10% trade discount and 21/2% cash discount.
March 5 Sold goods for cash of the list price of Rs. 1,00,000 at 15% trade discount and 3% cash discount.
March 6 Sold goods to Nagpal of the list price of Rs. 50,000 at 20% trade discount.
March 8 Nagpal returned one-fourth of the above goods
March 10 Nagpal settled the account by paying cash under a discount of 5%
Solution 8:

Working Note:-
1.) Calculation of selling price
List price = Rs. 80,000 and Trade Discount = 10%
Trade Discount = Rs. 80,000 × 10%
Trade Discount = Rs. 8,000
Sales = Rs. 80,000 – Rs. 8,000
Sales = Rs. 72,000
Cash discount = 2.5%
Cash discount = Rs. 72,000 × 2.5%
Cash discount = Rs. 1,800
Total Amount Received = Rs. 72,000 – Rs. 1,800
Total Amount Received = Rs. 70,200
Question 9: Prepare a journal entry.
2016
Mar 5 Sold goods to Shruti for Rs. 80,000 at 15% trade discount and 4% cash discount. Received 75% amount immediately through a cheque
Mar 10 Purchased goods from Richa for Rs. 60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately
Solution 9:

Working Note:-
1.) Calculation of selling price
List price = Rs. 80,000 and Trade Discount = 15%
Trade Discount = Rs. 80,000 × 15%
Trade Discount = Rs. 12,000
Sales = Rs. 80,000 – Rs. 12,000
Sales = Rs. 68,000
Amount received = Rs. 68000 × 75%
Amount received = Rs. 51,000
Cash discount = 4%
Discount amount = Rs. 51,000 × 4%
Discount amount = Rs. 2,040
Amount Received = Rs. 51,000 – Rs. 2,020
Amount Received = Rs. 48,960
2.) Calculation of purchases price
List price = Rs. 60,000 and Trade Discount = 10%
Trade Discount = Rs. 60,000 × 10% = Rs. 6,000
Sales = Rs. 60,000 – Rs. 6,000
Sales = Rs. 54,000
Amount received = Rs. 54,000 × 60%
Amount received = Rs. 32,400
Cash discount = 5%
Discount amount = Rs. 32,400 × 5%
Discount amount = Rs. 1,620
Amount Received = Rs. 32,400 – Rs. 1,620
Amount Received = Rs. 30,780
Question 10: Prepare a journal entry
2017
Jan 6 Purchased goods from Henry for Rs. 50,000 on 10% trade discount and 4% cash discount and paid 60% amount by cheque.
Jan 15 Bought goods from Amit for Rs. 2,00,000 at terms 5% cash discount and 20% trade discount. Paid 3/4th of the amount in cash at the time of purchase.
Jan 18 Sold goods to Sherpa at the list price of Rs. 50,000 less 20% trade discount and 4% cash discount if the payment is made within 7 days. 75% payment is received by cheque on Jan. 23rd
Jan 25 Sold goods to Garima for Rs. 1,00,000, allowed her 20% trade discount and 5% cash discount if the payment is made within 15 days. She paid 1/4th of the amount by cheque on Feb. 5th and 60% of the remainder on Feb.15th in cash
Question 10:

Working Note:-
1.) Calculation of amount paid to hanry:-
List price = Rs. 50,000 and Trade Discount = 10%
Trade Discount = Rs. 50,000 × 10%
Trade Discount = Rs. 5,000
Sales = Rs. 50,000 – Rs. 5,000
Sales = Rs. 45,000
Amount received = Rs. 45,000 × 60%
Amount received = Rs. 27,000
Cash discount = 4%
Discount amount = Rs. 27,000 × 4%
Discount amount = Rs. 1,080
Amount Received = Rs. 27,000 – Rs. 1,080
Amount Received = Rs. 25,920
Question 11: Prepare Journal Entries
2017 | |
March | Particulars |
2 | Sold goods to Dilip of the list price of Rs. 62,000 for Rs. 60,000. |
5 | Sold goods to Amrit Lal of the list price of Rs. 2,50,000 at 20% trade discount and 10% cash discount. Amrit Lal paid Rs. 1,20,000 immediately through a banker’s cheque. |
10 | Paid cheque of Rs. 30,000 to Chaturvedi and availed discount 2%. |
16 | Purchased goods costing Rs. 2,00,000 from Hari & Co. Paid 75% immediately by cheque to avail 4% discount. |
20 | Sold goods to Vhsal Traders costing Rs. 40,000 at 25% profit, allowing 10% trade discount and 10% cash discount. Received 80% payment immediately by cheque. |
26 | Sold goods to Brij & Co. costing Rs. 50,000 at 40% profit, allowing 10% trade discount and 5% cash discount. Brij & Co. paid the full amount by cheque and availed cash discount. |
Solution 11:

Working Note:-
List price = Rs. 2,50,000 and Trade Discount = 20%
Trade Discount = Rs. 2,50,000 × 20%
Trade Discount = Rs. 50,000
Sales = Rs. 2,50,000 – Rs. 50,000
Sales = Rs. 2,00,000
Amount received = Rs. 1,20,000
Cash discount = 10%
Discount amount = Rs. 1,20,000 × 10%
Discount amount = Rs. 12,000
Amount Received = Rs. 1,20,000 – Rs. 12,000
Amount Received = Rs. 1,08,000
Question 12: Enter the Shyam Sunder & Sons transactions in their Journal.
2017
April Particulars
1 Shyam Sunder & Sons started a business with Cash Rs. 75,000; Goods Rs. 30,000 and Furniture Rs. 5,000.
2 Sold goods to Bhushan of the list price of Rs. 10,000 at a trade discount of 10%.
5 Paid cheque of Rs. 30,000 to Chaturvedi and availed discount 2%.
10 Received from Bhushan Rs. 8,000 in full settlement of his account.
12 Purchased Furniture for Rs. 6,000.
Purchased goods from Navin for Rs. 25,000 less trade discount 12%
15 Returned goods to Navin goods of the list price of Rs. 2,000.
16 Cleared the account of Navin by applying cash, under a discount of 5%.
17 Sold goods to Ajay Rs. 10,000 and Vijay Rs. 16,000.
20 Received cash from Ajay Rs. 9,800 in full settlement of his account. Paid insurance premium Rs. 750.
22 Paid for Shyam Sunder’s Life Insurance Premium Rs. 1,200.
24 Purchased goods for Rs. 8,000 for cash at a trade discount of 10% and a cash discount of 2%.
25 Received cash from Vijay at a cash discount of 5% in full settlement of his account.
30 Paid Rent Rs. 800; Advertisement Rs. 1,000; and Salaries Rs. 4,000.
30 Received Commission Rs. 500.
Solution 12:

Working Note:-
1.) Calculation of amount paid by bhushan:-
List price = Rs. 10,000 and Trade Discount = 10%
Trade Discount = Rs. 1,00,000 × 10%
Trade Discount = Rs. 1,000
Sales = Rs. 10,000 – Rs. 1,000
Sales = Rs. 9,000
Point in Mind DK Goel Solutions Class 11 Chapter 9:-
Trade Discount is allowed by the seller on the purchase of goods in large quantities. It is usually by the wholesalers to the retail shop owners who further sell the goods to the consumer. Trade Discount is deducted in the invoice from sale price and is not recorded in the books of account.
Cash Discount is allowed by the seller to the customers to encourage prompt or early payment. It is allowed as a per cent of invoice value or payment made say @ 5% of invoice value to the buyer. Cash discount is calculated after deducting trade discount from the invoice price.
Question 13: Prepare a journal entry:-
2017 | Amount | |
Jan-01 | Paid into the bank to open a Current Account | 10,000 |
Jan-03 | Goods sold for Rs. 50,000 and the amount was deposited into the bank | |
Jan-07 | The amount is withdrawn from a bank | 20,000 |
Jan-10 | Goods sold for Cash | 15,000 |
Jan-12 | The amount deposited into bank | 12,000 |
Apr-14 | Goods purchased and payment made by cheque | 25,000 |
Solution 13:

Point in Mind:-
- Asset Accounts: Debit the increases, Credit the decreases.
- Liability Accounts: Debit the decreases, Credit the increases.
- Capital Accounts: Debit the decreases, Credit the increases.
- Expense Accounts: Debit the increases, Credit the decreases.
Question 14 (A): Following balances appeared in the books of Radhika Traders as on 1st April, 2017:−
Assets: Cash Rs. 8,000; Cash at Bank Rs. 7,000; Stock Rs. 30,000; Debtors : Rs. 36,000 (Mohan Rs. 10,000; Sohan Rs. 12,000; Dinesh Rs. 14,000); Furniture Rs. 5,000; Building Rs. 25,000.
Liabilities: Creditors− X Rs. 5,000; Y Rs. 6,000.
In April, 2017, the following transaction took place:

Solution 14 (A):

Working Note:-
1.) Calculation of amount paid by bhushan:-
List price = Rs. 8,000 and Trade Discount = 20%
Trade Discount = Rs. 8,000 × 20%
Trade Discount = Rs. 1,600
Sales = Rs. 8,000 – Rs. 1,600
Sales = Rs. 6,400
Point in mind:-
1.) Increased sales due to high quantity involved in sales.
2.) Increased customer base due to low prices and discount offers.
Question 14 (B): Following was the position of Harish & Co. as on 1st April, 2017 :−
Cash in Hand Rs. 10,000; Cash at Bank Rs. 16,800; Furniture Rs. 8,000; Stock Rs. 50,000; Debtors− Ram Rs. 8,000; Shyam Rs. 12,000; Creditors− Anil Rs. 4,000; Sunil Rs. 5,000.
Following transactions took place during April, 2017 :−
2017
April 2 Received a cheque from Ram in full settlement of his account after deducting 5% cash discount.
April 4 Deposited the above cheque into Bank.
April 5 Goods purchased for Rs. 20,000 at 10% trade discount and 5% cash discount. Payment made by cheque.
April 6 Received a cheque from Shyam for Rs. 3,860 and discount allowed to him Rs. 140. Cheque deposited into the bank on the same day.
April 10 Cash paid to Anil after deducting 2% cash discount.
April 15 Old furniture sold for Rs. 800.
April 16 Sold goods to Shiv Parshad of the list price of Rs. 10,000 at a trade discount of 15%.
April 18 Shiv Parshad returned goods of the list price of Rs. 1,000.
April 20 Paid for furniture repairs to Bahadur Singh Rs. 100.
April 25 Received a cheque from Shiv Parshad after deducting 4% cash discount. Cheque was deposited into bank.
April 28 Bank charged Rs. 50 for ‘Bank Charges’.
April 30 Received Commission Rs. 200.
Solution 14 (B):

Working Note:-
List price = Rs. 20,000 and Trade Discount = 10%
Trade Discount = Rs. 20,000 × 10%
Trade Discount = Rs. 2,000
Sales = Rs. 20,000 – Rs. 2,000
Sales = Rs. 18,000
Cash discount = 5%
Discount amount = Rs. 18,000 × 5%
Discount amount = Rs. 900
Amount Received = Rs. 18,000 – Rs. 900
Amount Received = Rs. 17,100
Question 15: Pass Journal Entries
- Provide depreciation on Furniture Rs. 500 and on Machinery Rs. 2,000.
- Received cash Rs. 1,000 for bad-debts written off last year.
- Ajay Singh was declared bankrupt. He owed Rs. 2,500 to us. Nothing could be recovered from his estate.
- Rs. 20,000 for wages and Rs. 4,000 for salaries are outstanding.
- Purchased furniture for Rs. 6,000 for the proprietor and paid the amount by cheque.
- Provide 9% interest on capital amounting to Rs. 2,00,000.
- Charge interest on drawings Rs. 1,000.
Solution 15:

Question 16: Pass Journal Entries
2017
Jan 5 Purchased goods for Cash Rs. 10,000 and spent Rs. 200 for their carriage
Jan 10 Purchased machinery for Cash Rs. 50,000 and spent Rs. 500 for its carriage.
Jan 15 Paid Rs. 20,000 for cement, Rs. 10,000 for timber and Rs. 5,000 as wages for the construction of building.
Jan 17 Purchased an old machinery for Rs. 20,000 and spent Rs. 2,500 on its immediate repair.
Jan 20 Paid Rs. 500 to repairing some other machinery.
Solution 16:

Question 17: Pass Journal Entries
2016
June 1 Arun Govil & Co. paid into bank as capital Rs. 6,00,000
June 3 Purchased goods from Mukesh of the list price of Rs. 2,00,000 at 10% trade discount
June 4 One-fourth of the above goods returned to Mukesh for not being upto specifications
June 6 Issued a cheque to Mukesh for the amount due to him after deducting 2% as cash discount
June 7 Withdrew from bank Rs. 2,50,000 for office use and Rs. 10,000 for personal use
June 10 Purchased a machinery for Rs. 1,00,000 and spent Rs. 5,000 on its installation. Payment for machinery was made by cheque and installation expenses were paid in cash
June 12 Sold goods for Rs. 1,00,000 to Amar
June 13 Amar clears his account by giving a cheque of Rs. 98,500. Cheque is immediately sent to bank
June 15 Purchased stationery for personal use Rs. 3,000 and for office use Rs. 5,000
June 20 Purchased land for Rs. 2,00,000 and paid 1% as brokerage and Rs. 15,000 as registration charges on it. Entire payment is made by Cheque
June 30 Wages due to labourers Rs. 20,000 and salary due to the clerk Rs. 30,000
Solution 17:

Question 18: Pass Journal Entries
- Purchased timber from Kuldeep Kumar, for cash Rs. 2,000 and credit Rs. 10,000.
- Paid to Kuldeep Kumar in full settlement of his account Rs. 9,950.
- Paid rent in advance Rs. 10,000.
- Purchased machinery for Rs. 1,00,000 by cheque and carriage Rs. 2,000 and installation charges Rs. 1,000 paid in Cash.
- Purchased goods for Rs. 50,000 from Govind and sold it to Manohar for Rs. 65,000.
Solution 18:

Question 19: Pass Journal Entries
- Purchased Machinery for Rs. 20,000 and paid Rs. 200 for its carriage.
- Received a cheque for Rs. 4,850 from X in full settlement of his account of Rs. 5,000. Cheque was immediately deposited into bank.
- Received by cheque a first and final payment of 60 paise in a Rs. from Y who owed us Rs. 10,000.
- Sold goods to Z for Rs. 10,000 at a trade discount of 20%. Next day a cheque was received from him after deducting 5% cash discount. Cheque was immediately deposited into Bank.
- Goods costing Rs. 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount.
Solution 19:

Working Note:-
List price = Rs. 10,000 and Trade Discount = 20%
Trade Discount = Rs. 10,000 × 20%
Trade Discount = Rs. 2,000
Sales = Rs. 10,000 – Rs. 2,000
Sales = Rs. 8,000
Cash discount = 5%
Discount amount = Rs. 8,000 × 5%
Discount amount = Rs. 400
Amount Received = Rs. 8,000 – Rs. 400
Amount Received = Rs. 7,600
Question 20: Pass Journal Entries
- Goods for Rs. 50,000 were destroyed by fire.
- Goods worth Rs. 18,000 were distributed as free samples and Rs. 20,000 were given away as charity in cash.
- Goods worth Rs. 25,000 and cash Rs. 40,000 were taken away by the proprietor for his personal use.
- Goods worth Rs. 20,000 and cash Rs. 5,000 were given away as charity.
- Cash Rs. 1,00,000 were stolen from the Iron Safe of the trader.
Solution 20:

Question 21: Pass Journal Entries
- Sold goods to Brijesh of the list price of Rs. 10,000 at trade discount of 5%. Received full payment in cash.
- Goods given away as charity Rs. 1,000.
- Charge interest on capital of Rs. 5,00,000 @ 7% p.a.
- Outstanding wages Rs. 3,000.
- Rs. 5,000 due from Sunny are now bad debts.
- Rs. 50,000 cash sales (of goods costing Rs. 40,000).
Solution 21:

Question 22: Pass Journal Entries
(a) Proprietor withdrew for private use Rs. 10,000 from bank.
(b) Goods costing Rs. 50,000 were burnt by fire.
(c) Purchased machinery for cash Rs. 1,50,000 and paid Rs. 2,000 on its installation.
(d) Charge 5% depreciation on building costing Rs. 2,00,000 and 8% depreciation on furniture costing Rs. 5,000.
(e) Prepaid salary Rs. 2,000.
(f) Kapil who owed us Rs. 20,000 becomes insolvent and nothing is received from his estate.
Solution 22:

Question 23: Record Navin Gupta & Sons Journal Entries
- Out of Insurance premium paid this year, Rs. 15,000 is related to next year.
- Credit purchases from Ram & Co. for Rs. 50,000. Cash discount will be received at 5% on payment of bill within 10 days.
- Cash paid to Ram & Co. and discount availed of.
- Paid Income Tax Rs. 20,000 by cheque.
- Goods costing Rs. 2,00,000 sold for cash at a profit of 10%.
- Purchased iron safe for Rs. 2,00,000 filing cabinet for Rs. 50,000 and Computer for Rs. 1,00,000.
Solution 23:

Question 24: Record journal book of Kanishk Traders
- Sold goods costing Rs. 1,20,000 to Charu at a profit of 33 1/2% on cost less 15% Trade Discount.
- Sold goods costing Rs. 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount.
- Paid by cheque Rs. 8,400 as insurance premium for a period of 12 months starting 1st August 2016. Financial year closes on 31st March every year.
Solution 24:

Question 25: Record journal book
2017
March Particulars
4 Purchased building for Rs. 1,50,000 and incurred expenses of Rs. 10,000 on its purchase
10 Satish who owed us Rs. 20,000 is declared insolvent and 60 paise per Rs. is received from his estate
15 Paid Rs. 500 for repairing the office furniture
18 Proprietor withdrew for his personal use cash Rs. 5,000 and goods worth Rs. 2,000
20 Purchased the following items for business. Iron Safe Rs. 15,000; Filing Cabinet Rs. 5,000; Computer Rs. 12,000; Postage Rs. 200 and Stationery Rs. 150
28 Paid electricity charges Rs. 1,600
31 Charge depreciation on Machinery @ 10% for one year (Machinery Rs. 75,000)
31 Outstanding wages at the end of the year Rs. 6,000
Solution 25:

Question 26: Record journal book
- Purchased goods for Rs. 25,000 for Cash and paid Rs. 200 for carriage on these goods.
- Purchased goods for Rs. 40,000 on Credit from Sudhir and paid Rs. 500 for carriage on these goods.
- Purchased machinery for Rs. 20,000 and spent Rs. 500 on its carriage and Rs. 300 on its installation.
- Purchased goods from Anil for Rs. 15,000.
- Sold rd of the above goods at a profit of 20% on cost.
- Goods costing Rs. 12,000 sold to Mr. X, issued invoice at 25% above cost less 10% trade discount.
- Provide 20% depreciation on furniture costing Rs. 10,000.
- Gave as charity − Cash Rs. 500 and Goods Rs. 2,000.
Note – DK Goel Solutions Class 11 Chapter 9 is free for all
Solution 26:

Question 27: Record journal book
- Received a V.P.P. from Mohan Lal for Rs. 25,000. Sent a peon to collect it who paid Rs. 200 as cartage
- Received Rs. 1,000 from sales of old newspapers and Rs. 5,000 from sales of old chairs
- Goods given away as charity goods costing Rs. 7,000
- Received Cash from a debtor written off as bad-debt last year Rs. 20,000
- Sold goods costing Rs. 50,000 to Ashok on credit at a profit of 20% on cost
- Sold goods costing Rs. 1,00,000 for Rs. 1,40,000
- Provide Rs. 50,000 as interest on Capital
- Paid rent of building Rs. 60,000 by cheque. Half the building is used by the proprietor for residential purpose
- Outstanding salary at the end of the year Rs. 30,000
Solution 27:

Question 28:
Record journal book
2018 Particulars
April 1 Purchased goods for Rs. 1,00,000 from Manoj and availed discount of Rs. 10,000
April 2 Paid amount due to Manoj by cheque and availed discount of Rs. 4,500
April 5 Cash Rs. 5,000 paid to Desai and discount allowed by him Rs. 200
April 10 Cash Rs. 10,000 received from Govardhan and allowed him discount Rs. 500
April 12 Sold personal Car of the proprietor for Rs. 80,00 against cheque, which was deposited into the firm’s bank account
April 16 Sold personal Car of the proprietor for Rs. 1,50,000 against cheque, which was deposited into the proprietor’s personal bank account
April 20 Sold goods to Gaurav costing Rs. 1,00,000 at a profit of 40% and allowed him 10% trade discount and paid for cartage Rs. 3,000 not to be charged from him
April 24 Placed an order with Rudra & Co. for supply of goods of Rs. 80,000 and a cheque for 40% amount is sent to them as an advance
Solution 28:

Question 29: Give the journal entries corresponding to the narration given below:-

Solution 29:

Question 30: Rectify the following entries assuming that the narration in each case is correct

Solution 30:

Question 31:
Record journal book
1 Goods destroyed by Fire for Rs. 5,000
2 Paid by cheque Rs. 25,000 as wages on installation of a Machinery
3 Issued a cheque in favour of M/s Parmatma Saran & Sons on account of purchase of goods Rs. 75,000
4 Goods sold costing Rs. 60,000 to M/s Kalu Sons at an invoice price 10% above cost less 5% Trade discount
Solution 31:

Working Note:-
Calculation selling price of the goods sold to M/s Kalu & Sons
Cost = Rs. 60,000
Profit = Rs. 60,000 × 10%
Profit = Rs. 6,000
List Price = Cost price + Profit
List Price = Rs. 60,000 + Rs. 6,000
List Price = 66,000
Trade discount = 5%
Trade discount = List Price × % of trade discount
Trade discount = Rs. 66,000 × 5%
Trade discount = Rs. 3,300
Sale price = List Price – Trade discount
Sale price = 66,000 – 3,300
Sale price = 62,700
Question 32: Record journal book
Journalise the following transactions:−
S no. | Particulars | (Rs.) |
1. | Charge depreciation on Machinery | 20,000 |
2. | Salary due to Office Clerks | 1,00,000 |
3. | Received cash for Bad-Debts written off last year | 5,000 |
4. | Purchased goods from Ashok & Co. for Rs. 50,000 at 20%rade Discount. Half the payment was made in cash. | |
5. | Issued cheque to Ashok & Co. in full settlement | 19,500 |
6. | Paid Life Insurance Premium by cheque | 6,000 |
7. | Proprietor used goods for household purposes | 20,000 |
8. | Goods given free to a hospital out of business | 10,000 |
Solution 32:

Question 33: Record journal book
2017March | Particulars | (Rs.) |
1 | Started business with cash | 50,000 |
2 | Purchased Machinery for cash | 20,000 |
Paid installation charges on machinery | 2,000 | |
5 | Purchased goods from X of the list price of Rs. 25,000, Trade Discount 20% and cash discount 5%. Payment was made in cash immediately. | |
10 | Sold goods to Y costing Rs. 10,000 at 30% profit on cost less 10% trade discount. | |
15 | Paid Rent | 1,000 |
20 | Goods stolen from business | 2,000 |
22 | Gave as charity : Cash | 100 |
Goods | 200 | |
31 | Purchased Post Cards and Envelopes | 50 |
31 | Purchased a Computer for business | 25,000 |
Solution 33:

Working Note:-
List price = Rs. 25,000 and Trade Discount = 20%
Trade Discount = Rs. 25,000 × 20%
Trade Discount = Rs. 5,000
Sales = Rs. 25,000 – Rs. 5,000
Sales = Rs. 20,000
Cash discount = 5%
Discount amount = Rs. 20,000 × 5%
Discount amount = Rs. 1,000
Amount Received = Rs. 20,000 – Rs. 1,000
= Rs. 19,000
Question 34: Record journal book
- Purchased a Motor Car for Rs. 3,00,000 and paid Rs. 25,000 for its repair and renewal. Entire payment is made by cheque.
- Received Rent Rs. 5,000.
- Goods worth Rs. 20,000 were distributed as free samples.
- Charge depreciation on Motor Car Rs. 32,500.
- Rent due to Landlord Rs. 10,000 and Salary due to Clerks Rs. 80,000.
- Charge interest on Capital Rs. 20,000.
- Rs. 5,000 due from Sanjay Gupta are bad-debts.
- Goods worth Rs. 50,000 were destroyed by fire.
- Cash Rs. 5,000 and goods worth Rs. 20,000 were stolen by an employee.
Solution 34:

Question 35: Journalise the following transactions:
(i) Bought goods from Arun for Rs. 2,00,000 at a trade discount of 15% and cash discount of 2%. Paid 80% amount immediately.
(ii) Purchased foods for Rs. 20,000 from X and supplied it to Y for Rs. 26,000.
(iii) Cash withdrawn from bank Rs. 5,000 for personal use and Rs. 25,000 for office use.
(iv) Goods destroyed by fire : Cost Price Rs. 40,000.
(v) Provide 20% depreciation on machinery costing Rs. 50,000.
(vi) Out of insurance paid this year, Rs. 3,000 is related to next year.
(vii) Allow Rs. 5,000 as interest on capital and charge Rs. 1,000 as interest on drawings.
(viii) Sohan who owed us Rs. 25,000 was declared insolvent and a cheque of 40 paise in a Rs. is received from him in full settlement.
(ix) Paid Income Tax Rs. 10,000 by cheque.
(x) Salary paid Rs. 80,000 and Salary Outstanding Rs. 20,000.
Solution 35:

Working Note:-
List price = Rs. 2,00,000 and Trade Discount = 15%
Trade Discount = Rs. 2,00,000 × 15%
Trade Discount = Rs. 30,000
Sales = Rs. 2,00,000 – Rs. 30,000
Sales = Rs. 1,70,000
Cash Received = 1,70,000 × 80%
Cash Received = Rs. 1,36,000
Cash discount = 2%
Discount amount = Rs. 1,36,000 × 2%
Discount amount = Rs. 2,720
Amount Received = Rs. 1,36,000 – Rs. 2,720
Amount Received = Rs. 1,33,280
Question 36: Journalise the following transactions:
2017March | Particulars |
1 | Purchased Machinery for Rs. 1,00,000 and the payment was made by issuing a cheque from Proprietor’s saving bank account. |
4 | Received an order from Chakravarti for goods of Rs. 4,00,000 along with a cheque of 10% of the order as advance. |
8 | Paid cash Rs. 8,000 to Dushyant and discount allowed by him Rs. 800. |
10 | Goods were stolen by an employee (Sale Price Rs. 20,000; Cost Rs. 15,000). |
15 | Purchased stationery worth Rs. 8,000 for office use and Rs. 2,000 for personal use. |
20 | Manoj pays us Rs. 5,400 after deducting 10% for prompt payment. |
28 | Sold goods to Kuber costing Rs. 2,00,000 at 25% above cost less trade discount of 10% and cash discount of 5%. Kuber did not avail the cash discount. |
Solution 36:

Point in Mind:-
- Asset Accounts: Debit the increases, Credit the decreases.
- Liability Accounts: Debit the decreases, Credit the increases.
- Capital Accounts: Debit the decreases, Credit the increases.
- Expense Accounts: Debit the increases, Credit the decreases.
Question 37: Prepare journal
(a) Goods worth Rs. 2,000 destroyed by fire.
(b) Received Rs. 5,000 from Suresh which were written off as bad debts.
(c) Sold goods to Mohan of the list price of Rs. 5,000 subject to 10% trade discount and 5% cash discount. Mohan availed cash discount.
(d) Received Rs. 9,900 from Hari in full settlement of his account Rs. 10,000.
Solution 37:

Question 38: Prepare a journal for the following transaction of Vibha and Co.
2018 | Rs. | |
April 7 | Sold goods for cash | 13,000 |
April 9 | Sold goods to Mani on credit | 15,000 |
April 12 | Received cash from Mani | 10,000 |
April 18 | Sold goods to Suri for cash | 12,600 |
April 19 | Sold goods to Suri on credit | 7,000 |
April 24 | Withdrew cash from office for personal use | 2,500 |
April 29 | Paid wages | 450 |
April 30 | Paid salary to Gopi | 1,200 |
April 30 | Received Commission | 200 |
Solution 38:

Question 39: Record the following transactions in the journal of Vimal Bros.
2018 | Rs. | |
May 1 | Commenced business with cash | 5,00,000 |
May 2 | Goods purchased from Mohan for cash | 50,000 |
May 3 | Goods purchased from Ajay | 1,20,000 |
May 4 | Goods returned to Ajay | 5,000 |
May 8 | Goods sold to Rajiv | 40,000 |
May 12 | Rajiv returned 10% of goods |
Solution 39:

Point of Knowledge for DK Goel Solutions Class 11 Chapter 9 :-
- Asset Accounts: Debit the increases, Credit the decreases.
- Liability Accounts: Debit the decreases, Credit the increases.
- Capital Accounts: Debit the decreases, Credit the increases.
- Expense Accounts: Debit the increases, Credit the decreases.

Journal refers to the original entry book in which all financial transactions are recorded initially. Journals are recorded as soon as a financial transaction occurs to minimize the chances of omission of any transaction details. The journal is also termed the Book of Original Entry as it consists of the original report of the transactions.
Journalizing is a mechanism employing which all business transactions are recorded for a firm’s financial records. A business transaction is first entered in a journal. The journal keeps the firms keep track of all business transactions arranged in chronological order.
The prominent advantages of journals are as follows –
● Journal keeps track of all the financial transactions on a date and time basis, arranged in a proper sequence.
● Journal enlists all the transactions supported with source documents to ensure the authenticity of the transaction.
● With a journal, the business prevents the omission of any transaction as journals efficiently record every financial transaction.
As mentioned in DK Goel Solutions Class 11 Chapter 9, the general journal highlights the book of original entries, where business transactions are recorded in raw format, in order of date and time of the events. An account records the details of the transactions firstly on these journals.
The limitations of journals are as follows –
● Whenever the number of transactions of a company becomes large, the journals turn to be bulky and unmanageable.
● As the authority of the journal lies in the hands of an individual account, this prevents multiple system check-ins.
● The journals do not record the cash transactions as they are recorded in the cash books.
Ledger is basically a generalized summary of all the entries in a journal. All business transaction details flow from the journal to the ledgers. The summary from the ledgers helps the companies to efficiently design their financial statements.
Journals are titled the Books of Original Entry because all financial transactions are firstly recorded in the journals.
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