Question No 23 Chapter No 5
23. Journalise the following transactions in the books of Kanishk Traders:
| i | Sold goods costing 1,20,000 to Charu at a profit of 33 1/3 “Type equation here.” % on cost less 15% Trade Discount |
| ii | Sold goods costing 80,000 to Arun against cheque at a profit of 25% on cost less 15% Trade Discount |
| iii | Paid by cheque 8,400 as an insurance premium for a period of 12 months starting 1st August 2016. The financial year closes on 31st March every year. |
The solution of Question No 23 Chapter No 5: –
| In the Books of Radhika Traders |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2019 | |||||
| i | Charu’s A/c * | Dr. | 1,36,000 | ||
| To Sales A/c | 1,36,000 | ||||
| (Being Prepaid insurance recorded) | |||||
| ii | Bank A/c** | Dr. | 85,000 | ||
| To Sales A/c | 85,000 | ||||
| (Being Goods sold to Arun) | |||||
| iii | Insurance A/c | Dr. | 8,400 | ||
| To Bank A/c | 8,400 | ||||
| (Being Insurance premium paid through cheque) | |||||
| Prepaid Insurance A/c | Dr. | 2,800 | |||
| To Insurance A/c | 2,800 | ||||
| (Being insurance premium paid in advance for four months) | |||||
Working Note: –
Calculation of amount of goods sold to Charu*
| Cost | = | 1,20,000 |
| Add: Profit on 33 1/3 | = | 40,000 |
| Invoice Price | = | 1,60,000 |
| Less: Trade discount 15@ | = | 24,000 |
| = | 1,36,000 |
Calculation of amount of goods sold to Arun**
| Cost | = | 80,000 |
| Add: Profit on 25% | = | 20,000 |
| Invoice Price | = | 1,00,000 |
| Less: Trade discount 15@ | = | 15,000 |
| = | 85,000 |
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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution
Chapter 1 Evolution of Accounting & Basic Accounting Terms
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Chapter 2 Accounting Equations
Chapter 3 Meaning and Objectives of Accounting
Chapter 5 Books of Original Entry – Journal
Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
Chapter 7 Books of Original Entry – Cash Book (Coming soon)
Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
Chapter 9 Ledger (Coming soon)
Chapter 10 Trial Balance and Errors (Coming soon)
Chapter 11 Bank Reconciliation Statement (Coming soon)
Chapter 12 Depreciation (Coming soon)
Chapter 13 Bills of Exchange (Coming soon)
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Chapter 14 Generally Accepted Accounting Principles(GAAP)
Chapter 15 Bases of Accounting
Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
Chapter 17 Capital and Revenue
Chapter 18 Provisions and Reserves
Chapter 19 Final Accounts (Coming soon)
Chapter 20 Final Accounts – With Adjustments (Coming soon)
Chapter 21 Errors and their Rectification (Coming soon)
Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
Chapter 24 Computerised Accounting System (Coming soon)
Chapter 25 Introduction to Accounting Information System (Coming soon)
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