Question
What are ‘Books of Original Entry'?

Answer

The books in which a transaction is recorded for the first time from a source document are called 'Books of Original Entry'. Journal is one of the basic books of original entry in which transactions are originally recorded in a chronological (day-to-day) order according to the principles of double entry system.

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Name and describe the various books of original entrie.
Enter the following transactions in a Double Column Cash Book and Journal Proper and post them into Ledger∶
May 1
Balance of Cash in Hand ₹ 12,400; Bank Overdraft ₹ 36,000
May 3
Direct deposit by Mr. Ganesh in our bank account ₹ 10,000. Discount allowed ₹ 200
May 5
Issued a cheque of ₹ 7,700 to Mr. Suresh in full settlement of his account of ₹ 8,000
May 6
Received a cheque from X for ₹ 12,000. Discount allowed ₹ 500. This cheque was deposited into bank on 7th May
May 8
Received Cash ₹ 22,000 and cheque of ₹ 8,000 for cash sale
May 12
Cash sale ₹ 70,000 of which ₹ 55,000 banked
May 15
Cheque received on 8th May endorsed to Mr. Sunil. Discount received ₹ 150
May 20
Discounted a B/R of ₹ 10,000 at 1% through bank
May 24
Cheque received from X dishonoured, Bank debits ₹ 20 in respect of bank charges
May 25
Purchased goods for ₹ 50,000 at a trade discount of 10%. Payment was made in cash
May 26
Withdrew from bank ₹ 10,000 for office use and ₹ 2,000 for personal use
May 31
Interest debited by Bank ₹ 4,500
What is ‘Imprest System' of Petty Cash Book?
Distinguish between expenses and expenditure.
What is the difference between trade discounts and cash discounts?
Following transactions took place in M/s Goodluck Computers. Prepare the Accounting Vouchers
2019
Particular
Jan-1 Bought Computer Mouse (4 Nos.) vide Cash Memo No. 338* 6,000
Jan-8 Wages paid for the month of December, 2018 10,000
Jan-12 Purchased two Desktop Computers from M/s Computech for cash vide Cash Memo No. 170 32,500
Jan-25 Paid cash to Hari & Sons vide receipt No. 102 for repairs 1,000
Jan-28 Paid postage 200
Jan-30 Cash withdrawn from bank 10,000
Transactions marked with * are subject to levy of CGST and SGST @ 6% each.
How is Cash Discount recorded in the books of account?
Following balances appeared in the books of Radhika Traders as on 1st April, 2017:
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors; ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000.
In April, 2017, the following transaction took place:
2017
 
April 2
Bought goods of the list price of ₹ 6,000 from Khanna Brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.
 
April 3
Received a draft from Mohan in full settlement and deposited it into Bank
 
April 5
Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque.
9,750
April 8
Sold goods and received a cheque
25,000
April 10
Deposited the above cheque into Bank
12,000
April 12
Sohan deposited in our Bank A/c
4,000
April 16
Paid Income Tax by Cheque
5,600
April 20 Received a cheque from Sohan and sent to Bank 7,800
Discount allowed 200
April 21
Withdrew from Bank−for office
2,000
for private use
4,000
April 23
Sent a cheque to X in full settlement of his A/c
4,900
April 27
Cheque of Sohan returned by the bank as dishonoured.
 
April 28
Dinesh was declared insolvent and a payment of 60 paise in a ₹ received from his estate by a Cheque
 
April 30
Bank allowed Interest
350
Paid for Rent by cheque
1,500
Paid for traveling expenses by cheque
500
Pass Journal entries for the above transactions.
Enter the following transactions in the Journal of Ganesh Bros.:
2017
 
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 Ram and 19,500
Discount allowed 500
March 20 Paid cash to Pawan and 4,700
Discount received from him 300
March 25
Sold goods to Varun of the list price of 25,000 at 20% trade discount
 
Prepare the Accounting Vouchers for the following transactions:?
2019
Particular
Jan-1
Started business with cash
2,00,000
Jan-1
Purchased furniture vide Cash Memo No. 210*
10,000
Jan-5
Opened a Bank Account in Canara Bank
60,000
Jan-10
Purchased garments on credit from M/s Madras Store vide Bill No. 291*
20,000
Jan-12
Sold shirts to Ram Parkash on credit vide Bill No. 1*
5,000
Jan-15
Sold shirts for cash vide Cash Memo No. 1*
7,000
Jan-20
Withdrew from bank for office use by cheque No. 23301
20,000
Jan-27
Withdrew for personal use by cheque No. 51003
5,000
Transactions marked with * are subject to levy of CGST and SGST @ 6% each.