As we said in the earlier slide now we are going to showing the remaining Transactions related to Income and Expenses. Transactions related to Receipts and Payments. Transactions related to Proprietor. Transactions related to Discount. Transactions related to Bad Debts.

1. WELCOME TO THE
WORLD OF ACCOUNTING
BY
SUBBU PULLELA

2. JOURNAL
As I said in this post I’m going to show you
the following…
 Transactions related to Income and
Expenses.
 Transactions related to Receipts and
Payments.
 Transactions related to Proprietor.
 Transactions related to Discount.
 Transactions related to Bad Debts.

3. 1st April, Paid salaries of ₹ 25,000
Transactions relating to Income and Expenses:
Salaried A/c..............Dr 25,000
To Cash A/c 25,000
(Being the salaries paid to
Employees.)
2nd April, Paid rent to Land lord of ₹ 2,000
Rent A/c.....................Dr 2,000
To Cash A/c 2,000
(Being the Rent paid to
Land lord)
3rd April, Received dividend on shares of ₹ 5,000
Cash A/c………….........Dr 5,000
To Dividend A/c 5,000
(Being the Dividend received
On shares)
4th April, Received commission from suresh of ₹ 4,000
Cash A/c.....................Dr 4,000
To Commission A/c 4,000
(Being the Commission
Received from suresh)

4. 1st April, Received cash from phani on account ₹ 5,000
Transactions relating to Receipts and Payments:
Cash A/c…...............Dr 5,000
To Phani A/c 5,000
(Being the cash received
On account.)
2nd April, Paid Ramya on account ₹ 15,000
Ramya A/c................Dr 15,000
To Cash A/c 15,000
(Being the cash paid on
account.)
3rd April, Took loan from hareesh ₹ 25,000
Cash A/c………..........Dr 25,000
To Loan from Hareesh A/c 25,000
(Being the loan taken)
4th April, Given loan to Rajesh ₹ 10,000
Loan to Rajesh A/c…..Dr 10,000
To Cash A/c 10,000
(Being the loan given)

5. 10th April, Bhaskar commenced with a capital of
₹2,00,000
Transactions relating to Proprietor:
Cash A/c.....Dr 2,00,000
To Capital A/c 2,00,000
(Being the capital brought
in by Bhaskar)
11th April, He withdraws cash for personal use ₹ 10,000
Drawings A/c....................Dr 10,000
To Cash A/c 10,000
(Being the cash withdrawn
For personal use.)
12th April, He took goods for domestic use of ₹ 5,000
Drawings A/c....................Dr 5,000
To CPurchases A/c 5,000
(Being the took goods
For personal use.)
13th April, He withdrawn cash from bank for personal
use ₹ 6,000.
Drawings A/c....................Dr 6,000
To Bankj A/c 6,000
(Being the cash withdrawn
From bank for personal use.)

6. 1st April, Purchased goods from pavan @ 20% trade
discount, list price of the goods is ₹ 8,000
Transactions relating to Discount:
Purchases A/c……….....Dr 6,400
To Pavan A/c 6,400
(Being the goods purchased at
a trade discount from list price
of ₹8,000)
2nd April, Returned goods to pavan as these were
defective, the list price of these goods is ₹ 600
Pavan A/c…………Dr 480
To Purchases A/c 480
(Being the goods returned to
pavan after deducting trade
discount from list price of ₹600)
3rd April, Sold the goods to ramesh for cash, the list
price of these goods is ₹ 2,000. Trade discount @5%
and cash discount @1% are allowed to him.
Cash A/c………...............Dr 1,881
Discount A/c………......Dr 19
To Sales A/c 1,900
(Being the goods sold for a
trade discount of @5% and a
cash discount of 1% on list price
₹2,000 )

7. 4th April, Received ₹ 9,850 from krishna after allowing
him a discount of ₹150.
Cash A/c………...............Dr 9,850
Discount A/c………......Dr 150
To Krishna A/c 10,000
(Being the cash received from
Krishna after allowing a discount
of ₹150)
5th April, Paid to kalpana ₹ 3,000 and she allowed as a
discount of ₹150.
Kalpana A/c.....................Dr 3,000
To Cash A/c 2,950
To Discount A/c 50
(Being the cash paid and
received discount.)

8. 1st April, Ravi a debtor become insolvent. He owed
₹5,000, a final dividend of ₹ 0.50 in rupee was received.
Transactions relating to Bad debts:
Cash A/c………...............Dr 2,500
Bad debt A/c………......Dr 2,500
To Ravi A/c 5,000
(Being the cash received from
Ravi in full and as final settlement)
2nd April, Returned goods to pavan as these were
defective, the list price of these goods is ₹ 600
Cash A/c………….……Dr 1,000
To Bad debt A/c 1,000
(Being the bad debt received
from Ravi.)

9. Mr. Ram Kumar position as on 1st April, 2016 is as
follows:
Transactions relating to Opening Entries:
Building A/c……............Dr 30,000
Furniture A/c………......Dr 3,000
Stock A/c………..............Dr 40,000
Cash A/c…...…………......Dr 2,000
Bank A/c………...............Dr 10,000
Debtors A/c…………......Dr 30,000
To Loan A/c 60,000
To Creditors A/c 75,000
To Capital A/c* 20,000
(Being the opening entry passed
and the difference between Dr. and
Cr. Entries is Capital *)
Property and Assets:
Buildings ₹30,000 Furniture ₹ 3,000
Stock ₹40,000 Cash in Hand ₹ 2,000
Customers A/c ₹30,000 Cash at Bank ₹10,000
Liabilities:
Loan ₹60,000 Suppliers A/c ₹75,000
Pass opening entry in the books of Ram Kumar.