Journal Entries Question for class 11 with solution- chapter 8

T.s Grewal solution for class-11 chapter-8 Journal

what is a journal?

journal is a primary book of account in which transactions are first recorded in a chronological order.

what is a journalising?

journalising is a process of recording a transaction in a journal.

terms or expressions used for journal.

  1. book of original entry: journal is called a book of original entry (also called book of prime entry) because a transaction is first recorded or written in this book and thereafter transferred, i.e posted into the ledger account 
  2. journal entry: an process in the journal is called a journal entry 
  3. journalising; the process of recording a transaction in a journal is known as journalising. 
  4. posting: the process of recording a transaction in a journal is called posting 

characteristics or features of a journal. 

  1. day, to day transaction are recorded in a journal in a chronological order, i.e in the order or sequence they are entered
  2. it is a book of original entry in which transactions are written before they are posted in the ledger accounts. 
  3. it records both aspects of a transaction, i.e debit and credit using double entry system of book keeping. 
  4. journal is a records which shows complete details of a transaction in one entry, 
  5. journalising is a process of recording a transaction in the journal and the form in which it is recorded is knows as a journal entry. 

advantages of a journal. 

  1. provides accounting data in chronological order; transaction in the journal are recorded as they take place. thus, it makes available the accounting record in chronological order as well as datewise, 
  2. possibility of error reduces: possibility of errors is reduced as the amounts to be debited and credited are written side by side and the two can be compared to verify that are equal.
  3. explanations of the transaction; along with the entry in the journal narration is written explaining the entry for understanding the entry later. 
  4. ledger posting of transaction; journal is the base for posting of transaction into ledger accounts, 

limitations of journal.

  1. unsuitable for large volume of transaction; recording all transactions in the journal is suitable only when the volume of transactions is less. in the cases where volume of transaction is large, this limitation can be overcome by sub dividing .the journal into special journals such as cash book. 
  2. not a simple system of recording; recording transaction in a journal involves identification of accounts to be debited and credited and applying rules, of debit and credit, the process requires analytical and technical knowledge for correct accounting 
  3. cash balance is not revealed: recording of all transaction in journal means cash balance can be knows after posting of cash transaction in cash account , which is a lengthy process. however , this limitation can be overcomes, by maintaining special, journal for cash transaction, i.e cash book, 
  4. not a substitute of ledger; information relating to a particular. person or heads is known after posting of transaction in the ledger, accounts, journal is , thus, not a substitute of ledger, 

format of a journal:

 journal is divided into five columns. these are; date particulars, ledger folio, debit amount credit amount, the format of a journal is as follows, 

date particularsL.F Dr, amountCr, amount

(L.F , stands for ledger folio)

  1. date: in this column, the transaction date is written, 
  2. particulars : due to dual aspact concept, each transaction has two aspects and both the aspect of transaction are recorded , i.e the name of the two accounts affected by the transaction, the name of the account to be debited is written first followed by the word, Dr written close to the right-hand marign line , while the mane of the account to be credited preceeded is written in the next line by the word, to a little to the right, 
  3. narration: A brief description of the transaction is also written after the entry, 
  4. ledger folio,: in this column the number of ledger page is written to which the debit and credit aspect of the transaction is posted , for example , the proprietor invests further capital of a/m 50,000 and capital account is maintained at ledger 

steps in journalising;

  1. stepascertain the accounts that are affected by a transaction
  2. stepascertain the nature of the accounts affected . 
  3. step: ascertain the account to be debited and credited by applying the rule of debit and credit 

Rules of debit and credit;

Types of accountdebitCredit
Assets account
Increase Decrease
Liabilities account
Decrease Increase
Capital account
Revenue account
Expenses account

Question: 1you are required to give (a) journal entries, (b) nature of account (whether assets, liability, capital, expenses or revenue), direction of change (increase or decrease ), and (d) appropriate rule for recording the change for the following transaction ,

  1. nitin invested rup;50,000 cash and rup; 500,000 by cheque to start a business.
  2. he deposited goods for rup: 5,000 out of cash in the bank 
  3. purchases goods for rup: 5,000 against cash
  4. purchased a building and paid rup:2,50,000 by cheque 
  5. purchased goods from m/s. hari &.co for rup; 100,000
  6. sold goods for cash rup: 50,000
  7. sold goods on credit to m/s . ramesh & co. rup; 25,000
  8. m/s ramehs & co. returned goods of rup;5000 being defective,
  9. goods returned by m/s ramesh & co. returned to m/s hari & co. at cost price i.e rup 4000
  10. paid salary to staff by cheque rup; 15,000
  11. paid rent for the residence of nitin rup: 10,000 by cheque 
  12. paid electricity charges for the month rup;1,000 in cash 
  13. paid telephone charges rup: 500 in cash 
  14. bought office furniture for rup; 25,000 against cheque 
  15. paid m/s hari & co, on account rup: 50,000 by cheque 
  16. received from m/s ramesh & co. rup: by cheque
  17. placed order for goods with m/s abhi & sons of rup: 200,000: paid them rup; 20,000 by cheque as advance, balance to be paid on delivery of goods, 
  18. received order for goods from m/s , ajay & co. of rup; 300,000 along with a cheque for rup: 30,000 as advance , balance to be received against delivery of goods. 
  19. paid rup: 1,000 for stationery. 
  20. nitin withdrew rup: 10,000 for household expenses out of cash 


date particular L.F Dr Amount Cr. Amount
1.Cash a/c ……..Dr
 To capital a/c
(being: the capital invested )
Bank a/c ……….Dr
To capital
(being: the capital invested by cheque)
2.Bank a/c ……..Dr
To cash a/c
(being; the cash deposited in bank)
3Purchase a/c ……Dr
To cash a/c
(being; the purchase made in cash )
4.Building a/c ……..Dr
To bank a/c
(being: the building purchased and paid cheque)
5Purchased a/c ………Dr
To m/s. hari & co.
(being: the goods purchased on credit)
6.Cash a/c …………Dr
To sales a/c
(being: the goods sold)
7.m/s Ramesh & co ……..Dr
To sales a/c
(being; the goods sold on credit)
8Sales return a/c ……..Dr
To m/s Ramesh & co.
(being; the goods returned by m/s Ramesh & co
9m/s hari & co. ………Dr
To purchased return a/c
(being: the goods returned to m/s hari & co)
10Salary a/c ……Dr
To bank a/c
(being; the salary paid )
11Drawings a/c ……..Dr
To bank a/c
(being: the rent for the residence of nitin)
12Electricity expenses ………Dr
To cash a/c
(being: the electricity expenses)
13Telephone expenses ………..Dr
To cash a/c
(being; the telephone charges)
14Furniture a/c …………Dr
To bank a/c
(being: the furniture purchased)
15m/s .hari & co ……….Dr
To bank a/c
(being; the amount paid on account by cheque)
16Bank a/c ……Dr
To m/s Ramesh & co
(being: the cheque received from m/s. Ramesh & co )
17m/s abhi & sons ………Dr
To bank a/c
(being: the advance paid )
18Bank a/c ……….Dr
To m/s ajay & co
(being; the advance received )
19Stationery a/c ……….Dr
To cash a/c
(being: the stationery)
20Drawings a/c …..Dr
To cash a/c
(being: the cash withdrawn )

Question:2 transaction of ramesh for april are given below: journalise them

2017particulars Amount
April 1Ramesh started business with cash10,0000
April 1Paid for repair of premises10,000
April 2Paid into bank70,000
April 2Loan from bank taken against personal fixed deposit25,000
April 3Bough goods for cash5,000
April 4Drew cash from bank for office1,000
April 13Bought goods from shyam22,500
April 13Paid for cartage5,00
April 20Sold goods to Krishna15,000
April 24Received from Krishna15,000
April 28Paid to shyam by cheque22,500
April 30Cash sales for the month8,000
April 30Paid salary to ram3,000
April 30Paid interest on loan from bank on repayment250


date particulars L.F Dr Cr
2017 April 1Cash a/c
To capital a/c
(being: the amount invested by Ramesh in the business as capital )
April 1Repairs a/c
To cash a/c
(being: the amount paid for repairs)
April 2Bank a/c
To cash a/c
(being: the amount paid into the bank)
April 2Bank a/c
To bank loan a/c
(being: the loan taken from bank )
April 3Purchases a/c
To cash a/c
(being: the goods purchase for cash )
April 4Cash a/c
To bank a/c
(being: the cash withdrawn from the bank)
April 13Purchase a/c
To shyam
Being: the goods bought from sshyam on credit)
April 13Carriage inwards a/c
To cash a/c
(being; the cartage paid on purchase )
April 15Krishna
To sales a/c
(being: the goods sold to Krishna on credit )
April 24Cash a/c
To Krishna
(being: the cash received from Krishna )
April 28Shyam
To bank a/c
(being: the amount paid to shyam by cheque )
April 30Cash a/c
To sales a/c
(being: tha goods sold for cash )
April 30Salaries a/c
To cash a/c
(being: the amount paid for salary )
April 30Interest on bank loan a/c
To bank loan a/c
(being: the interest due on bank loan )
April 30Bank loan a/c
To bank a/c
(being: the repayment of bank loan along with interest )

simple and compound journal entries:

  1. simple journal entry: simple journal entry is an entry in which only two accounts are affected, i.e one account is debited and another is credited with an equal amount ,
  2. compound journal entry: compound journal entry is an entry is which two or more accounts are debited and one or more accounts are credited or vice versa. for example, salary of a,/m 15,000 and telephone expanses of a/m 5000 were paid in cash 

Question 3: (compound journal entries🙂 record the following transaction in journal

date particulars Amount
2017 jan 1 Paid to mohan in full settlement of his account of a/m 10,00095,00
jan 5Received from ram a/m 12,000 in cash and allowed him discount100
jan 7Paid salaries20,000
jan 7Paid rent10,000
jan 7Paid wages5,000
jan 10Purchases goods from shyam out of which goods of a/m 12,000 were on credit20,000
jan 10Sold goods to Rahul , cheque for a/m 25,000 received immediately



date particulars L.F Dr Cr
jan 1Mohan
To cash a/c
To discount received a/c
(being; the payment to mohan in full settlement of his account )
jan 5 Cash a/c12,000
Discount allowed a/c100
To ram12,100
(being: the receipt of money from ram and allowed him discount )
jan 7Salaries a/c20,000
Rent a/c10,000
Wages a/c5,000
To cash a/c35,000
(being: the payment of salaries, rent and wages )
jan 10Purchases a/c20,000
To cash a/c8,000
To shyam or shyam a/c12,000
(being; goods purchased for cash a/m 8000 and on credit from shyam for a/m 12,000)
jan 10Bank a/c25,000
To sales a/c50,000
(being: the goods sold to Rahul against cheque payment of a/m 25,000 immediately and balance to be received later )

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