CHAPTER 9: BOOKS OF ORIGINAL ENTRY: RECORDING OF TRANSACTIONS IN JOURNAL, ASSIGNMENT # 9, 10 , ANSWERS TO ASSIGNMENT # 5 - 8.

HELLO BOYS,

WELCOME TO TODAY'S ACCOUNTING CLASS, IT IS A VERY IMPORTANT CLASS AS YOU WILL BE LEARNING TO APPLY  ACCOUNTING RULES TO WRITE IN ACCOUNTING LANGUAGE.

LEARNING OUTCOMES:

After going through this lesson, you shall be able to understand the following concepts.

•RECORDING OF THE BUSINESS TRANSACTIONS INTO YHE BOOK OF  JOURNAL.

INTRODUCTION:

Under this, we analyse each individual business transaction in detail. Through analysis we will be able to identify the accounts involved in the transaction. Further by applying rules of accounting, we record the transaction in the books through a Journal entry.  Let’s take a few transactions in order to understand how to record them in the books.

I. RECORDING OF SOME COMMON BUSINESS TRANSACTIONS IN JOURNAL  - PART 1

1. STARTED BUSINESS WITH ₹100000
2. PURCHASED GOODS FOR CASH ₹20000
3. SOLD GOODS FOR CASH ₹10000
4. WITHDREW CASH FOR PERSONAL USE  ₹5000 GOODS
5. WITHDRAWN FOR PERSONAL USE   ₹2,000
6. WITHDREW CASH FROM BANK FOR OFFICE USE  ₹7500

TASK# 2

WATCH THE VIDEO BELOW FOR THE METHOD & TECHNIQUE OF RECORDING THE ABOVE TRANSACTIONS IN THE ACCOUNTING BOOK CALLED THE JOURNAL. NOTE DOWN THE JOURNAL ENTRIES  IN YOUR REGISTER

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RECORDING OF THE ABOVE TRANSACTIONS IN THE BOOKS OF THE JOURNAL. PART 1

II. RECORDING OF SOME COMMON BUSINESS TRANSACTIONS IN JOURNAL PART 2 

1. PURCHASED GOODS ON CREDIT FROM X FOR   ₹15000 

2. SOLD GOODS ON CREDIT TO Y FOR  ₹10000 

3. GOODS OF   ₹1000 GIVEN AS CHARITY.
4. GOODS WORTH  ₹3000, DESTROYED BY FIRE
5.  Y RETURNED GOODS WORTH  ₹2000 TO BUSINESS.
6.  BUSINESS RETURN GOODS WORTH  ₹5000 TO X.

Task# 3

WATCH THE VIDEO BELOW FOR THE METHOD & TECHNIQUE OF RECORDING THE ABOVE TRANSACTIONS IN THE ACCOUNTING BOOK CALLED THE JOURNAL. NOTE DOWN THE JOURNAL ENTRIES  IN YOUR REGISTER.

RECORDING OF THE ABOVE TRANSACTIONS IN THE BOOK OF JOURNAL PART 2

III. RECORDING OF BANKING TRANSACTIONS IN JOURNAL PART 1.

1. ₹1000 WAS DEPOSITED INTO THE BANK.
2. WITHDRAWN  ₹15000 FROM THE BANK.
3. A CHEQUE OF  ₹5,000 WAS RECEIVED FROM RAM (ON MAY 1) AND BANKED ON THE SAME DAY.

TASK # 4

WATCH THE VIDEO BELOW FOR THE METHOD & TECHNIQUE OF RECORDING THE ABOVE TRANSACTIONS IN THE ACCOUNTING BOOK CALLED THE JOURNAL. NOTE DOWN THE JOURNAL ENTRIES  IN YOUR REGISTER.

RECORDING OF BANKING TRANSACTIONS IN THE JOURNAL PART 1

IV. RECORDING OF BANKING TRANSACTIONS IN JOURNAL PART 2.

1. A CHEQUE OF  ₹5000 RECEIVED FROM RAM (ON MAY 1) AND BANKED ON THE NEXT DAY.
2. ON MAY 5, CHEQUE RECEIVED FROM RAM (DEPOSITED INTO BANK) DISHONOURED.

TASK # 5

WATCH THE VIDEO BELOW FOR THE METHOD & TECHNIQUE OF RECORDING THE ABOVE TRANSACTIONS IN THE ACCOUNTING BOOK CALLED THE JOURNAL. NOTE DOWN THE JOURNAL ENTRIES  IN YOUR REGISTER.

LINK TO THE RECORDING OF BANKING TRANSACTIONS IN THE JOURNAL, PART - 2

Task # 6

DO ASSIGNMENT # 9 & ASSIGNMENT # 10 IN YOUR REGISTERS' FOR PRACTICE.

ASSIGNMENT # 9 

1. KAPIL STARTED BUSINESS WITH CASH  ₹ 150000.
2. GOODS PURCHASED IN CASH  ₹60000
3. GOODS SOLD TO AMIT FOR  ₹8000 ON CREDIT.
4. PURCHASED GOODS FROM SHYAM FOR  ₹11000 ON CREDIT.
5. AMIT RETURNED GOODS WORTH   ₹3000 TO BUSINESS
6. KAPIL RETURNED GOODS TO SHYAM  ₹1000
ASSIGNMENT # 10

1.CASH DEPOSITED INTO THE BANK  ₹8000.
2.RECEIVED A CHEQUE OF ₹5000 FROM AMIT AND BANKED ON THE NEXT  DAY.
3. ISSUED A CHEQUE OF ₹10,000 TO SHYAM.
4. BANK INFORMED THAT AMIT'S CHEQUE RETURNED DISHONOURED.

TASK # 7

CHECK THE ANSWERS TO ASSIGNMENT # 5 TO ASSIGNMENT # 8.

ASSIGNMENT # 5

ON WHICH SIDE, THE INCREASE IN THE FOLLOWING ACCOUNTS WILL BE RECORDED? ALSO SPECIFY THE NATURE OF ACCOUNTS TO WHICH THEY BELONG:

1. BILLS PAYABLE ACCOUNT
2. RENT ACCOUNT
3. CREDITORS ACCOUNT
4. SALES ACCOUNT
5. KARAN (THE PROPRIETOR)

ANSWERS:

1. Bills payable account: Credit- Liabilities
2. Rent account : Debit -Expense3. Creditors account: Credit - Liabilities
4. Sales account: Credit - Revenue5. Karan (Proprietor's) account: Credit - Capital


ASSIGNMENT # 6

ON WHICH SIDE, THE DECREASE IN THE FOLLOWING ACCOUNTS WILL BE RECORDED? ALSO SPECIFY THE NATURE OF ACCOUNTS.

1. RENT OUTSTANDING ACCOUNT
2. FREIGHT ACCOUNT
3. SALARY PAYABLE ACCOUNT
4. AMIT (CUSTOMER)

ANSWERS:

1. Rent outstanding account: Debit- Liabilities
2. Freight account: Credit- Expenses3. Salary payable account: Debit-Liabilities 4. Amit (customer): Credit- Asset

ASSIGNMENT # 7

CLASSIFY THE FOLLOWING ACCOUNTS INTO PERSONAL, REAL OR NOMINAL ACCOUNTS:

1. COMMISSION RECEIVED
2. PURCHASE ACCOUNT
3. GOODWILL
4. FURNITURE
5. SALARY ACCOUNT
6. BANK ACCOUNT
7. DISCOUNT ALLOWED ACCOUNT
8. DEBTORS ACCOUNT

ANSWERS:

PERSONAL ACCOUNTS; 6. BANK 8. DEBTORS

REAL ACCOUNTS: 3. GOODWILL 4. FURNITURE

NOMINAL ACCOUNTS: 1. COMMISSION RECEIVED 2. PURCHASES ACCOUNT 5.SALARY ACCOUNT  7. DISCOUNT ALLOWED

ASSIGNMENT # 8

FROM THE FOLLOWING TRANSACTIONS, SHOW THE ACCOUNTS TO BE DEBITED AND CREDITED UNDER MODERN APPROACH AND TRADITIONAL APPROACH:

1. RECEIVED COMMISSION
2. GOODS PURCHASED FROM ANKIT ON CREDIT
3. GOODS SOLD FOR CASH

ACCORDING TO MODERN APPROACH OR AMERICAN APPROACH

S.no	Affected Accounts	Nature of Account	Effect of Transaction	Debit or Credit
1. 2. 3.	CASH COMMISSION PURCHASES ANKIT CASH SALES	ASSET REVENUE EXPENSE LIABILITY ASSET REVENUE	INCREASE INCREASE INCREASE INCREASE INCREASE INCREASE	DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

ACCORDING TO TRADITIONAL APPROACH OR ENGLISH APPROACH

S.no	Affected Accounts	Nature of Account	Effect of Transaction	Debit or Credit
1. 2. 3.	CASH COMMISSION PURCHASES ANKIT CASH SALES	REAL NOMINAL NOMINAL PERSONAL REAL NOMINAL	Dr. WHAT COMES IN Cr. THE INCOMES Dr. ALL EXPENSES Cr. THE GIVER Dr. WHAT COMES IN Cr. ALL INCOMES	DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT