NIOS Class 12 Accountancy Chapter 5 Journal

NIOS Class 12 Accountancy Chapter 5 Journal Solutions English Medium As Per New Syllabus. to each chapter is provided in the list so that you can easily browse throughout different chapters NIOS Class 12 Accountancy Chapter 5 Journal Notes and select need one. NIOS Class 12 Accountancy Chapter 5 Journal Question Answers Download PDF. NIOS Study Material of Class 12 Accountancy Paper Code: 320.

NIOS Class 12 Accountancy Chapter 5 Journal

Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 12 Accountancy Solutions English Medium , NIOS Senior Secondary Course Accountancy Notes in English Medium for All Chapter, You can practice these here.

Journal

Chapter: 5

Module – 1: Basic Accounting

INTEXT QUESTIONS 5.1

I. What is journal? Write in your own words.

Ans: Journal is a book of accounts in which all day-to-day transactions are recorded in the order of their occurrence.

II. Complete the following sentences with the appropriate word/words:

(i) Journalising is the process of entering transactions in ___________.

Ans: The journal.

(ii) Another name for Journal is ___________.

Ans: Original book of entries or Primary Book of entries.

(iii) Transactions, when recorded in Journal, are known as ___________.

Ans: Entries.

(iv) The explanation of a Journal entry is known as ___________.

Ans: Narration.

(v) In a Journal entry, preposition ___________ is used before the name of the account to be credited.

Ans: To.

INTEXT QUESTIONS 5.2

I. Below are given certain transactions. Write the names and kinds of affected accounts in the given columns of debit and credit:

Transaction	Dr. – Name of A/c	Type of A/c	Cr. – Name of A/c	Type of A/c
i. Started business with cash
ii. Credit purchases of goods
iii. Commission paid by cheque
iv. Cash deposited into Bank
v. Interest received in cash
vi. Furniture purchased from Mukesh
vii. Goods sold by Ramesh

Ans:

Transaction	Dr. – Name of A/c	Type of A/c	Cr. – Name of A/c	Type of A/c
i. Started business with cash	Cash A/c	Asset	Capital A/c	Capital
ii. Credit purchases of goods	Purchases A/c	Expense	Creditors A/c	Liability
iii. Commission paid by cheque	Commission A/c	Expense	Bank A/c	Asset
iv. Cash deposited into Bank	Bank A/c	Asset	Cash A/c	Asset
v. Interest received in cash	Cash A/c	Asset	Interest Received A/c	Revenue
vi. Furniture purchased from Mukesh	Furniture A/c	Asset	Mukesh A/c	Liability
vii. Goods sold by Ramesh	Ramesh A/c	Asset (Debtor)	Sales A/c	Revenue

II. Write down the narration for the following Journal entries in the space provided:

(i) Cash A/c Dr.
To Sales A/c

Ans: Being goods sold for cash.

(ii) Purchases A/c Dr.
To Vinay’s A/c

Ans: Being goods purchased from Vinay on credit.

III. Complete the following journal entries:

(i) Amit’s A/c Dr. 

To …………. A/c

 (Goods sold to Amit)

Ans: To Goods A/c.

(ii) …………. Dr. 

To Cash A/c

(Commission paid in Cash)

Ans: Commission A/c.

(iii) Cash A/c Dr. 

To …………. A/c

(Interest received in Cash)

Ans: To Interest A/c.

(iv) Goods A/c Dr. 

To …………. A/c

(Goods purchased from Rohit for Cash)

Ans: To Cash A/c.

INTEXT QUESTIONS 5.3

I. Fill in the blanks with suitable word/words:

(i) A combination of two or more simple journal entries is known as ___________.

Ans: Compound entry.

(ii) Bad debts are ___________ in the journal, as they are loss to the business.

Ans: Debited.

(iii) In journal, only ___________ discount is recorded.

Ans: Cash.

(iv) No entry is made for ___________ discount in the Journal.

Ans: Trade.

(v) Prepaid expenses are ___________ in the journal.

Ans: Debited.

(vi) Accrued income is ___________ on the journal.

Ans: Debited.

(vii) Depreciation reduces the value of an ___________.

Ans: Asset.

(viii) When the proprietor withdraws money from the business for his personal use, then ___________ A/c is debited and ___________ A/c is credited.

Ans: Drawings A/c and Cash A/c.

II. Complete the following journal entries:

(i) Drawings A/c Dr. 

To …………. A/c

(Money withdrawn from Bank for Personal use)

Ans: To Cash A/c.

(ii) Cash A/c Dr. 

…………. Dr. 

To Rohit’s A/c

(Payment received from Rohit in full and final settlement of his A/c)

Ans: Discount A/c.

(iii) …………. A/c Dr. 

To Rent A/c

(Rent paid in advance)

Ans: Prepaid Rent A/c.

(iv) Interest on Capital A/c Dr. 

To …………. A/c

(Interest allowed on capital)

Ans: To Capital A/c.

(v) …………. A/c Dr. 

To Commission Outstanding A/c

(Commission outstanding for December)

Ans: Commission A/c.

(vi) Cash A/c Dr. 

…………. A/c Dr. 

To Satish’s A/c

(Part payment of a debt received due to insolvency of Satish)

Ans: Bad Debts A/c.

INTEXT QUESTIONS 5.6

Fill in the blanks with suitable word/words:

(i) Return of goods purchased by the businessman to the suppliers will be entered in ___________ Journal.

Ans: Purchase Returns Journal.

(ii) In ___________ Journal, credit purchases of assets is not recorded.

Ans: Purchase Journal.

(iii) When the payment is to be made by the debtor, under a written agreement it is ___________ for him.

Ans: Bill Payable.

(iv) An order made by the creditor to his debtor to make the payment on a specified date is known as ___________.

Ans: Bill of Exchange.

(v) In ___________ all such transactions are recorded for which no special journals are maintained.

Ans: Journal Proper.

(vi) Assets sold on credit are entered in ___________.

Ans: Journal Proper.

TERMINAL EXERCISE

1. Write the meaning of the following in one sentence each:

(i) Narration.

Ans: Narration is a brief explanation of a transaction recorded in the books of accounts, which describes the nature, purpose, and details of the transaction.

(ii) Ledger folio.

Ans: The transaction entered in a Journal is posted to the various related accounts in the ‘ledger’ (which is explained in another lesson). In ledger-folio column we enter the page-number where the account pertaining to the entry is opened and posting from the Journal is made.

(iii) Bad debts.

Ans: When a debtor fails to pay the full amount due to him, the unpaid amount is known as bad debts. For example, A business concern receives Rs. 8000 out of Rs. 10,000 due from Harish. He is unable to pay the balance amount, thus, the remaining amount becomes a bad debts for the business.

(iv) Cash discount.

Ans: Cash discount is a reduction in the amount payable allowed by the seller to the buyer for making prompt or early payment.

2. The following journal entries have been made by a learner. You are required to make correct entries wherever you think them to be wrong:

(i) Proprietor brought capital into Business

Capital A/c Dr. 

To Cash A/c

Ans: Cash A/c Dr. 

To Capital A/c.

(ii) Goods Sold for Cash
Cash A/c Dr. 

To Goods A/c

Ans: Cash A/c Dr. 

To Sales A/c.

(iii) Machinery Purchased in Cash
Purchases A/c Dr. 

To Cash A/c

Ans: Machinery A/c Dr. 

To Cash A/c.

(iv) Goods sold to Ram for cash
Ram A/c Dr. 

To Sales A/c

Ans: Cash A/c Dr. 

To Sales A/c 

(The personal name is ignored in cash transactions)

(v) Salary paid to the Accountant
Accountant’s personal A/c Dr. 

To Salary A/c

Ans: Salaries A/c Dr. 

To Cash A/c.

(vi) Rent paid in advance
Prepaid Rent A/c Dr. 

To Cash A/c

Ans: Prepaid Rent A/c Dr. 

To Cash A/c 

(The learner’s entry was already correct).

3. Distinguish between Special Journals and Journal Proper.

Ans: Special Journals Special journals are those journals which are meant for recording all the transactions of a repetitive nature of a particular type. For example, all cash related transactions may be recorded in one book, all credit purchases in another book and so on.

Journal Proper This journal is meant for recording all such transactions for which no special journal has been maintained in the business. Therefore, in this journal, all such transactions are recorded which do not occur frequently and for these transactions, no special journal is required. For example, if Machinery is purchased on credit, it will be recorded in the journal proper, because in the Cash Book, we will record only cash purchases of machinery. Similarly, many other transactions, which do not find their place in the special journals,

4. Journalise the following transactions:

(i) Started business with cash ₹3,00,000

Ans: Cash A/c Dr. ₹3,00,000 

To Capital A/c ₹3,00,000

(ii) Bought Goods on credit ₹5,000

Ans: Purchases A/c Dr. ₹5,000 

To Creditor’s A/c ₹5,000

(iii) Sold Goods for cash ₹12,000 and on credit ₹8,000

Ans: Cash A/c Dr. ₹12,000

Debtor’s A/c Dr. ₹8,000 

To Sales A/c ₹20,000

5. Explain the process of journalising the transactions with suitable examples.

Ans: The process involves three main steps:

(i) Identify the Accounts: Determine which accounts are affected (e.g., if goods are bought for cash, the accounts are ‘Purchases’ and ‘Cash’).

(ii) Recognise the Type of Account: Classify the accounts as Assets, Liabilities, Capital, Revenue, or Expenses.

(iii) Apply Debit/Credit Rules: Following the double-entry system, debit increases in assets/expenses and credit increases in liabilities/capital/revenue. Example: Buying goods for cash results in a debit to Purchases (increase in expense) and a credit to Cash (decrease in asset).

6. What are compound entries? Explain with suitable examples.

Ans: Compound entries are journal entries that affect more than two accounts by having more than one debit, more than one credit, or both. They are used to save time and space when multiple transactions occur on the same day and share a common account aspect. Example: If a business pays Salary (₹6,000) and Rent (₹12,000) in cash on the same day, the entry is:

• Salary A/c Dr. ₹6,000

• Rent A/c Dr. ₹12,000 To Cash A/c ₹18,000

7. What are adjusting entries? Give examples of any two such entries.

Ans: Adjusting entries are made at the end of an accounting period to satisfy the matching principle, ensuring that revenues and expenses pertain only to the current period. 

Examples:

(i) Outstanding Expenses: Salaries due but not paid (Salaries A/c Dr. To Salaries Outstanding A/c).

(ii) Prepaid Expenses: Insurance paid in advance for the next year (Prepaid Insurance A/c Dr. To Insurance Premium A/c).

8. Enter the following transactions in Journal — January 2014

Date	Particulars	Amount (₹)
Jan. 1	Sushil & Co. started business with cash	1,00,000
Jan. 2	Paid into Bank	60,000
Jan. 4	Purchased Machinery and paid by cheque	30,000
Jan. 6	Bought goods from Naresh	20,000
Jan. 14	Paid salaries	5,000
Jan. 15	Sold goods to Rajesh Kumar	15,000
Jan. 17	Paid for sundry expenses	8,500
Jan. 18	Cash deposited into Bank	20,000
Jan. 19	Received Rent	6,000
Jan. 22	Paid Naresh by cheque in full settlement of his A/c	19,750
Jan. 24	Withdrawn cash for personal use	8,000
Jan. 26	Salary paid in advance to Surjeet	2,500
Jan. 28	Rajesh made the payment on A/c	10,000
Jan. 30	Cash Sales for the month	16,500
Ans:

Ans:

Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
Jan 1	Cash A/c Dr.		1,00,000
	To Capital A/c			1,00,000
	(Being business started with cash)
Jan 2	Bank A/c Dr.		60,000
	To Cash A/c			60,000
	(Being cash paid into bank)
Jan 4	Machinery A/c Dr.		30,000
	To Bank A/c			30,000
	(Being machinery purchased by cheque)
Jan 6	Purchases A/c Dr.		20,000
	To Naresh A/c			20,000
	(Being goods purchased on credit)
Jan 14	Salaries A/c Dr.		5,000
	To Cash A/c			5,000
	(Being salaries paid)
Jan 15	Rajesh Kumar A/c Dr.		15,000
	To Sales A/c			15,000
	(Being goods sold on credit)
Jan 17	Sundry Expenses A/c Dr.		8,500
	To Cash A/c			8,500
	(Being sundry expenses paid)
Jan 18	Bank A/c Dr.		20,000
	To Cash A/c			20,000
	(Being cash deposited into bank)
Jan 19	Cash A/c Dr.		6,000
	To Rent Received A/c			6,000
	(Being rent received)
Jan 22	Naresh A/c Dr.		20,000
	To Bank A/c			19,750
	To Discount Received A/c			250
	(Being payment made in full settlement)
Jan 24	Drawings A/c Dr.		8,000
	To Cash A/c			8,000
	(Being cash withdrawn for personal use)
Jan 26	Advance Salary A/c Dr.		2,500
	To Cash A/c			2,500
	(Being salary paid in advance)
Jan 28	Cash A/c Dr.		10,000
	To Rajesh Kumar A/c			10,000
	(Being payment received on account)
Jan 30	Cash A/c Dr.		16,500
	To Sales A/c			16,500
	(Being cash sales)