Till now, we’ve more or less explored most journal entries. Here, let us put our findings & understandings to a test.
And, with this, we’ll begin our full journal practical.
Following is a list of transactions of Hitesh Traders for the month of March, 2024. And, for the sake of simplicity, we’ll assume that they only deal in T-shirts.
You can also download a pdf copy for your convenience.
Date
Transaction
₹
2024
Mar.
1
Introduced capital and commenced business.
1,00,000
1
Took a loan from Kotak Bank @ 9.6% p.a.
25,000
2
Signed a rent contract worth ₹ 10,000 per month for a shop and paid rent for 3 months in advance.
3
Purchased goods and,
Carriage paid.
20,000
200
4
Purchased furniture from ABC Mart on credit.
Bought stationery for routine work.
10,000
1,000
6
Sold goods to Mohanbhai Patel on credit and offered 5% cash discount if payment (full or, partial) is made within 15 days.
6,000
8
Purchased goods from Trupti Traders on credit with an offer to avail 6% discount on payments within a month from the purchase date.
10,000
10
Cash Sales
3,000
11
Received free samples from Dollar Co. for advertisement & customer feedback.
5,000
13
50% payment made by Mohanbhai
14
Repaid one-half amount to ABC Mart.
15
Cash Sales
1,500
16
Sold goods to Vivek and half amount paid immediately by him via UPI.
2,500
18
Goods sold to Avinash and full amount received immediately @ 5% cash discount.
4,000
19
Mohanbhai paid half the remaining amount via direct deposit.
20
Repaid 25% amount to Trupti Traders.
21
Credit sales to Binod.
1,500
23
Binod became insolvent and only 40% of the remaining amount could be recovered from him.
24
Mohanbhai cleared his dues entirely.
26
Cash Sales
2,000
27
Repaid 25% of the purchase value to Trupti Traders.
29
Cash Purchases
1,000
31
Paid Interest on Kotak Bank’s loan.
Note: Closing Stock i.e., stock left unsold as on 31st March is ₹ 15,000 and make any other necessary adjustments.
Your task is to make journal entries for the above transactions and find the net profit/loss at the end of the month i.e., 31st March, which is also the end of the accounting year 2023-24. Below you can find small reminders of the basic concepts we went over while learning journal entries.
1. Debits & Credits for the 4 types of transactions:
2. Format of Journal:
Solution:
Ideally, you should view this only after you have tried the entries on your own and then, correct your mistakes. But, if someone likes to learn on-the-go with solution, I don’t have mind.
Regardless, do go through the solution document and tally your answers.
The calculation for Net Profit / Loss figure is as under:
Particulars
₹
Total Incomes received by Hitesh Traders
18,800
Less: Total Expenses incurred by Hitesh Traders
28,725
Profit / (Loss) for Accounting Year 2023-24
(9,925)
Thus, Hitesh Traders suffered a loss of ₹ 9,925 for the accounting year ended 31st March, 2024.
This marks the end of our journal practical and if you wish, do practice from the NCERT pdf I have shared time and again.
Up next, we’ll discuss some of the issues that you and I might have faced while taking this practical.
Academic Resource
NCERT Class 11 Accountancy, Chapter 3 Recording of Transactions-I, Reprint 2025-26:
https://ncert.nic.in/textbook/pdf/keac103.pdf
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