Solutions of 11 Accounts | NEB 11 Accounts Solutions

Journal Entries of Kushal Traders

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs.)
Magh 01	Cash A/c Dr. Furniture A/c Dr.    To Capital A/c (Being business started with cash and furniture)		5,00,000 1,00,000	6,00,000
Magh 04	Purchase A/c Dr.    To Himalayan Suppliers A/c (Being goods purchased at 10% trade discount)		72,000	72,000

Journal Entries: Kushal Traders (Contd.)

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs.)
Magh 08	Bank A/c Dr.    To Cash A/c (Being cash deposited into bank - Contra Entry)	C	2,00,000	2,00,000
Magh 12	Sita & Co. A/c Dr.    To Sales A/c (Being goods sold on credit to Sita & Co.)		50,000	50,000

Accounting Cycle: Kushal Traders

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs.)
Magh 15	Himalayan Suppliers A/c Dr.    To Purchase Return A/c (Being goods returned; 5,000 Gross less 10% TD = 4,500)		4,500	4,500
Magh 20	Bank A/c Dr. Discount Allowed A/c Dr.    To Sita & Co. A/c (Being full settlement received from debtor)		48,000 2,000	50,000

Journal Entries: Kushal Traders (Outflows)

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs.)
Magh 25	Rent A/c Dr. Salary A/c Dr.    To Bank A/c (Being expenses paid through cheque)		20,000 30,000	50,000
Magh 28	Drawings A/c Dr.    To Bank A/c (Being cash withdrawn from bank for personal use)		10,000	10,000

Journal Entry: Final Settlement

Date	Particulars	Debit (Rs.)	Credit (Rs.)
Magh 30	Himalayan Suppliers A/c Dr.    To Bank A/c    To Discount Received A/c (Being balance paid via cheque with 5% cash discount)	67,500	64,125 3,375

General Ledger (Mandatory Accounts)

Cash Account

To Capital (Magh 01)	5,00,000	By Bank (Magh 08)	2,00,000
		By Balance c/d	3,00,000

Bank Account

To Cash (Magh 08)	2,00,000	By Rent/Salary	50,000
To Sita & Co.	48,000	By Drawings	10,000
		By Himalayan Supp.	64,125
Total	2,48,000	By Balance c/d	1,23,875

Trial Balance of Kushal Traders (Magh 30, 2082)

Account Head	Debit (Rs.)	Credit (Rs.)
Cash A/c	3,00,000
Bank A/c	1,23,875
Capital A/c		6,00,000
Sales A/c		50,000
GRAND TOTAL	6,57,875	6,57,875

Journal Entry: New Era Trading House

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs.)
Falgun 02	Cash A/c Dr. Bank A/c Dr.    To Capital A/c (Being business started with cash and bank balance)		8,00,000 4,00,000	12,00,000

Journal Entry: Asset Acquisition

Date	Particulars	Debit (Rs.)	Credit (Rs.)
Falgun 05	Machinery A/c Dr.    To Nepal Engineering Works A/c (Being machinery purchased on credit)	2,00,000	2,00,000

Journal Entry: Partial Payment Transaction

Date	Particulars	Debit (Rs.)	Credit (Rs.)
Falgun 09	Purchase A/c Dr.    To Cash A/c    To ABC Traders A/c (Being goods purchased - half cash and half credit)	1,00,000	50,000 50,000

Journal Entries: Bank Transactions

Date	Particulars	Debit (Rs.)	Credit (Rs.)
Falgun 14	Bank A/c Dr.    To Sales A/c (Being goods sold and cheque deposited immediately)	1,50,000	1,50,000
Falgun 18	Cash A/c Dr.    To Bank A/c (Being cash withdrawn for office use - Contra Entry)	15,000	15,000

Journal Entries: Adjustments & Losses

Date	Particulars	Debit (Rs.)	Credit (Rs.)
Falgun 22	Nepal Engineering Works A/c Dr.    To Bank A/c    To Discount Received A/c (Being full settlement of 2,00,000 debt with 10k discount)	2,00,000	1,90,000 10,000
Falgun 25	Insurance Premium A/c Dr. Electricity Bill A/c Dr.    To Cash A/c (Being cash payment of office expenses)	5,000 3,000	8,000
Falgun 27	Loss by Theft A/c Dr.    To Purchase A/c (Being goods stolen by employee)	2,000	2,000

Journal Entries: Adjustments & Losses

Date	Particulars	Debit (Rs.)	Credit (Rs.)
Falgun 22	Nepal Engineering Works A/c Dr.    To Bank A/c    To Discount Received A/c (Being full settlement of 2,00,000 debt with 10k discount)	2,00,000	1,90,000 10,000
Falgun 25	Insurance Premium A/c Dr. Electricity Bill A/c Dr.    To Cash A/c (Being cash payment of office expenses)	5,000 3,000	8,000
Falgun 27	Loss by Theft A/c Dr.    To Purchase A/c (Being goods stolen by employee)	2,000	2,000

General Ledger: Section 2 Highlights

Nepal Engineering Works A/c

To Bank (Settlement)	1,90,000	By Machinery (Purchase)	2,00,000
To Discount Received	10,000
Total	2,00,000	Total	2,00,000

*Note: This account is now fully closed (NIL Balance).

Machinery Account

To Nepal Eng. Works

2,00,000

By Balance c/d

2,00,000

Trial Balance as of 30th Falgun, 2082

Account Head	Debit (Rs.)	Credit (Rs.)
Cash A/c (8,00,000 - 50,000 + 15,000 - 8,000)	7,57,000
Bank A/c (4,00,000 + 1,50,000 - 15,000 - 1,90,000 + 1,500)	3,46,500
Capital A/c		12,00,000
Machinery A/c	2,00,000
ABC Traders (Creditor)		50,000
Sales A/c		1,50,000
Purchase A/c (1,00,000 - 2,000 theft)	98,000
Interest & Discount Received		11,500
Loss by Theft & Expenses	10,000
GRAND TOTAL	14,11,500	14,11,500

Journal Entry: Opening with Liability

Date	Particulars	Debit (Rs.)	Credit (Rs.)
Chaitra 01	Cash A/c (10L + 5L) Dr. Stock A/c Dr.    To Bank Loan A/c    To Capital A/c (Being business started with cash, stock, and a bank loan)	15,00,000 2,00,000	5,00,000 12,00,000

Journal Entries: Assets & Purchases

Date	Particulars	Debit (Rs.)	Credit (Rs.)
Chaitra 05	Delivery Van A/c Dr.    To Bank A/c    To Auto Motors A/c (Being van purchased via cheque and finance)	12,00,000	4,00,000 8,00,000
Chaitra 08	Stationery A/c (Office) Dr. Purchase A/c (Resale) Dr.    To Nepal Paper House A/c (Being items bought for office use and resale)	5,000 50,000	55,000

Journal Entry: Sales & Discount

Date	Calculation & Entry	Debit (Rs.)	Credit (Rs.)
Chaitra 12	Kushal & Brothers Dr. (120k - 5%)    To Sales A/c	1,14,000	1,14,000
Chaitra 19	Bank A/c Dr. Discount Allowed A/c (2%) Dr.    To Kushal & Brothers	1,11,720 2,280	1,14,000

Journal Entries: Gains & Promotion

Chaitra 22	Cash A/c Dr.    To Bad Debt Recovered A/c (Being cash received from a written-off debtor)	8,000	8,000
Chaitra 27	Advertisement A/c Dr.    To Purchase A/c (Being goods distributed as free samples)	4,000	4,000

Final Trial Balance: FEEN Educational Supplies

Account Head	Debit (Rs.)	Credit (Rs.)
Cash A/c	15,06,000
Delivery Van	12,00,000
Bank Loan		5,00,000
Auto Motors (Liability)		7,00,000
Capital A/c		12,00,000
Purchases (Net)	43,000
Sales A/c		1,14,000
SERIES TOTAL	30,22,000	30,22,000

Series Completed by Focus Edge Education Network (FEEN)

🎓 Mastering NEB Grade 11 Accounts: The FEEN Guide

1. The Discount Rule 🏷️

Trade Discount: Deduct from the price immediately. Never record it in the journal. It's for "customers," not the "accountant."

Cash Discount: Only record this when money actually moves. It's an incentive for early payment.

Trick: If you see "Full Settlement," a Cash Discount is almost always hidden there!

2. The Contra Logic 🏦

A Contra entry occurs when money moves internally (Office to Bank or Bank to Office).

• Deposit: Dr. Bank / Cr. Cash
• Office Withdrawal: Dr. Cash / Cr. Bank

Tip: Use 'C' in the L.F. column so you don't confuse this with a payment to a supplier.

3. Losses & Samples 📉

When goods are stolen, lost by fire, or given as free samples, we Credit Purchases, not Sales.

Why? Because these goods left the warehouse at Cost Price, and no profit was made.

4. Drawings vs. Office Use 🏠

Office Use: Business stays as an asset (Debit Cash).

Personal/Household Use: Business equity decreases (Debit Drawings).

Trick: Even if the owner takes a pencil for their child, it's a Drawing!

🚀 Pro-Exam Tips for High Marks:

• Narration is King: Every Journal entry must have a short explanation starting with "Being...". Skipping this can cost you 20% of your total marks.
• The Double Tally: Always ensure your Trial Balance totals match. If they don't, check your Ledger Balancing first.
• Asset vs. Expense: Buying a Van is an Asset (Dr. Van). Buying fuel for the Van is an Expense (Dr. Fuel/Repairs).
• Bad Debt Recovery: Never credit the person who paid you back; credit "Bad Debt Recovered A/c." That person is legally "dead" in your books until this entry!

Prepared by Focus Edge Education Network (FEEN)
Empowering Grade 11 Students for Academic Excellence

THE ACCOUNTING MASTERCLASS

Comprehensive Guide for NEB Grade 11 & FEEN Students

🔥 Case Study: Goods Lost by Fire (The 3-Step Logic)

This is often the most confusing entry for students. Let's break it down into three possible scenarios:

Scenario A: Goods lost but NOT insured

Loss by Fire A/c ... Dr.
   To Purchase A/c

Reason: Your inventory reduced at cost price, and it's a total loss.

Scenario B: Insurance Company accepts the FULL claim

Insurance Co. A/c ... Dr.
   To Purchase A/c

Reason: You no longer have the loss; you have an Asset (the money the Insurance Co. owes you).

Scenario C: Partial Claim (Lost 10k, Insurer pays 8k)

Insurance Co. A/c ... Dr. 8,000
Profit & Loss A/c (Loss) ... Dr. 2,000
   To Purchase A/c ... 10,000

[Image of accounting for insurance claims on stock loss]

⚡ 20 Golden Rules, Hints & Tricks

1. The "Name" Rule: If a person's name is mentioned without "Cash," it is 100% a credit transaction.

2. Purchase vs. Asset: Buy "Goods"? Use Purchase A/c. Buy "Laptop"? Use Office Equipment A/c.

3. Bank Charges: These are expenses. Always Debit Bank Charges and Credit Bank.

4. Cash vs. Trade Discount: Trade discount is a "ghost"—never show it in the books. Cash discount is "real"—always show it.

5. Drawings in Kind: If the owner takes goods, Credit Purchases. If they take cash, Credit Cash.

6. Bad Debt Recovery: Never credit the Customer's account. Always credit Bad Debt Recovered A/c.

7. Outstanding Expenses: These are liabilities. Entry: Expense A/c Dr. To Outstanding Expense A/c.

8. Prepaid Expenses: These are assets. Entry: Prepaid Expense A/c Dr. To Expense A/c.

9. Depreciation: A non-cash expense. Entry: Depreciation A/c Dr. To Asset A/c.

10. Income Received in Advance: This is a liability (Unearned Income).

11. Accrued Income: Income earned but not received. It is an Asset.

12. Sales Return: Also called "Return Inward." It always has a Debit balance.

13. Purchase Return: Also called "Return Outward." It always has a Credit balance.

14. Trial Balance Secret: If the Trial Balance doesn't match, look for a "Suspense Account."

15. Bank Overdraft: This is a Liability. It belongs on the Credit side of the Trial Balance.

16. Drawings from Bank: Check if it's for "Office use" (Contra) or "Personal use" (Drawings).

17. Carriage Inward: Related to purchases. Goes to the Trading Account.

18. Carriage Outward: Related to sales. Goes to the Profit & Loss Account.

19. Goodwill: An intangible asset. It always has a Debit balance.

20. Closing Stock: Usually given in adjustments. It is NOT recorded in the Trial Balance.

[Image of accounting rules of debit and credit cheat sheet]

📜 Bills of Exchange: A Quick Concept Clearer

Students often confuse Bills Receivable (B/R) and Bills Payable (B/P).

Scenario	In Books of Drawer (Seller)	In Books of Drawee (Buyer)
Bill Drawn/Accepted	B/R A/c Dr. To Drawee	Drawer Dr. To B/P A/c
Bill Honoured (Paid)	Cash/Bank Dr. To B/R	B/P A/c Dr. To Cash/Bank
Bill Dishonoured	Drawee Dr. To B/R	B/P A/c Dr. To Drawer

[Image of the process of a bill of exchange transaction]

"Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money."

Kushal Paudel | Managing Director | FEEN