Journal Entries

DATE Apr 1 Cash A/c To Capital A/c (Being business started with cash) Apr 2 SBI A/c To Cash A/c (Being cash deposited in State Bank of India) Apr 3 PNB A/c To Cash A/c (Being cash deposited in Punjab National Bank) Furniture A/c To SBI A/c (Being furniture purchased and payment made by cheque) Machinery A/c To Taruns A/c (Being machinery purchased from Tarun) Purchase A/c To Harishs A/c (Being goods purchased from Harish) Dr. 5,00,000 5,00,000 Dr. 1,00,000 1,00,000 Dr. 1,50,000 1,50,000 Dr. 50,000 50,000 . Dr. 10,00,00 0 10,00,000 PARTICULARS Dr L.F. DEBIT 20,00,00 0 20,00,000 CREDIT

Apr 4

Apr 5

Apr 6

DATE Apr 7 Jais A/c To Sales A/c (Being goods sold to Jai)

PARTICULARS Dr.

L.F.

DEBIT 2,00,000

CREDIT

2,00,000 Dr. 1,000 1,000 49,000 4,000 45,000 10,000 10,000 Dr. Dr. 1,80,000 10,000 1,90,000 Dr. 30,000 30,000 Dr. 1,00,000

Apr 8

Harishs A/c To Purchase Return A/c (Being goods returned to Harish)

Apr 9

Harishs A/c Dr. To Discount Received A/c To Cash A/c (Being cash paid to Harish in full settlement of his account and discount received) Dr.

Apr 10 Sales Return A/c To Jais A/c (Being goods returned by Jai) Apr 11 PNB A/c Discount Allowed A/c To Jais A/c (Being cash paid by Jai in full settlement of his account and discount allowed) Apr 12 Purchase A/c To Cash A/c (Being goods purchased for cash) Apr 13 SBI A/c

DATE

PARTICULARS To Sales A/c (Being goods sold and payment received by cheque)

L.F.

DEBIT

CREDIT 1,00,000

Apr 14 Namans A/c To Sales A/c (Being goods sold to Naman) Apr 15 Namans A/c To Interest Received A/c (Being interest charged on Naman for late payment) Apr 16 Cash A/c To Namans A/c (Being cash paid by Naman in full settlement of his account) Apr 17 Salary A/c To PNB A/c (Being salary paid by cheque) Apr 18 Rent A/c To Cash A/c (Being rent paid by cash) Apr 19 Wages A/c To Cash A/c (Being wages paid) Apr 20 Carriage Inward A/c

Dr.

20,000 20,000

Dr.

1,000 1,000

Dr.

21,000 21,000

Dr.

60,000 60,000

Dr.

7,000 7,000

Dr.

15,000 15,000

Dr.

6,000

DATE To Cash A/c (Being carriage inward paid) Apr 21 Carriage Outward A/c To Cash A/c (Being carriage outward paid)

PARTICULARS

L.F.

DEBIT

CREDIT 6,000

Dr.

7,500 7,500

Apr 22 Cash A/c To SBI A/c (Being cash withdrawn from State Bank of India) Apr 23 Drawings A/c To Cash A/c (Being cash withdrawn by proprietor for personal use) Apr 24 Union Bank A/c To Cash A/c (Being cash deposited in Union Bank for 5 years) Apr 25 Drawings A/c To SBI A/c (Being cash withdrawn from SBI by proprietor for personal use) Apr 26 Traveling Expenses A/c To SBI A/c (Being traveling expenses paid by cheque) Apr 27 Interest paid A/c

Dr.

20,000 20,000

Dr.

4,000 4,000

Dr.

10,000 10,000

Dr.

5,000 5,000

Dr.

20,000 20,000

Dr.

2,000

DATE To SBI A/c (Being interest charged by SBI)

PARTICULARS

L.F.

DEBIT

CREDIT 2,000

Apr 28 Depreciation on Furniture A/c To Furniture A/c (Being depreciation charged on Furniture) Apr 29 Taruns A/c To SBI A/c (Being amount paid to Tarun by cheque in full settlement of his account) Apr 30 Depreciation on Machinery A/c To Machinery A/c (Being depreciation charged on machinery) May 1 SBI A/c To ICICI A/c (Being loan taken from ICICI and deposited in SBI) Interest paid A/c To ICICI A/c (Being interest charged by ICICI) ICICI A/c To SBI A/c (Being loan paid back to ICICI in full settlement of its account)

Dr.

10,000 10,000

Dr.

1,50,000 1,50,000

Dr.

25,000 25,000

Dr.

1,00,000 1,00,000

Dr.

10,000 10,000

Dr.

1,10,000 1,10,000

DATE 4 Rajeshs A/c To SBI A/c (Being loan given to Rajesh)

PARTICULARS Dr.

L.F.

DEBIT 1,50,000

CREDIT

1,50,000 Dr. 15,000 15,000 Dr. 1,65,000 1,65,000 Dr. 50,000 50,000 Dr. 10,00,00 0 10,00,000 Dr. 5,00,000 5,00,000 Dr. 1,00,000 1,00,000

Rajeshs A/c To Interest Received A/c (Being interest charged on Rajesh) SBI A/c To Rajeshs A/c (Being loan paid back by Rajesh in full settlement of his account) Furniture A/c To SBI A/c (Being furniture purchased and payment made by cheque) SBI A/c To SBI A/c (Being commission received by cheque and deposited in SBI)

PNB A/c To Brokerage Received A/c (Being brokerage received by cheque and deposited in PNB) PNB A/c To Cash A/c

10

DATE (Being cash deposited in PNB) 11

PARTICULARS

L.F.

DEBIT

CREDIT

Drawings A/c To Purchase A/c (Being goods withdrawn by proprietor for personal use) Land & Building A/c To PNB A/c (Being land & building purchased and payment made by cheque)

Dr.

2,000 2,000

12

Dr.

11,00,00 0 11,00,000

13

Profit & Loss A/c To Provision for Bad & Doubtful Debts A/c (Being provision created for bad & doubtful debts) Profit & Loss A/c To Provision for Discount on Debtors A/c (Being provision for discount on debtors created) Loss of goods by Theft A/c To Purchase A/c (Being goods lost by theft) Loss of goods by Fire A/c To Purchase A/c (Being goods lost by Fire)

Dr.

10,000 10,000

14

Dr.

5,000 5,000

15

Dr.

1,000 1,000

16

Dr.

500 500

DATE PARTICULARS 17 Reliance Infocomm A/c To SBI A/c (Being amount invested in Reliance by cheque) 18 Transfer Inward A/c To Aliganj Branch A/c (Being goods purchased from Aliganj Branch) Mahanagar Branch A/c To Transfer Outward A/c (Being goods sold to Mahanagar Branch) Computer A/c Laptop A/c To SBI A/c (Being computer and laptop purchased and payment made by cheque)

L.F. Dr.

DEBIT 70,000

CREDIT 70,000

Dr.

10,000 10,000

19

Dr.

12,000 12,000

20

Dr. Dr.

25,000 66,000 91,000

Cash A/c
Dr. Cr.

Date Apr 1

Particulars To Capital A/c

J.F. Amount 20,00,00 0 21,000 10,000

Date Apr 2 Apr 3 Apr 9 Apr 12 Apr 18 Apr 19 Apr 20 Apr 21 Apr 23 Apr 24 May 10 May 31

Particulars By SBI A/c By PNB A/c By Harishs A/c By Purchase A/c By Rent A/c By Wages A/c By Carriage Inward A/c By Carriage Outward A/c By Drawings A/c By Union Bank A/c By PNB A/c By Balance c/d

J.F. Amount 10,00,000 5,00,000 45,000 30,000 7,000 15,000 6,000 7,500 4,000 10,000 1,00,000 3,06,500 20,31,000

Apr 16 To Namans A/c Apr 22 To SBI A/c

Jun 1

To Balance b/d

20,31,00 0 3,06,500

SBI A/c
Date Apr 2 Apr 13 May 1 May 6 May 8 Particulars To Cash A/c To Sales A/c To ICICI A/c To Rajeshs A/c To Commission Received A/c J.F. Amount 10,00,00 0 1,00,000 1,00,000 1,65,000 10,00,00 0 Date Apr 4 Apr 22 Apr 25 Apr 26 Apr 27 Apr 29 May 3 May 4 May 7 May 17 May 20 May 20 May 31 Jun 1 To Balance b/d 23,65,00 0 16,07,00 0 Particulars By Furniture A/c By Cash A/c By Drawings A/c By Traveling Expenses A/c By Interest paid A/c By Taruns A/c By ICICI A/c By Rajeshs A/c By Furniture A/c By Reliance Infocomm A/c By Computer A/c By Laptop A/c By Balance c/d J.F. Amount 1,00,000 10,000 5,000 20,000 2,000 1,50,000 1,10,000 1,50,000 50,000 70,000 25,000 66,000 16,07,000 23,65,000

PNB A/c
Date Apr 3 Apr 11 May 9 May 10 Jun 1 Particulars To Cash A/c To Jais A/c To Brokerage Received A/c To Cash A/c To Balance b/d J.F. Amount 5,00,000 1,80,000 5,00,000 1,00,000 12,80,00 0 1,20,000 Date Particulars J.F. Amount 60,000 11,00,000 1,20,000 12,80,000 Apr 17 By Salary A/c May 12 By Land & Building A/c May 31 By Balance c/d

Capital A/c
Date Particulars J.F. Amount 20,00,00 0 20,00,00 0 Date Particulars J.F. Amount 20,00,000 20,00,000 Jun 1 By Balance b/d 20,00,000 May 31 To Balance c/d Apr 1 By Cash A/c

Drawings A/c
Date Particulars J.F. Amount Date 4,000 5,000 2,000 11,000 11,000 Particulars J.F. Amount 11,000 11,000 Apr 23 To Cash A/c Apr 25 To SBI A/c May 11 To Purchase A/c Jun 1 Date To Balance b/d Particulars May 31 By Balance c/d

Provision for Bad & Doubtful Debts

J.F. Amount Date 10,000 10,000 Particulars J.F. Amount 10,000 10,000 10,000 May 31 To Balance c/d May 13 By Profit & Loss A/c Jun 1 By Balance b/d

Provision for Discount on Debtors A/c

Date Particulars J.F. Amount Date 5,000 5,000 Particulars J.F. Amount 5,000 5,000 5,000 J.F. Amount 10,000 1,40,000 1,50,000 May 31 To Balance c/d May 14 By Profit & Loss A/c Jun 1 Date Particulars J.F. Amount Date By Balance b/d

Furniture A/c
Particulars Apr 4 To SBI A/c May 7 To SBI A/c Jun 1 To Balance b/d 1,00,000 Apr 28 By Depreciation on Furniture A/c 50,000 May 31 By Balance c/d 1,50,000 1,40,000

Machinery A/c
Date Particulars J.F. Amount Date Particulars J.F. Amount 25,000 1,25,000 1,50,000 Apr 5 To Taruns A/c Jun 1 To Balance b/d 1,50,000 Apr 30 By Depreciation on Machinery A/c May 31 By Balance c/d 1,50,000 1,25,000

Land & Building A/c

Date Particulars J.F. Amount Date Particulars J.F. Amount May 12 To PNB A/c 11,00,00 May 31 By Balance c/d 11,00,000 0 11,00,00 11,00,000 0 11,00,00 J.F. 0Amount Date Particulars J.F. Amount 25,000 25,000 25,000 May 31 By Balance c/d 25,000 25,000

Computer A/c

Jun 1 Date

To Balance b/d Particulars

May 20 To SBI A/c Jun 1 Date To Balance b/d Particulars

Laptop A/c
J.F. Amount Date 66,000 66,000 66,000 Particulars J.F. Amount 66,000 66,000 May 20 To SBI A/c To Balance b/d May 31 By Balance c/d

Reliance Infocomm A/c

Date Particulars J.F. Amount Date 70,000 70,000 70,000 Particulars J.F. Amount 70,000 70,000 May 17 To SBI A/c Jun 1 To Balance b/d May 31 By Balance c/d

Union Bank A/c

Date Particulars J.F. Amount Date 10,000 10,000 10,000 Particulars J.F. Amount 10,000 10,000 Apr 24 To Cash A/c Jun 1 To Balance b/d May 31 By Balance c/d

Aliganj Branch A/c

Date Particulars J.F. Amount Date 10,000 10,000 Particulars J.F. Amount 10,000 10,000 10,000 May 31 To Balance c/d May 18 By Transfer Inward A/c Jun 1 By Balance b/d

Mahanagar Branch A/c

Date Particulars J.F. Amount Date 12,000 12,000 12,000 Particulars J.F. Amount 12,000 12,000 May 19 To Transfer Outward A/c May 31 By Balance c/d

Sales A/c

Jun 1

To Balance b/d

Date

Particulars

J.F. Amount Date 3,20,000 Apr 7

Particulars By Jais A/c

J.F. Amount 2,00,000 1,00,000 20,000 3,20,000

May 31 To Trading A/c

Apr 13 By SBI A/c By Namans A/c 3,20,000

Sales Return A/c

Date Particulars To Jais A/c J.F. Amount Date Particulars 10,000 10,000 By Trading A/c J.F. Amount 10,000 10,000

Transfer Outward
Date Particulars J.F. Amount Date 12,000 12,000 Particulars J.F. Amount 12,000 12,000 May 31 To Trading A/c May 19 By Mahanagar Branch

Purchase A/c
Date Particulars J.F. Amount Date 50,000 30,000 80,000 May 11 May 15 May 16 May 31 Particulars By Drawings A/c By Loss of Goods by Theft A/c By Loss of Goods by Fire A/c By Trading A/c J.F. Amount 2,000 1,000 500 76,500 80,000 Apr 6 To Harishs A/c Apr 12 To Cash A/c

Purchase Return A/c

Date Particulars J.F. Amount Date 1,000 1,000 Particulars J.F. Amount 1,000 1,000 May 31 To Trading A/c May 8 By Harishs A/c

Transfer Inward A/c

Date Particulars J.F. Amount Date 10,000 10,000 Particulars J.F. Amount 10,000 10,000 May 18 To Aliganj Branch May 31 By Trading A/c

Carriage Inward A/c

Date Particulars J.F. Amount Date 6,000 6,000 Particulars J.F. Amount 6,000 6,000 Apr 20 To Cash A/c May 31 By Trading A/c

Wages A/c
Date Particulars J.F. Amount Date 15000 15,000 Particulars J.F. Amount 15,000 15,000 Apr 19 To Cash A/c May 30 By Trading A/c

Brokerage Received A/c

Date Particulars J.F. Amount Date Particulars J.F. Amount 5,00,000 5,00,000 May 31 To Profit & Loss A/c 5,00,000 May 9 By PNB A/c 5,00,000

Commission
Date Particulars

Received A/c
J.F. Amount 10,00,00 0 10,00,00 0 Date Particulars J.F. Amount 10,00,000 10,00,000 May 31 To Profit & Loss A/c May 8 By PNB A/c

Discount
Date Particulars

Received A/c
J.F. Amount Date 4,000 4,000 Particulars J.F. Amount 4,000 4,000 May 31 To Profit & Loss A/c Apr 9 By Harishs A/c

Interest Received A/c

Date Particulars J.F. Amount Date 16,000 16,000 Particulars J.F. Amount 1,000 15,000 16,000 May 31 To Profit and Loss A/c Apr 15 By Namans A/c May 5 By Rajeshs A/c

Carriage Outward A/c

Date Particulars J.F. Amount Date 7,500 7,500 Particulars J.F. Amount 7,500 7,500 Apr 21 To Cash A/c May 31 By Profit and Loss A/c

Depreciation
Date Particulars

on Furniture A/c
J.F. Amount Date 10,000 10,000 Particulars J.F. Amount 10,000 10,000 Apr 28 To Furniture A/c May 31 By Profit and Loss A/c

Depreciation on Machinery A/c

Date Particulars J.F. Amount Date 25,000 25,000 Particulars J.F. Amount 25,000 25,000 Apr 30 To Machinery A/c May 31 By Profit and Loss A/c

Discount Allowed A/c

Date Particulars J.F. Amount Date 10,000 10,000 Particulars J.F. Amount 10,000 10,000 Apr 11 To Jais A/c May 31 By Profit and Loss A/c

Interest Paid A/c

Date Particulars J.F. Amount Date 2,000 10,000 12,000 Particulars J.F. Amount 12,000 12,000 Apr 27 To SBI A/c May 2 To ICICI May 31 By Profit and Loss Account

Loss of Goods by Fire A/c

Date Particulars J.F. Amount Date 500 500 Particulars J.F. Amount 500 500 May 16 To Purchase A/c May 31 By Profit and Loss A/c

Loss of Goods by Theft A/c

Date Particulars J.F. Amount Date 1000 1000 Particulars J.F. Amount 1000 1000 May 15 To Purchase A/c May 31 By Profit and Loss A/c

Rent A/c
Date Particulars J.F. Amount Date 7,000 7,000 Particulars J.F. Amount 7,000 7,000 Apr 18 To Cash A/c May 31 By Profit and Loss A/c

Salary A/c
Date Particulars J.F. Amount Date 60,000 60,000 Particulars J.F. Amount 60,000 60,000 Apr 17 To PNB A/c May 31 By Profit and Loss A/c

Traveling Expenses A/c

Date Particulars J.F. Amount Date 20,000 20,000 Particulars J.F. Amount 20,000 20,000 Apr 26 To SBI A/c May 31 By Profit and Loss A/c

Harishs A/c
Date Particulars J.F. Amount Date 1,000 45,000 4,000 50,000 Particulars J.F. Amount 50,000 50,000 Apr 8 To Purchase Return A/c Apr 9 To Cash A/c Apr 9 To Discount Received A/c Apr 6 By Purchase A/c

ICICI A/c
Date Particulars J.F. Amount Date Particulars J.F. Amount 1,00,000 10,000 1,10,000 J.F. Amount 10,000 1,80,000 10,000 2,00,000 May 3 To SBI A/c 1,10,000 May 1 By SBI A/c May 2 By Interest Paid A/c 1,10,000

Jais A/c
Date Particulars J.F. Amount Date Particulars Apr 7 To Sales A/c 2,00,000 Apr 10 By Sales Return A/c Apr 11 By PNB A/c Apr 11 By Discount Allowed A/c 2,00,000

Namans A/c
Date Particulars J.F. Amount Date 20,000 1,000 21,000 Particulars J.F. Amount 21,000 21,000 Apr 14 To Sales A/c Apr 15 To Interest Received A/c Apr 16 By Cash A/c

Rajeshs A/c
Date Particulars J.F. Amount Date Particulars J.F. Amount 1,65,000 1,65,000 May 4 To SBI A/c May 5 To Interest Received A/c 1,50,000 May 6 By SBI A/c 15,000 1,65,000

Taruns A/c
Date Particulars J.F. Amount Date Particulars J.F. Amount 1,50,000 1,50,000 Apr 29 To SBI A/c 1,50,000 Apr 5 By Machinery A/c 1,50,000

Trial Balance
Of Pravahs Business as on 31st May, 2009
Particulars Cash A/c SBI A/c PNB A/c Capital A/c Drawings A/c Provision for Bad & Doubtful Debts A/c Provision for Discount on Debtors A/c Furniture A/c Machinery A/c Land & Building A/c Computer A/c Laptop A/c Reliance Infocomm A/c Union Bank A/c Aliganj Branch A/c Mahanagar Branch A/c Sales A/c Sales Return A/c Transfer Outward A/c Purchase A/c Purchase Return A/c Transfer Inward A/c Debit 3,06,500 16,07,00 0 1,20,000 11,000 10,000 5,000 1,40,000 1,25,000 11,00,00 0 25,000 66,000 70,000 10,000 10,000 12,000 3,20,000 10,000 12,000 76,500 1,000 10,000 Credit

20,00,000

Carriage Inward A/c Wages A/c Brokerage Received A/c Commission Received A/c Discount Received A/c Interest Received A/c Carriage Outward A/c Depreciation on Furniture A/c Depreciation on Machinery A/c Discount Allowed A/c Interest Paid A/c Loss of goods by fire A/c Loss of goods by theft A/c Rent A/c Salary A/c Traveling Expenses A/c Profit & Loss A/c

6,000 15,000 5,00,000 10,00,000 4,000 16,000 7,500 10,000 25,000 10,000 12,000 500 1,000 7,000 60,000 20,000 15,000 38,78,00 0

38,78,000