Subject: Financial Accounts

Topic: Self Balancing Ledger By: Questionscastle Academic Team Document Code: CA/IPCC/ACC/00025
Q 1. From the following books extracted from the books of Mr. Janardan for 1988 the general ledger adjustment account in the bought ledger and sales ledger: ` Balance of the Bought Ledger Adjustment Account as on 1-1-88 (Cr) 3,860 Balance of the Debtor Ledger Adjustment Account as on 1-1-88 (Dr) 2,750 Credit Purchases 40,000 Acceptance received from customers 2,500 Allowance received 400 Credit Sales 50,000 Collection from debtors 29,000 Sales return 400 Credit transferred from bought ledger to sales ledger 75 Cash Sales 2,000 Acceptance returned to us dishonored 700 Paid to creditors 13,000 Q 2. Below given particulars from the sales ledger of Shri Kanhaiya Lal for the month of Mar 1990: 1-3-1990 ` Opening Balance 1-3-1990 31,000 Total Sales for the month 91,000 Sales Return 1,500 Cash received from debtors 41,000 Bills Receivable 16,000 Discount allowed to debtors 2,500 Bad Debts 1,400 Transfer from others 1,750 Bills receivable endorsed to suppliers 2,200 You are required to prepare Sales Ledger and General Ledger Adjustment Account. Q 3. Calculate the total credit sales and credit purchases for the year ended 31st Mar 1990. ` Total Debtors on April 1 1989 14,750 Total Creditors on 1st April 1989 8,970 Cash received from the debtors during the year 57,450 Discount allowed during the year 580 Returns Inward 1,150 Bills received from the customers 9,600 Cash paid to creditors 29,780 Discount allowed by them 430 Returns to suppliers 520 Bills issued to them 6,400 Total Debtors on Mar 31st 1989 13,890 Total Creditors on Mar 31st 1989 9,450 Q 4. The following information is available from the books of Mr. A, a trader from 1st Jan to Mar 31st 1998. 1. Total Sales amounted to `60,000 including the sale of old furniture for `1,200 (book value `3,500). The Total cash sales were 80% less than the total credit sales. 2. Cash collection from the debtors amounted to 60% of the aggregate of the opening debtors and credit sales for the period. Debtors were given a cash discount of `2,600.

Questionscastle.com

Page 1

3. B/R of `6,000 were drawn during the three months period of which bills amounting to `3,000 were endorsed to the suppliers. Out of these bills a bill of `600 was dishonored and nothing was realized. 4. Purchases were of `16,000 of which 10% were in cash. 5. Sundry Debtors as on 1st Jan 1998 were `40,000. 6. A cheque of `6,000 received from a customer was dishonored, Bad debts written off in previous years realized `2,500 and a sum of `500 is irrecoverable. Prepare a Debtor Ledger Adjustment Account in general ledger. Q 5. Prepare journal entries for the following: 1. The sales book was found under cast by `1,000. 2. Discount allowed to Rao was `50, correctly entered in cash book but was not posted in his account. 3. Credit balance of `310 in Mr. Murty’s account in purchase ledger was to be transferred to his account in sales ledger. Prepare journal entries in both self balancing system and sectional balancing system. Q 6. Mr. Govinda proprietor of Govinda-Gopala Dairy keeps self balancing ledgers. The following transactions are provided to you. 1-4-2001 Received `475 from Mr. X in full settlement. He was allowed a discount of `25. 2-4-2001 Received `2,000 from Mr. Y towards his dues in full. 3-4-2001 Goods supplied to Mr. T for `700 and received `300 after adjustment of the advance of `400. 4-4-2001 Bad Debts recovered from Mr. Q `1,000 5-4-2001 Following sales were made: Mr. A - `1,000 Mr. B - `1,500 Mr. C - `2,000 15-4-2001 Mr. P paid `750 towards dues. Balance after this due was `250 25-4-2001 Amount received from the following Mr. A - `750 Mr. B - `1,000 Mr. C - `2,000 30-4-2001 Advance received from Mr. R for supply `2,000 Record the above transactions in the general ledger adjustment account in the sales ledger. Q 7. The following information has been provided to you. You are required to prepare (a) Sales Ledger Adjustment Account, (b) Bought Ledger Adjustment Account, in the general ledger. On 1-4-1994 Balance of Bought Ledger: `10,000 (Dr.), `96,000 (Cr.) Balance of Sales Ledger: `1,41,880 (Dr.), `2,240 (Cr.) On 31-3-1995 ` Purchases 5,40,000 Purchases Return 20,000 Total Sales 7,68,000 Cash Sales 40,000 Sales Return 10,000 Cash received from customers 6,24,000 Bought Ledger Balance (Dr.) 10,400 Sales Ledger Balance (Dr.) 1,83,200 Transfer from Sales to bought ledger 20,800 Discount Received 7,200 Bills Receivable received 40,000 Bills Payable Issued 22,400 Reserve for doubtful debts 9,160 Cash paid to customers 1,840

Questionscastle.com

Page 2

Bills Receivable dishonored Discount Allowed Cash paid to suppliers

6,000 11,200 4,80,000

Q 8. The following information is available from the books of a concern for the half year ended 30th June,1996: ` Sales 5,63,000 Purchases 3,22,000 Returns Outward 7,600 Cash received from debtors 1,84,200 Bills Payable Accepted 1,20,000 Returns Inward 16,800 Cash paid to creditors 1,80,200 Bills Receivable received 1,60,000 Discounts Received 4,200 Bad Debts written off 12,000 Discount Allowed 10,800 Transfers from Purchase Ledger 6,800 The Total of Sales Ledger Balance on 1st Jan 1996 was `3,20,800 and that of the Purchases Ledger balance on the same date was `1,86,400. Prepare Sales Ledger and purchase Ledger Adjustment accounts from the above information. Q 9. From the following information as extracted from the books of M/s Kulkarni Brothers, who keep Debtor Ledger, Creditor Ledger and a general ledger on the self-balancing system, show the general Ledger Adjustment Account in the Debtors Ledger and Creditors Ledger. ` Debtors Balance on 1st Jan 1997 91,500 Creditors Balance on 1st Jan 1997 1,09,800 Transactions for the year 1997: Credit Purchases 41,000 Credit Sales 45,400 Return Inwards 800 Return Outwards 1,200 Cash Received from customers 51,000 Discount Allowed to customers 900 Cash paid to creditors 61,400 Discount received 1,340 Acceptances Received 17,000 Acceptances Given 24,000 Bills Payable dishonored 6,000 Bad Debts Written Off 5,000 Sundry Charges debited to customers 690 Allowances from creditors 550 Transfer from the debtors Ledger 1,290 Q 10.From the following information available from the books of Jagdis, a trader from 1-1-2000 to 31-32000. You are required to draw up a Debtors Ledger Adjustment Account in the general ledger. 1. Total Sales amounted to `1,80,000 including the sale of Old Xerox Machine for `4,800 (Book Value `8,000). The total cash sales were 80% less than the total credit sales. 2. Cash collections from the debtors amounted to 70% of the aggregate of the opening debtors and credit sales for the period. Debtors were given a cash discount of `20,000. 3. Bills receivable drawn during the three months totaled `30,000 of which bills amounting to `10,000 were endorsed to suppliers. Out of the endorsed bills one bill of `6,000 was dishonored and nothing was realized from the party. 4. Cheques received from the customers `8,000 were dishonored a sum of `2,000 was irrecoverable. Bad debts written off in earlier years realized `11,000.

Questionscastle.com

Page 3

5. Sundry Debtors as on 1-1-2000 were `5,000.

Questionscastle.com

Page 4

Sign up to vote on this title
UsefulNot useful