Example Problem 1) X Ltd. Started business with cash Rs 1,00,000. 2) Purchased goods for cash Rs 10,000.

3) Sold goods to N.S traders for Rs 5000. 4) N.S traders paid Rs 4800 , discount allowed Rs 200.

Journal Entry for X ltd. On 31/12/2011

DATE PARTICULARS Ledger Folio (L.F) Debit (Dr) Rs. Credit (Cr) Rs.

1.

Cash A/C ____ Dr To Capital A/C (Being Initial Capital Invested) Purchases A/C _____ Dr To Cash A/C ( Being Goods Purchased for Cash ) N.S traders A/C _____ Dr To Sales A/C ( Being Goods Sold on Credit ) Cash A/c ______ Dr Discount Allowed A/C _____ Dr To N.S traders A/C
(Being Cash received and Discount allowed )

100000 100000

2.

10000 10000

3. 4.

5000 5000

4800 200 5000

LEDGER CASH A/C

DATE PARTICULARS L.F NO.
AMOUN T RS.

DATE

PARTICULARS

L.F NO.

AMOUNT Rs.

To capital a/c To N.S traders

100000 4800

By purchases a/c By balance b/d

10000 94800

104800

104800

CAPITAL A/C
DATE PARTICULARS L.F NO. AMOUNT RS. DATE PARTICULARS L.F NO. AMOUNT RS.

By balance b/d

1,00,000

By cash a/c

1,00,000

1,00,000

1,00,000