Mr.

Kamal Gupta promoter of Kamal Enterprises established his proprietary firm to start a business
He hires an office, fitted with fans, lights and AC at X place @ Rs. 4, 500 p.m. An electricity connectio
Mr. Chandra Prakash owner. Kamal Enterprise will pay the electricity consumed as per the bill rece
suppliers. The following are the details of the transactions entered into by the firm during the three
week of July.
Date Tr. No. Transaction
1-Apr
1
1

1
2
3

Received cash from Kamal Gupta towards the capital

Opened a Current Account no. 206 with PNB
Issued cheque no. 120 towards security deposit to Chandra Prakash
Deposit carries 10% p.a. interest receivable quarterly

1
1
1

4
5
-

Purchased one Cell phone in cash from Mobile Center

Booked in cash a pre paid one year cell connection
Appointed one peon Naveen and one office assistant Rangaswami on
a monthly salary of Rs. 3,000 and Rs. 6,000 respectively. Ordered
EMM EII Printers to print invoices, letter heads, visiting cards and
vouchers etc. for Rs. 1,250

Purchased office furniture from Mod Furnishers, issued cheque no.

121

Purchased bike from Bagga Auto. All initial ost including insurance
borne by the vendor issued cheque no. 122

2
2
2
3

8
9
10
11

Purchased bycycle from Remsons store. Paid cash

Received printed stationery. Issued cheque No. 123
Purchased other office stationery in cash from others
Purchase HCL Computer with printing issued cheque No. 124 to
Delphi Marketing

12

Purchased 100 units of Product Y from ABC Ltd. Invoice no.

ABC/Inv/001, issued cheque no. 125

13

Cash paid to the transport towards freight of the above purchase

14

Sold 20 units of Y to DE & Co. vide invoice no. Ke/Inv/1. Received

cheque no. 2345 drawn on Syndicate Bank

6
10

15
16

Sold 5 units of Y to a customer vide cash memo no. KE/CM/1

Purchase 80 units from Y from GH Ltd vide their invoice no.
GH/Inv/12. Issued cheque no. 126

10
12

17
18

Cash paid towards fright of the above purchase

Sold 15 units of Y to JK Ltd. Vide invoice no. Ke/INV/2. Received
cheque no. 321 drawn on Corporation Bank

14

19

Sold 25 Units of Y to MN vide Invoice no. KE/Inv/02. Received cheque

no. 456 drawn on Corporation Bank

16

20

Cash paid to the local caf for the fortnightly bill of tea and snacks

18

21

Purchased 25 units of Y from PQR vide their invoice no. PQR/Inv/009

on credit of 15 days

18
21
22

22
23
24

Cash paid towards freight of the above purchase

Sold 22 units of Y to STU & Co. vide invoice no. KE/Inv/010
Purchased 45 units of Y from ABC vide their invoice no. ABC/Inv/012.
Freight Rs. 760 included. Issued cheque no. 127

28
30
1-May
1
1

25
26
27
28
29

Received cheque no. 567 drawn on Citibank from STU & Co.
Issued cheque no. 128 to Kamal Gupta for his personal use
Cheque no. 129 issued to Ramaswamy towards April Salary
Cash paid to Naveen towards April Salary
Cash paid to the local caf for the fortnightly bill of tea and snacks for
April

1
1

30
31

Issue cheque no. 130 to Chandra Prakash for Aprils rent

Cash paid to Petrol Pump for petrol consumed by the motorcycle
during April

32

Sold 30 units of Y to MN & Co. @ 2,475 per unit minus a trade

discount of 1%. Received cheque no. 4567 drawn on Corporation
Bank

3
10

33
34

Issued Cheque No. 131 to PQR Ltd.

Sold 35 units of Y to STU & Co. invoice no. KE/Inv/013 on credit of one
month

14

35

STU & Co. returned back 5 units of Y vide Return Memo no.
STU/RM/006

14
25

36
37

Cash paid to Chandra Praksh towards electricity for April

Received cheque no. 567 drawn on Citibank from STU & Co. 15 days
before the due date. Allowed cash discount of Rs. 300

25

38

Provide 1 unit of Y to MNO & Co. as sales incentive. Valued @ of last

purchase, i.e., from ABC Ltd on April 22-transaction no. 24

28

39

Sold 40 units of Y to MNO & Co. vide invoice no. KE/Inv/023. Received
cheque no. 476 drawn on Corporation Bank

28
29
29

40
41
42
29 43
1-Jun 44
1 45
1 46
1 47
1 48
1 49
5 50

Borne the freight for the above sale. Paid cash

Sold 5 units of Y to a customer vide cash memo KE/CM/002
Deposited cash in PNB
Cheque no. 132 issued for advertisement in a local daily East Delhi Ne
Cheque no. 133 issued to Ramaswamy towards salary for May
Cash paid to Naveen towards May Salary
Cash paid to local caf for the montly bill of tea and snacks for May
Issue cheque no. 136 to Chandra Prakash for Mays rent
Cash paid to Petrol Pump for petrol consumed by the motorcycle durin
Cheque no. 137 isseu to Tata AIG insurance for a comprehensive insura
Sold 25 units of Y to STU & Co. vide invoice no. KE/Inv/0012 on credit

51

8
8 52
10 53
10 54
15 55
15 56
57

15
15 58
25 59
28 60
28 61
62

28
28 63

Purchsed 80 units of Y from PQR Ltd. Vide invoice no. PQR/Inv/040 @

Rs. 2,105 per unit minus a trade discount of 1.5%.
Issued Cheque no. 1245
Cash paid towards freight of the above purchase
sold 40 units of Y to MNO & Co. vide invoice no. KE/Inv/023. Received
cash withdrawn from PNB, Issued cheque no. 1234
Purchsed 80 units of Y from PQR Ltd. Vide invoice no. PQR/Inv/045 on a
Cash paid towards freight of the above purchase
Purchase one Maruti van from Competent Motors all inclusive. Availed
a loan of Rs. 1,65,000 from PNB payable in
33 monthly instalments. Issued cheque no. 138 for the balance.
Instalments of loan payable on the 1st of every month together with
interest @ 12% p.a. on reducing balance
Sold 2 units of Y to OP & Co. vide invoice no. KE/Inv/012 on a week's cr
Sold 45 units of Y to MNO & Co. vide invoice no. KE/Inv/013 on 15 day's
Purchase 50 unit of Y from ABC Ltd. Vide their invoice no. ABC/Inv/090
Cash paid towards freight of the above purchase
Issued 1 unit of Y to Kamal Gupta for his personal use. Valued @ of
last purchase from ABC ltd. On June 28-transaction
no. 60. Freight cost ignored on valuation
Received cheque no. 139 and 150 for Rs. 25,000 each, from VWX & Co.
Gets sanction of cash credit limit from PNB against inventory and
debtors. Interest payable quarterly @ 15 % p.a., a new account
PNB Cash Credit A/C no. 125 is oppened

29
64

Issued Cheque no. 145 to PQR Ltd. Towards half of the dues 15 days
before the due date and availed a cash discount of Rs. 400

30
65

Returned 10 units back to ABC Ltd. Vide return memo no.

KE/PR/080

66

Cheque no 456 issued to PNB for DD no. 678 given to XYZ

as advance against 35 units of Y to be delivered by the suppliers. PNB
charged Rs. 200 as commission

67

Cheque no. 897 received from VWX & Co. dishonoured

and returned by PNB

68
30
30
30

Purchased 10 units of Y from ABC vide their invoice no.

ABC/Inv/098. Issued cheque no. 213 from the cash credit A/c. Freight
borne by the supplier
Balance in the mobile as at the clsoe of 30th June
Business closed by OPN & Co.. Recovery from them impossible

30

Received order of 15 units of Y from PLR & Co. However , the sale
could not be effected

30

30
30

Required:
1. Record these transactions in the journal of Kamal Enterprise for three months ended
30th June, 2006
2. Post the transactions from Journal to Ledger
3. Prepare the Trial Balance as on 30th June, 2006

y firm to start a business of trading in Product Y on 1 April 2006.

An electricity connection already in place exists in the name of
med as per the bill received by the owner from the Electricity
he firm during the three month period of April to June and first
Amount
(Rs.)
5,00,000
4,75,000
13,500

9,500
3,900

25,400
54,550
1,650
1,250
1,275
40,250
2,02,000
1,550
46,200
11,750
1,63,200
1,325
35,850
59,750
945

92,475
710
53,350
92,475

..
5,000
.
.
1,075
4,500
570

92,475
85,750
12,250
850
73,200

2,055

1,00,400
750
12,750
5,000
3,200
.
.
2,075
.
525
4,500
62,375

1,65,874
1,470
99,600
5,000
1,70,000
1,470

1,95,000
5,150
1,14,750
1,07,250
715

2,145
50,000

1,00,000

84,600
21,450

40,200
25,000

21,500
1,500
.
39,750

hree months ended