Q3.

Enter the following transaction in the journal of Sultan, and post them to the
Ledger.
2006
Jan.1 Asset in hand: Cash RO 630; Cash at Bank RO 23,100
Stock of goods RO 26,400; M & Co. RO 6,750
Liabilities : Marathi & Co. RO 3,880; Ali & Sons RO 3,000
Jan.2 Received a cheque from M & Co. in full settlement RO 6,650
Jan.4 Sold goods to Mohammed & Sons on credit RO 1,440
Carriage paid RO 35
Sold goods to G. & Co. for cash RO 3,120
Jan.5 Brought goods from Ali & Sons on credit RO 4,000
Paid Marathi & Co. by cheque in full settlement Ro 3,800
Jan.6 Brought goods from Omar RO 6,300
Jan.13 Returned goods to Omar RO 300
Jan.16 Goods used personally by proprietor RO 50
Jan.17 Sold goods to M. & Co. RO 5000
Jan.20 Cheque received from Mohammed &Sons RO 1,440
Jan.22 Bank advises Mohammed & Sons cheque returned unpaid
Jan.24 Cash deposited with bank RO 2,000
Jan.27 Cheque sent to Omar (Discount allowed RO.150) RO 5,850
Jan.31 Paid salaries RO 600
Paid rent RO 300
SOLUTION.

Journal entries in the books of Sultan

DATE PARTICULARS L.F DEBIT CREDIT
2017 Cash a/c 630
Jan.1 Cash at bank a/c 23100
Goods a/c 26400
M & Co. a/c 6750
To Marathi & Co. a/c 3880
To Ali & Sons a/c 3000
To Capital a/c (bal. fig.) 50000
(being opening assets and
liabilities)
Jan.2 Bank a/c 6650
Discount allowed a/c 100
To M & Co. a/c 6750
(being received cheque from M
& Co. in full settlement)
Jan.4 Mohammed & Son a/c 1440
To sales a/c 1440
(being sold goods to Mohammed
& son on credit)
Carriage a/c 35
To cash a/c 35
(being carriage paid)
Cash a/c 3120
To Sales a/c 3120
(being goods sold for cash)
Jan.5 Goods a/c 4000
To Ali & Sons a/c 4000
(being bought goods from Ali &
sons on credit)
Marathi & Co. 3880
To Bank a/c 3800
To Discount receivable a/c 80
(being paid to Marathi & Co. in
the full settlement)
Jan.6 Goods a/c 6300
To Omar a/c 6300
(being brought goods from
Omar)
Jan.13 Omar a/c 300
To Purchase Return a/c 300
(Being returned goods to Omar)
Jan.16 Drawings a/c 50
To Goods a/c 50
(being goods used personally by
proprietor)
Jan.17 Cash a/c 5000
To Sales a/c 5000
(being sold goods to M & Co.)
Jan.20 Bank a/c 1440
To Mohammed & Sons a/c 1440
(being check receive from
Mohammed & sons)
Jan.22 Mohammad & Sons a/c 1440
To Bank a/c 1440
(being cheque retuned)
Jan.24 Bank a/c 2000
To cash a/c 2000
(being cash deposited with bank)
Jan.27 Omar a/c 6000
To discount receivable a/c 150
To bank a/c 5850
(being cheque sent to Omar and
discount allowed RO. 150)
Jan.31 Salaries a/c 600
To cash a/c 600
(being Paid salaries)
Rent a/c 300
To cash a/c 300
(being rent paid)
 LEDGERS
In the books of sultan
Cash a/c
DATE PARTICULARS L.F AMOUN DATE PARTICUARS L. AMOUN
T F T
2006 To sales a/c 3120 2006 By carriage a/c 35
Jan.4 Jan.4
Jan.17 To sales a/c 5000 Jan.24 By bank a/c 2000
Jan.31 By salaries a/c 600
Jan.31 By rent a/c 300
Jan.31 By balance c/d 5185
8120 8120
2007 To balance b/d 5185
jan.1

Bank a/c
Date Particulars L.F Amount Date Particulars L.F Amount
2006 To M & Co. a/c 6650 2006 By Marathi & Co. 3800
Jan.2 Jan.5 a/c
Jan.24 To cash a/c 2000 Jan.27 By Omar a/c 5850
Jan.31 By balance c/d 1000
9650 9650
2007 To balance b/d 1000
Jan.1

Goods a/c
Date Particulars L.F Amount Date Particulars L.F Amount
2006 To Ali & Sons a/c 4000 2006 By drawings a/c 50
Jan.5 Jan.16
Jan6 To Omar a/c 6300 Jan31 By balance c/d 10250
10300 10300
2007 To balance b/d
Jan.1

M & Co. a/c

 Date Particulars L.F Amount Date Particulars L.F Amount
2006 To balance c/d 6750 2006 By bank a/c 6650
Jan.31 Jan.2
Jan.2 By discount 100
allowed a/c
6750 6750
2007 To balance b/d 6750
Jan.1

Marathi & Co. a/c

Date particulars L.F Amount Date Particulars L.F Amount
2006 To bank a/c 3800 2006 By balance c/d 3880
Jan.5 Jan.31
Jan.5 To discount 80
receive a/c
3880 3880
2007 To balance b/d 3880
Jan.1

Ali & Sons a/c

Date Particulars L.F Amount Date Particulars L.F Amount
2006 To balance c/d 2006 By goods a/c 4000
Jan.31 Jan.1
4000 4000
2007 By balance b/d 4000
Jan.1

Discount allowed a/c

Date particulars L.F Amount Date particulars L.F Amount
2006 To M & Co. a/c 100 2006 By balance c/d 100
Jan.2 Jan31
100 100
2007 To balance b/d 100
Jan1

Mohammed & Sons a/c

Date Particulars L.F Amount Date Particulars L.F Amount
2006 To sales a/c 1440 2006 By balance c/d 1440
Jan4 Jan31
 1440 1440
2007 To balance b/d 1440
Jan1

Sales a/c
Date Particulars L.F Amount Date Particulars L.F Amount
2006 To balance c/d 9560 2006 By Mohammed & 1440
Jan31 Jan4 sons a/c
Jan4 By cash a/c 3120
Jan17 By cash a/c 5000
9560 9560
2007 By balance b/d 9560
Jan1

Carriage a/c
Date particulars L.F Amount Date Particulars L.F Amount
2006 To cash a/c 35 2006 By balance c/d 35
Jan4 Jan31
35 35
2007 To balance b/d 35
Jan1

Discount received a/c

Date Particulars L.F Amount Date Particulars L.F Amount
2006 To balance c/d 230 2006 By Marathi & Co. 80
Jan31 Jan5 a/c
Jan27 By Omar a/c 150
230 230
2007 By balance b/d 230
Jan1

Omar a/c
Date Particulars L.F Amount Date Particulars L.F Amount
2006 To purchase return 300 2006 By goods a/c 6300
 Jan13 a/c Jan6
Jan27 To Discount 150
received a/c
Jan27 To bank a/c 5850
6300 6300

Purchase Return a/c

Date Particulars L.F Amount Date Particulars L.F Amount
2006 To balance c/d 300 2006 By Omar a/c 300
Jan31 Jan13
300 300
2007 By balance b/d 300
Jan1

Drawings a/c
Date Particulars L.F Amount Date Particulars L.F Amount
2006 To goods a/c 50 2006 By balance c/d 50
Jan16 Jan31
50 50
2007 To balance b/d 50
Jan1

Salaries a/c
Date Particulars L.F Amount Date Particulars L.F Amount
2006 To cash a/c 600 2006 By balance c/d 600
Jan31 Jan31
600 600
2007 To balance b/d 600
Jan1

Rent a/c
Date Particulars L.F Amount Date Particulars L.F Amount
2006 To cash a/c 300 2006 By balance c/d 300
Jan31 Jan31
300 300
2007 To balance b/d 300
Jan1