Assignment 5

Credit
Sl No. Heads of Accounts Reason Debit Balance
Q.1 Balance
1 Furniture Asset yes
2 Plant and Machinery Asset yes
3 Discount Allowed Loss yes
4 Salary Expense yes
5 Bank Overdraft Liability Yes
6 Cash in Hand Asset Yes
7 Creditors Liability Yes
8 Sundry Debtors Asset Yes
9 Carriage Outwards Expense yes
10 Carriage Inwards Expense yes
11 Sales Income Yes
12 Purchases Expense yes
13 Discount Received Income Yes
14 Interest Received Gain Yes
15 Interest Paid Expense yes
16 Bad debts Loss yes

Sn No.
Q.2
1
2
3
4
5
6
7

8
9
10
11

12

13
14
 Heads of
Debit Balance Credit Balance
Accounts
Capital A/c 200,000
Debtors A/c 30,000
Fixed Assets A/c 192,000
Sales A/c 110,000
Return Outwards
1,000
A/c
Bills Payable A/c 8,000
Bank Overdraft 11,000
A/c
Opening Stock
15,000
A/c
Creditors A/c 30,000
Purchases A/c 70,000
Return Inward
2,000
A/c
Wages and
30,000
Salaries A/c
Bills Receivable
15,000
A/c
Rent A/c 6,000
Total 360,000 360,000

Q.3 Sl No. Heads of Accounts

1 Fixed Assets A/c
 2 Capital A/c
3 Debtors A/c
4 Creditors A/c
5 Purchases A/c
6 Sales A/c
7 Return Outward A/c
8 Return Inward A/c
9 Bills Payable A/c
10 Bills Receivable A/c
11 Bank Overdraft A/c
12 Opening Stock A/c
13 Wages A/c
14 Salaries A/c
15 Rent A/c
Total
Debit Balance Credit Balance
246,000
 250,000
20,000
22,000
35,000
53,000
500
1,000
4,000
8,000
6,000
7,500
6,000
9,000
3,000
335,500 335,500

Q.4 Debit Balance Rupee Credit Balance

Building 60,000 Capital
Machinery 17,000 Fixtures
Returns Outward 2,600 Sales
Bad Debts 2,800 Debtors
Cash 400 Interest Received
Discount Received 3,000
Bank Overdraft 10,000
Creditors 50,000
Purchases 100,000
245,800
 Credit Balance Rupee
Capital 73,600
Fixtures 5,600
Sales 104,000
Debtors 60,000
Interest Received 2,600

245,800

Ans- Even the credit and debit side is balanced, The Trial Balance is incorrect. Correc

shown Correct side

Returns Outward Debit Credit
Discount Received Debit Credit
Bank Overdraft Debit Credit
Creditors Debit Credit
Fixtures Credit Debit
Debtors Credit Debit
, The Trial Balance is incorrect. Correct sides as shown below

Debit Balance Rupee Credit Balance Rupee

Building 60,000 Capital 73,600
Machinery 17,000 Bank Overdraft 10,000
Fixtures 5,600 Sales 104,000
Bad Debts 2,800 Discount Received 3,000
Cash 400 Interest Received 2,600
Purchases 100,000 Returns Outward 2,600
Debtors 60,000 Creditors 50,000

Total 245,800 Total 245,800

Q.5
Head of Accounts Dr. Balance (₹) Cr. Balance (₹)
Furniture 20,000
Capital 200,000
Debtors 200,000

Stock (1st April 2018) 104,000

Creditors 80,000
Trade Expenses 50,000
Sales 858,000
Wages 30,000
Stock (31st March
2019) 98,000
Machinery 50,000
Purchases 625,000
Wife’s Loan to
Business 50,000
Discount Allowed 4,000
Drawings made by
Proprietor 45,000
Motor Van 60,000
Total 1,237,000 1,237,000

Ans-
i) a) Stock on 31st March, 2019, will not appear in the Trail
Balance because it has not yet been brought into account.

b) Machinery is an asset and thus will appear in the debit

column
c) Wife's loan to the business is a liability . It will appear in
the credit side.
d) Discount allowed , being an expense, will appear in the
debit side.
e) Drawings made by the proprietor is a decrease of capital.
It will appear in the debit side.
 Head of
Dr. Balance (₹) Cr. Balance (₹)
Accounts
Furniture 20,000
Capital 200,000
Debtors 200,000
Stock (1st April 104,000
2018)
Creditors 80,000
Trade Expenses 50,000
Sales 858,000
Wages 30,000
Machinery 50,000
Purchases 625,000
Wife’s Loan to
50,000
Business
Discount
4,000
Allowed
Drawings made
45,000
by Proprietor
Motor Van 60,000
Total 1,188,000 1,188,000