Question

Journalise the following transactions, post them into Ledger, balance the accounts and
prepare a Trial Balance :−
201
(₹)
7
Mar Shyam Sunder & Sons commenced business with cash 80,0
ch 1 00
2 Purchased goods for cash 36,0
00
3 Machinery purchased for cash 4,00
0
4 Purchased goods from :
Raghu 22,0
00
Dilip 30,0
00
6 Returned goods to Raghu 4,00
0
8 Paid to Raghu, in full settlement of his account and received 17,5
discount Rs. 500 00
10 Sold goods to Mahesh Chand & Co. for ₹ 32,000 at 5% trade
discount
13 Received cash from Mahesh Chand & Co. 19,8
00
Discount allowed 200
15 Paid cash to Dilip 14,8
50
Discount received 150
20 Sold goods for cash 25,0
00
24 Sold goods for cash to Sudhir Ltd. 18,0
00
25 Paid for Rent 1,50
0
26 Received for Commission 2,00
0
28 Withdrew by Proprietor for his personal use 5,00
0
28 Purchased a fan for Proprietor's house 1,20
0
Solution
Journal
In the Books of…
L.F Debit Amount (R Credit Amount (R
Date Particulars
. s) s)
2017
Mar. Cash A/c Dr 80,000
01 .
To Capital A/c 80,000
(Business started with cash)
Mar. Dr
Purchases A/c 36,000
02 .
To Cash A/c 36,000
(Goods purchased for cash)
Mar. Dr
Machinery A/c 4,000
03 .
To Cash A/c 4,000
(Machinery purchased for cash)
Mar. Dr
Purchases A/c 52,000
04 .
To Raghu’s A/c 22,000
To Dilip’s A/c 30,000
(Goods purchased on credit from
Raghu and Dilip)
Mar. Dr
Raghu’s A/c 4,000
06 .
To Purchases Return A/c 4,000
(Goods returned to Raghu)
Mar. Dr
Raghu’s A/c 18,000
08 .
To Cash A/c 17,500
To Discount Received A/c 500
(Cash paid to Raghu in full
settlement)
Mar. Dr
Mahesh Chand & Co. 30,400
10 .
To Sales A/c 30,400
(Goods sold to Mahesh Chand & Co. at
trade discount)
Mar. Dr
Cash A/c 19,800
13 .
Discount Allowed A/c 200
To Mahesh Chand & Co. 20,000
(Cash received from Mahesh
Chand & Co.)
Mar. Dr
Dilip’s A/c 15,000
15 .
To Cash A/c 14,850
To Discount Received A/c 150
(Cash paid to Dilip)
Mar. Dr
Cash A/c 25,000
20 .
To Sales A/c 25,000
(Goods sold for cash)
Mar. Dr
Cash A/c 18,000
24 .
To Sales A/c 18,000
 (Goods sold for cash)
Mar. Dr
Rent A/c 1,500
25 .
To Cash A/c 1,500
(Rent paid)
Mar. Dr
Cash A/c 2,000
26 .
To Commission A/c 2,000
(Commission received)
Mar. Dr
Drawings A/c 6,200
28 .
To Cash A/c 6,200
(Cash withdrawn and fan
purchased for personal use)
TOTAL 3,12,100 3,12,100
Cash Account
Dr. Cr
Amount (Rs
Date Particulars J.F. Date Particulars J.F. Amount (Rs)
)
2017 2017
Mar.0 Mar.02
Capital A/c 80,000 Purchases A/c 36,000
1
Mar.1 Mahesh Chand &
19,800 Mar.03 Machinery A/c 4,000
3 Co.
Mar.2
Sales A/c 25,000 Mar.08 Raghu’s A/c 17,500
0
Mar.2
Sales A/c 18,000 Mar.15 Dilip’s A/c 14,850
4
Mar.2
Commission A/c 2,000 Mar.25 Rent A/c 1,500
6
Mar.28 Drawings A/c 6,200
Mar.31 Balance c/d 64,750
1,44,800 1,44,800
2017
Apr.01 Balance b/d 64,750
Capital Account
Cr
Dr.
.
Amoun
Particula J.F Amount (R Particular J.F
Date Date t
rs . s) s .
(Rs)
2017 2017
Mar.3 Balance
80,000 Mar.01 Cash A/c 80,000
1 c/d
80,000 80,000
2017
Apr.01 Balance
80,000
b/d
Purchases Account
Dr Cr
. .
Amou
J.F Amount (R Particula J.F
Date Particulars Date nt
. s) rs .
(Rs)
2017 2017
Mar.0 Mar.3 Balance
Cash A/c 36,000 88,000
2 1 c/d
Mar.0 Raghu’s A/c
22,000
4
Dilip’s A/c 30,000
88,000 88,000
2017
Apr.0
Balance b/d 88,000
1
Machinery Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
2017 2017
Mar.3
Mar.03 Cash A/c 4,000 Balance c/d 4,000
1
4,000 4,000
2017
Apr.01 Balance b/d 4,000
Raghu’s Account
Dr. Cr.
J.F Amount (Rs J.F Amount (Rs
Date Particulars Date Particulars
. ) . )
2017 2017
Mar.0 Purchases Return 4,000 Mar.0 Purchases A/c 22,000
6 A/c 4
Mar.0 Cash A/c 17,500
8
Discount Received 500
A/c
22,000 22,000
Dilip’s Account
Dr. Cr.
Amount (Rs
Date Particulars J.F. Date Particulars J.F. Amount (Rs)
)
2017 2017
Mar.04 Purchases
Mar.15 Cash A/c 14,850 30,000
A/c
Mar.15 Discount Received A/c 150
Mar.31 Balance c/d 15,000
30,000 30,000
2017
 Apr.01 Balance b/d 15,000
Purchases Return Account
Dr. Cr.
Amount
Date Particulars J.F. Date Particulars J.F. Amount (Rs)
(Rs)
2017 2017
Mar.3 Mar.0
Balance c/d 4,000 Raghu’s A/c 4,000
1 6
4,000 4,000
2017
Apr.01 Balance b/d 4,000
Discount Received Account
Dr. Cr.
Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs)
2017 2017
Mar.31 Balance c/d 650 Mar.08 Raghu’s A/c 500
Mar.15 Dilip’s A/c 150
650 650
2017
Apr.01 Balance b/d 650
Discount Allowed Account
Dr. Cr.
Amount (Rs Amount
Date Particulars J.F. Date Particulars J.F.
) (Rs)
2017 2017
Mar.1 Mahesh Chand &
200 Mar.31 Balance c/d 200
3 Co.
200 200
2017
Apr.01 Balance b/d 200
Mahesh Chand & Co.
Dr. Cr.
Amount (Rs
Date Particulars J.F. Date Particulars J.F. Amount (Rs)
)
2017 2017
Mar.10 Sales A/c 30,400 Mar.13 Cash A/c 19,800
Discount
Mar.13 200
Allowed A/c
Mar.31 Balance c/d 10,400
30,400 30,400
2017
Apr.01 Balance b/d 10,400
Rent Account
Dr Cr
. .
Amoun Amoun
J.F Particular J.F
Date Particulars t Date t
. s .
(Rs) (Rs)
2017 2017
Mar.2 Mar.3
Cash A/c 1,500 Balance c/d 1,500
5 1
1,500 1,500
2017
Apr.01 Balance b/d 1,500
Commission Account
Cr
Dr.
.
Amoun Amoun
Particular J.F J.F
Date t Date Particulars t
s . .
(Rs) (Rs)
2017 2017
Mar.3 Mar.2
Balance c/d 2,000 Cash A/c 2,000
1 6
2,000 2,000
2017
Apr.01 Balance b/d 2,000
Drawings Account
Dr. Cr.
Particular Amount J.F Amount
Date J.F. Date Particulars
s (Rs) . (Rs)
2017 2017
Mar.28 Cash A/c 6,200 Mar.31 Balance c/d 6,200
6,200 6,200
2017
Apr.01 Balance b/d 6,200
Sales Account
Dr. Cr.
J.F Amount Amount
Date Particulars Date Particulars J.F.
. (Rs) (Rs)
2017 2017
Mahesh Chand &
Mar.31 Balance c/d 73,400 Mar.10 30,400
Co.
Mar.20 Cash A/c 25,000
Mar.24 Cash A/c 18,000
73,400 73,400
2017
Apr.01 Balance b/d 73,400

Trial Balance as on March 31, 2017

Debit Credit
Name of Accounts L.F.
Balances Amount (Rs) Balances Amount (Rs)
Cash A/c 64,750
Capital A/c 80,000
Purchases A/c 88,000
Machinery A/c 4,000
Dilip’s A/c 15,000
Purchases Return A/c 4,000
Discount Received A/c 650
Discount Allowed A/c 200
Mahesh Chand & Co. 10,400
Rent A/c 1,500
Commission A/c 2,000
Drawings A/c 6,200
Sales A/c 73,400
Total 1,75,050 1,75,050