Journal & Ledger

Problem
Analyze the following transactions of Sunil Chanda in the following format:
Transaction 2 A/cs Classification Rule for debit/ Explanation Account to be Account to be
involved of A/cs credit debited with Rs. credited with Rs.

April 2009
1st Commenced business with Rs. 70000
3rd Withdrew for private use Rs. 1700
5th Purchased goods on credit Rs. 14000
6th Purchased goods for cash Rs. 10000
15th Paid wages Rs. 300
17th Paid to creditors Rs. 10000
19th Sold goods on credit Rs. 15000
21st Sold goods for cash (cost price Rs. 3000) Rs. 4000
28th Purchased furniture Rs. 500

Analysis of transactions for Sunil Chanda

Transaction 2 A/cs Classification Rule for Explanation A/c to be A/c to be

involved of A/cs debit/ debited credited
credit with Rs. with Rs.
Commenced Cash Real Dr – Cash comes in Cash Capital
business with Capital Personal Comes in Proprietor gives capital Rs.70000 Rs.70000
cash Cr – Giver
Cash Drawings Personal Dr – Proprietor withdraws Drawings Cash
withdrawn by Cash Real Receiver Cash goes out Rs.1700 Rs.1700
proprietor Cr – Goes
out
Credit purchase Purchase Nominal Dr – Business expense Purchase Creditors
Creditors Personal Expense Creditor gives goods Rs.14000 Rs.14000
Cr – Giver
Cash purchase Purchase Nominal Dr – Business expense Purchase Cash
Cash Real Expense Cash goes out Rs.10000 Rs.10000
Cr – Goes
out
Paid wages Wages Nominal Dr – Business expense Wages Cash
Cash Real Expense Cash goes out Rs.300 Rs.300
Cr – Goes
out
Paid creditors Creditors Personal Dr – Creditor receives cash Creditors Cash
Cash Real Receiver Cash goes out Rs.10000 Rs.10000
Cr – Goes
out
Credit sales Debtors Personal Dr – Debtor receives goods Debtors Sales
Sales Nominal Receiver Business income Rs.15000 Rs.15000
Cr –
Income
Cash sales Cash Real Dr – Cash comes in Cash Rs. Sales
Sales Nominal Comes in Business income 4000 Rs.4000
Cr – (Profit is not accounted for
Income after every transaction but
at the end of the period
through the profit & Loss
A/c)

Purchased Furniture Real Dr – Furniture comes in Furniture Cash

furniture for Cash Real Comes in Cash goes out Rs.500 Rs.500
cash Cr – Goes
out
Problem

Journalize the following for M/s Radha Stores.

2016
Jan 1 Radha started business with cash Rs. 1,50,000
Jan 3 Paid into bank Rs. 50,000
Jan 5 Bought goods for Rs. 36,000
Jan 7 Paid travelling charges Rs. 500
Jan 10 Sold goods for Rs. 25,000
Jan 15 Sold goods to Balaram Rs. 24,000
Jan 20 Purchased goods from Narayan Rs. 21,000
Jan 25 Withdrew cash for personal use Rs. 6,000

Books of M/s Radha Stores

Journal

Date Particulars L.F. Debit Credit

Rs. Rs.
1.1.16 Cash A/c …… Dr 1,50000
To Capital A/c 1,50,000
(being business started with cash)

3.1.16 Bank A/c …… Dr 50,000

To Cash A/c 50,000
(being cash deposited into bank)

5.1.16 Purchase A/c …… Dr 36,000

To Cash A/c 36,000
(being goods purchased for cash)

7.1.16 Travelling Charges A/c …… Dr 500

To Cash A/c 500
(being travelling charges paid)
25,000
10.1.16 Cash A/c …… Dr 25,000
To Sales A/c
(being goods sold for cash)

15.1.16 Balaram A/c …… Dr 24,000

To Sales A/c 24,000
(being goods sold on credit)

20.1.16 Purchase A/c …… Dr 21,000

To Narayan A/c 21,000
(being goods purchased on credit)

25.1.16 Drawings A/c …… Dr 6,000

To Cash A/c 6,000
(being cash withdrawn for personal use)
Problem
Journalize the following transactions in the books of Mr. Ravi Verma and post them into respective ledger accounts.
Extract a trial balance as on 31st Jan and draw up the trading and profit & loss account and the balance sheet as on
that date.

Jan 2012 Rs.

2nd Started the business with 8,00,000

3rd Bought furniture for 1,20,000
6th Bought stationery for 5,000
7th Purchased goods for cash 2,00,000
9th Sold goods for cash worth 50,000
11th Sold to R. Desai goods worth 1,00,000
14th Bought goods from Mundra Bros. 80,000
18th Paid office cleaning charges of 1,500
20th Bought goods from Hari worth 1,00,000
22nd Sold to Sharma & Co. goods worth 60,000
24th Received from R. Desai in full settlement of the claim 90,000
25th Paid to Hari 80,000
28th Bought computer 22,500
31st Paid house rent 5,000
31st Paid electricity charges 500
31st Paid salary amounting 15,000
31st Received commission 2,200

Books of Mr. Ravi Verma

JOURNAL
Date Particulars L.F. Debit Credit
Rs. Rs.
02.01.09 Cash A/c … Dr 800000
To Capital A/c 800000
(being business started with cash)
03.01.09 Furniture A/c … Dr 120000
To Cash A/c 120000
(being furniture purchased)
06.01.09 Stationery A/c … Dr 5000
To Cash A/c 5000
(being stationery purchased)
07.01.09 Purchase A/c … Dr 200000
To Cash A/c 200000
(being cash purchase)
09.01.09 Cash A/c … Dr 50000
To Sales A/c 50000
(being cash sales)
11.01.09 R Desai’s A/c … Dr 100000
To Sales A/c 100000
(being credit sales)
14.01.09 Purchase A/c … Dr 80000
To M. Bros’ A/c 80000
(being credit purchase)
18.01.09 Office Cleaning Charges A/c … Dr 1500
To Cash A/c 1500
(being paid for office cleaning)
20.01.09 Purchase A/c … Dr 100000
To Hari A/c 100000
(being credit purchase)
22.01.09 Sharma & Co. A/c … Dr 60000
To Sales A/c 60000
(being credit sales)
24.01.09 Cash A/c … Dr 90000
Discount Allowed A/c … Dr 10000
To R Desai A/c 100000
(being cash received and discount allowed)
25.01.09 Hari A/c … Dr 80000
To Cash A/c 80000
(being paid to Hari on account)
28.01.09 Computer A/c … Dr 22500
To Cash A/c 22500
(being computer purchased)
29.01.09 Drawings A/c … Dr 5000
To Cash A/c 20500
(being house rent of proprietor paid)
30.01.09 Electricity Charges A/c … Dr 500
Salary A/c … Dr 15000
To Cash A/c
(being expenses paid)
31.01.09 Cash A/c … Dr 2200
To Commission Received A/c 2200
(being commission received)

Books of Ravi Verma

LEDGER
Dr Cash A/c Cr

To Capital 8,00,000 By Furniture 1,20,000

To Sales 50,000 By Stationery 5,000

To R Desai 90,000 By Purchase 2,00,000

To Commission 2,200 By Office Cleaning 1,500

By Hari 80,000

By Computer 22,500

By Drawings 5,000

By Electricity Charges 500

By Salary 15,000

By Balance c/d 4,92,700

9,42,200 9,42,200

To Balance b/d 4,92,700

Capital A/c

To Balance c/d 8,00,000 By Cash 8,00,000

8,00,000 8,00,000

By Balance b/d 8,00,000

 Furniture A/c

To Cash 1,20,000 By Balance c/d 1,20,000

1,20,000 1,20,000

To Balance b/d 1,20,000

Stationery A/c

To Cash 5,000 By Balance c/d 5,000

5,000 5,000

To Balance b/d 5,000

Purchase A/c

To Cash 2,00,000

To Mundra Bros 80,000

To Hari 1,00,000 By Balance c/d 3,80,000

3,80,000 3,80,000

To Balance b/d 3,80,000

Sales A/c

By Cash 50,000

By R Desai 1,00,000

To Balance c/d 2,10,000 By Sharma 60,000

2,10,000 2,10,000

By Balance b/d 2,10,000

R Desai A/c

To Sales 1,00,000 By Cash 90,000

By Discount 10,000

1,00,000 1,00,000
Mundra Bros

To Balance c/d 80,000 By Purchase 80,000

80,000 80,000

By Balance b/d 80,000

 Office Cleaning

To Cash 1,500 By Balance c/d 1,500

1,500 1,500

To Balance b/d 1,500

Hari’s A/c

To Cash 80,000 By Purchase 1,00,000

To Balance c/d 20,000

1,00,000 1,00,000

By Balance b/d 20,000

Sharma’s A/c

To Sales 60,000 By Balance c/d 60,000

60,000 60,000

To Balance b/d 60,000

Discount Allowed A/c

To R Desai 10,000 By Balance c/d 10,000

10,000 10,000

To Balance b/d 10,000

Computer A/c

To Cash 22,500 By Balance c/d 22,500

22,500 22,500

To Balance b/d 22,500

Drawings A/c

To Cash 5,000 By Balance c/d 5,000

5,000 5,000

To Balance b/d 5,000

Electricity Charges A/c

To Cash 500 By Balance c/d 500

500 500

To Balance b/d 500

 Salary A/c

To Cash 15,000 By Balance c/d 15,000

15,000 15,000

To Balance b/d 15,000

Commission Received A/c

To Balance c/d 2,200 By Cash 2,200

2,200 2,200

By Balance b/d 2,200

Books of Ravi Verma

Trial Balance as on 01.02.10
Particulars Debit Credit
Rs. Rs.
Cash 4,92,700
Capital 8,00,000
Furniture 1,20,000
Stationery 5,000
Purchase 3,80,000
Sales 2,10,000
Mundra Bros 80,000
Office Cleaning 1500
Hari 20,000
Sharma 60,000
Discount Allowed 10,000
Computer 22,500
Drawings 5,000
Electricity 500
Salary 15,000
Commission Received 2200
11,12,200 11,12,200
 Trial Balance
The following balances were extracted from the books of Mr. Sridhar as on 31.12.2015. You are requested to prepare
a Trial Balance as on that date.
Rs.
Capital 3,40,000
Creditors 13,000
Drawings 4,000
Salaries 38,200
Purchases 94,000
Sales Returns 3,400
Purchase Returns 2,400
Carriage Inwards 1,400
Bills Receivable 5,800
Bills Payable 7,000
Debtors 16,000
Sales 1,44,000
Insurance 2,200
Land & Building 2,50,000
Commission Received 800
Printing and Stationery 5,000
Stock 29,900
Machinery 50,000
Wages 5,000
Rent 1,600
Interest Received 1,700
Electricity Charges 2,400
 Books of Mr. Sridhar
Trial Balance as on 31.12.2015

Particulars
L.F. Debit Credit
Rs. Rs.
Capital 3,40,000
Creditors 13,000
Drawings 4,000
Salaries 38,200
Purchases 94,000
Sales Returns 3,400
Purchase Returns 2,400
Carriage Inwards 1,400
Bills Receivable 5,800
Bills Payable 7,000
Debtors 16,000
Sales 1,44,000
Insurance 2,200
Land & Building 2,50,000
Commission Received 800
Printing & Stationery 5,000
Stock 29,900
Machinery 50,000
Wages 5,000
Rent 1,600
Interest received 1,700
Electricity charges 2,400
5,08,900 5,08,900
 Final Accounts

Problem

The following information was extracted from the books of M/s Sudha Merchant. Prepare a trading and profit & loss
account and balance sheet as on 31.3.2012.

Particulars Debit (Rs.) Particulars Credit (Rs.)

Opening Stock 12,500 Sales 1,89,000
Carriage inwards 700 Commission 2,000
Furniture 8,000 Capital 1,71,300
Carriage Outwards 500 Creditors 17,500
Plant & Machinery 2,00,000 Bills Payable 5,000
Cash 8,900 Purchase Returns 13,800
Salaries 7,500
Debtors 19,000
Discount 1500
Bills Receivable 17,000
Wages 16,000
Sales Returns 14,000
Purchase 86,000
Depreciation 7,000
3,98,600 3,98,600

Closing stock on 31.3.2012 Rs. 45,000

In the books of Sudha Merchant

Dr. Trading and Profit & Loss Account for the year ended 31.03.12 Cr

Particulars Rs. Particulars Rs.

To Opening Stock 12,500 By Sales 1,89,000

" Purchases 86,000 Less: Returns Inwards 14,000 1,75,000
Less: Returns 3,800 72,200 " Closing Stock 45,000
" Wages 16,000

" Carriage Inwards 700

" Gross Profit c/d 1,18,600

2,20,000 2,20,000

" Salaries 7,500 By Gross Profit b/d 1,18,600

" Carriage Outwards 500 " Commission 2,000

" Discount Allowed 1,500

" Depreciation 7,000

" Net Profit transferred to
Capital A/c 1,04,100

1,20,600 1,20,600
 Balance Sheet as on 31.12.12

Liabilities Rs. Assets Rs.

Capital 1,71,300 Plant & Machinery 2,00,000

Add: Net Profit 1,04,100 2,75,400 Furniture 8,000

Sundry Creditors 17,500 Closing Stock 45,000

Bills payable 5,000 Sundry Debtors 19,000

Bills Receivable 17,000

Cash in hand 8,900

2,97,900 2,97,900