Accounts 2012

Journal Entries

Question 1. Journalise the following transactions in the books of Ganesh & Co., post the same
in relevant ledger account and balance the same.
2010
April 1 Started business with a capital of 1,60,000
April 2 Purchased goods from Mahesh on credit 1,00,000
April 4 Paid into bank 60,000
April 6 Paid to Ramesh 23,900
April 6 Discount allowed by him 100
April 8 Cash Sales 2,00,000
April 12 Sold to Harsha 2,50,000
April 15 Purchased goods from Bharat on credit 1,75,500
April 18 Paid to Krishna by cheque 30,000
April 20 Received from Harsha 2,49,300
April 20 Allowed him discount 700
April 25 Withdrew from bank for office use 10,000
April 28 Withdraw for personal use 7,000
April 30 Paid Salaries 80,000
Solution 1:

Under traditional, conventional or English Approach:

Sl. Two accounts Types of Rule for debit and credit Account to Account to
No involved in the Accounts be debited be credited
transaction
1 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Capital A/c Personal A/c Credit the giver - Capital A/c
2 a. Purchases A/c Real A/c or Debit what comes in or Purchases A/c
Nominal A/c Debit all expenses & losses - -
b. Mahesh A/c Personal A/c Credit the giver Mahesh A/c
3 a. Bank A/c Personal A/c Debit the receiver Bank A/c -
b. Cash A/c Real A/c Credit what goes out - Cash A/c
4 a. Ramesh A/c Personal A/c Debit the receiver Ramesh A/c -
b. Cash A/c Real A/c Credit what goes out - Cash A/c
5 a. Ramesh A/c Personal A/c Debit the receiver Ramesh A/c -
b. Discount A/c Nominal A/c Credit all incomes & gains - Discount A/c

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6 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Sales A/c Real A/c or Credit what goes out - Sales A/c
Nominal A/c Credit all incomes & gains
7 a. Harsha A/c Personal A/c Debit the receiver Harsha A/c -
b. Sales A/c Real A/c or Credit what goes out - Sales A/c
Nominal A/c Credit all incomes & gains
8 a. Purchase A/c Real A/c Debit what comes in Purchase A/c -
b. Bharat A/c Personal A/c Credit the giver - Bharat A/c
9 a. Krishna A/c Personal A/c Debit the receiver Krishna A/c -
b. Bank A/c Personal A/c Credit the giver - Bank A/c
10 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Harsha A/c Personal A/c Credit the giver - Harsha A/c
11 a. Discount A/c Nominal A/c Debit all expenses & losses Discount A/c -
b. Harsha A/c Personal A/c Credit the giver - Harsha A/c
12 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Bank A/c Personal A/c Credit the giver - Bank A/c
13 a. Drawings A/c Personal A/c Debit the receiver Drawings A/c -
b. Cash A/c Real A/c Credit what goes out - Cash A/c
14 a. Salaries A/c Nominal A/c Debit all expenses & losses Salaries A/c -
b. Cash A/c Real A/c Credit what goes out - Cash A/c

Journal entries in the books of Ganesh & Co.

Date Particulars L.F Debit (Rs) Credit(Rs)

2010 Cash A/c ..Dr 1,60,000
April 1 To Capital A/c 1,60,000
(Being Capital brought into the business)
April 2 Purchase A/c ..Dr 1,00,000
To Mahesh A/c 1,00,000
(Being purchased goods from Mahesh on credit)
April 4 Bank A/c Dr 60,000
To Cash A/c 60,000
(Being cash paid into bank)
April 6 Ramesh A/c Dr 24,000
To Cash A/c 23,900
To Discount A/c 100
(Being cash paid to Ramesh and discount
received)
April 8 Cash A/c Dr 2,00,000
To Sales A/c 2,00,000
(Being cash sales)
April 12 Harsha A/c ..Dr 2,50,000
To Sales A/c 2,50,000
(Being credit sales)

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April 15 Purchase A/c Dr 1,75,500
To Bharat A/c 1,75,500
(Being credit purchases)
April 18 Krishna A/c .Dr 30,000
To Bank A/c 30,000
(Being paid to Krishna by cheque)
April 20 Cash A/c Dr 2,49,300
Discount A/c Dr 700
To Harsha A/c 2,50,000
(Being cash received from Harsha and discount
allowed)
April 25 Cash A/c.Dr 10,000
To Bank A/c 10,000
(Being cash withdrew from bank for office use)
April 28 Drawings .Dr 7,000
To Cash A/c 7,000
(Being cash withdrew for personal use)
April 30 Salaries A/c Dr 80,000
To Cash A/c 80,000
(Being salary paid)
13,46,500 13,46,500

Ledger Accounts
Dr Cash Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Capital A/c 1,60,000 2010 By Bank A/c 60,000
April 1 April 4
April 8 To Sales A/c 2,00,000 April 6 By Ramesh A/c 23,900
April 20 To Harsha A/c 2,49,300 April 28 By Drawings A/c 7,000
April 25 To Bank A/c 10,000 April 30 By Salary A/c 80,000
April 30 By Balance c/d 4,48,400
6,19,300 6,19,300
May 1 To Balance b/d 4,48,400

Dr Capital Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Balance c/d 1,60,000 2010 By Cash A/c 1,60,000
April 30 April 1
1,60,000 1,60,000
May 1 By Balance b/d 1,60,000
Dr Purchase Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Mahesh A/c 1,00,000 2010 By Balance c/d 2,75,500

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April 2 April 30
April 15 To Bharat 1,75,500
2,75,500 2,75,500
May 1 To Balance b/d 2,75,500

Dr Mahesh Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Balance c/d 1,00,000 2010 By Purchases A/c 1,00,000
April 30 April 2
1,00,000 1,00,000
May 1 By Balance b/d 1,00,000

Dr Bank Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Cash A/c 60,000 2010 By Krishna A/c 30,000
April 4 April 18
April 25 By Cash A/c 10,000
April 30 By Balance c/d 20,000
60,000 60,000
May 1 To Balance b/d 20,000

Dr Ramesh Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Cash A/c 23,900 2010 By Balance c/d 24,000
April 6 April 30
April 6 To Discount 100
24,000 24,000
May 1 To Balance b/d 24,000

Dr Discount Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Harsha A/c 700 2010 By Ramesh A/c 100
April 20 April 18
April 30 By Balance c/d 600
700 700
May 1 To Balance b/d 600

Dr Sales Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Balance c/d 4,50,000 2010 By Cash A/c 2,00,000
April 30 April 8
April 12 By Hasha A/c 2,50,000
4,50,000 4,50,000

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May 1 By Balance b/d 4,50,000

Dr Harsha Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Sales 2,50,000 2010 By Cash A/c 2,49,300
April 12 April 15
April 20 By Discount 700
2,50,000 2,50,000

Dr Bharat Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Balance c/d 1,75,500 2010 By Purchase A/c 1,75,500
April 30 April 15
1,75,500 1,75,500
May 1 By Balance b/d 1,75,500

Dr Krishna Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Bank A /c 30,000 2010 By Balance c/d 30,000
April 18 April 30
30,000 30,000
May 1 To Balance b/d 30,000

Dr Drawings Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Cash A/c 7,000 2010 By Balance c/d 7,000
April 28 April 30
7,000 7,000
May 1 To Balance b/d 7,000

Dr Salary Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2010 To Cash A/c 80,000 2010 By Balance c/d 80,000
April 30 April 30
80,000 80,000
May 1 To Balance b/d 80,000

Trial Balance as on 30 April 2010

Particulars Debit (Rs) Credit (Rs)
Cash A/c 4,48,400 -
Capital A/c - 1,60,000

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Purchases A/c 2,75,500 -
Mahesh A/c - 1,00,000
Bank A/c 20,000 -
Ramesh A/c 24,000 -
Discount 600 -
Sales A/c - 4,50,000
Bharat A/c - 1,75,500
Krishna A/c 30,000 -
Drawings 7,000 -
Salary A/c 80,000
8,85,500 8,85,500

Question 2. Journalise the following transactions, post the same in relevant ledger account and
balance the same.
2011
May 1 Mr. Yogesh commenced business with Rs.20,00,000.
May 2 Paid into bank Rs.1,00,000.
May 3 Purchased Plant and Machinery worth Rs.1,00,000 from Nagaraj & Co.
May 4 Purchased goods worth Rs. 75,000 form Anand.
May 6 Goods worth Rs.1,00,000 sold to Anush.
May 8 Sold goods worth Rs.72,000 for cash.
May 10 Goods returned by Anush Rs.5,000.
May 15 Paid rent Rs.22,500.
May 18 Withdrawn from bank for office use Rs. 7,500.
May 20 Paid Salaries Rs.71,000.
May 25 Withdrawn for personal use Rs.6,000.
May 26 Goods returned to Anand Rs.3,000.
May 27 Paid for office furniture Rs.15,000 by cheque.
May 28 Received Rs.93,000 cash from Anush and discount allowed Rs.2,000.
May 29 Paid Anand on account Rs.70,000 for the full settlement.
Solution 2:
Under traditional, conventional or English Approach:
Sl. Two accounts Types of Rule for debit and credit Account to be Account to
No involved in the Accounts debited be credited
transaction
1 a. Cash A/c Real A/c Debit what comes in Cash A/c -

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b. Capital A/c Personal A/c Credit the giver - Capital A/c
2 a. Bank A/c Personal A/c Debit the receiver Bank A/c -
b. Cash A/c Real A/c Credit what goes out - Cash A/c
3 a. Plant & Machinery Real A/c Debit what comes in Plant & Machinery -
b. Mahesh A/c Personal A/c Credit the giver - Mahesh A/c
4 a. Purchase A/c Real A/c or Debit what comes in or Purchase A/c -
Nominal A/c Debit all expenses & losses
b. Anand A/c Personal A/c Credit the giver - Anand A/c
5 a. Anush A/c Personal A/c Debit the receiver Anush A/c -
b. Sales A/c Real A/c or Credit what goes out or - Sales A/c
Nominal A/c Credit all incomes & gains
6 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Sales A/c Real A/c or Credit what goes out or - Sales A/c
Nominal A/c Credit all incomes & gains
7 a. Sales return A/c Real A/c or Debit what comes in or Sales return A/c
Nominal A/c Debit all expenses & losses
b. Anush A/c Personal A/c Credit the giver - Anush A/c
8 a. Rent A/c Nominal A/c Debit all expenses & losses Rent A/c -
b. Cash A/c Real A/c Credit what goes out - Cash A/c
9 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Bank A/c Personal A/c Credit the giver - Bank A/c
10 a. Salary A/c Nominal A/c Debit all expenses & losses Salary A/c -
b. Cash A/c Real A/c Credit what goes out Cash A/c
11 a. Drawings A/c Personal A/c Debit the receiver Drawings A/c -
b. Cash A/c Real A/c Credit what goes out - Cash A/c
12 a. Anand A/c Personal A/c Debit the receiver Anand A/c -
b. Purchase return A/c Real A/c or Credit what goes out or - Purchase
Nominal A/c Credit all incomes & gains return A/c
13 a. Furniture A/c Real A/c Debit what comes in Furniture A/c -
b. Bank A/c Personal A/c Credit the giver - Bank A/c
14 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Anush A/c Personal A/c Credit the giver - Anush A/c
15 a. Discount A/c Nominal A/c Debit all expenses & losses Discount A/c -
b. Anush A/c Personal A/c Credit the giver - Anush A/c
16 a. Anand A/c Personal A/c Debit the receiver Anand A/c -
b. Cash A/c Real A/c Credit what goes out - Cash A/c
17 a. Anand A/c Personal A/c Debit the receiver Anand A/c -
b. Discount A/c Nominal A/c Credit all incomes & gains - Discount
A/c

Journal entries in the books of Yogesh.

Date Particulars L.F Debit (Rs) Credit(Rs)
2011 Cash A/c ..Dr 20,00,000

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May 1 To Capital A/c 20,00,000
(Being Capital brought into the business)
May 2 Bank A/c Dr 1,00,000
To Cash A/c 1,00,000
(Being cash paid into bank)
May 3 Plant and Machinery A/c ..Dr 1,00,000
To Mahesh A/c 1,00,000
(Being purchased goods from Mahesh on credit)
May 4 Purchase A/c Dr 75,000
To Anand A/c 75,000
(Being credit purchases)
May 6 Anush A/c Dr 1,00,000
To Sales A/c 1,00,000
(Being credit sales to Anush)
May 8 Cash A/c ..Dr 72,000
To Sales A/c 72,000
(Being cash sales)
May 10 Sales return A/c..Dr 5,000
To Anush A/c 5,000
(Being goods returned by Anush)
May 15 Rent A/c Dr 22,500
To Cash A/c 22,500
(Being rent paid)
May 18 Cash A/c.Dr 7,500
To Bank A/c 7,500
(Being cash withdrew from bank for office use)
May 20 Salary A/c Dr 71,000
To Cash A/c 71,000
(Being salary paid)
May 25 Drawings .Dr 6,000
To Cash A/c 6,000
(Being cash withdrew for personal use)
May 26 Anand A/c Dr 3,000
To Purchase return A/c 3,000
(Being goods returned to Anand)
May 27 Furniture A/c ..Dr 15,000
To Bank A/c 15,000
(Being purchased office furniture by cheque)
May 28 Cash A/c ..Dr 93,000
Discount A/c Dr 2,000
To Anush A/c 95,000
(Being cash received from Anush and discount
allowed)
May 29 Anand A/c Dr 72,000
To Cash A/c 70,000

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To Discount A/c 2,000
(Being cash paid to Anand and discount received)
27,44,000 27,44,000

Ledger Accounts
Dr Cash Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Capital 20,00,000 2011 By Bank A/c 1,00,000
May 1 May 2
May 8 To Sales 72,000 May 15 By Rent 22,500
May15 To Bank 7,500 May 21 By Salary 71,000
May 28 To Anush 93,000 May 25 By Drawings 6,000
May 29 By Anand 70,000
May 31 By Balance c/d 19,70,500
22,40,000 22,40,000
June 1 To balance b/d 19,70,500

Dr Capital Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Balance c/d 20,00,000 2011 By Cash 20,00,000
May 31 May 1
20,00,000 20,00,000
June 1 By Balance b/d 20,00,000

Dr Bank Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Cash 1,00,000 2011 By Cash 7,500
May 2 May 18
May 27 By Furniture 15,000
May 31 By Balance c/d 77,500
1,00,000 1,00,000
June 1 To Balance b/d 77,500

Dr Plant and Machinery Account Cr

Date Particulars JF Amount Date Particulars JF Amount
2011 To Mahesh 1,00,000 2011 By Balance c/d 1,00,000
May 3 May 31
1,00,000 1,00,000
June 1 To Balance b/d 1,00,000

Dr Mahesh Account Cr
Date Particulars JF Amount Date Particulars JF Amount

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2011 To Balance c/d 1,00,000 2011 By Plant and 1,00,000
May 31 May 3 Machinery
1,00,000 1,00,000
June 1 By Balance b/d 1,00,000

Dr Purchase Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Anand 75,000 2011 By Balance c/d 75,000
May 4 May 31
75,000 75,000
June 1 To Balance b/d 75,000

Dr Anand Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Purchase Return 3,000 2011 By Purchase 75,000
May 26 May 4
May 29 To Cash 70,000
May 29 To Discount 2,000
75,000 75,000

Dr Anush Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Sales 1,00,000 2011 By Sales Return 5,000
May 6 May 10
May 29 To Cash May 28 By Cash 93,000
May 29 To Discount May 28 By Discount 2,000
1,00,000 1,00,000

Dr Sales Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Balance c/d 1,72,000 2011 By Anush 1,00,000
May 31 May 6
May 8 By Cash 72,000
1,72,000 1,72,000
June 1 By Balance b/d 1,72,000

Dr Sales Return Account Cr

Date Particulars JF Amount Date Particulars JF Amount
2011 To Anush 5,000 2011 By Balance c/d 5,000
May 10 May 31
5,000 5,000
June 1 To Balance b/d 5,000
Dr Rent Account Cr

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Date Particulars JF Amount Date Particulars JF Amount
2011 To Cash 22,500 2011 By Balance c/d 22,500
May 15 May 31
22,500 22,500
June 1 To Balance b/d 22,500

Dr Salary Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Cash 71,000 2011 By Balance c/d 71,000
May 20 May 31
71,000 71,000
June 1 To Balance b/d 71,000

Dr Drawings Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Cash 6,000 2011 By Balance c/d 6,000
May 25 May 31
6,000 6,000
June 1 To Balance b/d 6,000

Dr Purchase Return Account Cr

Date Particulars JF Amount Date Particulars JF Amount
2011 To Balance b/d 3,000 2011 By Anand 3,000
May 31 May 26
3,000 3,000
June 1 By Balance b/d 3,000

Dr Furniture Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Bank 15,000 2011 By Balance c/d 15,000
May 27 May 31
15,000 15,000
June 1 To Balance b/d 15,000

Dr Discount Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2011 To Anush 2,000 2011 By Anand 2,000
May 25 May 29
2,000 2,000

Trial Balance as on 31 May 2011

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Particulars Debit (Rs) Credit (Rs)
Cash A/c 19,03,000 -
Capital A/c - 20,00,000
Bank A/c 77,500 -
Plant and Machinery 1,00,000 -
Purchases A/c 75,000 -
Mahesh A/c - 1,00,000
Sales A/c 1,72,000
Sales Return A/c 5,000 -
Rent A/c 22,500 -
Salary A/c 71,000 -
Drawings 6,000 -
Purchase Return A/c - 3,000
Furniture A/c 15,000 -
22,75,000 22,75,000

Question 3. Journalise the following transactions and Post them in relevant ledger accounts:
2008
Jan. 1. Mr. Raju commenced business with cash Rs.5,00,000, Furniture Rs. 5,00,000 and
Machinery of Rs. 7,00,000
Jan. 2. Sold to Venkat 1,80,000
Jan. 3. Sold to Ramesh for cash 2,50,000
Jan. 4. Purchased from Suresh 1,50,000
Jan. 6. Purchased from Umesh for cash 2,50,000
Jan. 8. Commission received of Rs. 11,000
Jan. 9. Sales returns by Venkat 5,000
Jan. 10. Bought from Shyam 4,50,000
Jan. 12. Returned to Suresh 3,500
Jan. 15. Goods sold to Guru 25,000
Jan. 16. Guru returned goods 2,000
Jan. 22. Building Rent paid Rs. 15,000
Jan. 26. Withdrawn for personal use Rs.10,000.
Jan. 27. Salary paid 50,000
Jan. 30. Withdrawn from bank for office use Rs.10,000.

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Solution 3:
Under traditional, conventional or English Approach:

Sl. Two accounts Types of Rule for debit and credit Account to be Account to
No involved in the Accounts debited be credited
transaction
1 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Capital A/c Personal A/c Credit the giver - Capital A/c
2 a. Furniture Real A/c Debit what comes in Furniture -
b. Capital A/c Personal A/c Credit the giver - Capital A/c
3 a. Machinery A/c Real A/c Debit what comes in Machinery A/c -
b. Capital A/c Personal A/c Credit the giver - Capital A/c
4 a. Venkat A/c Personal A/c Debit the receiver Venkat A/c -
b. Sales A/c Real A/c or Credit what goes out or - Sales A/c
Nominal A/c Credit all incomes & gains
5 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Sale A/c Real A/c or Credit what goes out or - Sale A/c
Nominal A/c Credit all incomes & gains
6 a. Purchase A/c Real A/c or Debit what comes in or Purchase A/c -
Nominal A/c Debit all expenses & losses
b. Suresh A/c Personal A/c Credit the giver - Suresh A/c
7 a. Purchase A/c Real A/c or Debit what comes in or Purchase A/c -
Nominal A/c Debit all expenses & losses
b. Cash A/c Real A/c Credit what goes out - Cash A/c
8 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Commission A/c Nominal A/c Credit all incomes & gains - Commission
A/c
9 a. Sales return A/c Real A/c or Debit what comes in or Sales return A/c -
Nominal A/c Debit all expenses & losses Venkat A/c
b. Venkat A/c Personal A/c Credit the giver -
10 a. Purchase A/c Real A/c or Debit what comes in or Purchase A/c -
Nominal A/c Debit all expenses & losses
b. Shyam A/c Personal A/c Credit the giver - Shyam A/c
11 a. Suresh A/c Personal A/c Debit the receiver Suresh A/c -
b. Purchase return A/c Real A/c or Credit what goes out or - Purchase
Nominal A/c Credit all incomes & gains return A/c
12 a. Guru A/c Personal A/c Debit the receiver Guru A/c -
b. Sales A/c Real A/c or Credit what goes out or - Sales A/c
Nominal A/c Credit all incomes & gains
13 a. Sales return A/c Real A/c or Debit what comes in or Sales return A/c -
Nominal A/c Debit all expenses & losses
b. Guru A/c Personal A/c Credit the giver - Guru A/c
14 a. Building Rent A/c Nominal A/c Debit all expenses & losses Building Rent A/c -
b. Cash A/c Real A/c Credit what goes out - Cash A/c
15 a. Drawings A/c Personal A/c Debit the receiver Drawings A/c -

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b. Cash A/c Real A/c Credit what goes out - Cash A/c
16 a. Salary A/c Nominal A/c Debit all expenses & losses Salary A/c -
b. Cash A/c Real A/c Credit what goes out - Cash A/c
17 a. Cash A/c Real A/c Debit what comes in Cash A/c -
b. Bank A/c Personal A/c Credit the giver - Bank A/c

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Journal entries in the books of Raju.

Date Particulars L.F Debit (Rs) Credit(Rs)
2008 Cash A/c ..Dr 5,00,000
Jan 1 Furniture A/c.Dr 5,00,000
Machinery A/c Dr 7,00,000
To Capital A/c 17,00,000
(Being Capital brought into the business in the
form of cash, furniture and machinery)
Jan 2 Venkat A/c .Dr 1,80,000
To Sales A/c 1,80,000
(Being credit sales to Venkat)
Jan 3 Cash A/c ..Dr 2,50,000
To Sale A/c 2,50,000
(Being Cash sales to Ramesh)
Jan 4 Purchase A/c... Dr 1,50,000
To Suresh A/c 1,50,000
(Being credit purchases)
Jan 6 Purchase A/c Dr 2,50,000
To Cash A/c 2,50,000
(Being cash purchases)
Jan 8 Cash A/c Dr 11,000
To Commission A/c 11,000
(Being commission received)
Jan 9 Sales return A/c..Dr 5,000
To Venkat A/c 5,000
(Being goods returned by Venkat)
Jan 10 Purchase A/c Dr 4,50,000
To Shyam A/c 4,50,000
(Being credit purchases)
Jan 12 Suresh A/c ..Dr 3,500
To Purchase return A/c 3,500
(Being goods returned to Suresh)
Jan 15 Guru A/c .Dr 25,000
To Sales A/c 25,000
(Being credit sales)
Jan 16 Sales return A/c..Dr 2,000
To Guru A/c 2,000
(Being goods returned by Guru)
Jan 22 Building Rent A/c Dr 15,000
To Cash A/c 15,000
(Being rent paid)
Jan 26 Drawings .Dr 10,000

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To Cash A/c 10,000
(Being cash withdrew for personal use)
Jan 27 Salary A/c Dr 50,000
To Cash A/c 50,000
(Being salary paid)
Jan 30 Cash A/c.Dr 10,000
To Bank A/c 10,000
(Being cash withdrew from bank for office use)
31,11,500 31,11,500
`
Ledger Accounts

Dr Cash Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Capital 5,00,000 Jan 6 By Purchase 2,50,000
Jan 1
Jan 3 To Sales 2,50,000 Jan 22 By Building rent 15,000
Jan 8 To Commission 11,000 Jan 26 By Drawings 10,000
Jan 30 To Bank 10,000 Jan 27 By Salary 50,000
Jan 31 By Balance c/d 4,36,000
7,61,000 7,61,000
Feb 1 To Balance b/d 4,36,000

Dr Furniture Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Capital 5,00,000 2008 By Balance c/d 5,00,000
Jan 1 Jan 31
5,00,000 5,00,000
Feb 1 To Balance b/d 5,00,000

Dr Machinery Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Capital 7,00,000 2008 By Balance c/d 7,00,000
Jan 1 Jan 31
7,00,000 7,00,000
Feb 1 To Balance b/d 7,00,000

Dr Capital Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Balance c/d 17,00,000 2008 By Cash 5,00,000
Jan 31 Jan 1

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 Accounts 2012
Jan 1 By Furniture 5,00,000
Jan 1 By Machinery 7,00,000
17,00,000 17,00,000
Feb 1 By Balance b/d 17,00,000
Dr Venkat Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To sales 1,80,000 2008 By Sales return 5,000
Jan 2 Jan 9
Jan 31 By Balance c/d 1,75,000
1,80,000 1,80,000
Feb 1 To Balance b/d 1,75,000

Dr Sales Account Dr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Balance c/d 4,55,000 2008 By Venkat 1,80,000
Jan 31 Jan 2
Jan 3 By Cash 2,50,000
Jan 15 By Guru 25,000
4,55,000 4,55,000
Feb 1 By Balance b/d 4,55,000

Dr Purchase Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Suresh 1,50,000 2001 By Balance c/d 8,50,000
Jan 4 Jan 31
Jan 6 To Cash 2,50,000
Jan 10 To Shyam 4,50,000
8,50,000 8,50,000
Feb1 To Balance b/d 8,50,000

Dr Suresh Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Purchase Return 3,500 2001 By Purchase 1,50,000
Jan 12 Jan 4
Jan 31 To Balance c/d 1,46,500
1,50,000 1,50,000
Feb 1 By Balance b/d 1,46,500

Dr Commission Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Balance c/d 11,000 2008 By Cash 11,000
Jan 31 Jan 8
11,000 11,000

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 Accounts 2012
Feb 1 By Balance b/d 11,000

Dr Sales Return Account Cr

Date Particulars JF Amount Date Particulars JF Amount
2008 To Venkat 5,000 2001 By Balance c/d 5,000
Jan 9 Jan 31
Jan 16 To Guru 2,000
7,000 7,000
Feb 1 To Balance b/d 7,000

Dr Shyam Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Balance c/d 4,50,000 2008 By Purchase 4,50,000
Jan 31 Jan 10
4,50,000 4,50,000
Feb 1 By Balance b/d 4,50,000

Dr Purchase Return Account Cr

Date Particulars JF Amount Date Particulars JF Amount
2008 To Balance c/d 3,500 2001 By Suresh 3,500
Jan 4 Jan 31
3,500 3,500
Feb 1 By Balance b/d 3,500

Dr Guru Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Sales 25,000 2008 By Sales return 2,000
Jan 15 Jan 16
Jan 31 By Balance c/d 23,000
25,000 25,000
Feb 1 To Balance b/d 23,000

Dr Building Rent Account Cr

Date Particulars JF Amount Date Particulars JF Amount
2008 To Cash 15,000 2008 By Balance c/d 15,000
Jan 22 Jan 31
15,000 15,000
Feb 1 To Balance b/d 15,000

Dr Drawings Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Cash 10,000 2008 By Balance c/d 10,000

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 Accounts 2012
Jan 26 Jan 31
10,000 10,000
Feb 1 To Balance b/d 10,000

Dr Salary Account Cr
Date Particulars JF Amount Date Particulars JF Amount
2008 To Cash 50,000 2008 By Balance c/d 50,000
Jan 27 Jan 31
50,000 50,000
Feb 1 To Balance b/d 50,000

Trial Balance as on 30 April 2010

Particulars Debit (Rs) Credit (Rs)
Cash A/c 4,36,000 -
Furniture 5,00,000 -
Machinery 7,00,000 -
Capital - 17,00,000
Venkat 1,75,000 -
Sales - 4,55,000
Purchases 8,50,000 -
Suresh - 1,46,500
Commission - 11,000
Sales Return 7,000 -
Shyam - 4,50,000
Purchase Return - 3,500
Guru 23,000 -
Building Rent 15,000 -
Drawings 10,000 -
Salary 50,000 -
27,66,000 27,66,000

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