Question

(Closing Entries). Give the necessary entries in the Journal Proper of Ram on 31st March, 2019 to close their books:
Freehold Premises ₹ 30,000; Plant and Machinery ₹ 20,000; Sundry Debtors ₹ 25,000; Purchases ₹ 37,500; Sales ₹ 95,000; Discount (Dr.) ₹ 150; Discount (Cr.) ₹ 175; Sundry Creditors ₹ 12,500; Carriage Inwards ₹ 375; Carriage Outwards ₹ 600; Furniture and Fixtures ₹ 2,500; Wages ₹ 5,000; Bad debts ₹ 750; Salaries ₹ 3,600; Commission (Cr.) ₹ 2,125; Capital Account − ₹ 25,000; Bills Payable ₹ 7,500; Bills Receivable ₹ 9,000; Trade Expenses ₹ 2,550; Ram's Loan Account ₹ 20,000; Cash in Hand ₹ 75; Cash at Bank ₹ 3,125.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Trading A/c	Dr.		42,875
	To Purchases A/c				37,500
	To Carriage Inwards A/c				375
	To Wages A/c				5,000
	(Direct expenses debited to Trading A/c)
	Sales A/c	Dr.		95,000
	To Trading A/c				95,000
	(Sales credited to Trading A/c)
	Trading A/c	Dr.		52,125
	To Profit & Loss A/c				52,125
	(Transfer of gross profit to Profit &Loss A/c)
	Profit & Loss A/c	Dr.		7,650
	To Discount A/c				150
	To Carriage Outwards A/c				600
	To Bad Debts A/c				750
	To Salaries A/c				3,600
	To Trade Expenses A/c				2,550
	(Indirect expenses debited to P&L A/c)
	Discount A/c	Dr.		175
	Commission A/c	Dr.		2,125
	To Profit & Loss A/c				2,300
	(Indirect incomes credited to P&L A/c)
	Profit & Loss A/c	Dr.		46,775
	To Capital A/c				46,775
	(Transfer of net profit to Capital A/c)