Question

Following balances appeared in the books of Ram & Shyam on January 1, 2017 :−
Assets : Cash in hand ₹ 30,000; Stock ₹ 36,000; Lal Chand ₹ 7,600; Mukesh Khanna ₹ 16,200; Furniture ₹ 8,000.
Liabilities : Ghanshyam ₹ 6,000; Vinod ₹ 8,000.
Following transactions took place during Jan. 2017 :−

2017
Jan. 2	Purchased Typewriter for ₹ 7,500.
4	Sold goods for Cash of the list price of ₹ 25,000 at 20% trade discount and 5% Cash discount.
6	Sold goods to Gopal Seth for ₹ 10,000.
8	Gopal Seth returned goods for ₹ 1,500.
12	Purchased goods from Arun ₹ 12,000; and from Varun ₹ 15,000.
13	Settled Arun's account in full after deducting 5% for cash discount.
14	Paid cash to Ghanshyam in full settlement of his account.
16	Received ₹ 7,500 from Lal Chand in full settlement of his account.
17	Purchased a Scooter for office use ₹ 18,000.
20	Sold goods for cash ₹ 20,000.
22	Received from Gopal Seth ₹ 4,850 and discount allowed ₹ 150.
27	Paid for Wages ₹ 7,000 and Salaries ₹ 3,000.
28	Withdrew goods for ₹ 2,000 and Cash ₹ 1,500 for private use.
29	Paid for Life Insurance Premium of the Proprietor ₹ 1,600.

Journalise the above transactions, post them into Ledger, balance them and prepare a Trial Balance.

Answer 1

Journal In the Books of Ram & Shyam
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Jan.01	Cash in hand A/c	Dr.		30,000
	Stock A/c	Dr.		36,000
	Lal Chand’s A/c	Dr.		7,600
	Mukesh Khanna’s A/c	Dr.		16,200
	Furniture A/c	Dr.		8,000
	To Ghanshyam’s A/c				6,000
	To Vinod’s A/c				8,000
	To Capital A/c (Balancing figure)				83,800
	(Opening entry made)
Jan.02	Office Equipment A/c	Dr.		7,500
	To Cash A/c				7,500
	(Typewriter purchased)
Jan.04	Cash A/c	Dr.		19,000
	Discount Allowed A/c	Dr.		1,000
	To Sales A/c				20,000
	(Goods sold for cash at 20% trade discount)
Jan.06	Gopal Seth’s A/c	Dr.		10,000
	To Sales A/c				10,000
	(Goods sold on credit to Gopal Seth)
Jan.08	Sales Return A/c	Dr.		1,500
	To Gopal Seth’s A/c				1,500
	(Goods returned)
Jan.12	Purchases A/c	Dr.		27,000
	To Arun’s A/c				12,000
	To Varun’s A/c				15,000
	(Goods purchased on credit)
Jan.13	Arun’s A/c	Dr.		12,000
	To Cash A/c				11,400
	To Discount Received A/c				600
	(Cash paid to Arun in full settlement)
Jan.14	Ghanshyam’s A/c	Dr.		6,000
	To Cash A/c				6,000
	(Cash paid to Ghanshyam)
Jan.16	Cash A/c	Dr.		7,500
	Discount Allowed A/c	Dr.		100
	To Lal Chand’s A/c				7,600
	(Cash received)
Jan.17	Scooter A/c	Dr.		18,000
	To Cash A/c				18,000
	(Scooter purchased)
Jan.20	Cash A/c	Dr.		20,000
	To Sales A/c				20,000
	(Goods sold for cash)
Jan.22	Cash A/c	Dr.		4,850
	Discount Allowed A/c	Dr.		150
	To Gopal Seth’s A/c				5,000
	(Cash received)
Jan.27	Wages A/c	Dr.		7,000
	Salaries A/c	Dr.		3,000
	To Cash A/c				10,000
	(Expenses paid)
Jan.28	Drawings A/c	Dr.		3,500
	To Purchases A/c				2,000
	To Cash A/c				1,500
	(Amount withdrawn)
Jan.29	Drawings A/c	Dr.		1,600
	To Cash A/c				1,600
	(Paid life insurance premium)
	TOTAL			2,47,500	2,47,500

Cash Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.01		Balance c/d		30,000	Jan.02	Typewriter A//c		7,500
Jan.04		Sales A/c		19,000	Jan.13	Arun’s A/c		11,400
Jan.06		Lal Chand’s A/c		7,500	Jan.14	Ghanshyam’s A/c		6,000
Jan.20		Sales A/c		20,000	Jan.17	Scooter A/c		18,000
Jan.26		Gopal Seth’s A/c		4,850	Jan.27	Wages A/c		7,000
					Jan.27	Salaries A/c		3,000
					Jan.28	Drawings A/c		1,500
					Jan.29	Drawings A/c		1,600
					Jan.31	Balance c/d		25,350
				81,350				81,350
2017
Feb.01		Balance b/d		25,350

Stock Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.01		Balance b/d		36,000	Jan.31	Balance c/d		36,000
				36,000				36,000
2017
Feb.01		Balance b/d		36,000

Lal Chand’s A/c
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.01		Balance b/d		7,600	Jan.06	Cash A/c		7,500
						Discount Allowed		100
				7,600				7,600

Mukesh Khanna’s A/c
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.01		Balance b/d		16,200	Jan.31	Balance c/d		16,200
				16,200				16,200
2017
Jan.01		Balance b/d		16,200

Furniture Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.01		Balance b/d		8,000	Jan.31	Balance c/d		8,000
				8,000				8,000
2017
Feb.01		Balance b/d		8,000

Ghanshyam’s A/c
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.14		Cash A/c		6,000	Jan.01	Balance b/d		6,000
				6,000				6,000

Vinod’s A/c
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.31		Balance c/d		8,000	Jan.01	Balance b/d		8,000
				8,000				8,000
					2017
					Feb.01	Balance b/d		8,000

Capital Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.31		Balance c/d		83,800	Jan.01	Balance b/d		83,800
				83,800				83,800
					2017
					Feb.01	Balance b/d		83,800

Office Equipment Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.02		Cash A/c		7,500	Jan.31	Balance c/d		7,500
				7,500				7,500
2017
Feb.01		Balance b/d		7,500

Discount Allowed Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.04		Sales A/c		1,000	Jan.31	Balance c/d		1,250
Jan.16		Lal Chand’s A/c		100
Jan.22		Gopal Seth’s A/c		150
				1,250				1,250
2017
Feb.01		Balance b/d		1,250

Sales Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.31		Balance c/d		50,000	Jan.04	Cash A/c		19,000
					Jan.04	Discount Allowed A/c		1,000
					Jan.06	Gopal Seth’s A/c		10,000
					Jan.20	Cash A/c		20,000
				50,000				50,000
					2017
					Feb.01	Balance b/d		50,000

Gopal Seth’s A/c
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.06		Sales A/c		10,000	Jan.08	Sales Return A/c		1,500
					Jan.22	Cash A/c		4,850
					Jan.22	Discount Allowed		150
					Jan.31	Balance c/d		3,500
				10,000				10,000
2017
Feb.01		Balance b/d		3,500

Sales Return Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.08		Gopal Seth’s A/c		1,500	Jan.31	Balance c/d		1,500
				1,500				1,500
2017
Feb.01		Balance b/d		1,500

Purchases Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.12		Arun’s A/c		12,000	Jan.28	Drawings A/c		2,000
		Varun’s A/c		15,000	Jan.31	Balance c/d		25,000
				27,000				27,000
2017
Feb.01		Balance b/d		25,000

Arun’s A/c
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.13		Cash A/c		11,400	Jan.12	Purchases A/c		12,000
Jan.13		Discount Received A/c		600
				12,000				12,000

Varun’s A/c
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.31		Balance c/d		15,000	Jan.12	Purchases A/c		15,000
				15,000				15,000
					2017
					Feb. 01	Balance b/d		15,000

Discount Received Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.31		Balance c/d		600	Jan.13	Arun’s A/c		600
				600				600
					2017
					Feb.01	Balance b/d		600

Scooter Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.17		Cash A/c		18,000	Jan.31	Balance c/d		18,000
				18,000				18,000
2017
Feb.01		Balance b/d		18,000

Wages Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.27		Cash A/c		7,000	Jan.31	Balance c/d		7,000
				7,000				7,000
2017
Feb.01		Balance b/d		7,000

Salaries Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.27		Cash A/c		3,000	Jan.31	Balance c/d		3,000
				3,000				3,000
2017
Feb.01		Balance b/d		3,000

Drawings Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Jan.28		Purchases A/c		2,000	Jan.31	Balance c/d		5,100
Jan.28		Cash A/c		1,500
Jan.29		Cash A/c		1,600
				5,100				5,100
2017
Feb.01		Balance b/d		5,100

Trial Balance as on Jan. 31, 2017
Name of Accounts	L.F.	Debit Balances Amount (Rs)	Credit Balances Amount (Rs)
Cash A/c		25,350	–
Stock A/c		36,000	–
Mukesh Khanna’s A/c		16,200	–
Furniture A/c		8,000	–
Vinod’s A/c		–	8,000
Capital A/c		–	83,800
Office Equipment A/c		7,500	–
Discount Allowed A/c		1,250	–
Sales A/c		–	50,000
Gopal Seth’s A/c		3,500	–
Sales Return A/c		1,500	–
Purchases A/c		25,000	–
Varun’s A/c		–	15,000
Discount Received A/c		–	600
Scooter A/c		18,000	–
Wages A/c		7,000	–
Salaries A/c		3,000	–
Drawings A/c		5,100	–
Total		1,57,400	1,57,400