Question

Following is the posting of different accounts in the Books of Mr. Ram Traders’.

Cash A/c
Dr.					Cr.
Date	Particulars	J.F.	Amount Rs	Date		Particulars	J.F.	Amount Rs
2011 Mar. 1	To Balance b/d		5,000	2011 Mar. 25		By Rent A/c		2,000
3	To Sales A/c		4,000	30		By Purchases A/c		1,000
24	To Mahesh A/c		700

Mahesh’s A/c
Dr.					Cr.
Date	Particulars	J.F.	Amount Rs	Date		Particulars	J.F.	Amount Rs
2011 Mar. 1	To Balance b/d		2,500	2011 Mar. 31		By Cash A/c		700
25	To Sales A/c		3,200

Salaries A/c
Dr.					Cr.
Date	Particulars	J.F.	Amount Rs	Date		Particulars	J.F.	Amount Rs
2011 Mar. 1	To Balance b/d		11,000
5	To Bank A/c		1,000

Show how you close the above accounts for the year ending 31st March 2011.

Answer 1

1. Cash A/c debit balance carried forward as on 31/3/2011 is Rs 6,700.

Cash Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2011				2011
Mar. 01	Balance b/d		5,000	Mar. 25	Rent A/c		2,000
03	Sales A/c		4,000	30	Purchases A/c		1,000
24	Mahesh A/c		700	31	Balance c/d		6,700
			9,700				9,700

2. Mahesh’s A/c debit balance carried forward as on 31/3/2011 is Rs 5,000

Mahesh’s Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount
2011				2011
Mar. 01	Balance b/d		2,500	Mar. 31	Cash A/c		700
25	Sales A/c		3,200	31	Balance c/d		5,000
			5,700				5,700

3. Salaries A/c balance of Rs 12,000 will be transferred to Profit and Loss A/c at the year end.

Salaries Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2011				2011
Mar. 01	Balance b/d		11,000	Mar. 31	Profit & Loss A/c		12,000
05	Bank A/c		1,000
			12,000				12,000