Question

From the following transactions prepare necessary ledger accounts and balance them.

2011 Jan.	1	Sachin started Business with Cash Rs 10,000 and Machinery Rs 15,000
	1	Purchased goods for cash Rs 3,000.
	3	Sold goods for cash Rs 4,000.
	5	Purchased furniture on credit from Poona Traders Rs 7,000.
	8	Purchased goods on credit from Mr. Dilip Rs 2,000 at 10% T.D.
	10	Sold goods on credit to Mr. Mahendra Rs 8,000 at 12.5% T.D.
	15	Paid Rent Rs 600.
	28	Withdraw cash for personal use Rs 1,000.
	20	Paid cash to Mr. Dilip Rs 1,800.
	25	Received cash from Mr. Mahendra Rs 6,800.
	31	Paid to Miss Sunita Rs 400 for salaries

Answer 1

Cash Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
1	Capital A/c		10,000	1	Purchases A/c		3,000
3	Sales A/c		4,000	15	Rent A/c		600
25	Mahendra A/c		6,800	28	Drawings A/c		1,000
				20	Dilip A/c		1,800
				31	Salary A/c		400
				31	Balance c/d		14,000
			20,800				20,800

Machinery Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
1	Capital A/c		15,000	31	Balance c/d		15,000
			15,000				15,000

Capital Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
31	Balance c/d		25,000	1	Cash A/c		10,000
				1	Machine A/c		15,000
			25,000				25,000

Purchases Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
1	Cash A/c		3,000	31	Balance c/d		4,800
8	Dilip’s A/c		1,800
			4,800				4,800

Sales Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
31	Balance c/d		11,000	3	Cash A/c		4,000
				10	Mahendra’s A/c		7,000
			11,000				11,000

Furniture Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
5	Poona Traders A/c		7,000	31	Balance c/d		7,000
			7,000				7,000

Poona Traders Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
31	Balance c/d		7,000	5	Furniture A/c		7,000
			7,000				7,000

Dilip’s Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
20	Cash A/c		1,800	8	Purchases A/c		1,800
			1,800				1,800

Mahendra’s Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
10	Sales A/c		7,000	25	Cash A/c		6,800
				31	Balances c/d		200
			7,000				7,000

Rent Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
15	Cash A/c		600	31	Balances c/d		600
			600				600

Drawings Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
28	Cash A/c		1,000	31	Balances c/d		1,000
			1,000				1,000

Salaries Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
Jan 2011				Jan 2011
31	Cash A/c		400	31	Balances c/d		400
			400				400

Note: As per the book, the balance of Cash Book is Rs 16,000 but as per our solution it should be Rs 14,000.