Question

Journalise the following transactions, post them into Ledger, balance the accounts and prepare a Trial Balance :−

2017		(₹)
March 1	Shyam Sunder & Sons commenced business with cash	80,000
2	Purchased goods for cash	36,000
3	Machinery purchased for cash	4,000
4	Purchased goods from :
	Raghu	22,000
	Dilip	30,000
6	Returned goods to Raghu	4,000
8	Paid to Raghu, in full settlement of his account	17,500
10	Sold goods to Mahesh Chand & Co. for ₹ 32,000 at 5% trade discount
13	Received cash from Mahesh Chand & Co.	19,800
	Discount allowed	200
15	Paid cash to Dilip	14,850
	Discount received	150
20	Sold goods for cash	25,000
24	Sold goods for cash to Sudhir Ltd.	18,000
25	Paid for Rent	1,500
26	Received for Commission	2,000
28	Withdrew by Proprietor for his personal use	5,000
28	Purchased a fan for Proprietor's house	1,200

Answer 1

Journal In the Books of…
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Mar. 01	Cash A/c	Dr.		80,000
	To Capital A/c				80,000
	(Business started with cash)
Mar. 02	Purchases A/c	Dr.		36,000
	To Cash A/c				36,000
	(Goods purchased for cash)
Mar. 03	Machinery A/c	Dr.		4,000
	To Cash A/c				4,000
	(Machinery purchased for cash)
Mar. 04	Purchases A/c	Dr.		52,000
	To Raghu’s A/c				22,000
	To Dilip’s A/c				30,000
	(Goods purchased on credit from Raghu and Dilip)
Mar. 06	Raghu’s A/c	Dr.		4,000
	To Purchases Return A/c				4,000
	(Goods returned to Raghu)
Mar. 08	Raghu’s A/c	Dr.		18,000
	To Cash A/c				17,500
	To Discount Received A/c				500
	(Cash paid to Raghu in full settlement)
Mar. 10	Mahesh Chand & Co.	Dr.		30,400
	To Sales A/c				30,400
	(Goods sold to Mahesh Chand & Co. at trade discount)
Mar. 13	Cash A/c	Dr.		19,800
	Discount Allowed A/c			200
	To Mahesh Chand & Co.				20,000
	(Cash received from Mahesh Chand & Co.)
Mar. 15	Dilip’s A/c	Dr.		15,000
	To Cash A/c				14,850
	To Discount Received A/c				150
	(Cash paid to Dilip)
Mar. 20	Cash A/c	Dr.		25,000
	To Sales A/c				25,000
	(Goods sold for cash)
Mar. 24	Cash A/c	Dr.		18,000
	To Sales A/c				18,000
	(Goods sold for cash)
Mar. 25	Rent A/c	Dr.		1,500
	To Cash A/c				1,500
	(Rent paid)
Mar. 26	Cash A/c	Dr.		2,000
	To Commission A/c				2,000
	(Commission received)
Mar. 28	Drawings A/c	Dr.		6,200
	To Cash A/c				6,200
	(Cash withdrawn and fan purchased for personal use)
	TOTAL			3,12,100	3,12,100

Cash Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.01		Capital A/c		80,000	Mar.02	Purchases A/c		36,000
Mar.13		Mahesh Chand & Co.		19,800	Mar.03	Machinery A/c		4,000
Mar.20		Sales A/c		25,000	Mar.08	Raghu’s A/c		17,500
Mar.24		Sales A/c		18,000	Mar.15	Dilip’s A/c		14,850
Mar.26		Commission A/c		2,000	Mar.25	Rent A/c		1,500
					Mar.28	Drawings A/c		6,200
					Mar.31	Balance c/d		64,750
				1,44,800				1,44,800
2017
Apr.01		Balance b/d		64,750

Capital Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.31		Balance c/d		80,000	Mar.01	Cash A/c		80,000
				80,000				80,000
					2017
					Apr.01	Balance b/d		80,000

Purchases Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.02		Cash A/c		36,000	Mar.31	Balance c/d		88,000
Mar.04		Raghu’s A/c		22,000
		Dilip’s A/c		30,000
				88,000				88,000
2017
Apr.01		Balance b/d		88,000

Machinery Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.03		Cash A/c		4,000	Mar.31	Balance c/d		4,000
				4,000				4,000
2017
Apr.01		Balance b/d		4,000

Raghu’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.06		Purchases Return A/c		4,000	Mar.04	Purchases A/c		22,000
Mar.08		Cash A/c		17,500
		Discount Received A/c		500
				22,000				22,000

Dilip’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.15		Cash A/c		14,850	Mar.04	Purchases A/c		30,000
Mar.15		Discount Received A/c		150
Mar.31		Balance c/d		15,000
				30,000				30,000
					2017
					Apr.01	Balance b/d		15,000

Purchases Return Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.31		Balance c/d		4,000	Mar.06	Raghu’s A/c		4,000
				4,000				4,000
					2017
					Apr.01	Balance b/d		4,000

Discount Received Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.31		Balance c/d		650	Mar.08	Raghu’s A/c		500
					Mar.15	Dilip’s A/c		150
				650				650
					2017
					Apr.01	Balance b/d		650

Discount Allowed Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.13		Mahesh Chand & Co.		200	Mar.31	Balance c/d		200
				200				200
2017
Apr.01		Balance b/d		200

Mahesh Chand & Co.
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.10		Sales A/c		30,400	Mar.13	Cash A/c		19,800
					Mar.13	Discount Allowed A/c		200
					Mar.31	Balance c/d		10,400
				30,400				30,400
2017
Apr.01		Balance b/d		10,400

Rent Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.25		Cash A/c		1,500	Mar.31	Balance c/d		1,500
				1,500				1,500
2017
Apr.01		Balance b/d		1,500

Commission Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.31		Balance c/d		2,000	Mar.26	Cash A/c		2,000
				2,000				2,000
					2017
					Apr.01	Balance b/d		2,000

Drawings Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.28		Cash A/c		6,200	Mar.31	Balance c/d		6,200
				6,200				6,200
					2017
					Apr.01	Balance b/d		6,200

Sales Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017					2017
Mar.31		Balance c/d		73,400	Mar.10	Mahesh Chand & Co.		30,400
					Mar.20	Cash A/c		25,000
					Mar.24	Cash A/c		18,000
				73,400				73,400
					2017
					Apr.01	Balance b/d		73,400

Trial Balance as on March 31, 2017
Name of Accounts	L.F.	Debit Balances Amount (Rs)	Credit Balances Amount (Rs)
Cash A/c		64,750
Capital A/c			80,000
Purchases A/c		88,000
Machinery A/c		4,000
Dilip’s A/c			15,000
Purchases Return A/c			4,000
Discount Received A/c			650
Discount Allowed A/c		200
Mahesh Chand & Co.		10,400
Rent A/c		1,500
Commission A/c			2,000
Drawings A/c		6,200
Sales A/c			73,400
Total		1,75,050	1,75,050