Question

On 1st January, 2017, Ram commenced business with a capital of ₹ 50,000 represented by :
Cash in Hand ₹ 12,500; Cash at Bank ₹ 12,500; Stock ₹ 20,000; Furniture and Fittings ₹ 5,000. Open the books by means of a Journal and then pass the following transactions through the books to the Ledger. Take out a Trial Balance as on 31st January, 2017. The Cash Book must be balanced.

2017		₹
Jan. 1	Sold goods to R. Raman	5,000
Jan. 2	Bought goods from Man Mohan	10,000
Jan. 3	Bought stationery for cash	100
Jan. 5	Received cash from R. Raman	4,700
	Discount allowed to him	300
Jan. 6	Sold goods to Bimal	7,500
Jan. 8	Bimal returned part of goods supplied on the 6th instant	1,500
Jan. 10	Paid cash into bank	1,000
Jan. 12	Paid wages in cash	1,500
Jan. 13	Bought office desk on credit from the Union Furniture Co.	1,500
Jan. 19	Paid wages in cash	1,500
Jan. 21	Paid to Man Mohan by cheque	9,500
	Discount received	500
Jan. 21	Sold goods to Ramesh	6,000
Jan. 22	Received cheque from Bimal	6,000
Jan. 23	Bought goods from Man Mohan	7,000
Jan. 24	Drew cheque for private use	2,000
Jan. 27	Paid wages in cash	1,500
Jan. 31	Rent due to Lanlord	1,000

Answer 1

Books of Ram Sales Book
Date	Particulars		L.F.	Details (Rs)	Amount (Rs)
2017
Jan.01	R. Raman				5,000
Jan.06	Bimal				7,500
Jan.21	Ramesh				6,000
Jan.31	Sales A/c	Cr.			18,500

Purchases Book
Date	Particulars		L.F.	Details (Rs)	Amount (Rs)
2017
Jan.02	Man Mohan				10,000
Jan.23	Man Mohan				7,000
Jan.31	Purchases A/c	Dr.			17,000

Sales Return Book
Date	Particulars		L.F.	Details (Rs)	Amount (Rs)
2017
Jan.08	Bimal				1,500
Jan.31	Sales Return A/c	Dr.			1,500

Cash Book
Dr.						Cr.
Date	Particulars	L.F.	Cash (Rs)	Bank (Rs)	Date		Particulars	L.F.	Cash (Rs)	Bank (Rs)
2017					2017
Jan.01	Capital		12,500	12,500	Jan.03		Stationery		100
Jan.05	R. Raman		4,700		Jan.10		Bank	C	1,000
Jan.10	Cash	C		1,000	Jan.12		Wages		1,500
Jan.12	Bimal			6,000	Jan.19		Wages		1,500
					Jan.21		Man Mohan			9,500
					Jan.24		Drawings			2,000
					Jan.27		Wages		1,500
					Jan.31		Balance c/d		11,600	8,000
			17,200	19,500					17,200	19,500

Journal Entries
Date	Particulars		L.F.	Debit Balance (Rs)	Credit Balance (Rs)
2017
Jan.01	Stock A/c	Dr.		20,000
	Furniture and Fittings A/c	Dr.		5,000
	To Capital A/c				25,000
	(Ram brought Stock and Furniture as Capital)
Jan.05	Discount Allowed A/c	Dr.		300
	To R. Raman				300
	(Discount was allowed to R. Ram for Cash receiving)
Jan.19	Furniture and Fittings A/c	Dr.		1,500
	To Unions Furniture Co.				1,500
	(Desk Purchased from Union Furniture Co.)
Jan.21	Man Mohan	Dr.		500
	To Discount Received A/c				500
	(Discount allowed by Man Mohan on Paying Cash)
Jan.31	Rent A/c	Dr.		1,000
	To Rent Outstanding A/c				1,000
	(Rent due to Land Lord)

Stock Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.01	Capital		20,000
				Jan.31	Balance c/d		20,000
			20,000				20,000

Furniture and Fittings Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.01	Capital		5,000
Jan.13	Union Furniture Co .		1,500	Jan.31	Balance c/d		6,500
			6,500				6,500

Union Furniture Co.
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.31	Balance c/d		1,500	Jan.13	Furniture		1,500
			1,500				1,500

Capital Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
				Jan.01	Cash		12,500
					Bank		12,500
					Stock		20,000
Jan.31	Balance c/d		50,000		Furniture & Fittings		5,000
			50,000				50,000

Sales Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
				Jan.31	Sundries as per
Jan.31	Balance c/d		18,500		Sales Book		18,500
			18,500				18,500

Purchases Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.31	Sundries as per Purchases Book		17,000	Jan.31	Balance c/d		17,000
			17,000				17,000

R. Raman
Dr.							Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.01	Sales		5,000	Jan.05	Cash		4,700
					Discount Allowed		300
			5,000				5,000

Discount Allowed
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.31	Balance c/d		1,500	Jan.31	Balance c/d		1,500
			300				300

Sales Return Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.31	Balance c/d		1,500	Jan.31	Balance c/d		1,500
			1,500				1,500

Man Mohan
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan 21	Bank		9,500	Jan 02	Purchases		10,000
Jan 21	Discount Received		500	Jan 23	Purchases		7,000
Jan 31	Balance c/d		7,000
			17,000				17,000

Stationery Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.03	Cash		100	Jan.31	Balance c/d		100
			100				100

Bimal
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
				Jan.08	Sales Return		1,500
Jan.06	Sales		7,500	Jan.22	Bank		6,000
			7,500				7,500

Wages Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.12	Cash		1,500
Jan.19	Cash		1,500
Jan.27	Cash		1,500	Jan.31	Balance c/d		4,500
			4,500				4,500

Discount Received Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
				Jan.21	Manmohan		500
Jan.31	Balance c/d		500
			500				500

Ramesh
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.21			6,000	Jan.31	Balance c/d		6,000
			6,000				6,000

Drawings Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.31	Balance c/d		1,500
				Jan.31	Balance c/d		1,500
			2,000				2,000

Rent Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.31	Balance c/d		1,500	Jan.31	Balance c/d		1,500
			1,000				1,000

Rent Outstanding Account
Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2017				2017
Jan.31	Balance c/d		1,500	Jan.31	Balance c/d		1,500
			1,000				1,000

Trial Balance as on January 31, 2017
S. No.	Accounts Title	L.F.	Debit (Rs)	Credit (Rs)
(i)	Cash		11,600
(ii)	Bank		8,000
(iii)	Capital			50,000
(iv)	Sales			18,500
(v)	Purchase		17,000
(vi)	Stock		20,000
(vii)	Furniture and Fittings		6,500
(viii)	Unioun Furniture Co			1,500
(ix)	Wages		4,500
(x)	Discount Received			500
(xi)	Ramesh		6,000
(xii)	Discount Allowed		300
(xiii)	Sales Return		1,500
(xiv)	Man Mohan			7,000
(xv)	Stationery		100
(xvi)	Drawings		2,000
(xvii)	Rent		1,000
(xviii)	Rent Outstanding			1,000
			78,500	78,500