Open 'T' shape account of our creditor 'Raghubir' and write the following transactions on the proper side:−
1. Purchased goods from Raghubir on credit for ₹ 50,000.
2. Returned goods to Raghubir for ₹ 5,000.
3. Paid to Raghubir ₹ 30,000.
4. Purchased goods from Raghubir on credit for ₹ 16,000.
5. Paid to Raghubir ₹ 20,000.

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Solution

Raghubir is a creditor, which means, it is a liability for the business. As we know, increase in liability is recorded on the credit side while decrease in liability will be shown on the debit side of the concerned liability account.

Raghubir Account (Creditors)

Dr. Cr.

Particulars Amount
(Rs) Particulars Amount
(Rs)

Record decrease in Creditors on this side- Record increase in Creditors
on this side-

2. Returned goods to Raghubir 5,000 1. Purchased goods on credit from Raghubir 50,000

3. Paid to Raghubir 30,000 4. Purchased goods on credit from Raghubir 16,000

5. Paid to Raghubir 20,000

Total 55,000 Total 66,000

Balance 11,000

66,000 66,000

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		₹
(i)	Goods purchased from Rakesh on credit	50,000
(ii)	Goods returned to Rakesh for	5,000
(iii)	Paid to Rakesh	20,000
(iv)	Purchase goods from Rakesh on credit	10,000

		(₹)
(i)	Purchased goods from X on Credit	40,000
(ii)	Paid to X	30,000
(iii)	Returned goods to X	6,000
(iv)	Purchased goods from X for Cash	20,000
(v)	Purchased goods from X on Credit	50,000
(vi)	Paid to X	45,000

2017
Jan. 1	Assets :	Cash in hand ₹ 20,000; Debtors : Sri Gopal ₹ 15,000, Poonam & Co. ₹ 30,000; Stock ₹ 1,75,000, Machinery ₹ 1,20,000; Furniture ₹ 40,000.
	Liabilities:	Bank Overdraft ₹ 33,000; Creditors : Niranjan Lal ₹ 24,000, Bombay Trading Co. ₹ 16,000.
Jan. 2		Purchased from Manohar Lal & Sons goods of the list price of ₹ 20,000 at 10% trade discount.
5		Returned to Manohar Lal & sons goods of the list price of ₹ 2,000.
10		Issued a Cheque to Manohar Lal & Sons in full settlement of their account.
12		Sold to Sri Gopal, goods worth ₹ 25,000.
15		Received Cash ₹ 10,000 and a Cheque for ₹ 8,000 from Sir Gopal. The Cheque was immediately sent to bank.
16		Withdrew for personal use : Cash ₹ 5,000 and goods ₹ 3,000.
17		Accepted a bill for 45 days drawn by Niranjan Lal for the amount due to him.
18		Acceptance received from Poonam & Co. for the amount due from them payable after 30 days.
19		Sold to Raghubir Brothers, goods valued ₹ 16,000.
20		Cash purchases ₹ 15,000.
22		Withdrew from bank fo office use ₹ 10,000.
23		Purchased from Bombay Trading Co., goods valued ₹ 24,000.
24		Sri Gopal returned goods worth ₹ 2,000.
25		Received from Raghubir Brothers ₹ 10,000.
27		Accepted a bill for ₹ 25,000 for 1 month drawn by Bombay Trading Co.
27		Paid Rent by Cheque ₹ 2,800.
		Received Commission in Cash ₹ 800.
31		Paid salaries ₹ 5,000.

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Raghubir Account (Creditors)
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Record decrease in Creditors on this side-		Record increase in Creditors on this side-
2. Returned goods to Raghubir	5,000	1. Purchased goods on credit from Raghubir	50,000
3. Paid to Raghubir	30,000	4. Purchased goods on credit from Raghubir	16,000
5. Paid to Raghubir	20,000
Total	55,000	Total	66,000
Balance	11,000
	66,000		66,000