Question

Ram’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2011					2011
Apr. 1		To Balance b/d		7,000	Jun.30	By Sales Return A/c		300
Oct.25		To Sales A/c		13,000	Sept.5	By Cash A/c		6,500
Dec.31		To Sales		10,000	5	By Discount A/c		200
					Oct. 5	By Cash A/c		10,000
					2012
					Mar. 31	By Balance c/d		13,000
		Total		30,000				30,000
2012
Apr. 1		To Balance b/d		13,000

From the above Ram’s Account answer the following questions.

1) Whether Ram is a debtor or Creditor as 1^st April 2012?

2) Give an entry for the Posting dated Sep. 5

3) Explain the posting dated October 25.

4) Whether Ram is a debtor or creditor on 30^th Sep. 2011.

Answer 1

1. Since Ram’s Account begins with a debit balance on 1^st April, 2012, so Ram is a Debtor on this date.

2.

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
5/9/2011	Cash A/c	Dr.		6,500
	Discount Allowed A/c	Dr.		200
	To Ram				6,700
	(Cash received from Ram and discount allowed)

3. Posting dated October 25, 2011 depicts that credit sales have been affected to Ram, amounting to Rs 13,000.

4. On 30^th September, 2011, the account of Mr Ram shows a debit balance of Rs 7,000 which is equal to credit amounting to Rs 7,000. Therefore, Ram will not appear in our books both as either Debtor or Creditor on this date. The account of Mr. Ram as on 30th September, 2011 has been shown below

Ram’s Account

Dr.				Cr.
Date	Particulars	J.F.	Amount (Rs)		Date	Particulars	J.F.	Amount (Rs)
2011					2011
Apr. 01	Balance b/d		7,000		June,30	Sales Returns A/c		300
					Sept. 05	Cash A/c		6,500
					Sept. 05	Discount A/c		200
			7,000					7,000