Do journal (3' to vvnO' the amount of cash in hand by drawing the balanEC
baL•rxvs of all nominal accounts the periodical results Of a business is
degr•rmined by preparing a trading and profit and loss account.
201
By drawing the balances of B•rsonal accounts a trader knows the amount he owes to his
su;pbers and the amount his customers owe to him.
The of personal and real accounts are used to prepare a balance sheet at the end Of
each hnancial period in order to determine the financial position of his business.
the Cash bringing down the balance,
2016
May Qnceofcash in hand
2 grx»ds for cash
5 Purchased goods on credit from Halim
9 Pad salary
15 Withdrew for priva te expenses
22 Inv•6ted further
capital
25 credit to Ghanshyam
Solution :
3D00
1,200 i
2,000
160
400
3,760
3,200
