Gyan Prakash started his business with the following assets and liabilities :

2005

Jan1. Cash in hand = 20000

           Stock in hand = 25000

            Debtors:  Khanna Bros. = 20000

                              Nirman & co. = 15000 

            Creditors: Kripal Bros = 10000

                               Mitra Sen & co. = 5000

His transactions for the month were :

Jan2. Sold goods to karmarkar subject to a trade discount of 10% = 10000

Jan4. recieved from nirman & co.= 14500

           discount allowed = 500

Jan6. settled mitra sen & co.'s account deducting 5% for cash discount

Jan10. purchased stationery articles = 100

Jan12. paid rent for the month = 250

Jan13. bought goods from S.K & co. = 30000

Jan16. Paid kripal bros. in full settlement of account = 9500

Jan20. withdrew cash for personel expenses = 500

Jan24. issued a credit note to mr. karmarkar for the goods damaged in transit = 1000

Jan26. returned goods to S.K. & co. and recieved their credit note

Jan29. Paid S.K. & co. on account = 10000

             discount allowed = 250

Jan 29. cash sales = 20000

Jan31. paid salaries = 1500

enter the above transactions in the journal of gyan prakash . post them into ledger and prepare a trail balance.

 

Books of Gyan Prakash

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit Amount

Rs

2005

 

 

 

 

 

Jan.01

Cash A/c

Dr.

 

20,000

 

 

Stock A/c

Dr.

 

25,000

 

 

Khanna

Dr.

 

20,000

 

 

Nirman & Co.

Dr.

 

15,000

 

 

To Kripal Bros.

 

 

 

10,000

 

To Mitra Sen & Co.

 

 

 

5,000

 

To Capital A/c

 

 

 

65,000

 

(Gyan Prakash started business

by bringing assets and liablities)

 

 

 

 

 

 

 

 

 

 

Jan.02

Karmarkar

Dr.

 

9,000

 

 

To Sales A/c

 

 

 

9,000

 

(Goods Sold to karmarkar at 10% trade discount)

 

 

 

 

 

 

 

 

 

 

Jan.04

Cash A/c

Dr.

 

14,500

 

 

Discount Allowed A/c

Dr.

 

500

 

 

To Nirman & Co.

 

 

 

15,000

 

(Cash received from Nirman & Co. and allowed him discount)

 

 

 

 

 

 

 

 

 

 

Jan.06

Mitra Sen & Co. A/c

Dr.

 

5,000

 

 

To Cash A/c

 

 

 

4,750

 

To Discount Received A/c

 

 

 

250

 

(Cash paid to Mitra Sen & Co. and 5% discount received from him)

 

 

 

 

 

 

 

 

 

 

Jan.10

Stationery A/c

Dr.

 

100

 

 

To Cash A/c

 

 

 

100

 

(Stationary purchased)

 

 

 

 

 

 

 

 

 

 

Jan.12

Rent A/c

Dr.

 

250

 

 

To Cash A/c

 

 

 

250

 

(Rent paid)

 

 

 

 

 

 

 

 

 

 

Jan.13

Purchases A/c

Dr.

 

30,000

 

 

To S.K. & Co.

 

 

 

30,000

 

(Goods bought from S.K. & Co.)

 

 

 

 

 

 

 

 

 

 

Jan.16

Kripal Bros.

Dr.

 

10,000

 

 

To Cash A/c

 

 

 

9,500

 

To Discount Received

 

 

 

500

 

(Paid to Kripal Bros in full settlement of amount due to him)

 

 

 

 

 

 

 

 

 

 

Jan.20

Drawings A/c

Dr.

 

500

 

 

To Cash A/c

 

 

 

500

 

(Cash withdraw for personal use)

 

 

 

 

 

 

 

 

 

 

Jan.24

Goods Damaged in Transit A/c

Dr.

 

1,000

 

 

To Karmarkar A/c

 

 

 

1,000

 

(Goods damaged in transit and credit note issued to Karmarkar)

 

 

 

 

 

 

 

 

 

 

Jan.26

S.K. & Co.

Dr.

 

1,000

 

 

To Purchases Return A/c

 

 

 

1,000

 

(Goods returned S. K. & Co. and in return received credit note from him)

 

 

 

 

 

 

 

 

 

 

Jan.29

S.K. & Co. A/c

Dr.

 

10,250

 

 

To Cash A/c

 

 

 

10,000

 

To Discount Received

 

 

 

250

 

(Cash paid to S.K. & Co. and discount received from him)

 

 

 

 

 

 

 

 

 

 

Jan.29

Cash A/c

Dr.

 

20,000

 

 

To Sales A/c

 

 

 

20,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

Jan.31

Salaries A/c

Dr.

 

1,500

 

 

To Cash A/c

 

 

 

1,500

 

(Salaries paid)

 

 

 

 

 

 

 

 

 

 

 

Note: As, the amount of transaction on Jan. 26, 2005, is missing, so we have taken an imaginary amount that is Rs 1,000.

 

Ledger

Cash Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.01

Capital

 

20,000

Jan.06

Mitra Sen

 

4,750

Jan.04

Karmarkar

 

14,500

Jan.10

Stationery

 

100

Jan.29

Sales

 

20,000

Jan.12

Rent

 

250

 

 

 

 

Jan.16

Kripal Bros.

 

9,500

 

 

 

 

Jan.20

Drawings

 

500

 

 

 

 

Jan.24

S.K. & Co.

 

10,000

 

 

 

 

Jan.31

Salaries

 

1,500

 

 

 

 

Jan.31

Balance c/d

 

27,900

 

 

 

54,500

 

 

 

54,500

 

 

 

 

 

 

 

 

 

 

 

Mitra Sen & Co. 

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.06

Cash

 

4,750

Jan.01

Capital

 

5,000

 

Discount Received

 

250

 

 

 

 

 

 

 

5,000

 

 

 

5,000

 

 

 

 

 

 

 

 

 

 

Karmakar 

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.02

Sales

 

9,000

Jan.24

Goods Damaged in transit

 

1,000

 

 

 

 

Jan.31

Balance c/d

 

8,000

 

 

 

9,000

 

 

 

9,000

 

 

 

 

 

 

 

 

 

 

Discount Allowed Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.04

Nirman & Co.

 

500

 

 

 

 

 

 

 

 

Jan.31

Balance c/d

 

500

 

 

 

500

 

 

 

500

 

 

 

 

 

 

 

 

 

 

 

Discount Received Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

 

 

 

 

Jan.06

Mitra Sen & Co.

 

250

 

 

 

 

Jan.16

Kripal Bros.

 

500

Jan.31

Balance c/d

 

1,000

Jan.29

S.K. & Co.

 

250

 

 

 

1,000

 

 

 

1,000

 

 

 

 

 

 

 

 

 

 

 

Stationery Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.10

Cash

 

100

Jan.31

Balance c/d

 

100

 

 

 

100

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

Purchases Return Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.31

Balance c/d

 

1,000

Jan.26

S.K. & Co.

 

1,000

 

 

 

1,000

 

 

 

1,000

 

 

 

 

 

 

 

 

 

 

 

Sales Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

 

 

 

 

Jan.02

Karmarkar

 

9,000

Jan.31

Balance c/d

 

29,000

Jan.29

Cash

 

20,000

 

 

 

 

 

 

 

 

 

 

 

29,000

 

 

 

29,000

 

 

 

 

 

 

 

 

 

 

 

Salaries Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.31

Cash

 

1,500

Jan.31

Balance c/d

 

1,500

 

 

 

1,500

 

 

 

1,500

 

 

 

 

 

 

 

 

 

 

 

Capital Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.01

Kripal Bros.

 

10,000

Jan.01

Cash in hand

 

20,000

Jan.01

Mitra Sen & Co

 

5,000

Jan.01

Stock

 

25,000

Jan.31

Balance c/d

 

65,000

Jan.01

Khanna Bros.

 

20,000

 

 

 

 

 

Jan.01

Nirman & Co

 

15,000

 

 

 

65,000

 

 

 

80,000

 

 

 

 

 

 

 

 

 

 

 

Stock Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.01

Capital

 

25,000

Jan.31

Balance c/d

 

25,000

 

 

 

25,000

 

 

 

25,000

 

 

 

 

 

 

 

 

 

 

 

Khanna Bros. 

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.01

Capital

 

20,000

Jan.31

Balance c/d

 

20,000

 

 

 

20,000

 

 

 

20,000

 

 

 

 

 

 

 

 

 

 

 

Nirman & Co. 

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.01

Capital

 

15,000

Jan.04

Cash

 

14,500

 

 

 

 

Jan.04

Discount Allowed

 

500

 

 

 

15,000

 

 

 

15,000

 

 

 

 

 

 

 

 

 

 

 

Kripal Bros. 

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.16

Cash

 

9,500

Jan.01

Capital

 

10,000

 

Discount Received

 

500

 

 

 

 

 

 

 

10,000

 

 

 

10,000

 

 

 

 

 

 

 

 

 

 

 

Rent Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.12

Cash

 

250

Jan.31

Balance c/d

 

250

 

 

 

 

 

 

 

 

 

 

 

250

 

 

 

250

 

 

 

 

 

 

 

 

 

 

 

Purchases Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.13

S.K. & Co.

 

30,000

Jan.31

Balance c/d

 

30,000

 

 

 

 

 

 

 

 

 

 

 

30,000

 

 

 

30,000

 

 

 

 

 

 

 

 

 

 

 

S.K. & Co. 

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

 

 

 

 

2005

 

 

 

Jan.26

Purchases Return

 

1,000

Jan.13

Purchases

 

30,000

Jan.29

Cash

 

10,000

 

 

 

 

Jan.29

Discount Receive

 

250

 

 

 

 

Jan.31

Balance c/d

 

18,750

 

 

 

 

 

 

 

30,000

 

 

 

30,000

 

 

 

 

 

 

 

 

 

 

 

Drawings Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

2005

 

 

 

Jan.10

Cash

 

500

Jan.31

Balance c/d

 

500

 

 

 

500

 

 

 

500

 

 

 

 

 

 

 

 

 

 

 

Goods Damaged In Transit Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2005

 

 

 

 

 

 

 

Jan.25

Karmakar

 

1,000

 

 

 

 

 

 

 

1,000

Jan.24

Balance c/d

 

1,000

 

 

 

 

 

 

 

1,000

 

 

 

 

 

 

 

 

 

 

Trial Balance as Jan. 31, 2005

 

Title of Accounts

Debit

Amount

Rs

Credit

Amount

Rs

Cash

Stock

Khanna Bros.

Karmarkar

Discount Allowed

Discount Received

Stationary

Purchases Return

Sales

Salaries

Capital

Rent

Purchases

S.K & Co.

Drawings

Good Damaged in transit

 

 

27,900

25,000

20,000

8,000

500

 

100

 

 

1,500

 

250

30,000

 

500

1,000

 

 

 

 

 

 

1,000

 

1,000

29,000

 

65,000

 

 

18,750

 

 

1,14,750

1,14,750

    

 

 

 

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