Gyan Prakash started his business with the following assets and liabilities : 2005 Jan1 Cash in hand = 20000 - Accountancy - Trial Balance and Rectification of Errors

Question

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

Mohammed Vaseem · Accepted Answer

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

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

Mitra Sen & Co

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 06

Cash

4,750

Jan 01

Capital

5,000

Discount Received

250

5,000

Karmakar

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 02

Sales

9,000

Jan 24

Goods Damaged in transit

1,000

Jan 31

Balance c/d

8,000

9,000

Discount Allowed Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 04

Nirman & Co

500

Jan 31

Balance c/d

500

Discount Received Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

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

Stationery Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 10

Cash

100

Jan 31

Balance c/d

100

Purchases Return Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 31

Balance c/d

1,000

Jan 26

S K & Co

1,000

Sales Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 02

Karmarkar

9,000

Jan 31

Balance c/d

29,000

Jan 29

Cash

20,000

29,000

Salaries Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 31

Cash

1,500

Jan 31

Balance c/d

1,500

Capital Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

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

Jan 01

Capital

25,000

Jan 31

Balance c/d

25,000

Khanna Bros

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 01

Capital

20,000

Jan 31

Balance c/d

20,000

Nirman & Co

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 01

Capital

15,000

Jan 04

Cash

14,500

Jan 04

Discount Allowed

500

15,000

Kripal Bros

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 16

Cash

9,500

Jan 01

Capital

10,000

Discount Received

500

10,000

Rent Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 12

Cash

250

Jan 31

Balance c/d

250

Purchases Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 13

S K & Co

30,000

Jan 31

Balance c/d

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

Drawings Account

Dr

Cr

Date

Particulars

J F

Amount
Rs

Date

Particulars

J F

Amount
Rs

2005

Jan 10

Cash

500

Jan 31

Balance c/d

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

Jan 24

Balance c/d

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

29,000

65,000

18,750

1,14,750

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

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)

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

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