Gyan Prakash started his business with the following assets and liabilities: 2012 Jan 1 Cash in hand Rs 20000 Stock - Accountancy - Trial Balance and Rectification of Errors

Question

Gyan Prakash started his
business with the following assets and liabilities:
2012
Jan 1 Cash in hand Rs
20000
Stock in hand Rs
25000
Debtors: Khanna Bros Rs
20000
Nirman & Co Rs
15000
Creditors: Kripal Bros Rs
10000
Mitra Sen & Co Rs
5000
His transactions for the
month were:
Jan 2 Sold goods to
Karmarkar subject to a trade discount of 10% Rs 10000
Jan 4 Received from Nirman
& Co Rs 14500 and discount allowed Rs 500
Jan 6 Settled Mitra Sen
& Co ’s account deducting 5% for cash discount
Jan 10 Purchased stationery
articles Rs 100
Jan 12 Paid rent for the
month Rs 250
Jan 13 Bought goods of S K
& Co Rs 30000
Jan 16 Paid Kripal Bros in
full settlement of account Rs 9500
Jan 20 Withdrew cash for
personal expenses Rs 500
Jan 24 Issued a credit note
to Mr Karmarkar for the goods damaged in transit Rs 1000
Jan 26 Returned goods to S
K & Co and received their credit note Rs 5000
Jan 29 Paid S K & Co on
account Rs 10000 and discount allowed Rs 250
Jan 29 Cash sales Rs
20000
Jan 31 Paid salaries Rs
1500
Prepare a trial balance
from the above transactions
The answer given in the
book is : Total of Trial Balance Rs 114750

Sagar Gupta · Accepted Answer

Trial Balance

as at 31st Jan, 2012

S No

Names of Account

L F

Debit

Amount

(Rs)

Credit

Amount

(Rs)

1

Cash A/c

27,900

0

2

Stock A/c

25,000

0

3

Khanna Bros A/c

20,000

0

4

Capital A/c (see note)

0

65,000

5

Karmarkar A/c

8,000

0

6

Sales Returns A/c

1,000

0

7

Sales A/c

0

29,000

8

Discount Allowed A/c

500

0

9

Discount Received

0

1,000

10

Stationery A/c

100

0

11

Rent A/c

250

0

12

Purchases A/c

30,000

0

13

Purchases Returns A/c

0

5,000

14

S K & Co A/c

0

14,750

15

Drawings A/c

500

0

16

Salary A/c

1,500

0

1,14,750

Working Notes:

Computation of Opening Capital:

Opening Capital = Assets â€“
Outsiderâ€™s Liabilities

= 
Cash + Stock + Debtors â€“ Creditors

= 20,000 + 25,000 + 20,000 + 15,000 â€“ 10,000
â€“ 5,000

= 65,000

Cash Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 1

Balance b/d

20,000

Jan 6

Mitra Sen & Co A/c

4,750

Jan 4

Nirman & Co A/c

14,500

Jan 10

Stationery A/c

100

Jan 29

Sales A/c

20,000

Jan 12

Rent A/c

250

Jan 16

Kripal Bros A/c

9,500

Jan 20

Drawings A/c

500

Jan 29

S K & Co A/c

10,000

Jan 31

Salary A/c

1,500

Jan 31

Balance c/d

27,900

54,500

Khanna Bros Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 1

Balance b/d

20,000

Jan 31

Balance c/d

20,000

Nirman & Co Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 1

Balance b/d

15,000

Jan 4

Cash A/c

14,500

Jan 4

Discount Allowed A/c

500

15,000

Kripal Bros Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 16

Cash A/c

9,500

Jan 1

Balance b/d

10,000

Jan 16

Discount Received A/c

500

10,000

Mitra Sen & Co Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 6

Cash A/c

4,750

Jan 1

Balance b/d

5,000

Jan 6

Discount Received A/c

250

5,000

Capital Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 31

Balancec/c

65,000

Jan 1

Balance b/d

65,000

Karmarkar Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 2

Sales A/c

9,000

Jan 24

Sales Returns A/c

1,000

Jan 31

Balance c/d

8,000

9,000

Sales Returns Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 24

Karmarkar A/c

1,000

Jan 31

Balance c/d

1,000

Sales Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 31

Balance c/d

29,000

Jan 2

Karmarkar A/c

9,000

Jan 29

Cash A/c

20,000

29,000

Discount Allowed Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 4

Nirman & Co A/c

500

Jan 31

Balance c/d

500

Discount Received Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 31

Balance c/d

1,000

Jan 6

Mitra Sen & Co A/c

250

Jan 16

Kripal Bros A/c

500

Jan 29

S K & Co A/c

250

1,000

Stationery Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 10

Cash A/c

100

Jan 31

Balance c/d

100

Rent Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 12

Cash A/c

250

Jan 31

Balance c/d

250

Purchases Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 13

S K & Co A/c

30,000

Jan 31

Balance c/d

30,000

S K & Co Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 26

Purchases Returns A/c

5,000

Jan 13

Purchases A/c

30,000

Jan 29

Cash A/c

10,000

Jan 29

Discount Received A/c

250

Jan 31

Balance c/d

14,750

30,000

Purchases Returns Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 31

Balance c/d

5,000

Jan 29

S K & Co A/c

5,000

Drawings Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 20

Cash A/c

500

Jan 31

Balance c/d

500

Salary Account

Dr

Cr

Date

Particulars

J F

Amount

(Rs)

Date

Particulars

J F

Amount

(Rs)

2012

Jan 31

Cash A/c

1,500

Jan 31

Balance c/d

1,500

Trial Balance *as at 31^st Jan, 2012*
S. No.	Names of Account	L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1.	Cash A/c		27,900	0
2.	Stock A/c		25,000	0
3.	Khanna Bros. A/c		20,000	0
4.	Capital A/c (see note)		0	65,000
5.	Karmarkar A/c		8,000	0
6.	Sales Returns A/c		1,000	0
7.	Sales A/c		0	29,000
8.	Discount Allowed A/c		500	0
9.	Discount Received		0	1,000
10.	Stationery A/c		100	0
11.	Rent A/c		250	0
12.	Purchases A/c		30,000	0
13.	Purchases Returns A/c		0	5,000
14.	S.K. & Co. A/c		0	14,750
15.	Drawings A/c		500	0
16.	Salary A/c		1,500	0
			1,14,750	1,14,750

Cash Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2012				2012
Jan 1	Balance b/d		20,000	Jan 6	Mitra Sen & Co. A/c		4,750
Jan 4	Nirman & Co. A/c		14,500	Jan 10	Stationery A/c		100
Jan 29	Sales A/c		20,000	Jan 12	Rent A/c		250
				Jan 16	Kripal Bros. A/c		9,500
				Jan 20	Drawings A/c		500
				Jan 29	S.K. & Co. A/c		10,000
				Jan 31	Salary A/c		1,500
				Jan 31	Balance c/d		27,900
			54,500				54,500