Illustration » Solution (Journal)

Journal in the books of M/s __ for the period from ____ to _____ Date V/R No. Particulars L/F Debit Amount (in Rs) Credit Amount (in Rs) June 15th – Cash a/c       To Capital a/c [Being the amount received from Mr. Ibrahim, the proprietor as his capital contribution ] Dr – – 2,00,000 2,00,000 17th – Furniture a/c       To Cash a/c [Being the amount paid towards Furniture purchased ] Dr – – 20,000 20,000 17th – Rent Paid a/c       To Cash a/c [For the amount paid towards rent for the shop for the month of May ] Dr – – 5,000 5,000 18th – Bank a/c       To Cash a/c [For the amount of cash paid into bank ] Dr – – 1,50,000 1,50,000 18th – Goods/Stock a/c       To Cash a/c [Being the value of stock purchased for cash ] Dr – – 10,000 10,000 18th – Goods/Stock a/c       To M/s Ramdas & Bros a/c [Being the value of stock purchased from M/s Ramdas & Bros., on credit ] Dr – – 10,000 10,000 19th – Cash a/c       To Goods/Stock a/c [Being the value of stock sold for cash ] Dr – – 12,000 12,000 20th – Machinery a/c       To Bank a/c [Being the amount paid by cheque towards purchase of machinery ] Dr – – 25,000 25,000 21th – Mr. Natekar a/c       To Goods/Stock a/c [Being the value of stock sold on credit to Mr. Natekar ] Dr – – 8,000 8,000 21th – Wages paid a/c       To Cash a/c [For the amount paid towards weekly wages for the workers ] Dr – – 5,000 5,000 24th – M/s Ramdas & Bros a/c       To Bank a/c [For the amount paid by cheque to M/s Ramdas & Bros., on account] Dr – – 5,000 5,000 24th – Cash a/c       To Mr. Natekar a/c [For the amount received in cash from Mr. Natekar on account] Dr – – 2,000 2,000 24th – Cash a/c       To commission Received a/c [For the amount received in cash from Mr. Natekar on account] Dr – – 500 500

Illustration » Working Notes

By going through the above journal entries we can identify the list of ledger accounts affected by these transactions. Cash a/c Capital a/c Furniture a/c Rent Paid a/c Bank a/c Goods/Stock a/c M/s Ramdas & Bros. a/c Machinery a/c Mr. Natekar a/c Wages Paid a/c Commission Received a/c

Illustration » Solution (Ledger)

General Ledger [Books of Mr. Ibrahim] Dr Cash a/c Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs) 15/06/05 19/06/05 24/06/05 24/06/05 To Capital a/c To Goods/Stock a/c To Mr. Natekar a/c To Commission       Received a/c – – – – 2,00,000 12,000 2,000 500 17/06/05 17/06/05 18/06/05 18/06/05 21/06/05 By Furniture a/c By Rent Paid a/c By Bank a/c By Goods/Stock a/c By Wages Paid a/c – – – – – 20,000 5,000 1,50,000 10,000 5,000   sub-total   2,14,500   sub-total   1,90,000         25/06/05 By Balance c/d – 24,500   Total   2,14,500   Total   2,14,500 25/06/05 To Balance b/d – 24,500         Dr Capital a/c Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs)         15/06/05 By Cash a/c – 2,00,000   sub-total   0   sub-total   2,00,000 25/06/05 To Balance c/d – 2,00,000           Total   2,00,000   Total   2,00,000         25/06/05 By Balance b/d – 2,00,000 Dr Furniture a/c Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs) 17/06/05 To Cash a/c – 20,000           sub-total   20,000   sub-total   0         25/06/05 By Balance c/d – 20,000   Total   20,000   Total   20,000 25/06/05 To Balance b/d – 20,000         Dr Rent Paid a/c Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs) 17/06/05 To Cash a/c – 5,000           sub-total   5,000   sub-total   0         25/06/05 By Balance c/d – 5,000   Total   5,000   Total   5,000 25/06/05 To Balance b/d – 5,000         Dr Bank a/c Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs) 18/06/05 To Cash a/c – 1,50,000 20/06/05 24/06/05 By Machinery a/c By M/s Ramdas       & Bros. a/c – – 25,000 5,000   sub-total   1,50,000   sub-total   30,000         25/06/05 By Balance c/d – 1,20,000   Total   1,50,000   Total   1,50,000 25/06/05 To Balance b/d – 1,20,000         Dr Goods/Stock a/c Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs) 18/06/05 18/06/05 To Cash a/c By M/s Ramdas       & Bros. a/c – – 10,000 10,000 19/06/05 21/06/05 By Cash a/c By Mr. Natekar a/c – – 12,000 8,000   sub-total   20,000   sub-total   20,000   Total   20,000   Total   20,000                 Dr M/s Ramdas & Bros. a/c Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs) 24/06/05 To Bank a/c – 5,000 18/06/05 By Goods/Stock a/c – 10,000   sub-total   5,000   sub-total   10,000 25/06/05 To Balance c/d – 5,000           Total   10,000   Total   10,000         25/06/05 By Balance b/d – 5,000 Dr Machinery a/c, Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs) 20/06/05 To Bank a/c – 25,000           sub-total   25,000   sub-total   0         25/06/05 By Balance c/d – 25,000   Total   25,000   Total   25,000 25/06/05 To Balance b/d – 25,000         Dr Mr. Natekar a/c Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs) 21/06/05 To Goods/Stock a/c – 8,000 24/06/05 By Cash a/c – 2,000   sub-total   8,000   sub-total   2,000         25/06/05 By Balance c/d – 6,000   Total   8,000   Total   8,000 25/06/05 To Balance b/d – 6,000         Dr Wages Paid a/c Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs) 21/06/05 To Cash a/c – 5,000           sub-total   5,000   sub-total   0         25/06/05 By Balance c/d – 5,000   Total   5,000   Total   5,000 25/06/05 To Balance b/d – 5,000         Dr Commission Received a/c Cr Date Particulars J/F Amount (in Rs) Date Particulars J/F Amount (in Rs)         24/06/05 By Cash a/c – 500   sub-total   0   sub-total   500 25/06/05 To Balance c/d – 500           Total   500   Total   500         25/06/05 By Balance b/d – 500