Ledger - Problems and Solutions

Problem - 1

Mr. Ramu has the following transactions in the month of July.

Record them into the journal and show postings in the ledger and balance the accounts.

July 1^st	:	Ramu started business with a capital of 75,000
1^st	:	Purchased goods from Manu on credit 25,000
2^nd	:	Sold goods to Sonu 20,000
3^rd	:	Purchased goods from Meenu 15,000
4^th	:	Sold goods to Tanu for cash 16,000
5^th	:	Goods retuned to Manu 2,000
6^th	:	Bought furniture for 15,000
7^th	:	Bought goods from Zenu 12,000
8^th	:	Cash paid to Manu 10,000
9^th	:	Sold goods to Jane 13,500
10^th	:	Goods returned from Sonu 3,000
11^th	:	Cash received from Jane 5,500
12^th	:	Goods taken by Ramu for domestic use 3,000
13^th	:	Returned Goods to Zenu 1,000
14^th	:	Cash received from Sonu 12,000
15^th	:	Bought machinery for 18,000
16^th	:	Sold part of the furniture for 1,000
17^th	:	Cash paid for the purchase of bicycle for Ramu's son 1,500
19^th	:	Cash sales 15,000
20^th	:	Cash purchases 13,500

Solution

Journal in the books of M/s Rama & Sons
for the period from July 1^st, _5 to July 31^st, _5
Date	V/R No.	Particulars		L/F	Amount (Dr)	Amount (Cr)
July 1^st	–	Cash a/c To Capital a/c	Dr	– –	75,000	75,000
July 1^st	–	[Being the amount received from Mr. Ramu, the proprietor as his capital contribution vide receipt no:___ dated:__]		– –	75,000	75,000
July 1^st	–	Goods/stock a/c To Manu a/c	Dr	– –	25,000	25,000
July 1^st	–	[Being the value of stock purchased from Mr. Manu vide bill no:___ dated:__]		– –	25,000	25,000
July 2^nd	–	Sonu a/c To Goods/stock a/c	Dr	– –	20,000	20,000
July 2^nd	–	[Being the value of stock sold to Mr.Sonu vide bill no:___ dated:__]		– –	20,000	20,000
July 3^rd	–	Goods/stock a/c To Meenu a/c	Dr	– –	15,000	15,000
July 3^rd	–	[Being the value of stock purchased from Mr.Meenu on credit vide bill no:___ dated:__]		– –	15,000	15,000
July 4^th	–	Cash a/c To Goods/stock a/c	Dr	– –	16,000	16,000
July 4^th	–	[Being the value of stock sold to Mr. Tanu for cash vide receipt no:___ dated:__]		– –	16,000	16,000
July 5^th	–	Manu a/c To Goods/stock a/c	Dr	– –	2,000	2,000
July 5^th	–	[Being the value of stock returned to Mr. Manu vide bill no:___ dated:__]		– –	2,000	2,000
July 6^th	–	Furniture a/c To Cash a/c	Dr	– –	15,000	15,000
July 6^th	–	[Being the value of furniture purchased from M/s ___vide bill no:___ dated:__]		– –	15,000	15,000
July 7^th	–	Goods/stock a/c To Zenu a/c	Dr	– –	12,000	12,000
July 7^th	–	[Being the value of stock Purchased from Mr. Zenu vide bill no:___ dated:__]		– –	12,000	12,000
July 8^th	–	Manu a/c To Cash a/c	Dr	– –	10,000	10,000
July 8^th	–	[Being the amount paid to Mr. Manu vide voucher no:___ dated:__]		– –	10,000	10,000
July 9^th	–	Jane a/c To Goods/stock a/c	Dr	– –	13,500	13,500
July 9^th	–	[Being the value of stock Sold to Ms.Zane vide bill no:___ dated:__]		– –	13,500	13,500
July 10^th	–	Goods/stock a/c To Sonu a/c	Dr	– –	3,000	3,000
July 10^th	–	[Being the value of stock returned from Mr. Sonu vide bill no:___ dated:__]		– –	3,000	3,000
July 11^th	–	Cash a/c To Jane a/c	Dr	– –	5,500	5,500
July 11^th	–	[Being the amount of cash received from Ms. Jane vide cash receipt no:___ dated:__]		– –	5,500	5,500
July 12^th	–	Drawings a/c To Goods/stock a/c	Dr	– –	3,000	3,000
July 12^th	–	[Being the amount of stock taken by Ramu for domestic use vide bill no:___ dated:__]		– –	3,000	3,000
July 13^th	–	Zenu a/c To Goods/stock a/c	Dr	– –	1,000	1,000
July 13^th	–	[Being the amount of stock returned to Mr. Zenu vide bill no:___ dated:__]		– –	1,000	1,000
July 14^th	–	Cash a/c To Sonu a/c	Dr	– –	12,000	12,000
July 14^th	–	[Being the amount of cash received from Mr. Sonu vide cash receipt no:___ dated:_]		– –	12,000	12,000
July 15^th	–	Machinery a/c To Cash a/c	Dr	– –	18,000	18,000
July 15^th	–	[Being the amount paid for machinery purchased to M/s ____vide voucher no:___ dated:__]		– –	18,000	18,000
July 16^th	–	Cash a/c To Furniture a/c	Dr	– –	1,000	1,000
July 16^th	–	[Being the amount received on sale of furniture vide cash receipt no:___ dated:__]		– –	1,000	1,000
July 17^th	–	Drawings a/c To Cash a/c	Dr	– –	15,000	15,000
July 17^th	–	[Being the amount of cash paid for bicycle purchases for proprietor's son vide voucher no:___ dated:__]		– –	15,000	15,000
July 19^th	–	Cash a/c To Goods/stock a/c	Dr	– –	15,000	15,000
July 19^th	–	[Being the value of stock sold for cash vide receipt no:___ dated:__]		– –	15,000	15,000
July 20^th	–	Goods/stock a/c To Cash a/c	Dr	– –	13,500	13,500
July 20^th	–	[Being the value of stock Purchased for vide voucher no:___ dated:__]		– –	13,500	13,500

General Ledger
[Books of Mr. Ramu]

Cash a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
01/10/_5 04/10/_5 11/10/_5 14/10/_5 16/10/_5 19/10/_5	To Capital a/c To Goods/stock a/c To Jane a/c To Sonu a/c To Furniture a/c To Goods/stock a/c	– – – – – –	75,000 16,000 5,500 12,000 1,000 15,000	06/10/_5 08/10/_5 15/10/_5 17/10/_5 20/10/_5 30/07/_5	By Furniture a/c By Manu a/c By Machinery a/c By Drawings a/c By Goods/stock a/c By Balance c/d	– – – – – –	15,000 10,000 18,000 15,000 13,500 53,000
	tl		1,24,500		tl		1,24,500
31/07/_5	To Balance b/d	–	53,000

Capital a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
30/07/_5	To Balance c/d	–	75,000	01/10/_5	By Cash a/c	–	75,000
	tl		75,000		tl		75,000
				31/07/_5	By Balance b/d	–	75,000

Goods/stock a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
01/10/_5 03/10/_5 07/10/_5 10/10/_5 20/10/_5 30/07/_5	To Manu a/c To Meenu a/c To Zenu a/c To Sonu a/c To Cash a/c To Balance c/d	– – – – – –	25,000 15,000 12,000 3,000 13,500 2,000	02/10/_5 04/10/_5 05/10/_5 09/10/_5 12/10/_5 13/10/_5 19/10/_5	By Sonu a/c By Cash a/c By Manu a/c By Jane a/c By Drawings a/c By Zenu a/c By Cash a/c	– – – – – – –	20,000 16,000 2,000 13,500 3,000 1,000 15,000
	tl		70,500		tl		70,500
				31/07/_5	By Balance b/d	–	2,000

Manu a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
05/10/_5 08/10/_5 30/07/_5	To Goods/stock a/c To Cash a/c To Balance c/d	– – –	2,000 10,000 13,000	01/10/_5	By Goods/stock a/c	–	25,000
	tl		25,000		tl		25,000
				31/07/_5	By Balance b/d	–	13,000

Sonu a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
02/10/_5	To Goods/stock a/c	–	20,000	10/10/_5 14/10/_5 30/07/_5	By Goods/stock a/c By Cash a/c By Balance c/d	– – –	3,000 12,000 5,000
	tl		20,000		tl		20,000
31/07/_5	To Balance b/d	–	5,000

Meenu a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
30/07/_5	To Balance c/d	–	15,000	03/10/_5	By Goods/stock a/c	–	15,000
	tl		15,000		tl		15,000
				31/07/_5	By Balance b/d	–	15,000

Furniture a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
06/10/_5	To Cash a/c	–	15,000	16/10/_5 30/07/_5	By Cash a/c By Balance c/d	– –	1,000 14,000
	tl		15,000		tl		15,000
31/07/_5	To Balance b/d	–	14,000

Zenu a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
13/10/_5 30/07/_5	To Goods/stock a/c To Balance c/d	– –	1,000 11,000	07/10/_5	By Goods/stock a/c	–	12,000
	tl		12,000		tl		12,000
				31/07/_5	By Balance b/d	–	11,000

Jane a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
09/10/_5	To Goods/stock a/c	–	13,500	11/10/_5 30/07/_5	By Cash a/c By Balance c/d	– –	5,500 8,000
	tl		13,500		tl		13,500
31/07/_5	To Balance b/d	–	8,000

Drawings a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
12/10/_5 17/10/_5	To Goods/stock a/c To Cash a/c	– –	3,000 15,000	30/07/_5	By Balance c/d	–	18,000
	tl		18,000		tl		18,000
31/07/_5	To Balance b/d	–	18,000

Machinery a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
15/10/_5	To Cash a/c	–	18,000	30/07/_5	By Balance c/d	–	18,000
	tl		18,000		tl		18,000
31/07/_5	To Balance b/d	–	18,000

Problem - 2

Journalise the following transactions in the books of Moon and post them into the ledger for the month of August

Aug 10^th	:	Moon commenced business with a capital of 1,50,000
11^th	:	Cash deposited into bank 50,000
12^th	:	Bought equipment for 15,000
13^th	:	Bought goods worth 20,000 from Star and payment made by cheque
14^th	:	Sold goods to Sun for 15,000 and payment received through cheque
16^th	:	Paid rent by cheque 5,000
17^th	:	Took loan from Mr. Storm 25,000
18^th	:	Received commission from Mr. Air by cheque 5,000
19^th	:	Wages paid 15,000
20^th	:	Withdrew from bank for personal use 3,000
21^st	:	Withdrew from bank for office use 10,000
22^nd	:	Bought goods for 25,000
23^rd	:	Cash paid into bank 30,000
24^th	:	Interest paid through cheque 2,000
25^th	:	Gave loan to Mr.Wind 10,000
26^th	:	Amount paid to Mr. Storm on loan account 15,000
27^th	:	Salary paid to Manager Mr. Liquid 5,000
28^th	:	Postage paid 1,000
29^th	:	Received cheque from Mr. Wind on loan account 3,000
30^th	:	Sold part of the equipment for 2,000

Solution

Journal in the books of M/s Rama & Sons
for the period from August 10^th, _5 to August 30^th, _5
Date	V/R No.	Particulars		L/F	Amount (Dr)	Amount (Cr)
August 10^th	–	Cash a/c To Capital a/c	Dr	– –	1,50,000	1,50,000
August 10^th	–	[Being the amount received from Mr. Moon, the proprietor as his capital contribution vide receipt no:__ dated:__]		– –	1,50,000	1,50,000
11^th	–	Bank a/c To Cash a/c	Dr	– –	50,000	50,000
11^th	–	[Being the amount of cash deposited into bank vide bill no:___ dated:__]		– –	50,000	50,000
12^th	–	Equipment a/c To Cash a/c	Dr	– –	15,000	15,000
12^th	–	[Being the value of equipment purchased from M/s___ for cash vide bill no:___ dated:__]		– –	15,000	15,000
13^th	–	Goods/stock a/c To Bank a/c	Dr	– –	20,000	20,000
13^th	–	[Being the payment made for stock purchased vide Cheque no:__ dated:__]		– –	20,000	20,000
14^th	–	Bank a/c To Goods/stock a/c	Dr	– –	15,000	15,000
14^th	–	[Being the amount received for stock sold to Mr. Sun vide Cheque no:__ dated:__]		– –	15,000	15,000
16^th	–	Rent a/c To Bank a/c	Dr	– –	5,000	5,000
16^th	–	[Being the amount paid for rent vide voucher no:___ dated:__]		– –	5,000	5,000
17^th	–	Cash a/c To Loan from Storm a/c	Dr	– –	25,000	25,000
17^th	–	[Being the cash received from Mr. Storm as loan vide receipt no:___ dated:__]		– –	25,000	25,000
18^th	–	Bank a/c To Commission a/c	Dr	– –	5,000	5,000
18^th	–	[Being the amount received for commission vide cheque no:__ dated:__]		– –	5,000	5,000
19^th	–	Wages a/c To Cash a/c	Dr	– –	15,000	15,000
19^th	–	[Being the amount paid for wages vide voucher no:___ dated:__]		– –	15,000	15,000
20^th	–	Drawings a/c To Bank a/c	Dr	– –	3,000	3,000
20^th	–	[Being the amount withdrawn from bank for personal use vide cheque no:___ dated:__]		– –	3,000	3,000
21^st	–	Cash a/c To Bank a/c	Dr	– –	10,000	10,000
21^st	–	[Being the amount withdrawn from bank for office purpose vide cheque no:___ dated:__]		– –	10,000	10,000
22^nd	–	Goods/stock a/c To Cash a/c	Dr	– –	25,000	25,000
22^nd	–	[Being the amount of cash paid for stock purchases vide voucher no:___ dated:__]		– –	25,000	25,000
23^rd	–	Bank a/c To Cash a/c	Dr	– –	30,000	30,000
23^rd	–	[Being the amount deposited into bank vide voucher no:___ dated:__]		– –	30,000	30,000
24^th	–	Interest a/c To Bank a/c	Dr	– –	2,000	2,000
24^th	–	[Being the amount of interest paid vide cheque no:___ dated:__]		– –	2,000	2,000
25^th	–	Loan to Mr. Wind a/c To Cash a/c	Dr	– –	10,000	10,000
25^th	–	[Being the amount of cash given to Mr. Wind as loan vide voucher no:___ dated:__]		– –	10,000	10,000
26^th	–	Loan from Strom a/c To Cash a/c	Dr	– –	15,000	15,000
26^th	–	[Being the amount paid to Mr. Storm for repayment of loan vide voucher no:___ dated:__]		– –	15,000	15,000
27^th	–	Salary a/c To Cash a/c	Dr	– –	5,000	5,000
27^th	–	[Being the amount paid for salary to Mr. Liquid vide voucher no:___ dated:__]		– –	5,000	5,000
28^th	–	Postage a/c To Cash a/c	Dr	– –	1,000	1,000
28^th	–	[Being the amount paid for purchase of postage vide voucher no:___ dated:__]		– –	1,000	1,000
29^th	–	Bank a/c To Loan to Mr. wind a/c	Dr	– –	3,000	3,000
29^th	–	[Being the Cheque no:___ date___ received from Mr. Wind for repayment of loan]		– –	3,000	3,000
30^th	–	Cash a/c To Equipment a/c	Dr	– –	2,000	2,000
30^th	–	[Being the amount received on sale of equipment vide receipt no:___ dated:__]		– –	2,000	2,000

General Ledger
[Books of M/s Rama & Sons]

Cash a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
10/10/_5 17/10/_5 21/10/_5 30/10/_5	To Capital a/c To Loan from Storm a/c To Bank a/c To Equipment a/c	– – – –	1,50,000 25,000 10,000 2,000	11/10/_5 12/10/_5 19/10/_5 22/10/_5 23/10/_5 25/10/_5 26/10/_5 27/10/_5 28/10/_5 31/08/_5	By Bank a/c By Equipment a/c By Wages a/c By Goods/stock a/c By Bank a/c By Loan to Mr. Wind a/c By Loan from Strom a/c By Salary a/c By Postage a/c By Balance c/d	– – – – – – – – – –	50,000 15,000 15,000 25,000 30,000 10,000 15,000 5,000 1,000 21,000
	tl		1,87,000		tl		1,87,000
01/09/_5	To Balance b/d	–	21,000

Capital a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
31/08/_5	To Balance c/d	–	1,50,000	10/10/_5	By Cash a/c	–	1,50,000
	tl		1,50,000		tl		1,50,000
				01/09/_5	By Balance b/d	–	1,50,000

Bank a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
11/10/_5 14/10/_5 18/10/_5 23/10/_5 29/10/_5	To Cash a/c To Goods/stock a/c To Commission a/c To Cash a/c To Loan to Mr. wind a/c	– – – – –	50,000 15,000 5,000 30,000 3,000	13/10/_5 16/10/_5 20/10/_5 21/10/_5 24/10/_5 31/08/_5	By Goods/stock a/c By Rent a/c By Drawings a/c By Cash a/c By Interest a/c By Balance c/d	– – – – – –	20,000 5,000 3,000 10,000 2,000 63,000
	tl		1,03,000		tl		1,03,000
01/09/_5	To Balance b/d	–	63,000

Equipment a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
12/10/_5	To Cash a/c	–	15,000	30/10/_5 31/08/_5	By Cash a/c By Balance c/d	– –	2,000 13,000
	tl		15,000		tl		15,000
01/09/_5	To Balance b/d	–	13,000

Goods/stock a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
13/10/_5 22/10/_5	To Bank a/c To Cash a/c	– –	20,000 25,000	14/10/_5 31/08/_5	By Bank a/c By Balance c/d	– –	15,000 30,000
	tl		45,000		tl		45,000
01/09/_5	To Balance b/d	–	30,000

Rent a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
16/10/_5	To Bank a/c	–	5,000	31/08/_5	By Balance c/d	–	5,000
	tl		5,000		tl		5,000
01/09/_5	To Balance b/d	–	5,000

Loan from Storm a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
31/08/_5	To Balance c/d	–	25,000	17/10/_5	By Cash a/c	–	25,000
	tl		25,000		tl		25,000
				01/09/_5	By Balance b/d	–	25,000

Commission a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
31/08/_5	To Balance c/d	–	5,000	18/10/_5	By Bank a/c	–	5,000
	tl		5,000		tl		5,000
				01/09/_5	By Balance b/d	–	5,000

Wages a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
19/10/_5	To Cash a/c	–	15,000	31/08/_5	By Balance c/d	–	15,000
	tl		15,000		tl		15,000
01/09/_5	To Balance b/d	–	15,000

Drawings a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
20/10/_5	To Bank a/c	–	3,000	31/08/_5	By Balance c/d	–	3,000
	tl		3,000		tl		3,000
01/09/_5	To Balance b/d	–	3,000

Interest a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
24/10/_5	To Bank a/c	–	2,000	31/08/_5	By Balance c/d	–	2,000
	tl		2,000		tl		2,000
01/09/_5	To Balance b/d	–	2,000

Loan to Mr. Wind a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
25/10/_5	To Cash a/c	–	10,000	31/08/_5	By Balance c/d	–	10,000
	tl		10,000		tl		10,000
01/09/_5	To Balance b/d	–	10,000

Loan from Strom a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
26/10/_5	To Cash a/c	–	15,000	31/08/_5	By Balance c/d	–	15,000
	tl		15,000		tl		15,000
01/09/_5	To Balance b/d	–	15,000

Salary a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
27/10/_5	To Cash a/c	–	5,000	31/08/_5	By Balance c/d	–	5,000
	tl		5,000		tl		5,000
01/09/_5	To Balance b/d	–	5,000

Postage a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
28/10/_5	To Cash a/c	–	1,000	31/08/_5	By Balance c/d	–	1,000
	tl		1,000		tl		1,000
01/09/_5	To Balance b/d	–	1,000

Loan to Mr. wind a/c
Dr Cr
Date	Particulars	J/F	Amount	Date	Particulars	J/F	Amount
31/08/_5	To Balance c/d	–	3,000	29/10/_5	By Bank a/c	–	3,000
	tl		3,000		tl		3,000
				01/09/_5	By Balance b/d	–	3,000

Author : The Edifier

Prb 8

Ledger - Problems and Solutions

Problem - 1

Solution

General Ledger [Books of Mr. Ramu]

Problem - 2

Solution

General Ledger [Books of M/s Rama & Sons]

General Ledger
[Books of Mr. Ramu]

General Ledger
[Books of M/s Rama & Sons]