Example
.Business transactions of Mr.A for the month of Jan.1997
1/January, 1997 A started business with cash .20,000
3/January, 1997 Goods purchased for cash 6,000
5/January, 1997 Goods purchased from S .4,000
7/January,1997 Goods sold for cash .2,000
10/January, 1997 Goods sold to B .6,000
17/January, 1997 Cash received from B .4,000
23/January, 1997 Paid wages 100
25/ January, 1997 Furniture purchased from R Rs.400
28/January, 1997 Paid for interest .200
31/January, 1997 Paid salaries .200
You are required to
1-Recording The above transaction in the journal >
2-P0sting to the ledger
3-Prepare trial balance on 31\1\1997.
The journal of Mr. A Business
Date Particulars Dr. Amount
Cr. Amount
-/Cash A/c Dr 20,000
n. 1 To Capital A/c
-20,000
(Being cash introduced by A)
Purchase A/c Dr. 6,000
-/
-/To Cash A/c 6,000
(Being cash purchases)
Purchase A.c Dr. 4,000
-/
-/To S’s A/c 4,000
(Being credit purchase from S)
Cash A/c Dr. 2,000
-/
-/To sales A/c 2,000
(Being cash sales)
B’s A/c Dr. 6,000
-/
-/To Sales A/c 6,000
(Being the amount of credit sales)
S’s A/c Dr. 2,000
-/
-/To Cash A/c 2,000
(Being the amount of credit sales)
Cash A/c Dr. 4,000
-/
-/To B’s A/c 4,000
(Being receipt of cash from B)
Wages A/c Dr. 100
-/
-/To Cash A/c 100
(Being payment of wages in cash)
5 Furniture A/c Dr. 400
-/
-/To R’s A/c 400
(Being purchase of furniture on credit from R )
28 Interest A/c Dr. 200
-/
-/To Cash A/c 200
(Being payment of interest by cash)
31 Salaries A/c Dr. 200
-/
-/To Cash a/c 200
(Being payment of salaries by cash)
Postin to the ledger
Dr. Capital A/c Cr.
Date Particulars Amount Date Particulars Amount
To balance c/d 20,000/- By cash 20,000/-
20,000/- 20,000/-
Cash A/c
Dr CASH A/C Cr
Date Particulars Amount Date Particulars Amount
1997 To capital 20,000 1997 By purchase 6,000
Jan.1 To sales 2,000 Jan.3 By S 2,000
Jan.7 To B 4,000 Jan.12 By wages 100
Jan. 17 Jan. 23 By interest 200
Jan.28 By salaries 200
Jan.31
Jan.31 By bal.c/d 17,500
26,000 26,000
Dr PURCHASE A/C Cr
Date Particulars Amount Date Particulars Amount
.
1997 1997
Jan.3 To Cash 6,000 Jan.31 By balance c/d 10,000
Jan.5 To s 4,000
10,000 10,000
Dr Sales A/C Cr
Date Particulars Amount Date Particulars Amount.
1997 1997
Jan.31 To balance 8,000 Jan.7 By cash 2,000
Jan.10 By B 6,000
8,000 8,000
Dr S’s A/C Cr
Date Particulars Amount Date Particulars JF Amount
.
1997 1997
Jan.12 To cash 2,000 Jan.5 Purchase 4,000
Jan. 31 To balance 2,000
4,000 4,000
Dr B’S A/C Cr
Date Particulars Amount Date Particulars Amount
1997 1997
Jan.10 To Sales 6,000 Jan.17 By cash 4,000
Jan. 31 To balance 2,000
6,000 6,000
Dr Wages A/C Cr
Date Particulars Amount Date Particulars Amount
.
1997 1997
Jan.23 To cash 100 Jan. 31 To balance 100
100 100
Dr Furniture A/C Cr
Date Particulars Amount Date Particulars Amount
.
1997 1997
Jan.25 To R 400 Jan. 31 To balance C/D 400
400 400
Dr Interest A/C Cr
Date Particulars Amount Date Particulars Amount
Rs.
1997 1997
Jan.28 To cash 200 Jan. 31 To balance C/D 200
200 200
Dr R’s A/C Cr
Date Particulars Amount Date Particulars Amount
.
1997 1997
Jan.31 To balance C/D 400 Jan. 25 By Furniture 400
400 400
Dr Salaries A/C Cr
Date Particulars Amount Date Particulars Amount
.
Jan.31 To cash 200 Jan. 31 To balance C/D 200
200 200
The trial Balance on 31/1/1997
Description Dr Cr
Capital A/c 20000
CASH A/C 17500
PURCHASE A/C 10000
Sales A/C 8000
S’s A/C 2000
100
2000
400
200
400
200
30400 30400