Manish has the following transactions with Subrata for the month of April, 2020.
April 1 Balance due from Subrata Rs.5000.
April 5 Credit given for goods returned Rs.800, cheque received in
settlement of accounts. Less 5% cash discount.
April 6 Sold goods for Rs.10000.
April 10 Received a letter from Subrata in which he informed that he would
forward a cheque of Rs.10000 on 20th April.
April 20 Received cheque for Rs.9500 and allowed cash discount of Rs.500
Answers
Answer:
Manish Gupta has the following transactions with Subrat Mukherjee for the month of April, 2020: April 1 Balance due from Subrat Mukherjee ` 5,000. April 5 Rebate was given of ` 800 for poor quality of goods. Cheque received in settlement of account; less ` 200 cash discount. April 6 Sold goods for ` 10,000. April 10 Received a letter from Subrat Mukherjee in which he informed that he would forward a cheque of ` 10,000 on 20th April. April 20 Received a cheque for ` 9,500 and allowed cash discount of ` 500. April 30 Subrat Mukherjee’s cheque returned by bank marked “Refer to Drawer”. Show how the account of Subrat Mukherjee would appear in the ledger of Manish Gupta and balance the account on 30th April, 2020. Solution: Ledger of Manish Gupta Dr. SUBRAT MUKHERJEE Cr. Date Particulars J.F. ` Date Particulars J.F. ` 2020 2020 April 1 To Balance b/d 5,000 April 5 By Rebate Allowed A/c 800 April 6 To Sales A/c 10,000 April 5 By Bank A/c 4,000 April 30 To Bank A/c 9,500 April 5 By Discount Allowed A/c 200 (Cheque Returned) April 20 By Bank A/c 9,500 April 30 To Discount Allowed A/c 500 April 20 By Discount Allowed A/c 500 (Note 1) April 30 By Balance c/d 10,000 25,000 25,000 Notes: 1. Discount already allowed is cancelled due to return of cheque. 2. Rebate is reduction in sale value due to reasons other than for which trade discount and cash discount are allowed. Unsolved Question 1. Enter the following transactions in the Journal of M/s. Karim Bros., post to the Ledger and prepare a Trial Balance: 2020 ` April 1 Assets: Cash in Hand ................................................................................................................ 20,000 Cash at Bank ................................................................................................................ 35,000 Stock ............................................................................................................................. 15,000 Furniture ....................................................................................................................... 4,500 Debtors: Poonam ........................................................................................................................ 20,000 Sonu ............................................................................................................................. 10,000 Liabilities: Ashok ............................................................................................................................ 13,500 Pankaj ........................................................................................................................... 21,500 April 4 Purchased goods from Pankaj .............................................................................................................. 5,000
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