Question

On 1st January, 2020 Mr. Thapa started business with Rs. 50,000 which he paid into the business account at Sunrise Bank in Surkhet and stock of goods valued Rs. 30,000. On the same day, he purchased a motor van from Toyota Company valued at Rs. 25,000 and half of the amount is paid by cheque. The following transactions took place in the month of January: Jan. 2 Negotiated a loan from Sunrise Bank for an amount of Rs. 30,000 which was granted at an interest of 12% per annum payable monthly. He paid Rs. 20,000 by cheque as rent advance to his landlord for the premises of the business covering period of 10 years. Jan. 3 Purchased goods from Sky Merchant Ltd. valued at Rs. 60,000 and paid for half of the amount by cheque, after a cash discount of 4%. Jan. 4 Purchased Office Equipment valued at Rs. 25,000 and Furniture and Fittings worth Rs. 18,000 paying all by cheque. Jan. 8 Sold goods valued Rs. 12,500 for cash and paid for some stationery valued 1,500 by cash. Jan. 10 Sold goods to Mr. Basnet worth Rs. 18,000 who paid three quarter of the amount by the chaeque. Jan. 13 In order to increase sales, Mr. Thapa decided to run a promotion from 14th January to 19th January. All sales with cash payment will be given 5% discount and all sales of Rs. 10,000 and above will qualify for a trade discount of 6%. Jan. 14 Mr. Sagar came to purchase goods valued at Rs. 14,500 and paid half of the amount by cheque after necessary discounts. Total cash sales for the day also amounted to Rs. 8,500. Jan. 15 Sold goods valued at Rs. 5,000 to Miss Srijana. Jan. 16 Total cash sales for the day amounted to Rs. 20,000 and cash banked amounted to Rs. 25,000. Jan. 17 Sold goods to Star Stores worth Rs. 16,000 who paid half of the amount by cash. Rs. 12,000 is sent from safe to bank. Jan. 18 Purchased goods from Sapana Traders valued at Rs. 32,500 and paid half of the amount due by cheque after a 5% cash discount. Total cash sales for the day amounted to Rs. 9,350. Jan. 19 Sold goods to Supriya valued at Rs. 24,000 who paid three quarters of the amount due by cheque. Paid Sky Merchant Ltd. the full balance on their account by cheque. Jan. 20 Total cash sales for the day amounted to Rs. 15,700 and cash purchases were valued at Rs. 28,750. Received a cheque for Rs. 4,680 from Miss Srijana as full settlement. Jan. 23 Sold goods valued at Rs. 12,800 to Mr. Udaya who paid half of the amount due by the cash. Total cash lodged at the bank Rs. 20,000. Jan. 25 paid Sapana Traders Rs. 6,250 by cheque on account and received final payment by cheque from Star Stores and cash sales amounted to Rs. 11,320. Jan. 30 Paid salaries of Rs. 6,200 by cheque and utility bills of Rs. 1,700 by cash. Received a cheque for Rs. 4,400 from Mr. Udaya as payment on account. Jan. 31 Closing stock amounted to Rs. 14,000. Required: (i) Make necessary Journal Entries (ii) Write up ledger accounts using three columns cash book. (No need to prepare cash a/c, bank a/c and discount a/c separately) (iii) Extract a trial balance at 31st January, 2020. (iiv) Prepare a trading and profit and loss account for the month ended 31st January, 2020 and balance sheet on that date.

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Answer 1

Answer: I have solved the problem. I have put the same here in PDF.

Explanation:

c8a011b59a845fa42297d704eebb5cf3.pdf