Question 2.
Journalise the following transactions , post them into Ledger and prepare a Trial Balance:
Answers
Apr1. Cash a/c dr
2018. to capital a/c
(Being business commenced with cash)
"3. Purchases a/c dr
to cash a/c
(being bought goods)
"4. Gopal a/c dr
to sales a/c
(Being goods sold to Gopal)
"10 Purchases a/c dr
to Ram a/c
(Being goods bought from Ram)
"15 Trade expenses a/c dr
to cash a/c
(Being paid trade expenses)
[ Also mention the debit & credit amounts in the next column)
Journal Entries for the given transactions with relevant Ledger A/cs and Trial Balance
Explanation:
Journal Entries:
1.4.18 Cash A/c Dr. Rs.1,00,000
To Capital A/c Rs.1,00,000
(Being capital introduced into Business)
3.4.18 Purchases A/c Dr. Rs.5,000
To Creditors A/c Rs.5,000
(Being goods purchased on credit)
4.4.18 Gopal A/c Dr. Rs.4,000
To Sales A/c Rs.4,000
(Being goods sold to Gopal on credit)
10.4.18 Purchases A/c Dr. Rs.8,000
To Ram A/c Rs.8,000
(Being goods purchased from Ram on credit)
15.4.18 Trade Expenses A/c Dr. Rs.2,000
To Cash A/c Rs.2,000
(Being Trade Expenses paid via cash)
Relevant Ledger A/cs:
1) Capital A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Balance c/d 1,00,000 By Cash A/c 1,00,000
1,00,000 1,00,000
2) Cash A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Capital A/c 1,00,000 By Trade Expenses 2,000
By Balance c/d 98,000
1,00,000 1,00,000
3) Creditors A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Balance c/d 5000 By Purchases A/c 5000
5000 5000
4) Ram A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Balance c/d 8000 By Purchases 8000
5) Gopal A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Sales 4000 By Balance c/d 4000
Trial Balance
as at 31.3.20XX
Particulars Debit(Rs.) Credit(Rs.)
Cash 98000 -
Capital - 1,00,000
Creditors - 5000
Ram - 8000
Sales - 4000
Gopal 4000 -
Suspense A/c 15000 -
Total 117000 117000