Question

You are asked by a trader to record the following entries in his books, prepare a trial balance
and also prepare final accounts at the end of period.
(1) Ajit started business by investing cash 5,00,000. He bought goods worth 40,000 and
furniture 50,000.
(ii) Purchased building for 1,00,000.
(iii) Purchased goods for cash 30,000.
(iv) Purchased goods on credit 2,500
(v) Paid cartage 200.
(vi) Sold goods for cash 25,500.
(vii) Sold goods for cash to Avtar2,400.
(viii) Sold goods to Mahendra 4,650.
(ix) Paid freight 120.
(x) Deposited Cash into bank 8,000
(xi) Paid salary 4,600.
(xii) Withdrawn from bank 6,000 for office use.
(xiii) Withdrawn from bank 3,000 for personal use.
(xiv) Charged interest on capital 12,500.
(xv) Mahendra became insolvent, only 3,000 could be realised from him.
** Stock at the end of period amounted to 2 2,500. ☺

Answer 1

Answer:

total 5,00000000

Explanation:

yearly income 2,0000000