Embed Size (px)
DESCRIPTION
Finance Basics Solution: Books of K. K. Luthra Journal DateParticularsDebit (SAR) Credit (SAR) Mar 1 Mar 3 Mar 5 Mar 10 Cash a/c Dr. To Capital a/c (Being business started with SAR 10,000) Office furniture a/c Dr. To cash a/c (Being purchase of office furniture for cash) Purchases a/c Dr. To Anil a/c (Being goods purchased on credit) Azad a/c Dr. To Sales a/c (Being goods sold on credit) 10,000 1,500 3,000 2,500 10,000 1,500 3,000 2,500
Citation preview
Finance Basics(General Illustration)
Finance Basics• Illustration : Journalize the following transactions in the
books of Shri K.K. Luhra, post them into ledger and prepare a trial balance as on 30th March 2010:
March:1 Commenced business with a capital of SAR 10,0003 Purchased office furniture for SAR 1,5005 Purchased goods from Mr. Anil for SAR 300010 Sold Goods to Mr. Azad for SAR 2,50015 Received cash from Mr. Azad SAR 2,400 in full settlement20 Paid to Mr. Anil in cash SAR 2,800 and he allowed discount
SAR 20022 Sold goods for cash SAR 80025 Opened a bank account with SAR 1,10028 Paid salary to Mr. Gokul SAR 40030 Withdrew cash from bank for personal use SAR 300
Finance Basics• Solution: Books of K. K. Luthra
Journal Date Particulars Debit
(SAR)Credit(SAR)
Mar 1
Mar 3
Mar 5
Mar 10
Cash a/c Dr. To Capital a/c (Being business started with SAR 10,000)
Office furniture a/c Dr. To cash a/c(Being purchase of office furniture for cash)
Purchases a/c Dr. To Anil a/c(Being goods purchased on credit)
Azad a/c Dr. To Sales a/c(Being goods sold on credit)
10,000
1,500
3,000
2,500
10,000
1,500
3,000
2,500
Finance Basics• Solution: Books of K. K. Luthra
Journal Date Particulars Debit
(SAR)Credit(SAR)
Mar 15
Mar 20
Mar 22
Cash a/c Dr.Discount allowed a/c Dr. To Azad a/c (Being cash received from Azad in full settlement)
Anil a/c Dr. To cash a/c To discount received a/c(Being cash paid to Anil and received discount)
Cash a/c Dr. To Sales a/c(Being goods sold for cash)
2,400100
3000
800
2,500
2,800200
800
Finance Basics• Solution: Books of K. K. Luthra
Journal Date Particulars Debit
(SAR)Credit(SAR)
Mar 25
Mar 28
Mar30
Bank a/c Dr. To Cash a/c (Being account opened in bank with cash SAR 1100)
Salary a/c Dr. To cash a/c(Being salary paid in cash)
Drawings a/c Dr. To Bank a/c(Being amount withdrawn from bank for personal use)
1,100
400
300
1,100
400
300
Finance Basics• Solution: Books of K. K. Luthra
LedgerCash a/c
Date Particulars Amount Date Particulars AmountMar 1Mar 10Mar 22
To Capital a/cTo Azad a/cTo Sales a/c
10,0002,400
800
Mar 3Mar 20Mar 25Mar 28Mar 30
By Office FurnitureBy Anil a/cBy Bank a/cBy Salary a/cBy Balance a/c
1,5002,8001,100
4007,400
13,200 13,200
Apr 1 To Balance b/d 7,400
Finance Basics• Solution: Books of K. K. Luthra
LedgerCapital a/c
Date Particulars Amount Date Particulars AmountMar 30 To Balance c/d
10,000
Mar 1
By Cash a/c 10,000
10,000 10,000
Apr 1 To Balance b/d 10,000
Finance Basics• Solution: Books of K. K. Luthra
LedgerOffice Furniture a/c
Date Particulars Amount Date Particulars AmountMar 3 To Cash a/c
1,500
Mar 30
By Balance c/d 1,500
1,500 1,500
Apr 1 To Balance b/d 1,500
Finance Basics• Solution: Books of K. K. Luthra
LedgerPurchases a/c
Date Particulars Amount Date Particulars AmountMar 5 To Anil a/c
3,000
Mar 30
By Balance c/d 3,000
3,000 3,000
Apr 1 To Balance b/d 3,000
Finance Basics• Solution: Books of K. K. Luthra
LedgerAnil a/c
Date Particulars Amount Date Particulars AmountMar 20Mar 20
To Cash a/cTo Discount received
2,800200
Mar 5
By Purchases 3,000
3,000 3,000
Finance Basics• Solution: Books of K. K. Luthra
LedgerAzad a/c
Date Particulars Amount Date Particulars AmountMar 10 To Sales a/c
2,500
Mar 15Mar 15
By Cash a/cBy Discount allowed
2,400100
2,500 2,500
Finance Basics• Solution: Books of K. K. Luthra
LedgerSales a/c
Date Particulars Amount Date Particulars AmountMar 30 To Balance c/d
3,300
Mar 10
By Azad a/cBy Cash a/c
2,500800
3,300 3,300
3,000 Apr 1 To Balance b/d 3,300
Finance Basics• Solution: Books of K. K. Luthra
LedgerDiscount Allowed a/c
Date Particulars Amount Date Particulars AmountMar 15 To Azad a/c
100
Mar 30
By Balance c/d 100
100 100
Apr 1
To Balance b/d 100
Finance Basics• Solution: Books of K. K. Luthra
LedgerDiscount Received a/c
Date Particulars Amount Date Particulars AmountMar 30 To Balance c/d
200
Mar 20
By Anil a/c 200
200 200
200 Apr 1 By Balance b/d 200
Finance Basics• Solution: Books of K. K. Luthra
LedgerBank a/c
Date Particulars Amount Date Particulars AmountMar 25 To Cash a/c
1,100
Mar 30Mar 30
By Drawings a/cBy Balance c/d
300800
1,100 1,100
Apr 1
To Balance b/d 800
Finance Basics• Solution: Books of K. K. Luthra
LedgerSalary a/c
Date Particulars Amount Date Particulars AmountMar 28 To Cash a/c
400
Mar 30
By Balance c/d 400
400 400
Apr 1
To Balance b/d 400
Finance Basics• Solution: Books of K. K. Luthra
LedgerDrawings a/c
Date Particulars Amount Date Particulars AmountMar 30 To Bank a/c
300
Mar 30
By Balance c/d 300
300 300
Apr 1
To Balance b/d 300
Finance Basics
• Trial Balance• Trial balance of K.K.Luthra as on 30th Mar,
2010S. No
Name/Head of accounts Debit total
Credit Total
1.2.3.4.5.6.7.8.9.10.11.12.
Cash a/cCapital a/cOffice furniture a/cPurchase a/cAnil a/cAzad a/cSales a/cDiscount allowed a/cDiscount received a/cBank a/cSalary a/cDrawings a/c
13,200--
1,5003,0003,0002,500
---100
---1,100
400300
5,80010,000
------
3,0002,5003,300
---200300
------
25,100 25,100
