Prepare Cash A/c, Bank A/c, Purchase A/c, sales A/c and Capital A/c, and balance the same in the books of Mandanlal

2019 Aug. 

1. Started business with bank balance Rs.40,000. 

2. Purchased goods from Aseem worth Rs.15,000 lesss 10% Trade Discount. 

3. Sold goods to Arun for Rs.8,000 for cash. 

4. Paid rent Rs.3,000 and electricity bill Rs.500. 

 5. Purchased 100 shares of prefect technologies for Rs.55 per share and paid brokerage. 

6. Withdrawal of goods for personal use Rs.500. 

7. Sold goods for cash Rs.5,000 less 10% Cash Discount.  

8. Deposited cash into Bank Rs.2,000. 

9. Paid Rs.3,000 for daughter's tuition fees by Debit Card. 

10. Purchased a table for Rs.2,000. 

19. Received Rs.1,500 by selling the scrap. 

27. Paid cash into bank in excess of Rs.2,000. 

 Solution: 

 

In the books of Mandanlal 

Cash Account 

Date	particulars	L.F	Amt	Date	Particulars	L.F	Amt
2019 Aug. 3	To sales A/c		8,000	4	By Rent & Electricity bill		3,500
7	To Sales A/c		4,500	8	By Bank A/c		2,000
19	To Sales of scrap A/c		1,500	10	By Table A/c		2,000
				27	By Bank A/c		4,500
				31	By Balance c/d		2,000
			14,000				14,000
Step. 1	To Balance b/d		2,000

 

Bank Account 

Date	Particulars	L.F	Amt	Date	Particulars	L.F	Amt
2019 Aug. 1	To Capital A/c		40,000	2019Aug. 5	By Shares of Perfect Technologies, A/c		5,750
8	To Cash A/c		2,000	9	By Drawings A/c		3,000
27	To Cash A/c		4,500	31	By Balance c/d		37,750
			46,500				46,500
Oct.1	To Balance b/d		37,750

 

Purchase Account 

Date	Particulars	L.F	Amt	Date	Particulars	L.F	Amt
2019 Aug. 2	To Aseem A/c		13,500	6	By Drawings A/c		500
				31	By Balance c/d		13,000
			13,500				13,500
Step. 1	To Balance b/d		13,500

 

Sales Account 

Date	Particulars	L.F	Amt	Date	Particulars	L.F	Amt
				2019 Aug. 3	By Sales A/c		8,000
				7	By Cash A/c		4,500
31	To Balance b/d		12,500
			12,500				12,500
				Step. 1	By Balance c/d		12,500

 

Capital Account 

Date	Particulars	L.F	Amt	Date	Particulars	L.F	Amt
				2019 Aug. 1	By Balance		40,000
31	To Balance b/d		40,000
			40,000				40,000
				Step.1	By Balance c/d		40,000

Explanatory Note: 

1) Started business with bank balance Rs.40,000:  

Mr. Madanlal is the proprietor of the business. He started business with bank balance therefore in the ledger of Bank account Capital account is posted on debit side and in the Ledger of Capital account Bank account is posted on credit side because Cash is coming inside the business. 

 

2) Purchased goods from Aseem worth Rs.15,000 less 10% Trade Discount. 

Purchased goods from Aseem on credit because cash is not mentioned in the transaction. So, the Ledger entry is On Debit side of Purchase account assume account and in Ledger of Assem account Purchase account on credit side. 

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27. Paid cash into bank in excess of Rs. 2,000 

The statement says paid cash into bank more than Rs.2,000 in Cash A/c. Do the debit side and Credit side total 14,000 and 7,500 respectively. Now subtract 14,000 from 7,500= 6,500After this, Rs. 2,000 is the excess amount in cash A/c. So, we must keep 2,000 and pay the remaining amount into bank 
6,500 - 2,000 = 4,500 Here 4,500 is transferred to the bank. 

Prepare Cash A/c, Bank A/c, Purchase A/c, sales A/c and Capital A/c, and balance the same in the books of Mandanlal