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Numerical Questions · Q18
Q.

The following balances of ledger of M/s Marble Traders on April 01, 2017

2017 April

Particulars₹
Cash in hand6,000
Cash at bank12,000
Bills receivable7,000
Ramesh (Cr.)3,000
Stock (Goods)5,400
Bills payable2,000
Rahul (Dr.)9,700
Himanshu (Dr.)10,000

Transactions during the month were:

DateParticulars₹
01Goods sold to Manish3,000
02Purchased goods from Ramesh8,000
03Received cash from Rahul in full settlement9,200
05Cash received from Himanshu on account4,000
06paid to Remesh by cheque6,000
08Rent paid by cheque1,200
10Cash received from manish3,000
12Cash sales6,000
14Goods returned to Ramesh1,000
15Cash paid to Ramesh in full settlement3,700
15Discount received300
18Goods sold to Kushal10,000
20Paid trade expenses200
21Drew for personal use1,000
22Goods return from Kushal1,200
24Cash received from Kushal6,000
26Paid for stationery100
27Postage charges60
28Salary Paid2,500
29Goods purchased from Sheetal Traders7,000
30Sold goods to Kirit6000
30Goods purchased from Handa Traders5,000

Journlise the above transactions and post them to the ledger.

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Open the books with all assets (Dr.) and liabilities + capital (Cr.) — capital works out to ₹45,100. Journalise every transaction (with discount allowed/received on the Rahul and Ramesh settlements) and post; closing Cash ₹26,640 and Bank ₹4,800.

Concept & treatment. The opening entry brings forward last period's balances: assets are debited, liabilities and capital credited. "Full settlement" for less than the amount due creates Discount Allowed (an expense, debited) when we receive, and Discount Received (an income, credited) when we pay. Credit sales/purchases go to the personal accounts; cash/cheque movements to Cash/Bank.

Journal of M/s Marble Traders — April 2017

DateParticularsL.F.Debit (₹)Credit (₹)
Apr 01Cash A/c … Dr.6,000
Bank A/c … Dr.12,000
Bills Receivable A/c … Dr.7,000
Stock A/c … Dr.5,400
Rahul … Dr.9,700
Himanshu … Dr.10,000
  To Ramesh3,000
  To Bills Payable A/c2,000
  To Capital A/c45,100
(Being opening balances brought forward)
Apr 01Manish … Dr.3,000
  To Sales A/c3,000
Apr 02Purchases A/c … Dr.8,000
  To Ramesh8,000
Apr 03Cash A/c … Dr.9,200
Discount Allowed A/c … Dr.500
  To Rahul9,700
(Full settlement of Rahul)
Apr 05Cash A/c … Dr.4,000
  To Himanshu4,000
Apr 06Ramesh … Dr.6,000
  To Bank A/c6,000
Apr 08Rent A/c … Dr.1,200
  To Bank A/c1,200
Apr 10Cash A/c … Dr.3,000
  To Manish3,000
Apr 12Cash A/c … Dr.6,000
  To Sales A/c6,000
Apr 14Ramesh … Dr.1,000
  To Purchases Return A/c1,000
Apr 15Ramesh … Dr.4,000
  To Cash A/c3,700
  To Discount Received A/c300
(Full settlement of Ramesh)
Apr 18Kushal … Dr.10,000
  To Sales A/c10,000
Apr 20Trade Expenses A/c … Dr.200
  To Cash A/c200
Apr 21Drawings A/c … Dr.1,000
  To Cash A/c1,000
Apr 22Sales Return A/c … Dr.1,200
  To Kushal1,200
Apr 24Cash A/c … Dr.6,000
  To Kushal6,000
Apr 26Stationery A/c … Dr.100
  To Cash A/c100
Apr 27Postage A/c … Dr.60
  To Cash A/c60
Apr 28Salary A/c … Dr.2,500
  To Cash A/c2,500
Apr 29Purchases A/c … Dr.7,000
  To Sheetal Traders7,000
Apr 30Kirit … Dr.6,000
  To Sales A/c6,000
Apr 30Purchases A/c … Dr.5,000
  To Handa Traders5,000

Ledger (principal accounts)

Cash Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d6,000By Ramesh3,700
To Rahul9,200By Trade Expenses200
To Himanshu4,000By Drawings1,000
To Manish3,000By Stationery100
To Sales6,000By Postage60
To Kushal6,000By Salary2,500
By Balance c/d26,640
Total34,200Total34,200

Bank Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d12,000By Ramesh6,000
By Rent1,200
By Balance c/d4,800
Total12,000Total12,000

Ramesh's Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Bank6,000By Balance b/d3,000
To Purchases Return1,000By Purchases8,000
To Cash3,700
To Discount Received300
Total11,000Total11,000

Rahul's Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Balance b/d9,700By Cash9,200
By Discount Allowed500
Total9,700Total9,700

Himanshu's Account …

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