(a) Jeyaseeli is a sole proprietor having a provisions store. Following are the transactions during the month of January 2018. Journalise them.

| Date | Particulars | ₹ |
| --- | --- | --- |
| Jan. 1 | Commenced business with cash | 80,000 |
| Jan. 2 | Deposited cash with bank |

Question

(a) Jeyaseeli is a sole proprietor having a provisions store. Following are the transactions during the month of January 2018. Journalise them.

| Date | Particulars | ₹ |
| --- | --- | --- |
| Jan. 1 | Commenced business with cash | 80,000 |
| Jan. 2 | Deposited cash with bank | 40,000 |
| Jan. 3 | Purchased goods by paying cash | 5,000 |
| Jan. 4 | Purchased goods from Lipton & Co. on credit | 10,000 |
| Jan. 5 | Sold goods to Joy and received cash | 11,000 |
| Jan. 6 | Paid salaries by cash | 5,000 |
| Jan. 7 | Paid Lipton & Co. by cheque for the purchase made on 4th January | |
| Jan. 8 | Bought Furniture by cash | 4,000 |
| Jan. 9 | Paid electricity charges by cash | 1,000 |
| Jan. 10 | Bank paid insurance premium as per standing instructions | 300 |

OR

(b) Edward's books show the following balances. Prepare his Trading Profit & Loss A/c for the year ended 31st December 2016 and a balance sheet on that date.

| Debit Balances | ₹ | Credit Balances | ₹ |
| --- | --- | --- | --- |
| Drawings | 5,000 | Capital | 1,31,500 |
| Sundry debtors | 60,000 | Loan @ 6% p.a | 20,000 |
| Coal, gas & water | 10,500 | Sales | 3,56,500 |
| Returns inward | 2,500 | Interest on Investment | 2,550 |
| Purchases | 2,56,500 | Sundry Creditors | 40,000 |
| Stock (1.1.2016) | 89,700 | | |
| Travelling Expenses | 51,250 | | |
| Interest on Loan paid | 300 | | |
| Petty cash | 710 | | |
| Repairs | 4,090 | | |
| Investment | 70,000 | | |
| Total | 5,50,550 | Total | 5,50,550 |

Adjustments :
(a) Closing stock was ₹ 1,30,000 on 31.12.2016.
(b) Interest on loan due for 9 months.

Accepted Answer

>

> [!TLDR]
> (a) Journalise Jeyaseeli's ten transactions for January 2018. (b) Edward's final accounts: Gross Profit ₹1,27,300, Net Profit ₹73,310, Balance Sheet ₹2,60,710 each side.
>
> ## (a) Journal of Jeyaseeli — January 2018
>
> | Date | Particulars | L.F. | Debit ₹ | Credit ₹ |
> | --- | --- | --- | --- | --- |
> | Jan 1 | Cash A/c Dr | | 80,000 | |
> | | To Capital A/c | | | 80,000 |
> | | (Being business commenced with cash) | | | |
> | Jan 2 | Bank A/c Dr | | 40,000 | |
> | | To Cash A/c | | | 40,000 |
> | | (Being cash deposited into bank) | | | |
> | Jan 3 | Purchases A/c Dr | | 5,000 | |
> | | To Cash A/c | | | 5,000 |
> | | (Being goods purchased for cash) | | | |
> | Jan 4 | Purchases A/c Dr | | 10,000 | |
> | | To Lipton & Co. A/c | | | 10,000 |
> | | (Being goods purchased on credit) | | | |
> | Jan 5 | Cash A/c Dr | | 11,000 | |
> | | To Sales A/c | | | 11,000 |
> | | (Being goods sold for cash) | | | |
> | Jan 6 | Salaries A/c Dr | | 5,000 | |
> | | To Cash A/c | | | 5,000 |
> | | (Being salaries paid in cash) | | | |
> | Jan 7 | Lipton & Co. A/c Dr | | 10,000 | |
> | | To Bank A/c | | | 10,000 |
> | | (Being payment made to Lipton & Co. by cheque) | | | |
> | Jan 8 | Furniture A/c Dr | | 4,000 | |
> | | To Cash A/c | | | 4,000 |
> | | (Being furniture bought for cash) | | | |
> | Jan 9 | Electricity Charges A/c Dr | | 1,000 | |
> | | To Cash A/c | | | 1,000 |
> | | (Being electricity charges paid in cash) | | | |
> | Jan 10 | Insurance Premium A/c Dr | | 300 | |
> | | To Bank A/c | | | 300 |
> | | (Being insurance premium paid by bank on standing instruction) | | | |
>
> ## (b) Edward — Trading and Profit & Loss A/c for the year ended 31 December 2016
>
> | Particulars | ₹ | Particulars | ₹ |
> | --- | --- | --- | --- |
> | To Opening stock | 89,700 | By Sales 3,56,500 | |
> | To Purchases | 2,56,500 | Less: Returns inward 2,500 | 3,54,000 |
> | To Coal, gas & water | 10,500 | By Closing stock | 1,30,000 |
> | To Gross profit c/d | 1,27,300 | |

Particulars	L.F.	Debit (₹)	Credit (₹)
Cash A/c ... Dr		XXX
To Capital A/c			XXX

Date	Particulars	₹
Jan. 1	Commenced business with cash	80,000
Jan. 2	Deposited cash with bank	40,000
Jan. 3	Purchased goods by paying cash	5,000
Jan. 4	Purchased goods from Lipton & Co. on credit	10,000
Jan. 5	Sold goods to Joy and received cash	11,000
Jan. 6	Paid salaries by cash	5,000
Jan. 7	Paid Lipton & Co. by cheque for the purchase made on 4th January
Jan. 8	Bought Furniture by cash	4,000
Jan. 9	Paid electricity charges by cash	1,000
Jan. 10	Bank paid insurance premium as per standing instructions	300

Debit Balances	₹	Credit Balances	₹
Drawings	5,000	Capital	1,31,500
Sundry debtors	60,000	Loan @ 6% p.a	20,000
Coal, gas & water	10,500	Sales	3,56,500
Returns inward	2,500	Interest on Investment	2,550
Purchases	2,56,500	Sundry Creditors	40,000
Stock (1.1.2016)	89,700
Travelling Expenses	51,250
Interest on Loan paid	300
Petty cash	710
Repairs	4,090
Investment	70,000
Total	5,50,550	Total	5,50,550

Date	Particulars	Debit ₹	Credit ₹
Jan 1	Cash A/c Dr	80,000
	To Capital A/c		80,000
	(Being business commenced with cash)
Jan 2	Bank A/c Dr	40,000
	To Cash A/c		40,000
	(Being cash deposited into bank)
Jan 3	Purchases A/c Dr	5,000
	To Cash A/c		5,000
	(Being goods purchased for cash)
Jan 4	Purchases A/c Dr	10,000
	To Lipton & Co. A/c		10,000
	(Being goods purchased on credit)
Jan 5	Cash A/c Dr	11,000
	To Sales A/c		11,000
	(Being goods sold for cash)
Jan 6	Salaries A/c Dr	5,000
	To Cash A/c		5,000
	(Being salaries paid in cash)
Jan 7	Lipton & Co. A/c Dr	10,000
	To Bank A/c		10,000
	(Being payment made to Lipton & Co. by cheque)
Jan 8	Furniture A/c Dr	4,000
	To Cash A/c		4,000
	(Being furniture bought for cash)
Jan 9	Electricity Charges A/c Dr	1,000
	To Cash A/c		1,000
	(Being electricity charges paid in cash)
Jan 10	Insurance Premium A/c Dr	300
	To Bank A/c		300
	(Being insurance premium paid by bank on standing instruction)

Particulars	₹	Particulars	₹
To Opening stock	89,700	By Sales 3,56,500
To Purchases	2,56,500	Less: Returns inward 2,500	3,54,000
To Coal, gas & water	10,500	By Closing stock	1,30,000
To Gross profit c/d	1,27,300
Total	4,84,000	Total	4,84,000
To Travelling expenses	51,250	By Gross profit b/d	1,27,300
To Repairs	4,090	By Interest on investment	2,550
To Interest on loan 300
Add: Outstanding 900	1,200
To Net profit (to capital)	73,310

(a) Journal of Jeyaseeli — January 2018

(b) Edward — Trading and Profit & Loss A/c for the year ended 31 December 2016

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