(a) Show the direct Ledger postings for the following transactions.

2017
June 1 Raja commenced business with cash Rs. 50,000
June 6 Sold goods for cash Rs. 8,000
June 8 Sold goods to Devi on credit Rs. 9,000
June 15 Goods purchased for Cash Rs. 4,000
June 20 Goods purchased from

Question

(a) Show the direct Ledger postings for the following transactions.

2017
June 1 Raja commenced business with cash Rs. 50,000
June 6 Sold goods for cash Rs. 8,000
June 8 Sold goods to Devi on credit Rs. 9,000
June 15 Goods purchased for Cash Rs. 4,000
June 20 Goods purchased from Shanthi on credit Rs. 5,000

OR

(b) The following errors were located after the preparation of the Trial Balance. Assume that there exists a Suspense account. Rectify them.
(i) Sale of goods on credit to Arun for Rs. 152 posted to his account as Rs. 125.
(ii) Bought goods from Lakshmi on credit for Rs. 550, credited to her account as Rs. 505.
(iii) Purchase of furniture from Abirupa for Rs. 404 on credit was debited to Furniture account as Rs. 440.
(iv) Purchased machinery for cash Rs. 200 was not posted to Machinery account.
(v) The total of Purchases book Rs. 89 was carried forward as Rs. 98.

Accepted Answer

>

> [!TLDR]
> (a) Direct ledger postings with Cash balance Rs. 54,000. (b) Five suspense-account rectification entries.
>
> **(a) Direct Ledger Postings (books of Raja)**
>
> Cash Account
>
> | Dr | Rs. | Cr | Rs. |
> | --- | --- | --- | --- |
> | June 1 To Capital A/c | 50,000 | June 15 By Purchases A/c | 4,000 |
> | June 6 To Sales A/c | 8,000 | June 30 By Balance c/d | 54,000 |
> | **Total** | **58,000** | **Total** | **58,000** |
>
> Capital Account
>
> | Dr | Rs. | Cr | Rs. |
> | --- | --- | --- | --- |
> | June 30 To Balance c/d | 50,000 | June 1 By Cash A/c | 50,000 |
>
> Sales Account
>
> | Dr | Rs. | Cr | Rs. |
> | --- | --- | --- | --- |
> | June 30 To Balance c/d | 17,000 | June 6 By Cash A/c | 8,000 |
> | | | June 8 By Devi A/c | 9,000 |
>
> Devi Account
>
> | Dr | Rs. | Cr | Rs. |
> | --- | --- | --- | --- |
> | June 8 To Sales A/c | 9,000 | June 30 By Balance c/d | 9,000 |
>
> Purchases Account
>
> | Dr | Rs. | Cr | Rs. |
> | --- | --- | --- | --- |
> | June 15 To Cash A/c | 4,000 | June 30 By Balance c/d | 9,000 |
> | June 20 To Shanthi A/c | 5,000 | | |
>
> Shanthi Account
>
> | Dr | Rs. | Cr | Rs. |
> | --- | --- | --- | --- |
> | June 30 To Balance c/d | 5,000 | June 20 By Purchases A/c | 5,000 |
>
> **(b) Rectification of errors through Suspense Account**
>
> | # | Error | Rectifying entry |
> | --- | --- | --- |
> | (i) | Sale to Arun Rs. 152 posted as Rs. 125 (short debit 27) | Arun A/c Dr 27 — To Suspense A/c 27 | …

Dr	Rs.	Cr	Rs.
June 1 To Capital A/c	50,000	June 15 By Purchases A/c	4,000
June 6 To Sales A/c	8,000	June 30 By Balance c/d	54,000
Total	58,000	Total	58,000

Dr	Rs.	Cr	Rs.
June 30 To Balance c/d	17,000	June 6 By Cash A/c	8,000
		June 8 By Devi A/c	9,000

Dr	Rs.	Cr	Rs.
June 15 To Cash A/c	4,000	June 30 By Balance c/d	9,000
June 20 To Shanthi A/c	5,000

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