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Numerical Questions · Q17
Q.

Recording, Posting and Balancing

Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of February 2017:

2017 February

DateParticulars₹
01Goods sold to Sachin5,000
04Purchase from Kushal Traders2,480
06Sold goods to Manish Traders2,100
07Sachin returned goods600
08Returns to Kushal Traders280
10Sold to Mukesh3,300
14Purchased from Kunal Traders5,200
15Furniture purchased from Tarun3,200
17Bought of Naresh4,060
20Return to Kunal Traders200
22Return inwards from Mukesh250
24Purchased goods from Kirit & Co. for list price of ... less 10% trade discount5,700
25Sold to Shri Chand goods ... less 5% trade discount6600
26Sold to Ramesh Brothers4,000
28Return outwards to Kirit and Co. ... less 10% trade discount1,000
28Ramesh Brothers returned goods ₹500.—
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Sort the transactions into the four subsidiary books (furniture goes to the Journal Proper); trade-discount items are entered net. Book totals: Sales ₹20,670, Purchases ₹16,870, Purchases Return ₹1,380, Sales Return ₹1,350, each posted to its nominal account.

Concept & treatment. Credit sales of goods → Sales Book (Sales A/c Cr.); credit purchases of goods → Purchases Book (Purchases A/c Dr.); returns to suppliers → Purchases Return Book (Cr.); returns from customers → Sales Return Book (Dr.). Trade discount is deducted before entry. Furniture bought on credit is a fixed asset — recorded in the Journal Proper.

1. Sales (Journal) Book

DateParticularsL.F.Amount (₹)
Feb 01Sachin5,000
Feb 06Manish Traders2,100
Feb 10Mukesh3,300
Feb 25Shri Chand (₹6,600 less 5% T.D.)6,270
Feb 26Ramesh Brothers4,000
Total (Sales A/c Cr.)20,670

2. Purchases (Journal) Book

DateParticularsL.F.Amount (₹)
Feb 04Kushal Traders2,480
Feb 14Kunal Traders5,200
Feb 17Naresh4,060
Feb 24Kirit & Co. (₹5,700 less 10% T.D.)5,130
Total (Purchases A/c Dr.)16,870

3. Purchases Return (Return Outward) Book

DateParticularsL.F.Amount (₹)
Feb 08Kushal Traders280
Feb 20Kunal Traders200
Feb 28Kirit & Co. (₹1,000 less 10% T.D.)900
Total (Purchases Return A/c Cr.)1,380

4. Sales Return (Return Inward) Book

DateParticularsL.F.Amount (₹)
Feb 07Sachin600
Feb 22Mukesh250
Feb 28Ramesh Brothers500
Total (Sales Return A/c Dr.)1,350

Journal Proper — Feb 15 furniture purchased from Tarun (fixed asset):

DateParticularsL.F.Debit (₹)Credit (₹)
Feb 15Furniture A/c … Dr.3,200
  To Tarun3,200
(Being furniture purchased on credit)

Posting to the Ledger (principal accounts)

Purchases Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Sundries (Purchases Book)16,870

Sales Account

ParticularsAmount (₹)ParticularsAmount (₹)
By Sundries (Sales Book)20,670

Purchases Return Account

ParticularsAmount (₹)ParticularsAmount (₹)
By Sundries (P. Return Book)1,380

Sales Return Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Sundries (S. Return Book)1,350

Personal accounts (individual postings) — customers are debited with their sales and credited with their returns/receipts; suppliers are credited with purchases and debited with returns: …

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