Journal entries and ledger accounts long question and answer.
It is exam based comprehensive question and solution.
It covers large topic of the chapter.
PROBLEM: 8
KL Traders, a sole proprietorship, has following information:
Jan 1: Business started with cash Rs 300,000.
Jan 2: Goods purchased in cash Rs 100,000.
Jan 3: Insurance paid in advance for one year Rs 6,240.
Jan 4: Goods sold for cash Rs 80,000 with the help of sales agent.
Jan 6: Equipment purchased worth Rs 50,000.
Jan 8: Furniture purchase from KN Furniture House Rs 15,000.
Jan 10: Borrow from Raj Rs 50,000.
Jan 12: Bank account opened at City Bank by depositing cash of Rs 80,000.
Jan 14: Commission paid to agent Rs 10,000.
Jan 16: Goods sold to M/s Sharma Bros for Rs 50,000 on account.
Jan 20: Payment made to KN Furniture House by cheque.
Jan 22: Cash received from M/s Sharma Bros Rs 30,000.
Jan 25: Excess furniture sold for Rs 4,000.
Jan 26: Loan given to Mahesh Rs 20,000.
Jan 27: Goods costing Rs 5,000 sold for Rs 7,000.
Jan 28: Damaged goods costing 4,000 sold for Rs 3,500.
Jan 30: Rent paid of Rs 10,200.
Jan 31: Salary payable Rs 22,300.
Required: (a) Journal entries and ledgers accounts
[Answers: (b) Cash Account 248,060; (c) KL Traders capital account 300,000;
(c) Purchase account 100,000; (d) Advance increase account 6,240; (e) Sales account 139,000;
(f) Equipment account 50,000; (g) Furniture 11,000; (h) KN Furniture account 5,000;
(i) Loan from Raj account 50,000; (j) City Bank account 20,000; (k) Commission paid account 10,000;
(l) M/s Sharma Bros account 20,000; (m) Loan to Mahesh account 20,000; (n) P&L account 1,500;
(o) Rent account Rs 10,200; (p) Salary account 22,300; (q) Salary paid account 22,300]
SOLUTION
Cash Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 1 |
To Capital |
|
300,000 |
Jan 2 |
By Purchase |
|
100,000 |
Jan 4 |
To Sales |
|
80,000 |
Jan 3 |
By Adv. Insurance |
|
6,240 |
Jan 10 |
To Loan from Raj |
|
50,000 |
Jan 6 |
By Equipment |
|
50,000 |
Jan 22 |
To M/s Sharma Bros |
|
30,000 |
Jan 12 |
By City Bank |
|
30,000 |
Jan 25 |
To Furniture |
|
4,000 |
Jan 14 |
By Commission paid |
|
10,000 |
Jan 27 |
To Sales |
|
5,000 |
Jan 26 |
By Loan to Mahesh |
|
20,000 |
Jan 27 |
To P&L (profit) |
|
2,000 |
Jan 30 |
By Rent |
|
10,200 |
Jan 27 |
To Sales |
|
3,500 |
Jan 31 |
By Balance c/d |
|
248,060 |
|
|
|
474,500 |
|
|
|
474,500 |
|
To Balance b/d |
|
248,060 |
|
|
|
|
KL Traders Capital Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 1 |
To Balance c/d |
|
300,000 |
Jan 1 |
By Cash |
|
300,000 |
|
|
|
|
|
|
|
|
|
|
|
300,000 |
|
|
|
300,000 |
|
|
|
|
|
By Balance b/d |
|
300,000 |
Purchase Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 2 |
To Cash |
|
100,000 |
Jan 2 |
By Balance c/d |
|
100,000 |
|
|
|
|
|
|
|
|
|
|
|
100,000 |
|
|
|
100,000 |
|
To Balance b/d |
|
100,000 |
|
|
|
|
Advance Insurance Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 3 |
To Cash |
|
6,240 |
Jan 3 |
By Balance c/d |
|
6,240 |
|
|
|
|
|
|
|
|
|
|
|
6,240 |
|
|
|
6,240 |
|
To Balance b/d |
|
6,240 |
|
|
|
|
Sales Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 28 |
To Balance c/d |
|
139,000 |
Jan 4 |
By Cash |
|
80,000 |
|
|
|
|
Jan 16 |
By M/s Sharma Bros |
|
50,000 |
|
|
|
|
Jan 27 |
By Cash |
|
5,000 |
|
|
|
|
Jan 28 |
By Cash |
|
3,500 |
|
|
|
|
Jan 28 |
By P&L |
|
500 |
|
|
|
139,000 |
|
|
|
139,000 |
|
|
|
|
|
By Balance b/d |
|
139,000 |
Equipment Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 6 |
To Cash |
|
50,000 |
Jan 3 |
By Balance c/d |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
50,000 |
|
To Balance b/d |
|
50,000 |
|
|
|
|
Furniture Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 8 |
To KN Furniture |
|
15,000 |
Jan 25 |
By Cash |
|
4,000 |
|
|
|
|
Jan 25 |
By Balance c/d |
|
11,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
To Balance b/d |
|
11,000 |
|
|
|
|
KN Furniture Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 20 |
To City Bank |
|
10,000 |
Jan 8 |
By Furniture |
|
15,000 |
Jan 20 |
To Balance c/d |
|
5,000 |
|
|
|
|
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
|
|
By Balance b/d |
|
5,000 |
Loan from Raj Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 10 |
To Balance c/d |
|
50,000 |
Jan 10 |
By Cash |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
|
By Balance b/d |
|
50,000 |
City Bank Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 12 |
To Cash |
|
30,000 |
Jan 20 |
By KN Furniture |
|
10,000 |
|
|
|
|
Jan 20 |
By Balance c/d |
|
20,000 |
|
|
|
30,000 |
|
|
|
30,000 |
|
To Balance b/d |
|
20,000 |
|
|
|
|
Commission Paid Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 14 |
To Cash |
|
10,000 |
Jan 14 |
By Balance c/d |
|
10,000 |
|
|
|
|
|
|
|
|
|
|
|
10,000 |
|
|
|
10,000 |
|
To Balance b/d |
|
10,000 |
|
|
|
|
M/s Sharma Bros Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 16 |
To Sales |
|
50,000 |
Jan 22 |
By Cash |
|
30,000 |
|
|
|
|
Jan 22 |
By Balance c/d |
|
20,000 |
|
|
|
50,000 |
|
|
|
50,000 |
|
To Balance b/d |
|
20,000 |
|
|
|
|
Loan to Mahesh Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 26 |
To Cash |
|
20,000 |
Jan 26 |
By Balance c/d |
|
20,000 |
|
|
|
|
|
|
|
|
|
|
|
20,000 |
|
|
|
20,000 |
|
To Balance b/d |
|
20,000 |
|
|
|
|
P&L Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 28 |
To Sales |
|
500 |
Jan 27 |
By Cash |
|
2,000 |
Jan 28 |
To Balance c/d |
|
1,500 |
|
|
|
|
|
|
|
2,000 |
|
|
|
2,000 |
|
|
|
|
|
By Balance b/d |
|
1,500 |
Rent Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 30 |
To Cash |
|
10,200 |
Jan 30 |
By Balance c/d |
|
10,200 |
|
|
|
|
|
|
|
|
|
|
|
10,200 |
|
|
|
10,200 |
|
To Balance b/d |
|
10,200 |
|
|
|
|
Salary Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 31 |
To Salary payable |
|
22,300 |
Jan 30 |
By Balance c/d |
|
22,300 |
|
|
|
|
|
|
|
|
|
|
|
22,300 |
|
|
|
22,300 |
|
To Balance b/d |
|
22,300 |
|
|
|
|
Salary Payable Account
Date |
Particulars |
LF |
Amount Dr |
Date |
Particulars |
LF |
Amount Cr |
Jan 31 |
To Balance c/d |
|
22,300 |
Jan 31 |
By Salary |
|
22,300 |
|
|
|
|
|
|
|
|
|
|
|
22,300 |
|
|
|
22,300 |
|
|
|
|
|
To Balance b/d |
|
22,300 |
#######
Click on link for YouTube videos topic wise : |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger Account |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance and Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Click on link for YouTube videos chapter wise: |
|
Financial Accounting and Analysis (All videos) |
|
Accounting Process |
|
Accounting for Long Lived Assets |
|
Analysis of Financial Statement |
#######
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