Home / NOTES

757 Views

Estimated reading time : 195 Minutes

Trial Balance from Journal Entries and Ledgers

Arjun EP

Published on: June 30, 2020

How to make trail balance from journal entries and ledgers?

Journal Entries, Ledgers and Trial Balance are the best concept of accounting. From these concepts, student can understand accounting.

PROBLEM: 1

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =

Srijana started business on 1^st June named SA Impex. The following transactions in the first two weeks: (All transactions are through bank)

1 July Bank account was opened by depositing $/₹/Rs 160,000.

2 July Second hand bike purchased for Rs 50,000 paying by cheque.

3 July Signs a rental agreement for office space for 5 years @ Rs 24,000 per annum.

4 July Office equipments purchased from BK Suppliers Rs 30,000.

5 July Goods purchased costing Rs 40,000 on credit from AK Traders

6 July Advertising expenses payable to ‘The Kantipur’ at a cost of Rs 15,000

8 July First rental instalment paid for the month by a cheque.

9 July Goods sold for Rs 35,000 in cash.

10 July Goods sold for Rs 5,000.

11 July Telephone installation paid Rs 8,500 out of which Rs 5,000 is security deposit.

12 July Advertising expenses paid in full and Rs 20,000 paid to AK Traders.

13 July Further goods purchased of Rs 100,000 from AK Traders.

15 July Drew Rs 1,000 for personal use.

Required: (1) Journal entries; (2) Ledgers account; (3) Trial balance

[Answer: Trial balance = Rs 330,000]

SOLUTION:

Journal Entries

Date	Particulars		LF	Dr Amount	Cr Amount
1-July	Bank	Dr	1	160,000
	To Capital		2		160,000
	(Being- commencement of business by bank deposit)
2-July	Motor bike	Dr	3	50,000
	To Bank		1		50,000
	(Being- second hand bike purchased by cheque)
3-July	No entry
4-July	Office equipments account	Dr	4	30,000
	To BK Suppliers		5		30,000
	(Being- office equipment purchased on credit)
5-July	Purchase account	Dr	6	40,000
	To AK Traders		7		40,000
	(Being- goods purchased on credit)
6-July	Advertising expenses account	Dr	8	15,000
	To Advertising expenses payable		9		15,000
	(Being- advertising expenses due)
8-July	Rent expenses account	Dr	10	2,000
	To Bank		1		2,000
	(Being- rent paid for the month)
9-July	Bank account	Dr	1	35,000
	To Sales account		11		35,000
	(Being- goods sold for cash)
10-July	Bank account	Dr	1	5,000
	To Sales account		11		5,000
	(Being- goods sold for cash)
11-July	Telephone expenses account	Dr	12	3,500
	Security deposit account	Dr	13	5,000
	To Bank account		1		8,500
	(Being- telephone expenses and security deposits paid)
12-July	Advertising expenses payable account	Dr	9	15,000
	AK Traders account	Dr	7	20,000
	To Bank		1		35,000
	(Being- advertising exp. paid and paid to AK Traders)
13-July	Purchase account	Dr	6	100,000
	To AK Traders		7		100,000
	(Being- goods purchase on credit)
15-July	Drawing account	Dr	14	1,000
	To Bank account		1		1,000
	(Being- cash withdrew from bank for personal use)

###########

Click on link for YouTube videos

ACCOUNTING EQUATION http://tiny.cc/c89jkz

BASIC JOURNAL ENTRIES IN NEPALI http://tiny.cc/uaakkz

BASIC JOURNAL ENTRIES http://tiny.cc/8aakkz

JOURNAL ENTRY AND LEDGER http://tiny.cc/caakkz

LEDGER http://tiny.cc/haakkz

SUBSIDIARY BOOK http://tiny.cc/399jkz

CASH BOOK http://tiny.cc/889jkz

TRIAL BALANCE & ADJUSTED TRIAL BALANCE http://tiny.cc/c59jkz

BANK RECONCILIATION STATEMENT (BRS) http://tiny.cc/q59jkz

DEPRECIATION http://tiny.cc/ugakkz

FINAL ACCOUNT: CLASS 11 http://tiny.cc/y89jkz

ADJUSTMENT IN FINAL ACCOUNT http://tiny.cc/keakkz

CAPITAL AND REVENUE http://tiny.cc/peakkz

SINGLE ENTRY SYSTEM http://tiny.cc/n19jkz

NON-PROFIT ORGANIZATION (NON-TRADING CONCERN http://tiny.cc/j09jkz

GOVERNMENT ACCOUNTING http://tiny.cc/hcakkz

GOSWARA VOUCHER (JOURNAL VOUCHER) http://tiny.cc/hcakkz

###########

Bank Account (LF 1)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 1 July 9 July 10	To Capital To Sales To Sales		160,000 35,000 5,000	July 2 July 8 July 11 July 11 July 12 July 12 July 15 July 15 July 15	By Motor bike By Rent By Telephone expenses By Security deposit By Advt. expenses payable By AK Traders By Drawings By Balance c/d		50,000 2,000 3,500 5,000 15,000 20,000 1,000 103,500
			200,000				200,000
July 16	To Balance b/d		103,500

Capital Account (LF2)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
	To Balance c/d		1,60,000	July 1	By Bank account		1,60,000
			1,60,000				1,60,000
					By Balance b/d		1,60,000

Motor Bike Account (LF 3)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 2	To Bank		50,000	July 15	By Balance c/d		50,000
			50,000				50,000
July 16	To Balance b/d		50,000

Office Equipment Account (LF 4)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 15	To BK Suppliers		30,000	July 4	By Balance c/d		30,000
			30,000				30,000
July 16	To Balance b/d		30,000

BK Suppliers Account (LF 5)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 15	To Balance c/d		30,000	July 4	By Office suppliers		30,000
			30,000				30,000
				July 16	By Balance b/d		30,000

Purchase Account (LF 6)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 4 July 13	To AK Traders To AK traders		40,000 100,000	July 15	By Balance c/d		140,000
			140,000				140,000
July 16	To Balance b/d		140,000

AK Traders Account (LF 7)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 12 July 15	To Bank To Balance c/d		20,000 120,000	July 4 July 13	By Purchase By Purchase		40,000 100,000
			140,000				140,000
				July 16	By Balance b/d		120,000

Advertisement Expenses Account (LF 8)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 6	To Advt expenses payable		15,000	July 15	By Balance c/d		15,000
			15,000				15,000
July 16	To Balance b/d		15,000

Advertisement Expenses Payable Account (LF 9)

ate

Particulars

Amount

Date

Particulars

Amount

July 15

To Bank

15,000

July 4

By Advt expenses

15,000

Rent Expenses Account (LF 10)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 8	To Bank		2,000	July 15	By Balance c/d		2,000
			2,000				2,000
July 16	To Balance b/d		2,000

Sales Account (LF 11)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 6	To Balance c/d		40,000	July 9 July 10	By Bank By Bank		35,000 5,000
			40,000				40,000
				July 16	By Balance b/d		40,000

Telephone Expenses Account (LF 12)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 11	To Bank		3,500	July 15	By Balance c/d		3,500
			3,500				3,500
				July 16	By Balance b/d		3,500

Security Deposit Account (LF 13)

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 11	To Bank		3,500	July 15	By Balance c/d		3,500
			3,500				3,500
				July 16	By Balance b/d		3,500

Drawings Account (LF 14)

ate	Particulars	LF	Amount	Date	Particulars	LF	Amount
July 15	To Bank		1,000	July 15	By Balance c/d		1,000
			1,000				1,000
July 16	To Balance b/d		1,000

Trial Balance

SA Impex

SN	Name of Ledgers	LF	Amount Dr	Amount Cr
1	Bank	1	83,500
2	Capital	2		1,60,000
3	Motor bike	3	50,000
4	Office equipment	4	30,000
5	BK Suppliers	5		30,000
6	Purchase	6	1,40,000
7	AK Traders	7		1,00,000
8	Advertising expenses	8	15,000
9	Rent	10	2,000
10	Sales	11		40,000
11	Telephone expenses	12	3,500
12	Security deposits	13	5,000
13	Drawing	14	1,000
	Total		3,30,000	3,30,000