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 1st 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 |
LF |
Amount |
Date |
Particulars |
LF |
Amount |
July 15
|
To Bank
|
|
15,000 |
July 4 |
By Advt expenses |
|
15,000 |
|
|
|
15,000 |
|
|
|
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 |
|
***********
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