Transactions of Wealth Ltd.

for the month of Jan’2020

Jan 1 Opening Balance:

Building 500000, Machinery 300000, Stock 50000, Alpha Ltd (Dr) 165000, Cash 200000, Bank
200000, Loan 400000, Money Ltd. (Cr)200000, Gama Ltd. (Cr) 100000

Jan 2 Goods purchased worth Rs 50000

Jan 5 Goods purchased worth Rs 100000 from Money Ltd.

Jan 7 Sold goods worth Rs 200000

Jan 8 Sold goods worth Rs 150000 to Beta Ltd

Jan 9 Paid Rs 200000 to Money Ltd towards the settlement of liability at the beginning of month

Jan 10 Paid Insurance Premium Rs 50000 by cheque

Jan 11 Paid Rent Rs 180000 by cheque

Jan 13 Received Rs 165000 from Alpha Ltd, due on them on Jan 1

Jan 14 Paid Rs 98000 to Money Ltd. by cheque in full settlement of dues to them

Jan 15 Deposited Rs 50000 in bank

Jan 16 Received Rs 147500 from beta Ltd by cheque in full settlement of their dues. Cheque
deposited in bank.

Jan 18 Paid for stationary Rs 10000

Jan 20 Cheque received from Beta Ltd was dishonoured

Jan 22 Sold old Machinery worth Rs 10000 for Rs 12000 in cash

Jan 25 Purchased furniture worth Rs 100000 from B Ltd

Jan 28 Depreciation on Building Rs 10000

Jan 30 Paid Salary Rs 100000

Jan 31 Paid Rent Rs 50000

 Journal of Wealth Ltd. for the month of Jan’2020

Date Jan. Transaction Debit (Rs) Credit (Rs)

Building A/c 500000

Machinery A/c 300000

Stock A/c 50000

Alpha Ltd (Dr) A/c 165000

Cash A/c 200000

1
Bank A/c 200000

To Loan A/c 400000

To Money Ltd. (Cr) 200000

To Gama Ltd. (Cr) 100000

To Capital A/c 715000

Purchase A/c Dr
2 50000
To Cash 50000

Purchase A/c Dr
5 100000
To Money Ltd. 100000

Cash A/c Dr
7 200000
To Sales 200000

Beta Ltd. A/c Dr

8 150000
To Sales 150000

Money Ltd. A/c Dr

9 200000
To cash 200000

Insurance Premium A/c Dr

10 50000
To Bank 50000
 Rent A/c Dr
11 180000
To Bank 180000

Cash A/c Dr
13 165000
To Alpha Ltd. 165000

Money Ltd. A/c Dr

14 To Discount Received A/c 100000 2000

To cash 98000

Bank A/c Dr
15 50000
To Cash 50000

Bank A/c Dr 147500

16 Discount Allowed A/c Dr 2500

To Beta Ltd. 150000

Stationary A/c Dr

18 To Cash A/c 10000 10000

Beta Ltd. A/c Dr

20 To Discount Allowed A/c 150000 2500

To Bank A/c 147500

Cash A/c Dr

22 To Profit on Sale of Machinery A/c 12000 2000

To Machinery A/c 10000

Furniture A/c Dr
25 100000
To B Ltd. 100000

Depreciation A/c Dr
28 10000
28 10000
To Building A/c 10000

Salary A/c Dr
30 100000
To Cash A/c 100000

Rent A/c Dr
31 50000
To Cash A/c 50000

Total 3242000 3242000

Dr Cash A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
1 To Balance b/d 200000 2 By Purchase 50000
7 To Sales 200000 9 By Money Ltd. 200000
13 To Alpha Ltd. 165000 14 By Money Ltd. 98000
22 To Machinery 10000 15 By Bank 50000
To Profit on Sale of
22 2000 18 By Stationary A/c 10000
Machinery
30 By Salary 100000
31 By Rent 50000
31 By Bal c/d 19000
577000 577000

Dr Bank A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.

1 To Balance b/d 200000 10 By Insurance Premium 50000

15 To Cash 50000 11 By Rent 180000

16 To beta Ltd. 147500 20 By Beta Ltd. 147500
31 By Bal c/d 20000
397500 397500

Dr Building A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
1 To Balance b/d 500000 28 By Depreciation 10000
31 By Bal c/d 490000
500000 500000

Dr Furniture A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
25 To B Ltd. 100000
31 By Bal c/d 100000
100000 100000

Dr Machinery A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
1 To Balance b/d 300000 22 By Cash 10000
31 By Bal c/d 290000
 300000 300000

Dr Profit on Sale of Machinery A/c Cr

Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
22 By Cash 2000
31 To Balance c/d 2000
2000 2000

Dr Purchase A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
1 To Opening Stock 50000
2 To Cash 50000
5 To Money Ltd. 100000 31 By Bal c/d 200000
200000 200000

Dr Rent A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
11 To Bank 180000
31 To Cash 50000
31 By Bal c/d 230000
230000 230000

Dr Salary A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
30 To Cash 100000
31 By Bal c/d 100000
100000 100000

Dr Insurance Premium A/c Cr

Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
1 To Bank 50000
31 By Bal c/d 50000
50000 50000

Dr Stationary A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
 Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
18 To Cash 10000
31 By Bal c/d 10000
10000 10000

Dr Depreciation A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
28 To Building 10000
31 By Bal c/d 10000
10000 10000

Dr Discount Allowed A/c Cr

Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
16 To Beta Ltd. 2500 20 By Beta Ltd. 2500
2500 2500

Dr Sales A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
7 By Cash 200000
31 To Balance c/d 350000 8 By Beta Ltd. 150000
350000 350000

Dr Discount Received A/c Cr

Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
14 By Money Ltd. 2000
31 To Balance c/d 2000
2000 2000

Dr Alpha Ltd. A/c Cr

Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
1 To Bal b/d 165000 13 By Cash 165000
31 By Bal c/d 0
165000 165000

Dr Beta Ltd. A/c Cr

Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
 Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
8 To Sales 150000 16 By Bank 147500
20 To Discount Allowed 2500 16 By Discount Allowed 2500
20 To Bank 147500 31 By Bal c/d 150000
300000 300000

Dr Money Ltd. A/c Cr

Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
9 To Cash 200000 1 By Bal b/d 200000
31 To Balance c/d 0
200000 200000

Dr Gama Ltd. A/c Cr

Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
1 By Bal b/d 100000
31 To Balance c/d 100000
100000 100000

Dr B Ltd. A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
25 By Furniture 100000
31 To Balance c/d 100000
100000 100000

Dr Loan A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
1 By Bal b/d 400000
31 To Balance c/d 400000
400000 400000

Dr Capital A/c Cr
Date Date
Particulars Amount (Rs) Particulars Amount (Rs)
Jan. Jan.
1 By Bal b/d 715000
31 To Balance c/d 715000
715000 715000
 Trial Balance of Wealth Ltd. As on 31st Jan'2020
Account Debit (Rs) Credit (Rs)
Cash 19000
Bank 20000
Building 490000
Machinery 290000
Furniture 100000
Purchase 200000
Sale 350000
Rent 230000
Stationary 10000
Insurance Premium 50000
Salary 100000
Discount Received 2000
Depreciation 10000
Profit on Sale of Machine 2000
Beta Ltd. 150000
Gama Ltd. 100000
B Ltd. 100000
Loan 400000
Capital 715000
Total 1669000 1669000
 Trail Balance of Moon & Co. as on 31st March'2020
Account Debit (Rs) Credit (Rs)
Building 700000
Machinery 500000
Opening Stock 10000
Debtors 115000
Bills Receivables 5000
Cash 16000
Bank 30000
Purchase 200000
Purchase Return 5000
Sales 457000
Sales Return 7000
Rent 50000
Salaries 40000
Insurance Premium 20000
Repair & Maintenance 10000
Wages 23000
Power & Fuel 20000
Interest Received 14000
Commission Received 12000
Carriage Inward 5000
Travelling Expenses 9000
Freight Outward 2000
Profit on the sale of
4000
Machinery
Capital 600000
Drawings 10000
4% Loan from SBI 500000
Creditors 130000
Bills Payable 50000

Total 1772000 1772000 0

Adjustments
1. At the end of year there was Closing Stock worth Rs 5000
2. The insurance Premium of Rs 4000 was unexpired at the end of year
3. The Salaries of Rs 20000 was unpaid
4. The rent includes the advance of Rs 16000 paid for the month of April & May’2020
5. Depreciation of 5% is to be charged on fixed assets
6. Interest on loan is due
7. Create a provision for doubtful debts at the rate of 2% on debtors
 Trading Account of Moon & Co. for the year ended 31st March'2020
Dr
Expenses Amount (Rs) Amount (Rs) Income Amount (Rs)
To Opening Stock 10000 By Sales 457000
To Purchases 200000 Less:Sales Return 7000
Less: Purchase Return 5000 195000 By Closing Stock
To Wages 23000
To Power & Fuel 20000
To Carriage Inward 5000
To Gross Profit 202000
455000

Profit & Loss Account of Moon & Co. for the year ended 31st March'2020
Dr
Expenses Amount (Rs) Amount (Rs) Income Amount (Rs)
To Rent 50000 By Gross Profit
Less: Deferred Rent 16000 34000 By Interest Received
To Salaries 40000 By Commission Received
Add: Accrued Salaries 20000 60000 By Profit on Sale of Machinery
To Insurance Premium 20000
Less: Unexpired Insurance 4000 16000
To Repair & Maintenance 10000
To Travelling Expenses 9000
To Freight Outward 2000
To Depreciation 60000
To Interest 20000
To Provision for doubtful
debts 2300
To Net Profit 18700
232000

Balance Sheet of Moon & Co. as on 31st March'2020

Liabilities Amount (Rs) Amount (Rs) Assets Amount (Rs)

Capital 600000 Building 700000
Add: Net Profit 18700 Less: Depreciation 35000
Less: Drawings 10000 608700 Machinery 500000
Less: Depreciation 25000
Cloasing Stock
Debtors 115000

Loan 500000 Less: Provision for Doubtful Debts 2300

Creditors 130000 Bills Receivables
Bills Payable 50000 Cash
Accrued Salaries 20000 Bank
Accrued Interest 20000 Unexpired Insurance
Deferred Rent
Total Liabilities 1328700 Total Assets
 Cr
Amount (Rs)

450000
5000

455000

20
Cr
Amount (Rs)
202000
14000
12000
4000

232000

Amount (Rs)

665000

475000
5000

112700
5000
16000
30000
4000
16000
1328700