Unit 2 – Journal, Ledger and Trial Balance

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Unit 2 – Journal, Ledger and Trial Balance

Sums on Journal & Ledger

1. Journalise the following transactions and open only the personal accounts in the Ledger
July 2024
1 Govind started business with the following:
Cash Rs. 2,000
Goods Rs. 1,000
Furniture Rs. 500
5 Sold goods to Raghavan Rs. 500
5 Sold goods for cash Rs. 300
9 Received from Raghavan on account Rs. 300
12 Purchased goods from Mukundan Rs. 900
15 Paid Mukundan Rs.500
20 Paid interest to Mukundan Rs. 10
31 Paid Stationery charges Rs. 6; Salaries Rs.25; Rent Rs.16

2. Record the following transactions in the Journal of the Delhi Furniture Mart and post them
into the Ledger:
2024
Jan 1 Started business with Cash Rs. 10,000
Jan 2 Deposited into Bank Rs. 9,000
Jan 3 Purchased machinery for Rs. 5,000 from Jawahar and gave him a cheque for the
amount
Jan 15 Paid installation charges of Machinery Rs. 100
Jan 20 Purchased timber from Naveen of the list price Rs. 2,000. He allowed 10% Trade
discount
Jan 23 Furniture costing Rs. 500 was used in furnishing the office
Jan 25 Sold Furniture to Naresh of the list price of Rs. 1,000 and allowed him 5% trade
discount
Jan 28 Received a cheque from Naresh for Rs. 930 in full settlement and sent the cheque to
the Bank
Jan 29 Sent to Naveen in full settlement a cheque for Rs. 1,750
Jan 31 Paid wages Rs. 350 and Rent Rs. 200

3. Journalise the following transactions and post them to various ledger accounts:
2024
1st June Rao started business with cash Rs. 40,000
3rd June Rao paid for postage Rs. 25
5th June Rao purchases goods from Sam Rs. 3,000
10th June Rao sold goods to Suresh Rs. 4,000
14th June Rao returned goods to Sam Rs. 1,000
15th June Suresh returned goods to Rao Rs. 2,000
18th June Rao paid salaries Rs. 5,000
25th June Rao received cash from Suresh
28th June Rao paid the amount due to Sam in cash
29th June Rao paid for Stationery Rs.100

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Unit 2 – Journal, Ledger and Trial Balance
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30th June Rao received commission Rs. 2,000

4. Fron the following information, show the account of Satya as it would appear in the Ledger
of Samarth:
2024
July 1 Credit balance b/d Rs. 3,000
July 6 Bought goods from Satya Rs. 700
July 7 Returned goods worth Rs. 200 to Satya
July 10 Sold goods for Rs. 900 to Satya
July 20 Satya returned goods back worth Rs. 100
July 24 Paid Rs. 400 to Satya
July 29 Discount allowed by him Rs. 50
July 31 Received Rs. 300 from Satya
July 31 Allowed him discount Rs. 25

5. Prepare a personal account of Varun from the following transactions in the books of
Ganesh
Jan 1, 2024 Debit balance of Varun Rs. 10,050
Jan 5, 2024 Bought from Varun Rs. 1,800
Jan 6. 2024 He returned goods Rs. 200
Jan 7, 2024 Cheque issued to Varun Rs. 1,500
Jan 9, 2024 Sold to Varun Rs. 3,500
Jan 12, 2024 Ganesh sold goods to Varun Rs. 1,600
Jan 14, 2024 Varun sold goods to Ganesh Rs. 900
Jan 20, 2024 Received cheque from Varun Rs. 1,800
Jan 24, 2024 Varun claimed an allowance of Rs. 300 for damaged goods
Jan 28, 2024 Varun received goods returned by Ganesh Rs. 450

6. Prepare Pavan’s Account in the ledger of Rajesh and Rajesh’s Account in the ledger of
Pavan from the following transactions between them:
2024
Jan 1 Opening debt of Rajesh to Pavan 700
Jan 5 Pavan sold goods to Rajesh 3,000
Jan 9 Rajesh sold goods to Pavan on Credit 2,000
Jan 14 Rajesh returned goods to Pavan 200
Jan 17 Pavan received cash from Rajesh 2,000
Discount to Rajesh 300
Jan 20 Pavan returned goods to Rajesh 400
Jan 25 Rajesh received cash from Pavan 1,500

7. Record the following transactions in the personal account of Mr. Nagesh and balance the
account at the end of each month
2024
Sept. 1 Sold goods to Nagesh 542
Sept. 4 Received from Nagesh Cash 515
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Unit 2 – Journal, Ledger and Trial Balance
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Allowed him discount 27
Sept. 15 Nagesh bought goods 600
Sept.18 Received from Nagesh 200
Oct. 1 Balance from last month 400
Sold goods to Nagesh 1,000
Oct. 21 Received from Nagesh Cash 396
Allowed him discount 4
Oct. 31 Received cash in full settlement of account 984

Sums on Trial Balance

8. From the following information prepare a Trail balance on 31.3.2024
Particulars Amount Particulars Amount
Capital Account 12,500 Bank (Cr. Balance) 2,850
Sales 15,450 Purchase Returns 125
Furniture and Fittings 640 Commission (Cr.) 375
Motor Car 6,250 Sales Returns 200
Buildings 7,500 Advertisement 250
Total Debtors 3,800 Interest Account (Dr.) 118
Total Creditors 2,500 Cash Balance 650
Bad debts 125 Insurance and Tax 1,250
Stock on 1.4.2023 3,460 Salaries 4,082
Purchases 5,475

9. From the following balances, prepare Trail balance

Particulars Amount Particulars Amount
Drawings 2,000 Creditors 2,500
General Expenses 4,740 Bad debts 550
Buildings 20,000 Loan to Ravi 7,880
Stock 16,540 Sales 68,000
Wages 8,510 Purchases 40,000
Debtors 6,280 Bank overdraft 10,000
Capital 26,000

10.The following balances are taken from the books of M/s Raghavendra Traders on
31.3.2024. Prepare Trail balance
Particulars Amount Amount
Capital A/c 35,000
Drawing A/c 2,400
Bills Receivable A/c 8,200
Plant and Machinery 19,600
Advertisement 1,200
Commission received 360
Wages 11,600
Discount allowed 160
Carriage inwards 340
Returns inwards 930
Return outwards 400

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BMS College of Commerce & Management pg. 3
Unit 2 – Journal, Ledger and Trial Balance
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Postage and Telegrams 375
Salaries 7,500
Rent, rates and taxes 250
Printing and Stationery 325
Bad debts 150
Purchases 50,600
Sales 84,870
Sales Tax 1,875
Sundry Debtors 24,200
Sundry Creditors 15,300
Stock (01.01.2024) 7,965
Trade expenses 190
Rent 1,650
Insurance 400
Cash in hand 180
Bank overdraft 5,760
Type writer 1,200

11.From the following balances extracted from the books of Sachin as on 31.3.2024, prepare
Trail Balance:
Particulars Amount Amount
Sales A/c 96,000
Purchases A/c 80,000
Drawings A/c 12,000
Capital A/c 70,000
Sundry Debtors A/c 56,000
Sundry Creditors A/c 50,000
Commission Received A/c 6,000
Rent paid A/c 2,400
Bills Receivable A/c 4,000
Opening Stock 10,000
Purchase returns 2,800
Sales returns 1,600
Plant and Machinery 40,000
Furniture 5,000
Bills Payable A/c 15,800
Discount received 300
Discount allowed 400
Salaries 7,200
Carriage 1,000
Insurance 400
Cash in hand 9,500
Cash at bank 11,000
Commission paid 400

12. From the following trial balance containing oblivious errors, prepare correct trial balance
Particulars Amount Amount
Purchases 60,000
Reserve Fund 20,000 -
Sales - 1,00,000
Purchase returns 1,000 -
Sales returns - 2,000
Closing stock - 40,000
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Unit 2 – Journal, Ledger and Trial Balance
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Opening stock 30,000 -
Expenses - 20,000
Outstanding expenses 2,000 -
Bank balance 5,000 -
Assets 50,000 -
Debtors - 80,000
Creditors - 30,000
Capital 94,000 -
Suspense account being difference in books 10,000 -
2,72,000 2,72,000

13. Rewrite the following Trail Balance to correct the same

Particulars Amount Amount
Cost of goods sold 1,50,000 -
Closing stock - 40,000
Debtors - 60,000
Creditors - 30,000
Fixed Assets 50,000 -
Opening stock 60,000 -
Trade Expenses - 20,000
Sales - 2,00,000
Capital 90,000 -
Return inwards 10,000
Return outwards - 10,000
Discount received 5,000 -
Discount allowed - 5,000
3,65,000 3,65,000

14. Following Trail Balance has been prepared wrongly. You are asked to prepare the Trail
balance correctly.
Heads of Accounts Dr. Balance Cr. Balance
Capital 22,000 -
Stock - 10,000
Customers 8,000 -
Suppliers - 12,000
Machinery - 20,000
Cash in hand - 2,000
Bank Overdraft 14,000 -
Sales returns - 8,000
Purchases returns 4,000 -
Misc. Expenses 12,000 -
Sales - 44,000
Purchases 26,000 -
Wages 10,000 -
Salaries - 12,000
Prepaid Insurance - 200
Bills Payable 10,800 -
Outstanding Salaries 1,400 -
1,08,200 1,08,200

15. A book-keeper submitted to you the following Trial Balance, which he has not been
able to agree. Rewrite the Trail Balance, correcting the mistakes committed by him
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Unit 2 – Journal, Ledger and Trial Balance
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Particulars Dr. Balance Cr. Balance
Capital - 15,000
Drawings 3,250 -
Stock (1.1.2023) 17,445 -
Return inwards - 554
Carriage inwards 1,240 -
Deposit with Anand Gupta - 1,375
Returns outwards 840 -
Carriage outwards - 725
Loan to Ashok @ 5% given on 1.1.2023 - 1,000
Interest on the above - 25
Rent 820 -
Rent outstanding 130 -
Stock (31.12.2023) - 18,792
Purchases 12,970 -
Debtors 4,000 -
Goodwill 1,730 -
Creditors - 3,000
Advertisement expenses 954 -
Provision for doubtful debts - 1,200
Bad debts 400 -
Patents and Patterns 500 -
Cash 62 -
Sales - 27,914
Discount allowed - 330
Wages 754 -
45,095 69,915

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BMS College of Commerce & Management pg. 6