Page 116 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes Solution:

Trial Balance
(as on 31 March, 2008)
st
Dr. Cr.
Particulars L.F. (`) (`)
Interest on Capital 24,000 –
Creditors – 6,00,000
Discount Received – 23,000
Loan – 1,74,000
Purchase Returns – 40,000
Sale Returns 6,000 –
Advertisement 1,63,000 –
Commission Received – 20,000
Rent 10,000 –
Purchases 19,00,000 –
Sales – 32,60,000
Opening Stock 12,00,000 –
Salaries 1,28,000 –
Capital – 8,00,000
Drawings 2,46,000 –
Machinery 3,00,000 –
Bills Payable – 20,000
Furniture 6,00,000 –
Debtors 5,00,000 –
Bank Loan – 2 00 000
Patents 60,000 –
Total 51,37,000 51,37,000

From the above trial balances, it is clear that the total of debit side will agree with the total of
credit side if Ledger accounts are arithmetically correct. If these totals does not tally with each
other, there will be some error in the ledger accounts.
Illustration 2: From the following transactions, pass journal entries, prepare ledger accounts and
also prepare Trial Balance under (i) Balance method (ii) Total method.

`
1. Anil started business with 8,000
2. Purchased furniture 1,000
3. Purchased goods 6,000
4. Sold goods 7,000

5. Purchased from Raja 4,000
6. Sold to Somu 5,000
7. Paid to Raja 2,500
8. Received from Somu 3,000
9. Paid rent 200

10. Received commission 100

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