Page 75 - DCOM101_FINANCIAL_ACCOUNTING_I

Unit 7: Posting to Ledger and Balancing

List out the various accounts that are involved in the enterprise during the year. Notes

(i) Cash Account (ii) Sundar Capital Account
(iii) Purchase Account (iv) Sales Account
(v) Mittal & Co. Account (vi) Ganesh & Co Account
(vii) Sales Return Account (viii) Purchase Return Account

(ix) Office Rent Account (x) Interim Dividend Account
(xi) Bank Account

Solution:
Dr Cash Account Cr

Date Particulars ` Date Particulars `
Jan 1 To Sundar Capital 50,000 Jan 2 By Purchase 10,000

Jan 5 To Sale 5,000 Jan 31 By Office Rent 500
Feb 2 To Interim Dividend 3,000 By Balance c/d 49,500
Feb 8 To Bank 2,000
60,000 60,000
To balance b/d 49,500

Note: Debit side total is greater than the credit side total of the cash account. After determining
the difference, the cash account is nothing but Debit Balance Account.

Dr Sundar Capital Account Cr
Date Particulars ` Date Particulars `
To Balance c/d 50,000 Jan 1 By Cash 50,000

50,000 50,000
By Balance b/d 50,000
Note: Sundar capital account is having the greater credit balance over the debit balance account
which led to credit balance account.
Dr Purchase Account Cr

Date Particulars ` Date Particulars `
Jan 2 To Cash 10,000 By Balance c/d 20,000
Jan 10 To Mittal & Co 10,000
20,000 20,000
To Balance b/d 20,000
Note: Purchase account is bearing the debit balance account.
Dr Sale Account Cr
Date Particulars ` Date Particulars `
To Balance c/d 15,000 Jan 5 By Cash 5,000
Jan 11 By Ganesh 10,000

15,000 15,000
By Balance b/d 15,000
Note: Sale account is bearing the credit balance account.

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