Page 77 - DCOM101_FINANCIAL_ACCOUNTING_I

Unit 7: Posting to Ledger and Balancing

Dr Bank Account Cr Notes

Date Particulars ` Date Particulars `
To Balance c/d 2,000 Feb 2 By Cash 2,000

2,000 2,000
By Balance b/d 2,000
Note: Bank account is having the credit balance. Nothing but overdraft.

Case Study
st
r. Kamal Nath was doing a business as a cloth merchant. On 1 July, 2007 his

assets were: Furniture and Office Equipment = ` 12,500, Stock ` 1,25,000 Cash in
MHand ` 3,000, Bank Balance ` 42,500, Amounts due from Brijesh ` 6,000, Amount
due from Girijesh ` 7,500. On the date he owed ` 10,000 to Manish and ` 7,250 to Naresh.
His transactions during the month were as follows:
2008 `

July 2 Sold cloth on credit to Xavier 2,500
July 3 Purchased cloth from Yogesh 10,000
July 4 Paid Rent by cheque 4,000
July 5 Purchase of cloth by cheque 10,000

July 7 Cash sales 2,250
July 8 Received cheque from Brijesh 5,900
allowed him discount 100
July 9 Paid for stationery 250
July 10 Drawn cash for private use 1,250

July 11 Purchased cloth on credit from Manish 12,500
July 12 Sent cheque to Manish (in full settlement for July 1 transactions) 9,750
July 13 Sold cloth on credit to Girijesh 9,000
July 14 Paid telephone charges 400

July 15 Cash Sales 1,500
July 18 Paid for Advertisement 1,750
July 19 Cash Purchases 3,000
July 30 Paid Salaries for July 4,000
Question

You have to journalise these transactions and from that information prepare his Ledger.

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