Page 29 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers

Notes Solution:
Journal Entries
Date Particulars L.F.
2010
June 1 Cash a/c Dr. 2,500
To Ramu 2,500
(Cash received from Ramu)
June 4 Purchases a/c Dr. 1,000
To cash a/c 1,000
(Goods purchased for cash)
June 5 Hari Dr. 4,000
To Goods a/c (Sales A/c) 4,000
(Goods sold to Hari )
June 8 Furniture a/c Dr. 500
To Raju 500
(Furniture bought from Raju)
June Office Stationery a/c Dr. 150
10 To cash a/c 150
(Paid for office stationery)

Task Identify nature of the transactions:

Ramchander has purchased goods on credit from M/s Royals Aventis for 15,000. The
portions of the goods were found to be damaged which worth of 5,000. Ramchander
immediately returned the damaged goods to Royals.
1. Identify the various types of accounts involved in the above illustrated transactions.
2. Pass the journal entries with regards to the nature of accounts involved.

2.7 Ledger Posting

Classification of transactions is being done only on the basis of preparing the ledger accounts.
The accounts are classified on the basis of nature and characteristics.

Did u know? How are the account transactions classified?
The accounts are classified through the preparation of ledger.
Ledger is nothing but preliminary book of accounting transactions at which, each account is
separately maintained through the allotment of various pages for exclusive recording. The
exclusive allotment of pages is made for every account to finalize their balances. Finally, ledger
can be understood that is a document of grouping the transactions under one heading.
It is a fundamental book of accounts which mainly highlights the status of the accounts.

Example: Plant & Machineries’ Ledger A/c should reveal the transactions of the sale and
purchase of the plant & machinery.

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