Finance And Accounts

2317 words 10 pages
Question 1- Analyze the following transaction under traditional approach.
18.1.2011 Received a cheque from a customer, Sanjay at 5 p.m. Rs.20,000
19.1.2011 Paid Ramu by cheque Rs.1,50,000
20.1.2011 Paid salary Rs. 30,000
20.1.2011 Paid rent by cheque Rs. 8,000
21.1.2011 Goods withdrawn for personal use Rs. 5,000
25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000
26.1.2011 Received an advance from customers Rs. 3,00,000
31.1.2011 Paid interest on loan Rs. 5,000
31.1.2011 Paid instalment of loan Rs. 25,000
31.1.2011 Interest allowed by bank Rs. 8,000
Analysis of transaction –with accounts involved-nature of account-affects and debit/credit
Solution:

Date
Accounts Involved
Nature of Account
Affects
Debit/credit
…show more content…
Particulars
Rs.
To bal b/d
To Sundry Debtors
2000
1000
By bal c/d
3000
Total
3000
Total
3000
To bal b/d
3000

Sundry Debtors a/c
Particulars
Rs.
Particulars
Rs.
To bal b/d
To bal c/d
25000

By Bad Debts
By bal c/d
1000
24000
Total
25000
Total
25000
To bal b/d
24000

Taxes and Insurance a/c
Particulars
Rs.
Particulars
Rs.
To bal b/d
To bal c/d
5000
By Prepaid taxes and Insurance By bal c/d
2000
3000
Total
5000
Total
5000
To bal b/d
3000

Prepaid taxes and Insurance a/c
Particulars
Rs.
Particulars
Rs.
To Taxes and Insurance
2000
By bal c/d
2000
Total
2000
Total
2000
To bal b/d
2000

Salaries a/c
Particulars
Rs.
Particulars
Rs.
To bal b/d
To Outstanding Salaries
20000
5000
By bal c/d
25000
Total
25000
Total
25000
To bal b/d
25000

Outstanding Salaries a/c
Particulars
Rs.
Particulars
Rs.
To bal c/d
5000
By Salaries
5000
Total
5000
Total
5000

By bal b/d
5000
Depreciation a/c
Particulars
Rs.
Particulars
Rs.
To Furniture and fittings
To Buildings
1000
50000

By bal c/d

51000
Total
51000
Total
51000
To bal b/d
51000

Commission a/c
Particulars
Rs.
Particulars
Rs.
To Commission received in advance
To bal c/d
1000
4000
By bal b/d
5000
Total
5000
Total
5000

By bal b/d
4000
Commission received in advance a/c
Particulars
Rs.
Particulars
Rs.

To bal c/d

1000
By Commission
1000
Total
1000
Total
1000
To bal b/d

By bal b/d
1000

Adjusted Trial Balance as on 31.03.2011
Debit balances
Rs.
Adjustments
Adjusted

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