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EXERCISES- RECORDING OF TRANSACTIONS

Transactions of Ali Traders for the month of January:

No.	Date	Particulars
01	Jan 01	Started business with Rs. 200,000 in cash.
02	Jan 01	Opened a bank account and deposited Rs. 195,000 in it.
03	Jan 02	Paid for furniture Rs. 15,000 through cheque.
04	Jan 03	Paid for vehicle Rs. 50,000 through cheque.
05	Jan 05	Bought goods on credit from Mr. A for Rs. 50,000.
06	Jan 06	Sold goods for cash Rs. 60,000.
07	Jan 08	Purchased goods for cash Rs. 20,000.
08	Jan 10	Returned goods of Rs. 10,000 to Mr. A.
09	Jan 12	Sold goods on credit to Mr. B for Rs. 40,000.
10	Jan 18	Mr. B returned goods of Rs. 5,000.
11	Jan 21	Paid through cheque to Mr. A Rs. 25,000.
12	Jan 25	Mr. B Paid through cheque Rs. 20,000.
13	Jan 31	Paid Salaries through cheque Rs. 5,000.
14	Jan 31	Accrued expenses for the month Rs. 20,000.
15	Jan 31	Deposited in bank Rs. 10,000.

01 – Started business with Rs. 200,000 in cash.

Cash Account Code 01
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
01-01---	01	Capital a/c	200,000

 

Capital Account Code 03
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				01-01---	01	Cash a/c	200,000

02 – Deposited Rs. 195,000 in bank.

Bank Account Code 02
Date	No	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
01-01---	02	Cash a/c	195,000

 

Cash Account Code 01
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				01-01---	02	Bank a/c	195,000

03 – Paid for furniture Rs. 15,000 through cheque.

Bank Account Code 02
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				02-01---	03	Furniture a/c	15,000

 

Furniture Account Code 04
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs..
02-01---	03	Bank a/c	15,000

04 – Paid for vehicle Rs. 50,000 through cheque.

Vehicle Account Code 05
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs..
03-01---	04	Bank a/c	50,000

 

Bank Account Code 02
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				03-01---	04	Vehicle a/c	50,000

05 – Bought goods on credit from Mr. A Rs. 50,000.

Purchases Account Code 06
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
05-01---	05	Mr. A	50,000

 

Mr. A (Creditor) Account Code 07
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				05-01---	05	Purchases a/c	50,000

Creditor

A person or organization to whom money is payable by the business is called a creditor.

06 – Sold goods for cash Rs. 60,000.

Cash Account Code 01
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
06-01---	06	Sales a/c	60,000

 

Sales Account Code 08
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				06-01---	06	Cash a/c	60,000

07 – Purchased goods for cash Rs. 20,000.

Purchases Account Code 06
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
08-01---	07	Cash a/c	20,000

 

Cash Account Code 01
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				08-01---	07	Purchases a/c	20,000

 

08 – Returned goods of Rs. 10,000 to Mr. A.

Mr. A (Creditor) Account Code 07
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
10-01---	08	Purchase return	10,000

 

Purchases return Account Code 06
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				10-01---	08	Mr.A	10,000

09 – Sold goods on credit to Mr. B for Rs. 40,000.

Sales Account Code 08
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				12-01---	09	Mr. B	40,000

 

Mr. B (Debtor) Account Code 09
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
12-01---	09	Sales a/c	40,000

Debtor

A person or organization from whom money is receivable by the business is called a debtor.

10 – Mr. B returned goods of Rs. 5,000.

Sales return Account Code 08
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
18-01---	10	Mr. B	5,000

 

Mr. B (Debtor) Account Code 09
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				18-01---	10	Sales return	5,000

11 – Paid through cheque to Mr. A Rs. 25,000.

 

Mr. A (Creditor) Account Code 07
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
21-01---	11	Bank a/c	25,000

 

Bank Account Code 02
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				21-01---	11	Mr. A	25,000

12 – Mr. B Paid through cheque Rs. 20,000.

Bank Account Code 02
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
25-01---	12	Mr. B	20,000

 

Mr. B (Debtor) Account Code 09
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				25-01---	12	Bank a/c	20,000

13 – Paid Salaries through cheque Rs. 5,000.

Salaries Account
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
31-01---	13	Bank a/c	5,000

 

Bank Account Code 02
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				31-01---	13	Salaries a/c	5,000

14 – Accrued expenses for the month Rs. 20,000.

Expenses Account Code 11
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
31-01---	14	Cash a/c	20,000

 

Accrued Expenses / Expenses Payable Account Code 12
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				31-01---	14	Accrued exp	20,000

15 – Deposited in bank Rs. 10,000.

Bank Account Code 02
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
31-01---	15	Cash a/c	10,000

 

Cash Account Code 01
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
				31-01---	15	Bank a/c	10,000

Bank Account

Bank Account Code 02
Date	No.	Narration	Dr. Rs.	Date	No.	Narration	Cr. Rs.
01-01---	02	Cash a/c	195,000	02-01---	03	Furniture a/c	15,000
25-01---	12	Mr. B	20,000	03-01---	04	Vehicle aic	50,000
31-01---	15	Cash a/c	10,000	21-01---	11	Mr. A	25,000
				31-01---	13	Salaries a/c	5,000
						Balance	130,000

 

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