7. Following balances exist in the books of Ashok, Delhi on 1st April, 2024:
Assets: Cash ₹50,000; Stock ₹30,000; Debtor -Ram ₹50,000; Machinery ₹60,000.
Liabilities: Creditor – Rajesh ₹30,000.
The following transactions took place in April, 2024:
2024 | ₹ | |
April 04 | Sold goods for cash | 7,000 |
April 06 | Goods returned by Ram | 1,000 |
April 10 | Purchased goods from Rajesh of list price ₹10,000 for | 9,000 |
April 15 | Bought goods of list price of ₹15,000 from Rakesh less 10% trade discount and 5% cash discount and paid 40% of amount immediately | 38,600 |
April 20 | Paid to Rajesh in settlement of his account | 500 |
April 25 | Paid for the life insurance premium of the proprietor | 2,000 |
April 30 | Received commission | 7,000 |
Pass Journal entries for the above transactions, post them into the Ledger and prepare the Trial Balance as on 30th April, 2024.
T.S.Grewal/2024 Edition/Practical Problems/Q-07
For full question, please refer to the text book T.S.Grewal’s Double Entry Book Keeping-Financial Accounting, Textbook for CBSE Class XI published by Sultan Chand & Sons Pvt. Ltd.