tall cashbook

Illustration 1. Suresh started his business with a capital of Rs 5,00,000 on 1.1.2007. His other transactions for the month were as follows.

2007			Rs.
Jan	2	Deposited into bank	3,00,000
Jan	3	Purchased furniture for cash	50,000
Jan	4	Cash purchase of goods	30,000
Jan	5	Purchased goods from Mohan on credit	10,000
Jan	6	Purchased stationery	1,000
Jan	7	Purchsed goods from Ravi on credit	8,000
Jan	8	Sold goods on credit to Ashok	3,000
Jan	9	Cash sales	8,000
Jan 10		Paid to Ravi on account	4,000
Jan 11		Purchased computer for office use and paid by cheques	30,000
Jan 12		Paid insurance premium	1,500
Jan 13		Sold goods for cash	5,000
Jan 14		Withdrew cash from bank	70,000
Jan 15		Withdrew cash for personal use	10,000

141

Jan 16	Purchased goods from Alka	17,000
Jan 17	Purchased goods from Ravi	18,000
Jan 18  Paid to Ravi on account		12,000
Jan 19	Cash sales	17,000
Jan 20  Sold goods to Ashok		9,000
Jan 21  Received from Ashok on account		8,000
Jan 22  Paid to Alka on account		9,000
Jan 23  Received from Ashok on account		2,000
Jan 24	Amount obtained  loan from ICICI Bank	50,000
Jan 25	Cash sales	13,500
Jan 31	Paid salary	7,500
Jan 31	Rent	5,000

Record the above transactions in the journal of Suresh, post them in the ledger and prepare a trial balance of Suresh as on 31.1.2007 on ‘Total Method’ basis.

SOLUTION			SURESH
			JOURNAL
Date		Particulars		LF	Debit Amount	Debit Amount
					Rs.	Rs.
2007		Cash Account......................................	Dr		5,00,000
Jan 1		To Capital Account				5,00,000
		(Started business with cash)
Jan 2		Bank Account......................................	Dr
		To Cash A/c			3,00,000
		(Deposited cash into bank)				3,50,000
Jan 3		Furniture Account................................	Dr
		To Cash A/c			50,000
		(Purchased furniture)				50,000
Jan 4		Purchases Account..............................	Dr
		To Cash			30,000
		(Cash Purchase of goods)				30,000
Jan 5		Purchases Account...............................	Dr		10,000
		To Mohans Account				10,000
		(purchased goods on credit from Mohan)
Jan 6		Stationery Account.................................	Dr		1,000
		To Cash				1,000
		(Purchased stationery)
Jan 7		Purchases Account...............................	Dr		8,000
		To Ravis Account				8,000
		(Purchased goods on credit from Ravi)

142

Jan 8	Ashoks Account....................................	Dr		3,000
	To Sales Account				3,000
	(sold goods to Ashok on credit)
Jan 9	Cash Account.......................................	Dr		8,000
	To Sales Account				8,000
	(sold goods for cash)
Jan 10	Ravis Account......................................	Dr		4,000
	To Bank Account				4,000
	(paid to Ravi on account)
Jan 11	Computer Account................................	Dr		30,000
	To Bank A/c				30,000
	(purchased computers)
Jan 12	Insurance Account.................................	Dr		1,500
	To Cash A/c				1,500
	(paid insurance)
Jan 13	Cash Account........................................	Dr		5,000
	To Sales Account				5,000
	(cash sales)
Jan 14	Cash Account  .....................................	Dr		70,000
	To Bank Account
	(withdrawn cash from bank for office use)				70,000
Jan 15	Drawing  Account..................................	Dr		10,000
	To Bank Account
	(withdraw cash for personal use)				10,000
Jan 16	Purchases Account...............................	Dr		17,000
	To Alkas Account				17,000
	(purchased from Alka)
Jan 17	Purchases Account...............................	Dr		18,000
	To Ravis Account				18,000
	(purchased goods from Ravi)
Jan 18	Ravis  Account......................................	Dr		12,000
	To Cash Account				12,000
	(paid to Ravi)
Jan 19	Cash  Account.......................................	Dr		17,000
	To Sales Account				17,000
	(sold goods for cash)
Jan 20	Ashoks  Account...................................	Dr		9,000
	To Sales Account				9,000
	(sold goods to Ashok)

143

Jan 21

Cash  Account.......................................

Dr

8,000

To Ashok's Account

8,000

(received from Ashok on account)

Jan 22

Alka's  Account......................................

Dr

9,000

To Cash Account

9,000

(paid to Alka on account)

Jan 23

Cash  Account.......................................

Dr

2,000

To Ashok's Account

2,000

(received from Ashok on account)

Jan 24

Bank  Account.......................................

Dr

50,000

To Bank Loan Account

50,000

(received loan from ICICI bank)

Jan 25

Cash  Account.......................................

Dr

13,500

To Sales Account

13,500

(cash sales)

Jan 31

Salary  Account

Dr

7,500

Rent Account

Dr

5,000

To Cash Account

12,500

(paid salary & rent)

LEDGER

CASH ACCOUNT

Dr

Cr

Date

Particulars

J F

Amount

Date

Particulars

J F

Amount

Rs.

Rs.

2007

To Capital

5,00,000

2007

By Bank

3,00,000

Jan 1

Jan 2

Jan 9

To Sales

8,000

Jan 3

By Furniture

50,000

Jan 13

To Sales

5,000

Jan 4

By Purchases

30,000

Jan 14

To Bank

70,000

Jan 6

By Stationery

1,000

Jan 19

To Sales

17,000

Jan 12

By Insurance

1500

Jan 20

To Ashok

8,000

Jan 18

By Ravi

12,000

Jan 23

To Ashok

2000

Jan 21

By Alka

9,000

Jan 25

To Sales

13,500

Jan 31

By Salary

7,500

By Rent

5,000

Total

6,23,500

Total

4,16,000

CAPITAL ACCOUNT

Dr

Cr

Date

Particulars

J F

Amount

Date

Particulars

J F

Amount

Rs.

Rs.

2007

Jan  1

By cash

5,00,000

144

				BANK ACCOUNT
Dr									Cr
Date		Particulars	J F	Amount	Date		Particulars	J F	Amount
				Rs.					Rs.
2007		To cash		3,00,000	2007		By Ravi		4,000
Jan	2				Jan 10
Jan 24		To bank loan		50,000	Jan 11		By Computer		30,000
					Jan 14		By Cash		70,000
					Jan 15		By Drawings		10,000
		Total		3,50,000			Total		1,14,000
				FURNITURE  ACCOUNT
Dr									Cr
Date		Particulars	J F	Amount	Date		Particulars	J F	Amount
				Rs.					Rs.
2007		To cash		50,000
Jan	3
				PURCHASES ACCOUNT
Dr									Cr
Date		Particulars	J F	Amount	Date		Particulars	J F	Amount
				Rs.					Rs.
2007		To cash		30,000
Jan	4
Jan	5	To Mohan		10,000
Jan	7	To Ravi’s
		Account		8,000
Jan 16		To Alka		17,000
Jan 17		To Ravi		18,000
		Total		83,000
				MOHAN’S ACCOUNT
Dr									Cr
Date		Particulars	J F	Amount	Date		Particulars	J F	Amount
				Rs.					Rs.
					2007
					Jan  5		By purchases		10,000
				STATIONERY ACCOUNT
Dr									Cr
Date		Particulars	J F	Amount	Date		Particulars	J F	Amount
				Rs.					Rs.
2007
Jan	6	To cash		1,000

145

RAVI’S ACCOUNT

Dr

Cr

Date

Particulars

J F

Amount

Date

Particulars

J F

Amount

Rs.

Rs.

2007

2007

Jan

10

To bank

4,000

Jan

7

By purchases

8,000

Jan

18

To cash

12,000

Jan 17

By purchases

18,000

Total

Total

16,000

26,000

SALES ACCOUNT

Dr

Cr

Date

Particulars

J F

Amount

Date

Particulars

J F

Amount

Rs.

Rs.

2007

Jan

8

By Ashok

3,000

Jan

9

By Cash

8,000

Jan 13

By Cash

5,000

Jan 19

By Cash

17,000

Jan 20

By Ashok

9,000

Jan 25

By Cash

13,500

Total

55,500

ASHOK’S ACCOUNT

Dr

Cr

Date

Particulars

J F

Amount

Date

Particulars

J F

Amount

Rs.

Rs.

2007

2007

Jan

8

To Sales

3,000

Jan

21

By Cash

8,000

Jan 20

To Sales

9,000

Jan

23

By Cash

2000

Total

12,000

Total

10,000

COMPUTER ACCOUNT

Dr

Cr

Date

Particulars

J F

Amount

Date

Particulars

J F

Amount

Rs.

Rs.

2007

Jan

11

To Bank

30,000

INSURANCE ACCOUNT

Dr

Cr

Date

Particulars

J F

Amount

Date

Particulars

J F

Amount

Rs.

Rs.

2007

To Cash

1,500

Jan

12

146

				DRAWINGS ACCOUNT
Dr									Cr
Date		Particulars	J F	Amount	Date		Particulars	J F	Amount
				Rs.					Rs.
2007		To bank		10,000
Jan	15
				ALKA’S ACCOUNT
Dr									Cr
Date		Particulars	J F	Amount	Date		Particulars	J F	Amount
				Rs.					Rs.
2007		To cash		9,000	2007		By purchases		17,000
Jan	22				Jan	17
				BANK LOAN ACCOUNT
Dr									Cr
Date		Particulars	J F	Amount	Date		Particulars	J F	Amount
				Rs.					Rs.
					2007		By bank		50,000
Jan	24
				SALARY ACCOUNT
Dr									Cr
Date		Particulars	J F	Amount	Date		Particulars	J F	Amount
				Rs.					Rs.
2007		To cash		7,500
Jan	31
				RENT ACCOUNT
Dr									Cr
Date		Particulars	J F	Amount	Date		Particulars	J F	Amount
				Rs.					Rs.
2007		To cash		5,000
Jan	31