# Illustration - Problem

Journalise the following transactions (Record the following transactions in a Journal) and then post the entries into the ledger.

 1 15th June : Ibrahim a sole proprietor Commenced business with a capital of 2,00,000. 2 17th June : Bought Furniture for cash 20,000. 3 17th June : Paid Rent to the shop owner Mr. Murugan 5,000. 4 18th June : Paid cash into bank 1,50,000 5 18th June : Bought Goods for cash 10,000 from M/s Shamir Jain & Co., 6 18th June : Bought Goods on credit from M/s Ramdas & Brothers for 10,000. 7 19th June : Sold goods for cash 12,000 to Mr. Naryan Tiwari 8 20th June : Bought Machinery from M/s Boolani Machinery and paid by cheque 25,000. 9 21st June : Sold goods on credit to Mr. Natekar for 8,000 10 21st June : Paid weekly wages to workers 5,000 11 24th June : Paid M/s Ramdas and Brothers by cheque 5,000 12 24th June : Received from Mr. Natekar 2,000 13 24th June : Received commission from M/s Orion Traders for giving a trade lead 500.

# Illustration - Solution (Journal)

Journal in the books of __ for the period from __ to __
Date V/R
No.
Particulars L/F Amount
(Dr)
Amount
(Cr)
June 15th Cash a/c
To Capital a/c
Dr

2,00,000
2,00,000
[Being the amount received from Mr. Ibrahim, the proprietor as his capital contribution]
17th Furniture a/c
To Cash a/c
Dr

20,000
20,000
[Being the amount paid towards Furniture purchased]
17th Rent Paid a/c
To Cash a/c
Dr

5,000
5,000
[For the amount paid towards rent for the shop for the month of May]
18th Bank a/c
To Cash a/c
Dr

1,50,000
1,50,000
[For the amount of cash paid into bank]
18th Goods/Stock a/c
To Cash a/c
Dr

10,000
10,000
[Being the value of stock purchased for cash]
18th Goods/Stock a/c
To M/s Ramdas & Bros a/c
Dr

10,000
10,000
[Being the value of stock purchased from M/s Ramdas & Brothers, on credit]
19th Cash a/c
To Goods/Stock a/c
Dr

12,000
12,000
[Being the value of stock sold for cash]
20th Machinery a/c
To Bank a/c
Dr

25,000
25,000
[Being the amount paid by cheque towards purchase of machinery]
21st Mr. Natekar a/c
To Goods/Stock a/c
Dr

8,000
8,000
[Being the value of stock sold on credit to Mr. Natekar]
21st Wages paid a/c
To Cash a/c
Dr

5,000
5,000
[For the amount paid towards weekly wages for the workers]
24th M/s Ramdas & Bros a/c
To Bank a/c
Dr

5,000
5,000
[For the amount paid by cheque to M/s Ramdas & Brothers, on account]
24th Cash a/c
To Mr. Natekar a/c
Dr

2,000
2,000
[For the amount received in cash from Mr. Natekar on account]
24th Cash a/c
Dr

500
500
[For the amount received in cash from Mr. Natekar on account]

# Illustration - Working Notes

By going through the above journal entries we can identify the list of ledger accounts affected by these transactions.
• Cash a/c
• Capital a/c
• Furniture a/c
• Rent Paid a/c
• Bank a/c
• Goods/Stock a/c
• M/s Ramdas & Brothers a/c
• Machinery a/c
• Mr. Natekar a/c
• Wages Paid a/c

# Illustration - Solution (Ledger)

## General Ledger [Books of Mr. Ibrahim]

Cash a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
15/06/_5
19/06/_5
24/06/_5
24/06/_5
To Capital a/c
To Goods/Stock a/c
To Mr. Natekar a/c

2,00,000
12,000
2,000
500
17/06/_5
17/06/_5
18/06/_5
18/06/_5
21/06/_5
By Furniture a/c
By Rent Paid a/c
By Bank a/c
By Goods/Stock a/c
By Wages Paid a/c

20,000
5,000
1,50,000
10,000
5,000

Sub Total

2,14,500

25/06/_5
Sub Total
By Balance c/d

1,90,000
24,500
tl 2,14,500 tl 2,14,500
25/06/_5 To Balance b/d 24,500
Capital a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
15/06/_5 By Cash a/c 2,00,000

25/06/_5
Sub Total
To Balance c/d

0
2,00,000

Sub Total

2,00,000
tl 2,00,000 tl 2,00,000
25/06/_5 By Balance b/d 2,00,000
Furniture a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
17/06/_5 To Cash a/c 20,000

Sub Total

20,000

25/06/_5
Sub Total
By Balance c/d

0
20,000
tl 20,000 tl 20,000
25/06/_5 To Balance b/d 20,000
Rent Paid a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
17/06/_5 To Cash a/c 5,000

Sub Total

5,000

25/06/_5
Sub Total
By Balance c/d

0
5,000
tl 5,000 tl 5,000
25/06/_5 To Balance b/d 5,000
Bank a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
18/06/_5 To Cash a/c 1,50,000 20/06/05
24/06/_5
By Machinery a/c
By M/s Ramdas
& Brothers a/c

25,000
5,000

Sub Total

1,50,000

25/06/_5
Sub Total
By Balance c/d

30,000
1,20,000
tl 1,50,000 tl 1,50,000
25/06/_5 To Balance b/d 1,20,000
Goods/Stock a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
18/06/_5
18/06/_5
To Cash a/c
To M/s Ramdas
& Brothers a/c

1,50,000
10,000
19/06/05
21/06/_5
By Machinery a/c
By Mr. Natekar a/c

12,000
8,000

Sub Total

1,60,000

Sub Total

20,000
M/s Ramdas & Brothers a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
24/06/_5 To Bank a/c 5,000 18/06/05 By Goods/Stock a/c 10,000

25/06/_5
Sub Total
To Balance c/d

5,000
5,000

Sub Total

10,000
tl 10,000 tl 10,000
25/06/_5 By Balance b/d 5,000
Machinery a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
20/06/_5 To Bank a/c 25,000

Sub Total

25,000

25/06/_5
Sub Total
By Balance c/d

0
25,000
tl 25,000 tl 25,000
25/06/_5 To Balance b/d 25,000
Mr. Natekar a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
21/06/_5 To Goods/Stock a/c 8,000 24/06/_5 By Cash a/c 2,000

Sub Total

8,000

25/06/_5
Sub Total
By Balance c/d

2,000
6,000
tl 8,000 tl 8,000
25/06/_5 To Balance b/d 6,000
Wages Paid a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
21/06/_5 To Cash a/c 5,000

Sub Total

5,000

25/06/_5
Sub Total
By Balance c/d

0
5,000
tl 5,000 tl 5,000
25/06/_5 To Balance b/d 5,000
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
24/06/_5 By Cash a/c 500

25/06/_5
Sub Total
To Balance c/d

0
500

Sub Total

500
tl 500 tl 500
25/06/_5 By Balance b/d 500