Theory All Lessons

Ledger - Numerical Examples

Complete Cycle: Transactions → Journal → Ledger → Trial Balance

1

Complete Accounting Cycle - Problem 1

Question

Following are the transactions of M/s Gupta Traders for January 2024. You are required to:

  1. Journalize the transactions
  2. Post them to Ledger
  3. Prepare a Trial Balance

Solution

Part 1: Journal Entries

Journal of M/s Gupta Traders
Date Particulars L.F. Debit (₹) Credit (₹)
2024
Jan 1		 Cash A/c     Dr. 1 1,00,000
    To Capital A/c
(Being business started with cash)		 10 1,00,000
Jan 2 Bank A/c     Dr. 2 50,000
    To Cash A/c
(Being cash deposited in bank)		 1 50,000
Jan 3 Furniture A/c     Dr. 3 15,000
    To Cash A/c
(Being furniture purchased for cash)		 1 15,000
Jan 5 Purchase A/c     Dr. 4 25,000
    To Ram A/c
(Being goods purchased from Ram on credit)		 11 25,000
Jan 7 Mohan A/c     Dr. 12 30,000
    To Sales A/c
(Being goods sold to Mohan on credit)		 5 30,000
Jan 10 Rent A/c     Dr. 6 5,000
    To Cash A/c
(Being rent paid by cash)		 1 5,000
Jan 12 Cash A/c     Dr.
Discount Allowed A/c     Dr.		 1
7		 28,000
2,000
    To Mohan A/c
(Being cash received from Mohan and discount allowed)		 12 30,000
Jan 15 Ram A/c     Dr. 11 25,000
    To Cash A/c
    To Discount Received A/c
(Being payment made to Ram and discount received)		 1
8		 24,000
1,000
Jan 18 Purchase A/c     Dr. 4 10,000
    To Cash A/c
(Being goods purchased for cash)		 1 10,000
Jan 20 Cash A/c     Dr. 1 15,000
    To Sales A/c
(Being goods sold for cash)		 5 15,000
Jan 22 Salary A/c     Dr. 9 8,000
    To Bank A/c
(Being salary paid by cheque)		 2 8,000
Jan 25 Cash A/c     Dr. 1 5,000
    To Bank A/c
(Being cash withdrawn from bank for office use)		 2 5,000
Jan 27 Electricity A/c     Dr. 13 2,000
    To Cash A/c
(Being electricity bill paid by cash)		 1 2,000
Jan 29 Stationery A/c     Dr. 14 1,000
    To Cash A/c
(Being stationery purchased for cash)		 1 1,000
Jan 31 Drawings A/c     Dr. 15 3,000
    To Cash A/c
(Being cash withdrawn for personal use)		 1 3,000

Part 2: Ledger Accounts

Part 3: Trial Balance

Trial Balance of M/s Gupta Traders as on 31st January 2024
S.No. Particulars L.F. Debit (₹) Credit (₹)
1 Cash A/c 1 38,000
2 Bank A/c 2 37,000
3 Furniture A/c 3 15,000
4 Purchase A/c 4 35,000
5 Sales A/c 5 45,000
6 Rent A/c 6 5,000
7 Discount Allowed A/c 7 2,000
8 Discount Received A/c 8 1,000
9 Salary A/c 9 8,000
10 Capital A/c 10 1,00,000
11 Electricity A/c 13 2,000
12 Stationery A/c 14 1,000
13 Drawings A/c 15 3,000
Total 1,46,000 1,46,000
Note: The Trial Balance tallies at ₹1,46,000 on both sides, confirming that the books are arithmetically accurate. Ram's and Mohan's accounts are closed (nil balance) as they have been fully settled.
2

Complete Accounting Cycle - Problem 2

Question

Record the following transactions in the books of Sharma Enterprises for February 2024. Prepare Journal, Ledger, and Trial Balance:

Solution

Journal of Sharma Enterprises
Date Particulars L.F. Debit (₹) Credit (₹)
2024
Feb 1		 Cash A/c     Dr.
Stock A/c     Dr.
Furniture A/c     Dr.		 1
2
3		 80,000
40,000
30,000
    To Capital A/c
    To Creditors A/c
(Being opening entry)		 10
11		 1,30,000
20,000
Feb 3 Purchase A/c     Dr. 4 35,000
    To Vijay A/c
(Being goods purchased from Vijay on credit)		 12 35,000
Feb 5 Rahul A/c     Dr. 13 50,000
    To Sales A/c
(Being goods sold to Rahul on credit)		 5 50,000
Feb 8 Machinery A/c     Dr. 6 25,000
    To Cash A/c
(Being machinery purchased for cash)		 1 25,000
Feb 10 Wages A/c     Dr. 7 4,000
    To Cash A/c
(Being wages paid by cash)		 1 4,000
Feb 12 Sales Return A/c     Dr. 8 5,000
    To Rahul A/c
(Being goods returned by Rahul)		 13 5,000
Feb 15 Cash A/c     Dr.
Discount Allowed A/c     Dr.		 1
9		 40,000
5,000
    To Rahul A/c
(Being cash received from Rahul and discount allowed)		 13 45,000
Feb 18 Vijay A/c     Dr. 12 3,000
    To Purchase Return A/c
(Being goods returned to Vijay)		 14 3,000
Feb 20 Vijay A/c     Dr. 12 32,000
    To Cash A/c
    To Discount Received A/c
(Being payment made to Vijay and discount received)		 1
15		 30,000
2,000
Feb 22 Cash A/c     Dr. 1 20,000
    To Sales A/c
(Being goods sold for cash)		 5 20,000
Feb 24 Insurance A/c     Dr. 16 6,000
    To Cash A/c
(Being insurance premium paid)		 1 6,000
Feb 26 Purchase A/c     Dr. 4 12,000
    To Cash A/c
(Being goods purchased for cash)		 1 12,000
Feb 27 Advertisement A/c     Dr. 17 3,000
    To Cash A/c
(Being advertisement expenses paid)		 1 3,000
Feb 28 Drawings A/c     Dr. 18 5,000
    To Cash A/c
(Being cash withdrawn for personal use)		 1 5,000
Feb 28 Commission A/c     Dr. 19 2,000
    To Cash A/c
(Being commission paid to salesman)		 1 2,000

Part 2: Ledger Accounts

Part 3: Trial Balance

Trial Balance of Sharma Enterprises as on 29th February 2024
S.No. Particulars L.F. Debit (₹) Credit (₹)
1 Cash A/c 1 53,000
2 Stock A/c 2 40,000
3 Furniture A/c 3 30,000
4 Purchase A/c 4 47,000
5 Sales A/c 5 70,000
6 Machinery A/c 6 25,000
7 Wages A/c 7 4,000
8 Sales Return A/c 8 5,000
9 Discount Allowed A/c 9 5,000
10 Capital A/c 10 1,30,000
11 Creditors A/c 11 20,000
12 Purchase Return A/c 14 3,000
13 Discount Received A/c 15 2,000
14 Insurance A/c 16 6,000
15 Advertisement A/c 17 3,000
16 Drawings A/c 18 5,000
17 Commission A/c 19 2,000
Total 2,25,000 2,25,000
Note: Vijay's and Rahul's accounts are closed (nil balance) as all transactions with them have been settled. The Trial Balance tallies at ₹2,25,000, confirming arithmetical accuracy of the books.
3

Complete Accounting Cycle - Problem 3

Question

The following transactions took place in the books of M/s Krishna Traders for March 2024:

Solution

Part 1: Journal Entries

Journal of M/s Krishna Traders
Date Particulars L.F. Debit (₹) Credit (₹)
2024
Mar 1		 Cash A/c     Dr. 1 1,50,000
    To Capital A/c
(Being business started with cash)		 2 1,50,000
Mar 2 Bank A/c     Dr. 3 80,000
    To Cash A/c
(Being cash deposited into bank)		 1 80,000
Mar 3 Purchase A/c     Dr. 4 45,000
    To Suresh A/c
(Being goods purchased from Suresh on credit)		 5 45,000
Mar 5 Furniture A/c     Dr. 6 20,000
    To Bank A/c
(Being furniture purchased by cheque)		 3 20,000
Mar 7 Rajesh A/c     Dr. 7 60,000
    To Sales A/c
(Being goods sold to Rajesh on credit)		 8 60,000
Mar 9 Rent A/c     Dr. 9 8,000
    To Cash A/c
(Being rent paid by cash)		 1 8,000
Mar 11 Cash A/c     Dr. 1 5,000
    To Commission Received A/c
(Being commission received in cash)		 10 5,000
Mar 13 Sales Return A/c     Dr. 11 3,000
    To Rajesh A/c
(Being goods returned by Rajesh)		 7 3,000
Mar 15 Cash A/c     Dr.
Discount Allowed A/c     Dr.		 1
12		 55,000
2,000
    To Rajesh A/c
(Being cash received from Rajesh and discount allowed)		 7 57,000
Mar 18 Suresh A/c     Dr. 5 45,000
    To Cash A/c
    To Discount Received A/c
(Being payment made to Suresh and discount received)		 1
13		 43,000
2,000
Mar 20 Stationery A/c     Dr. 14 2,000
    To Cash A/c
(Being stationery purchased for cash)		 1 2,000
Mar 22 Cash A/c     Dr. 1 25,000
    To Sales A/c
(Being cash sales)		 8 25,000
Mar 25 Electricity A/c     Dr. 15 3,500
    To Bank A/c
(Being electricity bill paid by cheque)		 3 3,500
Mar 28 Salaries A/c     Dr. 16 12,000
    To Bank A/c
(Being salaries paid by cheque)		 3 12,000
Mar 31 Drawings A/c     Dr. 17 4,000
    To Cash A/c
(Being cash withdrawn for personal use)		 1 4,000

Part 2: Ledger Accounts

Part 3: Trial Balance

Trial Balance of M/s Krishna Traders as on 31st March 2024
S.No. Particulars L.F. Debit (₹) Credit (₹)
1 Cash A/c 1 98,000
2 Capital A/c 2 1,50,000
3 Bank A/c 3 44,500
4 Purchase A/c 4 45,000
5 Furniture A/c 6 20,000
6 Sales A/c 8 85,000
7 Rent A/c 9 8,000
8 Commission Received A/c 10 5,000
9 Sales Return A/c 11 3,000
10 Discount Allowed A/c 12 2,000
11 Discount Received A/c 13 2,000
12 Stationery A/c 14 2,000
13 Electricity A/c 15 3,500
14 Salaries A/c 16 12,000
15 Drawings A/c 17 4,000
Total 2,42,000 2,42,000
Note: Suresh's and Rajesh's accounts are closed (nil balance) as all transactions have been settled. The Trial Balance tallies at ₹2,42,000.
4

Complete Accounting Cycle - Problem 4

Question

Record the following transactions of M/s Patel & Co. for April 2024:

Solution

Part 1: Journal Entries

Journal of M/s Patel & Co.
Date Particulars L.F. Debit (₹) Credit (₹)
2024
Apr 1		 Cash A/c     Dr.
Bank A/c     Dr.
Debtors A/c     Dr.
Stock A/c     Dr.		 1
2
3
4		 50,000
70,000
30,000
25,000
    To Capital A/c
(Being opening balances)		 5 1,75,000
Apr 3 Amit A/c     Dr. 6 40,000
    To Sales A/c
(Being goods sold to Amit on credit)		 7 40,000
Apr 5 Purchase A/c     Dr. 8 55,000
    To Bharat A/c
(Being goods purchased from Bharat on credit)		 9 55,000
Apr 7 Carriage Inward A/c     Dr. 10 2,500
    To Cash A/c
(Being carriage paid on purchases)		 1 2,500
Apr 9 Computer Equipment A/c     Dr. 11 35,000
    To Bank A/c
(Being computer equipment purchased by cheque)		 2 35,000
Apr 11 Cash A/c     Dr.
Discount Allowed A/c     Dr.		 1
12		 38,000
2,000
    To Amit A/c
(Being cash received from Amit and discount allowed)		 6 40,000
Apr 13 Rent A/c     Dr. 13 10,000
    To Bank A/c
(Being office rent paid by cheque)		 2 10,000
Apr 15 Purchase A/c     Dr. 8 15,000
    To Cash A/c
(Being cash purchases)		 1 15,000
Apr 18 Bharat A/c     Dr. 9 55,000
    To Cash A/c
    To Discount Received A/c
(Being payment made to Bharat and discount received)		 1
14		 50,000
5,000
Apr 20 Cash A/c     Dr. 1 8,000
    To Old Furniture A/c
(Being old furniture sold for cash)		 15 8,000
Apr 22 Telephone Expenses A/c     Dr. 16 1,500
    To Cash A/c
(Being telephone bill paid in cash)		 1 1,500
Apr 24 Bank A/c     Dr. 2 3,000
    To Interest Received A/c
(Being interest received from bank)		 17 3,000
Apr 26 Wages A/c     Dr. 18 6,000
    To Cash A/c
(Being wages paid in cash)		 1 6,000
Apr 28 Insurance A/c     Dr. 19 4,000
    To Bank A/c
(Being insurance premium paid by cheque)		 2 4,000
Apr 30 Drawings A/c     Dr. 20 7,000
    To Bank A/c
(Being cash withdrawn from bank for personal use)		 2 7,000

Part 2: Ledger Accounts

Part 3: Trial Balance

Trial Balance of M/s Patel & Co. as on 30th April 2024
S.No. Particulars L.F. Debit (₹) Credit (₹)
1 Cash A/c 1 21,000
2 Bank A/c 2 27,000
3 Debtors A/c 3 30,000
4 Stock A/c 4 25,000
5 Capital A/c 5 1,75,000
6 Sales A/c 7 40,000
7 Purchase A/c 8 70,000
8 Carriage Inward A/c 10 2,500
9 Computer Equipment A/c 11 35,000
10 Discount Allowed A/c 12 2,000
11 Rent A/c 13 10,000
12 Discount Received A/c 14 5,000
13 Old Furniture A/c 15 8,000
14 Telephone Expenses A/c 16 1,500
15 Interest Received A/c 17 3,000
16 Wages A/c 18 6,000
17 Insurance A/c 19 4,000
18 Drawings A/c 20 7,000
Total 2,31,000 2,31,000
Note: Amit's and Bharat's accounts are closed (nil balance) as all transactions have been settled. The Trial Balance tallies at ₹2,31,000.

Interactive Ledger Matching Game

Match transactions with the correct ledger accounts affected

Score: 0 / 10

Transactions

Paid Rent ₹5,000 by Cash
Sold Goods for ₹10,000 Cash
Purchased Furniture ₹15,000 on Credit
Received Commission ₹3,000
Paid Salary by Cheque ₹8,000
Customer Returned Goods ₹2,000
Allowed Discount to Debtor ₹500
Paid Carriage on Purchase ₹1,000
Deposited Cash into Bank ₹20,000
Owner Withdrew for Personal Use ₹4,000

Ledger Accounts Affected (Dr/Cr)