Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Explore our Q&A platform to find reliable answers from a wide range of experts in different fields. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
Sure, let's break down the solution step-by-step:
a) Journal Entries
Journal entries record the financial transactions in the company's books. Here are the entries based on the given information:
1. Surendra started business with cash Rs. 50000 and bank deposit Rs. 100
- Debit: Cash (50,000)
- Debit: Bank Deposit (100)
- Credit: Capital (50,100)
2. Purchased goods for inventory issuing a cheque Rs. 50000
- Debit: Inventory (50,000)
- Credit: Bank Deposit (50,000)
3. Sold goods in cash and deposited into bank Rs. 60000
- Debit: Bank Deposit (60,000)
- Credit: Sales (60,000)
4. Paid rent for the month Rs. 10000 by issuing a cheque
- Debit: Rent (10,000)
- Credit: Bank Deposit (10,000)
5. Paid salaries for Rs. 15000
- Debit: Salaries (15,000)
- Credit: Cash (15,000)
6. Drew for personal use Rs. 5000 from the bank
- Debit: Withdrawal (5,000)
- Credit: Bank Deposit (5,000)
Summary of Journal Entries:
| Date | Account | Debit (Dr) | Credit (Cr) |
|------------|----------------|------------|-------------|
| a. | Cash | 50000 | |
| | Bank Deposit | 100 | |
| | Capital | | 50100 |
| b. | Inventory | 50000 | |
| | Bank Deposit | | 50000 |
| c. | Bank Deposit | 60000 | |
| | Sales | | 60000 |
| d. | Rent | 10000 | |
| | Bank Deposit | | 10000 |
| e. | Salaries | 15000 | |
| | Cash | | 15000 |
| f. | Withdrawal | 5000 | |
| | Bank Deposit | | 5000 |
b) Necessary Ledger
A ledger account summarizes the transactions related to each account.
- Cash:
- Dr: 50,000 (initial cash)
- Cr: 15,000 (salaries)
- Ending Balance: `50,000 - 15,000 = 35,000`
- Bank Deposit:
- Dr: 100 (initial bank deposit)
- Dr: 60,000 (sales deposit)
- Cr: 50,000 (purchase of goods)
- Cr: 10,000 (rent)
- Cr: 5,000 (withdrawal)
- Ending Balance: `100 + 60,000 - 50,000 - 10,000 - 5,000 = -4,900`
- Inventory:
- Dr: 50,000 (purchase of goods)
- Ending Balance: `50,000`
- Sales:
- Cr: 60,000 (sales)
- Ending Balance: `60,000`
- Rent:
- Dr: 10,000 (rent)
- Ending Balance: `10,000`
- Salaries:
- Dr: 15,000 (salaries)
- Ending Balance: `15,000`
- Withdrawal:
- Dr: 5,000 (withdrawal)
- Ending Balance: `5,000`
- Capital:
- Cr: 50,100 (initial capital contribution)
- Ending Balance: `50,100`
c) Trial Balance
A trial balance lists all the ledger accounts with their debit or credit balances to ensure that total debits equal total credits.
| Account | Debit (Dr) | Credit (Cr) |
|-----------------|------------|-------------|
| Bank Deposit | | 4,900 |
| Capital | | 50,100 |
| Cash | 35,000 | |
| Inventory | 50,000 | |
| Rent | 10,000 | |
| Salaries | 15,000 | |
| Sales | | 60,000 |
| Withdrawal | 5,000 | |
| Total | 115,000 | 115,000 |
The debit and credit balances match, as both equal Rs. 115,000, indicating that the trial balance is correct.
Summary:
To understand the company's financial position and performance over these transactions, we have detailed the journal entries, created the necessary ledger accounts, and summarized the accounts in the trial balance.
a) Journal Entries
Journal entries record the financial transactions in the company's books. Here are the entries based on the given information:
1. Surendra started business with cash Rs. 50000 and bank deposit Rs. 100
- Debit: Cash (50,000)
- Debit: Bank Deposit (100)
- Credit: Capital (50,100)
2. Purchased goods for inventory issuing a cheque Rs. 50000
- Debit: Inventory (50,000)
- Credit: Bank Deposit (50,000)
3. Sold goods in cash and deposited into bank Rs. 60000
- Debit: Bank Deposit (60,000)
- Credit: Sales (60,000)
4. Paid rent for the month Rs. 10000 by issuing a cheque
- Debit: Rent (10,000)
- Credit: Bank Deposit (10,000)
5. Paid salaries for Rs. 15000
- Debit: Salaries (15,000)
- Credit: Cash (15,000)
6. Drew for personal use Rs. 5000 from the bank
- Debit: Withdrawal (5,000)
- Credit: Bank Deposit (5,000)
Summary of Journal Entries:
| Date | Account | Debit (Dr) | Credit (Cr) |
|------------|----------------|------------|-------------|
| a. | Cash | 50000 | |
| | Bank Deposit | 100 | |
| | Capital | | 50100 |
| b. | Inventory | 50000 | |
| | Bank Deposit | | 50000 |
| c. | Bank Deposit | 60000 | |
| | Sales | | 60000 |
| d. | Rent | 10000 | |
| | Bank Deposit | | 10000 |
| e. | Salaries | 15000 | |
| | Cash | | 15000 |
| f. | Withdrawal | 5000 | |
| | Bank Deposit | | 5000 |
b) Necessary Ledger
A ledger account summarizes the transactions related to each account.
- Cash:
- Dr: 50,000 (initial cash)
- Cr: 15,000 (salaries)
- Ending Balance: `50,000 - 15,000 = 35,000`
- Bank Deposit:
- Dr: 100 (initial bank deposit)
- Dr: 60,000 (sales deposit)
- Cr: 50,000 (purchase of goods)
- Cr: 10,000 (rent)
- Cr: 5,000 (withdrawal)
- Ending Balance: `100 + 60,000 - 50,000 - 10,000 - 5,000 = -4,900`
- Inventory:
- Dr: 50,000 (purchase of goods)
- Ending Balance: `50,000`
- Sales:
- Cr: 60,000 (sales)
- Ending Balance: `60,000`
- Rent:
- Dr: 10,000 (rent)
- Ending Balance: `10,000`
- Salaries:
- Dr: 15,000 (salaries)
- Ending Balance: `15,000`
- Withdrawal:
- Dr: 5,000 (withdrawal)
- Ending Balance: `5,000`
- Capital:
- Cr: 50,100 (initial capital contribution)
- Ending Balance: `50,100`
c) Trial Balance
A trial balance lists all the ledger accounts with their debit or credit balances to ensure that total debits equal total credits.
| Account | Debit (Dr) | Credit (Cr) |
|-----------------|------------|-------------|
| Bank Deposit | | 4,900 |
| Capital | | 50,100 |
| Cash | 35,000 | |
| Inventory | 50,000 | |
| Rent | 10,000 | |
| Salaries | 15,000 | |
| Sales | | 60,000 |
| Withdrawal | 5,000 | |
| Total | 115,000 | 115,000 |
The debit and credit balances match, as both equal Rs. 115,000, indicating that the trial balance is correct.
Summary:
To understand the company's financial position and performance over these transactions, we have detailed the journal entries, created the necessary ledger accounts, and summarized the accounts in the trial balance.
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.
