ending March 31, 2020. You are required to journalize the transactions, create the ledger accounts and prepare the trial balance. Date Particulars Amount 1st Apr, 19 Capital contributed by Aryan 1,00,000 3rd Apr,19 Purchases from Kabir & Co. 200 pens of Rs. 80 each 100 copies of Rs. 40 each 5th Apr, 19 Purchased Furniture 30,000 7th Apr, 19 Deposited in Bank 50,000 10th Apr, 19 Paid Salaries 15,000 15th Apr, 19 Cash purchases made 20,000 20th Apr, 19 Sold goods to Mr. Rohit & Co. 500 pens of Rs. 125 each; 250 copies of Rs 110 each 22nd Apr, 19 Returned to Kabir & Co. 20 pens 15 copies 30th Apr, 19 Issued a cheque to Kabir & Co. in full settlement of their account 5th May, 19 Received cash Rs 5,000 and cheque for Rs 10,000 from Rohit & Co. The cheque was deposited in bank immediately. 25th May, 19 Sold to Gaurav & Co., 80 pens at Rs 130 each less 10% trade discount 31st May, 19 Gaurav & Co., returned 10 pens 5th June, 19 Purchased from Meera Ltd, 300 pens at Rs 90 each , and 200 pens at Rs 50 each 15th June, 19 Received from Gaurav & Co. 7,000 20th June, 19 Depreciate furniture at 10% 25th June, 19 Withdrew from bank 10,000 27th June, 19 Cash sales made 1,50,000 30th June, 19 Paid rent by cheque 4,000
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Given below is a list of transactions relating to the stationery business of Aryan & Co. for the year ending March 31, 2020. You are required to journalize the transactions, create the ledger accounts and prepare the
|
Date |
Particulars |
Amount |
|
1st Apr, 19 |
Capital contributed by Aryan |
1,00,000 |
|
3rd Apr,19 |
Purchases from Kabir & Co. 200 pens of Rs. 80 each 100 copies of Rs. 40 each |
|
|
5th Apr, 19 |
Purchased Furniture |
30,000 |
|
7th Apr, 19 |
Deposited in Bank |
50,000 |
|
10th Apr, 19 |
Paid Salaries |
15,000 |
|
15th Apr, 19 |
Cash purchases made |
20,000 |
|
20th Apr, 19 |
Sold goods to Mr. Rohit & Co. |
|
|
22nd Apr, 19 |
Returned to Kabir & Co. 20 pens 15 copies |
|
|
30th Apr, 19 |
Issued a cheque to Kabir & Co. in full settlement of their account |
|
|
5th May, 19 |
Received cash Rs 5,000 and cheque for Rs 10,000 from Rohit & Co. The cheque was deposited in bank immediately. |
|
|
25th May, 19 |
Sold to Gaurav & Co., 80 pens at Rs 130 each less 10% trade discount |
|
|
31st May, 19 |
Gaurav & Co., returned 10 pens |
|
|
5th June, 19 |
Purchased from Meera Ltd, 300 pens at Rs 90 each , and 200 pens at Rs 50 each |
|
|
15th June, 19 |
Received from Gaurav & Co. |
7,000 |
|
20th June, 19 |
|
|
|
25th June, 19 |
Withdrew from bank |
10,000 |
|
27th June, 19 |
Cash sales made |
1,50,000 |
|
30th June, 19 |
Paid rent by cheque |
4,000 |
|
5th August, 19 |
Paid interest |
1,200 |
|
15th August, 19 |
Aryan withdrew cash for personal use |
6,500 |
Trending now
This is a popular solution!
Step by step
Solved in 10 steps with 10 images
