Q= Pass the necessary journal entries and post them into ledger and prepare the trial balance of the following transaction:
1. Started business with cash Rs. 8,00,000 and furniture Rs. 50,000.
2. Purchase goods from Mr X on credit of the list price Rs. 1,00,000 at a 10% trade discount.
3. Sold goods to Mahesh of the list price of Rs. 40,000 at a trade discount of 15%.
4. Mahesh return goods of the list price of Rs. 4,000.
5. Return from Mahesh the amount due from him under a cash discount of 5%.
6. Paid salary Rs. 5,000 and outstanding salary Rs. 2,000.
7. Paid advertisement expenses Rs. 2,000 , Repair charges Rs. 1,000 , Legal Charges Rs. 1,000 and audit charges Rs. 500.
8. Sold goods for cash Rs. 10000
9. Purchase building for Rs.50,000.
10. Provide 10% depreciation on furniture costing Rs. 50,000.
11. Provide 12% interest on capital amounting to Rs. 8,00,000.
12. Charge interest on drawings Rs. 5,000.
13. Cash withdrew Rs. 5,000 for the household expense.
14. Paid income tax Rs. 5,000.
15. Loan taken form bank Rs. 2,00,000.
16. Purchase machinery for cash Rs. 2,00,000 and paid Rs. 20,000 in cash as wages on its installation.
17. Paid Rs. 2,500 for repairing the office furniture.
18. Rent received from sublet house Rs. 3,000.
19. Good destroy by fire costing Rs. 20,000 and insurance company admitted the claim and paid Rs. 14,000.
20. Received commission Rs. 1,000
21. Mr.X who owed us Rs.10,000 is declared insolvent and 40 paise in a Rupee received from his estate.
22. Received Rs. 5,000 from Suresh which were written-off as bad-debts in previous year.
23. He sold us goods of Rs. 10,000 in cash.
24. Received interest Rs. 500.
25. Received discount Rs. 500.