30 transactions with their Journal Entries, Ledger and Trial balance

Date : In the first column, the date of the transaction is entered. The year and the month is
written only once, till they change. The sequence of the dates and months should be strictly
Journal
Journal is one of the books of original entry in which transactions are originally recorded in a
chronological (day-to-day) order according to the principles of Double Entry System.
Transactions, when recorded in a Journal, are known as entries.
It is the book in which transactions are recorded for the first time. Journal is also known as
‘Book of Original Record’ or ‘Book of Primary Entry’.

This process of recording transactions in the journal is’ known as ‘Journalising’. Journal is also
known as ‘Book of Original Record’ or ‘Book of Primary Entry’.
Business transactions of financial nature are classified into various categories of accounts such as
assets, liabilities, capital, revenue and expenses.

These are debited or credited according to the rules of debit and credit, applicable to the specific
accounts. Every business transaction affects two accounts. Applying the principle of double
entry, one
account is debited and the other account is credited. Every transaction can be recorded in the
journal.

Explanation:

1. maintained.
2. Particulars: Each transaction affects two accounts, out of which one account is debited
and the other account is credited. The name of the account to be debited is written first,
very near to the line of particulars column and the word Dr. is also written at the end of
the particulars column. In the second line, the name of the account to be credited is
written, starts with the word ‘To’, a few space away from the margin in the particulars
column to the make it distinct from the debit account.
3. Narration : After each entry, a brief explanation of the transaction together with
necessary details is given in the particulars column with in brackets called narration.
The words ‘For’ or ‘Being’ are used before starting to write down narration. Now, it is
not necessary to use the word ‘For’ or ‘Being’.
4. Ledger Folio (L.F): All entries from the journal are later posted into the ledger accounts.
The page number or folio number of the Ledger, where the posting has been made from
the Journal is recorded in the L.F column of the Journal. Till such time, this column
remains blank.
5. Debit Amount : In this column, the amount of the account being debited is written.
6. Credit Amount : In this column, the amount of the account being credited is written.

Following are the transactions for the period April 2020 to March 2021 in the books of
Mohan lal Traders
 Mohan lal started business with cash 600,000, cash at Bank of India
1-Apr
700,000, furniture 200,000.

1-Apr Purchased Plant & Machinery worth 250,000 by cheque.

25-
Purchased goods from ABC Ltd worth 800,000 @10% trade discount.
Apr

5-
Cash Sales 1,000,000 @5% trade discount to XYZ Traders
May

15-
Deposited cash with Bank of India 500,000.
May

5-Jun Paid ABC Ltd 300,000 in cash.

10-
Received commission 75,000 by cheque.
Jun

25-
Cash Purchases 250,000.
Jun

5-Jul Sold goods to XYZ Traders 475,000.

15-Jul Received 275,000 by cheque from XYZ Traders.

5-Aug Loan taken from Bank of India 200,000

25-
Purchased goods from ABC Ltd 50,000.
Aug

27-
Withdrew cash from bank 10,000.
Aug

5-Sep Received commission 55,000 in cash.

10-
Paid ABC Ltd 70,000 by cheque.
Sep

20-
Received 90,000 in cash from XYZ Traders.
Sep

1-Oct Bank loan repaid 50,000.

25-
Cash Purchases 25,000.
Oct

5-Nov Sold goods to XYZ Traders 47,000.

15-
Withdrew cash from bank 15,000.
Nov

5-Dec Received interest from bank 5,000.

25-
Purchased goods from ABC Ltd 75,000.
Dec

5-Jan Cash Sales 100,000.

 15-
Deposited cash with Bank of America 35,000.
Jan

25-
Cash Purchases 450,000.
Feb

28- Office was taken on rent in the month of Feb. Office rent paid in cash
Feb 50,000.

28- Employees were hired in the month of Feb. Paid salary by cheque 30,000
Feb & cash 30,000 for the month of Feb 2021

5-Mar Sold goods to XYZ Traders 675,000.

31-
Paid office rent by cheque 50,000.
Mar

31-
Paid salary in cash 30,000 for the month of March 2021
Mar

Now preparing journal entry Trading A/c, Profit & Loss A/c and Balance Sheet taking into
consideration:

In the books of mohan lal

Journal entries
LF Debit Credit
1 April Mohan lal started business with cash 600,0000 cash
at bank of india 700,000furniture200,000.
Cash A/C Dr 600,0000
Furniture & fixture A/C Dr. 700,0000 1,500,000
To mohan lal capital A/c 200,0000
1 April Purchased plant & M/C worth 250,0000 by cash 250,000 250,000
25 April Purchased goods from ABC ltd worth 800,000@10% 720,000 720,000
trade discount
5 May Cash sales 1,000,000@5% trade discount to xyz
traders 950,000
Cash A/C
To sales A/c 950,000
15 May Deposited cash with bank of India 500,000
500,000
5 June Paid ABC ltd 300,000 in cash 300,000
ABC ltd A/C dr
To cash A/C 30000
10 june Received commission 75,000 by check 75,000
To Bank of India A/C 75,000
25June Cash Purchase 250,000 250,000
250,000
5July Sold goods to xyz Traders 475,000 475,000
Xyz traders to A/C Dr
TO Sales A/C 475,000
15 July Received 275,000 by Cheque from XYZ traders 275,000
Bank of America A/C Dr
To xyz Traders A/c 275,000
5 Aug Lone taken from bank of America
Bank of India A/c Dr 200,000
To Bank Lone A/C 200,000
25 Aug Purchased goods from ABC ltd 50,000
Purchashed A/C Dr 50,000
To ABC ltd A/c 50,000

27 Aug Withdrew cash from Bank 10,000 10,000 10,000

Cash A/c Dr
To Bank of India A/c
5 Sep Recived commission 55,000 in cash. 55,000 55,000
cashA/c
To commission received A/C
10 Sep Paid ABC ltd 70,000 by cheque. 70,000
ABC ltd A/C Dr 70,000
To bank Of India A/c
20 Sep Recived 90,000 in cash from xyz Traders 90,000
Cash A/c Dr 90,000
To xyz traders A/c
1 Oct Bank lone repaid 50,000. 50,000 50,000
Bank lone A/c
To bank of India A/c
25 Oct Cash puracahased 25,000 75,000
75,000

5 Nov Sold goods to xyz traders 47,000

Xyz traders A/c Dr 47,000
To sales A/c
5 dec Received 50,00 as interest from bank 5,000 5,000
Bank of Indai A/c
To interest received A/c
25 dec Purchased goods from Abc ltd 75,000 75,000
 75,000
5 Jan Cash sales 100,000 100,000
100,000
15 Jan Deposited cash with Bank of India 35,000 35,000
Bank of India 35,000
To cash

25 feb Cash Purchases 450,000 450,000

Purchases a/c Dr 450,000
TO cash A/c
28 feb Employees were haired in the month of feb and office 50,000
rent was paid in cash of 50,000 50,000

28 feb Office was taken on rent in the month of fab

5 Mar Sold goods to xyz traders 675,000 675,000
Xyz traders A/c 675,000
Sales A/c
31 Mar Paid office rent by cheque 50,000. 50,000
Rent A/c Dr 50,000
To bank of India A/c
31 Mar Paid salary in cash 30,000 for the month of March 30,000
2021
Salary A/c Dr 30,000
To cash A/c
 Trial balance

Particular Debit Credit

Mohan’s capital 1,500,000
Purchases 1,570,000
Sales 2,247,000
Furniture’s & Fixtures 200,000
Plant & Machinery 250,000
ABC ltd 475,000
XYZ Traders 832,000
Bank lones 150,000
Salary 90,000
Office rent 100,000
Commission received 130,000
Interest Received 5,000
Cash in hand 150,000
Bank of America 1,315,000

TOTAL 4,507,000 4,507,000

Trading A/C & profit and loss A/c

Trading account fo the year ended 31 st march 2021

Particulars Amount Amount Particulars Amount Amount

To Purchases 1,570,000 By sales 2,247,000

To gross Profit c/d By closing stock
Total 2,447,000 2,447,000

Profit & loss account for the year ended 31 st march 2021
To salaries 90,000 By Gross profit b/d 877,000
Add: Outstanding salary 30,000 120,000 By Commission 130,000
Received
To office rent 100,000 By Interest Received 5,000
To depreciation
Furniture & Fixtures 20,000
Plant & Machinery 37,500 57,000
To Net Profit c/d 734,500
Total 1,012,000 Total 1,012,000

Balance Sheet as on 31st March 2021

Liabilities Amount Amount Assets Amount Amount
Capital and Reserves Non Current Assets
Opening Capital 1,500,000 Tangible Assets
Add: Net Profit 734,500 2,234,500 Plant &M/S 250,000
Less : depreciation 37,000 212,000
Non – Current Furniture & Fixtures 200,000
Liabilities
Bank Loan 150,000 Less : Depreciation 20,000 180,000

Current Liabilities Current Assets

Sundry Creditors 475,000 Cash in Hand 150,000
Outstanding Salary 30,000 Cash at Bank 1,315,000
Sundry Debtors 832,000
Closing Stock 200,000

Total 2,889,500 Total 2,889,500

Balance sheet as on 31 march 2021

Liabilities amount Amoun Assets Amount Amount

t
Capital&reserves
Opening capital
Add:net profit