Ledger Accounts

Ledger means a book where the various accounts are kept. It is the book where
transactions of the same nature are classified and grouped together in one place in the
form of account.
Therefore, a ledger is simply the grouping of the accounts that are used to prepare
financial statements of a business. The process of transferring debits and credits from
the journal to their respective accounts in the ledger is called ‘posting’.
Preparation of T-form Ledger
Dr. .… .… Account [1] Cr.
Folio No. ….…. [2]

Date Particulars JF No. Amount Date Particulars JF No. Amount

(Rs.) (Rs.)

[3] [4] [5] [6] [3] [4] [5] [6]

P.1 Journalize the following transactions and prepare Amar’s account and sales account.
Jan 1 Sold goods to Amar…………………………………………………….…..Rs. 5,000
2 Received cash from Amar……………………………………………………2,000
5 Again sold goods to Amar…………………………………………………….1,000
18 Goods returned by Amar………………………………………………..…….1,000
28 Received cash from Amar………………………………………………….2,000
Solution,
(a) Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
1-Jan Amar's a/c……………………………………………..Dr. 5,000
To Sales a/c 5,000
(Being goods sold to Amar)
2-Jan Cash a/c…………………………………………………Dr. 2,000
To Amar's a/c 2,000
(Being cash received from Amar)
5-Jan Amar's a/c……………………………………………..Dr. 1,000
To Sales a/c 1,000
(Being goods sold to Amar)
18-Jan Sales return a/c…………………………………….Dr. 1,000
To Amar's a/c 1,000
(Being goods returned by Amar)
28-Jan Cash a/c…………………………………………………Dr. 2,000
To Amar's a/c 2,000
(Being cash received)
(b) Posting into Ledger
Dr. Amar’s Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
1-Jan To Sales a/c 5,000 2-Jan By Cash a/c 2,000
5-Jan To Sales a/c 1,000 18-Jan By Sales return a/c 1,000
28-Jan By Cash a/c 2,000
31-Jan By Balance c/d 1,000
6,000 6,000
1-Feb To Balance b/d 1,000

Dr. Sales Account Cr.

Date Particulars JF Amount Date Particulars JF Amount
31-Jan To Balance c/d 6,000 1-Jan By Amar's a/c 5,000
5-Jan By Amars a/c 1,000
6,000 6,000
1-Feb By Balance b/d 6,000
P.2 The following information are given:
2016 Dec. 1 Purchased goods for cash……………………...Rs. 2,000
10 Sold goods for cash……………………………………………3,000
15 Purchased goods from Nawaraj…………………..5,000
17 Goods returned to Nawaraj……………………………..1,000
25 Sold goods to Laxman……………………………………….2,000
30 Goods returned by Laxman………………………………...500
Required:
a. Journal Entries
b. Purchase account
c. Sales account
d. Purchase return account
e. Sales return account
Solution, (a) Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
2016.12.1 Purchase a/c……………………………………………………Dr. 2,000
To Cash a/c 2,000
(Being cash purchased)
2016.12.10 Cash a/c………………………………………………………….Dr. 3,000
To Sales a/c 3,000
(Being cash sales)
2016.12.15 Purchase a/c……………………………………………………Dr. 5,000
To Nawaraj's a/c 5,000
(Being goods purchased on credit)
2016.12.17 Nawaraj's a/c………………………………………………….Dr. 1,000
To Purchase return a/c 1,000
(Being goods returned)
2016.12.25 Laxman's a/c…………………………………………………..Dr. 2,000
To Sales a/c 2,000
(Being goods sold on credit)
2016.12.30 Sales return a/c……………………………………………..Dr. 500
To Laxman's a/c 500
(Being goods returneed from Laxman)
(b) Posting into Ledgers
Dr. Purchases Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
2016.12.1 To Cash a/c 2,000 2016.12.31 By Balance c/d 7,000
2016.12.15 To Nawaraj's a/c 5,000
7,000 7,000
2017.1.1 To Balance b/d 7,000

Dr. Sales Account Cr.

Date Particulars JF Amount Date Particulars JF Amount
2016.12.31 To Balance c/d 5,000 2016.12.10 By Cash a/c 3,000
2016.12.25 By Laxman's a/c 2,000
5,000 5,000
2017.1.1 By Balance b/d 5,000
Dr. Purchase Return Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
2016.12.31 To Balance c/d 1,000 2016.12.17 By Nawaraj's a/c 1,000
1,000 1,000
By Balance b/d 1,000

Dr. Sales Return Account Cr.

Date Particulars JF Amount Date Particulars JF Amount
2016.12.31 To Laxman's a/c 500 2016.12.31 By Balance c/d 500
500 500
2017.1.1 To Balance b/d 500
P.3 Following transactions are given to you:
i. Furniture costing Rs. 4,000 were sold for Rs. 3,500.
ii. Sold goods to Shyam Rs. 9,000.
iii. Cash withdrawn from bank for office use Rs. 8,000.
iv. Received cash from Shyam Rs. 6,500.
Required:
(a) Journal entries
(b) Shyam’s account.
Solution, (a) Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
i. Cash a/c……………………………………………………………….Dr. 3,500
Profit and loss a/c……………………………………………….Dr. 500
To Furniture a/c 4,000
(Being furniture sold for cash)
ii. Shyam's a/c…………………………………………………………Dr. 9,000
To Sales a/c 9,000
(Being goods sold to Shyam on credit)
iii. Cash a/c……………………………………………………………….Dr. 8,000
To bank a/c 8,000
(Being cash withdrawn from bank for office use)
iv. Cash a/c……………………………………………………………….Dr. 6,500
To Shyam's a/c 6,500
(Being cash received from Shyam)
Dr. Shyam’s Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
To Sales a/c 9,000 By Cash 6,500
By Balance c/d 2,500
9,000 9,000
To Balance b/d 2,500
P.4 The following the transactions are given:
i. Commenced business with cash Rs. 50,000 and furniture of Rs. 5,000.
ii. Paid for general expenses Rs. 800.
iii. Purchased goods from Khanal Rs. 6,000.
iv. Paid to Khanal Rs. 5,800 in full settlement of his account.
Required:
(a) Journal entries.
(b) Khanal’s ledger account.
Solution, (a) Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
i. Cash a/c……………………………………………………………….Dr. 50,000
Furniture a/c……………………………………………………….Dr. 5,000
To Capital a/c 55,000
(Being business started with cash and furniture)
ii. General expenses a/c………………………………………..Dr. 800
To Cash a/c 800
(Being general expenses paid)
iii. Purchase a/c……………………………………………………….Dr. 6,000
To Khanal's a/c 6,000
(Being goods purchase from Khanal)
iv. Khanal a/c…………………………………………………………..Dr. 6,000
To Cash a/c 5,800
To Discount a/c 200
(Being paid to Khanal and discount received)
Dr. Khanal’s Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
To Cash a/c 5,800 By Purchase a/c 6,000
To Discount 200
6,000 6,000
P.5 The following transactions are given to you:
i. Business commenced with cash Rs. 50,000 stock of goods Rs. 30,000 and furniture Rs.
20,000.
ii. Sold goods to Ishwor Rs. 12,000.
iii. Paid rent Rs. 5,000.
iv. Purchased goods for cash Rs. 7,500.
v. Ishwor paid Rs. 12,000.
Required:
(a) Journal entries.
(b) Necessary ledgers.
Solution, (a) Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
i. Cash a/c……………………………………………………………….Dr. 50,000
Purchase a/c………………………………………………………..Dr. 30,000
Furniture a/c……………………………………………………….Dr. 20,000
To Capital a/c 100,000
(Being business started)
ii. Ishwor's a/c…………………………………………………………Dr. 12,000
To Sales a/c 12,000
(Being goods sold to Ishwor on credit)
iii. Rent a/c………………………………………………………………Dr. 5,000
To Cash a/c 5,000
(Being rent paid)
iv. Purchase a/c………………………………………………………..Dr. 7,500
To Cash a/c 7,500
(Being goods purchased for cash)
v. Cash a/c……………………………………………………………….Dr. 12,000
To Ishwor's a/c 12,000
(Being due amount from Ishwor)
Posting into Ledgers
Dr. Cash Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
i. To Capital a/c 50,000 iii. By Rent a/c 5,000
v. To Ishwor's a/c 12,000 iv. By Purchase a/c 7,500
By Balance c/d 49,500
62,000 62,000
To Balance b/d 49,500

Dr. Purchase Account Cr.

Date Particulars LF Amount Date Particulars LF Amount
i. To Capital a/c 30,000 By Balance c/d 37,500
v. To Cash a/c 7,500
37,500 37,500
To Balance b/d 37,500
Dr. Furniture Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
i. To Capital a/c 20,000 By Balance c/d 20,000
20,000 20,000
To Balance b/d 20,000
Dr. Capital Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
By Balance c/d 100,000 i. By Cash a/c 50,000
i. By Purchase a/c 30,000
i. By Furniture a/c 20,000
100,000 100,000
By Balance b/d 100,000

Dr. Ishwor Account Cr.

Date Particulars LF Amount Date Particulars LF Amount
ii. To Sales a/c 12,000 v. By Cash a/c 12,000
12,000 12,000
Dr. Sales Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
To Balance c/d 12,000 ii. By Ishwor's a/c 12,000
12,000 12,000
By Balance b/d 12,000
Dr. Rent Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
To Cash a/c 5,000 By Balance c/d 5,000
5,000 5,000
To Balance b/d 5,000
P.6 Following transactions were given to you:
a. Started business by investing Rs. 35,000.
b. Purchased goods for Rs. 10,000 from Ram and paid cash Rs. 3,000.
c. Purchased computer of Rs. 16,000.
d. Paid to Ram Rs. 7,000.
e. Paid rent Rs. 3,000 and interest Rs. 2,000.
Required:
(a) Journal entries
(b) Necessary ledger
(c) Trial balance.
Solution (a) Journal Entries in the books of …
Date Particulars LF Debit Rs. Credit Rs.
a. Cash a/c………………………………………………………Dr. 35,000
To Capital a/c 35,000
(Being business started)
b. Purchase a/c……………………………………………….Dr. 10,000
To Ram a/c 7,000
To Cash a/c 3,000
(Being goods purchase on credit and cash)
c. Computer a/c…………………………………………….Dr. 16,000
To Cash a/c 16,000
(Being purchase of computer
d. Ram a/c………………………………………………………Dr. 7,000
To Cash a/c 7,000
(Being cash paid to Ram)
e. Rent a/c……………………………………………………….Dr. 3,000
Interest a/c………………………………………………….Dr. 2,000
To Cash a/c 5,000
(Being cash paid for rent and interest)
Posting into Ledgers
Dr. Cash Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
To Capital 35,000 By Purchase a/c 3,000
By Computer a/c 16,000
By Ram's a/c 7,000
By Rent a/c 3,000
By Interest a/c 2,000
By Balance c/d 4,000
35,000 35,000
To Balance b/d 4,000
Dr. Capital Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
To Balance c/d 35,000 By Cash a/c 35,000
35,000 35,000
By Balance b/d 35,000
Dr. Purchase Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
To Ram a/c 7,000 By Balance c/d 10,000
To Cash a/c 3,000
10,000 10,000
To Balance b/d 10,000

Dr. Ram’s Account Cr.

Date Particulars LF Amount Date Particulars LF Amount
To Cash a/c 7,000 By Purchase a/c 7,000
7,000 7,000

Dr. Computer Account Cr.

Date Particulars LF Amount Date Particulars LF Amount
To Cash a/c 16,000 By Balance c/d 16,000
16,000 16,000
To Balance b/d 16,000
Dr. Rent Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
To Cash a/c 3,000 By Balance c/d 3,000
3,000 3,000
To Balance b/d 3,000
Dr. Interest Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
To Cash a/c 2,000 By Balance c/d 2,000
2,000 2,000
To Balance b/d 2,000
(c) Trial Balance
As on …
S.N Account Heads LF Debit Rs. Credit Rs.
1 Cash 4,000 _
2 Capital 35,000
3 Purchase 10,000 _
4 Computer 16,000 _
5 Rent 3,000 _
6 Interest 2,000 _
Total 35,000 35,000
P.7 Dipesh started a woodcraft industry. The business during the month of Ashad are as follows:
2077 Ashad 1 Started business with cash……………………………………………………..Rs. 10,000
4 Rent paid for the month……………………………………………………….……Rs. 2,000
5 Purchased equipment for cash………………………………………….…..Rs. 1,200
7 Purchased goods on credit from Sunita…………………………..…Rs. 17,000
10 Sold goods on cash……………………………………………………………………...Rs.
8,600
14 Paid cash for advertisement………………………………………………….…Rs. 1,400
17 Sale of goods for cash……………………………………………………………….…Rs.
11,200
23 Sold goods to Heera on credit…………………………….……………….……Rs. 13,100
25 Paid wages………………………………………………………………….……………….
……Rs. 1,500
28 Electricity charges paid………………………………………….…………………...Rs. 240
29 Received partial payment from Heera………………..……………….…Rs. 4,800
30 Interest paid…………………………………………………………………..……………….…
Rs. 2,500
Prepare the journal entries, ledger accounts and trial balance under balance & total method.
Solution (a) Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
3/1/2077 Cash a/c……………………………………………………………….Dr. 10,000
To Capital a/c 10,000
(Being business started)
3-4. Rent a/c……………………………………………………………….Dr. 2,000
To Cash a/c 2,000
(Being rent paid)
3-5. Equipment a/c……………………………………………………Dr. 1,200
To Cash a/c 1,200
(Being equipment paid)
3-7. Purchase a/c……………………………………………………….Dr. 17,000
To Sunita a/c 17,000
(Being goods purchased from Sunita)
3-10. Cash a/c……………………………………………………………….Dr. 8,600
To Sales a/c 8,600
(Being goods sold)
3-14. Advertisement a/c………………………………………………Dr. 1,400
To Cash a/c 1,400
(Being paried for advertisement)
3-17. Cash a/c……………………………………………………………….Dr. 11,200
To Sales a/c 11,200
(Being goods sold on cash)
3-23. Heera's a/c…………………………………………………………..Dr. 13,100
To Sales a/c 13,100
(Being goods sold to Heera)
3-25. Wages a/c…………………………………………………………….Dr. 1,500
To Cash a/c 1,500
(Being wages paid)
3-28. Electricity charges a/c…………………………………………Dr. 240
To cash a/c 240
(Being electricity charges paid)
3-29. Cash a/c……………………………………………………………….Dr. 4,800
To Heera a/c 4,800
(Being received from Heera)
3-30. Interest a/c………………………………………………………….Dr. 2,500
To Cash a/c 2,500
(Being interest paid)
(b) Ledger Accounts
Dr. Cash Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
3-1. To Capital a/c 10,000 3-4. By Balance c/d 2,000
3-10. To Sales a/c 8,600 3-5. By Equipment a/c 1,200
3-17. To Sales a/c 11,200 3-14. By advertisement a/c 1,400
3-29. To Heera's a/c 4,800 3-25. By Wages a/c 1,500
3-28. By Electricity charges a/c 240
3-30. By Interest a/c 2,500
3-30. By Balance c/d 25,760
34,600 34,600
4-1. To Balance b/d 25,760

Dr. Capital Account Cr.

Date Particulars LF Amount Date Particulars LF Amount
3-30. To Balance c/d 10,000 3-1. By Balance c/d 10,000
10,000 10,000
4-1. By Balance b/d 10,000
Dr. Sales Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
3-30. To Balance c/d 32,900 3-10. By Cash a/c 8,600
10,000 3-17. By Cash a/c 11,200
3-23. By Heera a/c 13,100
32,900 32,900
4-1. By Balance b/d 32,900

Dr. Rent Account Cr.

Date Particulars LF Amount Date Particulars LF Amount
3-4. To Cash a/c 2,000 3-30. By Balance c/d 2,000
2,000 2,000
4-1. To Balance b/d 2,000
Dr. Equipment Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
3-5. To Cash a/c 1,200 3-30. By Balance c/d 1,200
1,200 1,200
4-1. To Balance b/d 1,200
Dr. Sales Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
3-7. To Sunita a/c 17,000 3-30. By Balance c/d 17,000
17,000 17,000
4-1. To Balance b/d 17,000
Dr. Sunita’s Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
3-30. By Balance c/d 17,000 3-7. By Purchase a/c 17,000
17,000 17,000
4-1. To Balance b/d 17,000
Dr. Advertisement Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
3-14. To Cash a/c 1,400 3-30. By Balance c/d 1,400
1,400 1,400
4-1. By Balance b/d 1,400
Dr. Heera’s Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
3-23. To Sales a/c 13,100 3-29. By Cash a/c 4,800
3-30. By Balance c/d 8,300
13,100 13,100
4-1. By Balance b/d 8,300

Dr. Wages Account Cr.

Date Particulars LF Amount Date Particulars LF Amount
3-25. To Cash a/c 1,500 3-30. By Balance c/d 1,500
1,500 1,500
4-1. By Balance b/d 1,500
Dr. Electricity Charges Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
3-28. To Cash a/c 240 3-30. By Balance c/d 240
240 240
4-1. By Balance b/d 240
Dr. Interest Account Cr.
Date Particulars LF Amount Date Particulars LF Amount
3-30. To Cash a/c 2,500 3-30. By Balance c/d 2,500
2,500 2,500
4-1. By Balance b/d 2,500
(c) Trial Balance under Balance Method
Trial Balance of Dipesh
As on 30th Ashad 2077
S.N Account Heads LF Debit Rs. Credit Rs.
1 Cash 25,760
2 Capital 10,000
3 Sales 31,900
4 Rent 2,000
5 Equipment 1,200
6 Purchase 17,000
7 Sunita''s 17,000
8 Advertisement 1,400
9 Heera's 8,300
10 Wages 1,500
11 Electricity charges 240
12 Interest 2,500
Total 59,900 59,900
(d) Trial Balance under Total Method
Trial Balance of Dipesh
As on 30th Ashad 2077
S.N Account Heads LF Debit Rs. Credit Rs.
1 Cash 34,600 8,840
2 Capital 10,000
3 Sales 32,900
4 Rent 2,000
5 Equipment 1,200
6 Purchase 17,000
7 Sunita''s 17,000
8 Advertisement 1,400
9 Heera's 13,100 4,800
10 Wages 1,500
11 Electricity charges 240
12 Interest 2,500
Total 73,540 73,540
P.8 Following transaction are given:
Bhadra 1 Commenced business with cash Rs. 100,000.
Bhadra 5 Purchase machinery from ABC Co. Ltd. Rs. 10,000 and paid partly
payment Rs. 6,000.
Bhadra 10 Purchase goods from Hari Rs. 20,000.
Bhadra 15 Sold goods for cash Rs. 6,000.
Bhadra 25 Paid rent Rs. 2,000.
Bhadra 30 Paid to ABC Co. Rs. 3,500 in full settlement to his account.
Required:
(a) Journal entries.
(b) Necessary ledger.
(c) Trial balance.
Ans: (b) Cash a/c (Dr.) Rs. 94,500; Capital a/c (Cr.) Rs. 100,000; Machinery a/c (Dr.) Rs. 10,000; Purchase a/c
(Dr.) Rs. 20,000; Hari a/c (Cr.) Rs. 20,000; Sales a/c (Cr.) Rs. 6,000; Rent a/c (Dr.) Rs. 2,000; Discount a/c (Cr.)
Rs. 500; (c) TB total Rs. 126,500.
P.9 Computer the following transaction of Ramesh:
Jan 1 Ramesh started business with Rs. 30,000.
Jan 3 Cash purchase Rs. 1,500.
Jan 5 Cash sales Rs. 1,000.
Jan 10 Paid wages Rs. 800.
Jan 20 Received commission Rs. 400.
Required:
(a) Journal entries.
(b) Necessary ledger.
(c) Trial balance.
Ans: (b) Cash a/c (Dr.) Rs. 29,100; Capital a/c (Cr.) Rs. 30,000; Purchase a/c (Dr.) Rs. 1,500; Sales a/c (cr.) Rs.
1,000; Wages a/c (Dr.) Rs. 800; Commission a/c (Cr.) Rs. 400; (c) TB total Rs. 31,400
P.10 The following transactions are provided to you:
Baishak 1 Started business with cash of Rs. 100,000.
Baishak 10 Cash of Rs. 80,000 deposited into the bank.
Baishak 15 Purchased goods Rs. 12,000 and paid by cheque.
Baishak 20 Goods of Rs. 10,000 sold to Manoj.
Baishak 30 Received from Manoj by cheques of Rs. 10,000.
Required:
(a) Journal entries.
(b) Ledger accounts (Cash, Capital, Bank, Manoj, Purchase Sales).
(c) Trial balance.
Ans: (b) Cash a/c Rs. 20,000. (Cr.); Capital a/c Rs. 100,000 (Cr.); Bank a.c Rs. 78,000 (Dr.); Manoj a/c Nil;
Purchase a/c Rs. 12,000 (Dr.); Sales a/c Rs. 10,000 (Cr.) (c) T/B Total Rs. 110,000.
P.11 From the following transactions prepare the journal entries post them to ledger and
prepare trial balance:
Baishak 1 Business started with cash Rs. 20,000.
Baishak 10 Cash deposited into bank Rs. 10,000.
Baishak 15 Goods purchased for cash Rs. 5,000.
Baishak 20 Goods purchased from Ram on credit Rs. 10,000.
Baishak 25 Goods sold for cash Rs. 10,000.
Baishak 30 Cash paid to Ram Rs. 8,000.
Ans: Cash a/c Rs. 7,000 (Dr.); Capital a/c Rs. 20,000 (Cr.); Bank a/c Rs. 10,000 (Dr.); Purchase a/c Rs. 15,000
(Dr.); Ram’s a/c Rs. 2,000 (Cr.); Sales a/c Rs. 10,000 (Cr.); TB total Rs. 32,000
P.12 Following transactions are given to you:
April 1 Business started with Bank Rs. 50,000 and machinery Rs. 50,000.
April 3 Goods purchased from Ramesh Rs. 20,000 and made partial payment of
Rs. 6,000 by cheque.
April 5 Goods returned to Ramesh Rs. 1,000 in settlement his account paying
cheque and received 5% discount.
April 10 Cash drew from bank for office use Rs. 2,000 and for personal use Rs.
5,000.
April 15 Depreciation charged @10% on machinery.
April 30 Sold goods to Shyam on credit Rs. 25,000 and received partial payment
Rs. 10,000.
Required: (a) Journal entries (b) Ledger (Necessary) (c) Trial Balance.
Ans: (b) Bank a/c (Dr.) Rs. 24,650; Machinery a/c (Dr.) Rs. 45,000; Capital a/c (Cr.) Rs. 100,000; Purchase a/c
(Dr.) Rs. 20,000; Cash a/c (Dr.) Rs. 12,000; Purchase Return a/c (Cr.) Rs. 1,000 Discount a/c (Cr.) Rs. 650;
Drawing a/c (Dr.) Rs. 5,000; Depreciation a/c (Dr.) Rs. 5,000; Shyam’s a/c (Dr.) Rs. 15,000; Sales a/c (Cr.) Rs.
25,0000; (c) TB total Rs. 128,650
P.13 Following transactions of a business, selling jute goods were given to you:
a. Bought following items from Gupta Store of Jhapa
i. 1000 pieces of Jute bag @Rs. 12 per bag
ii. 500 plastic coated Jute bag @Rs. 15 per bag.
b. Bought from Goyal Store of Dharan 500 meters of Jute Carpet @Rs. 80 per meter
c. Bought furniture valued Rs. 50,000 from Classic Furniture Shop of Biratnagar for cash
Required: (a) Purchase Book (b) Purchase Account
Solution: Purchase Book
(a) In the book of ……..
Amount
Date Particulars Invoice No. L.F.
Details Totals
a Gupta Store, Jhapa
1,000 pieces of Jut bag @Rs. 12
per bag 500 plastic coated Jute 12,000
bag @Rs. 15 per bag 7,500 19,500
a Goyal Store, Dharan
500 meters of Jute carpet @Rs.
80 per meter. 40,000 40,000
Total 59,500
(b) Dr. Purchase A/c Cr.
Date Particular Follow Amount Date Particular Follo Amount
30 To sundry creditors 59,500 By Balance c/d 59,500
59,500 59,500
1 To Balance b/d 59,500
P.14 Following sales, transactions were given to you:
a. Sold following items to Bhatta Bros of Patan
i. 10 table fans @Rs. 1,100 per unit
ii. 5 ceiling fans @Rs. 600 per unit
b. Sold following items to Shrestha Bros to Bhaktapur
i. 12 Iron sets @Rs. 800 per unit
ii. 8 Rice Cookers @Rs. 1,000 per unit
c. Sold a 25 litters Filter for cash Rs. 12,000
Required: (i) Sales Book (ii) Sales Account
Solution: Sales Book
(i) In the book of ……..
Credit Amount
Date Particulars L.F.
Note No. Details Totals
a Bhatta Bros, Patan
10table fans @Rs. 1,100 per unit 11,000
5 ceiling fans @Rs. 600 per unit 3,000 14,000

a Shrestha Bros, Bhaktapur

12 Iron Sets @Rs. 800 per unit 9,600
8 Rice Cookers @Rs. 1,000 per unit 8,000 17,600
Total 31,600
(ii) Dr. Sales A/c Cr.
Date Particular Follow Amount Date Particular Follo Amount
30 To Balance c/d 43,600 By Cash a/c 12,000
30 By Debtors 31,600
43,600 43,600
1 By Balance b/d 43,600
P.15 Following sales, transactions were given to you:
a. Sold following items to Aryal Garments.
i. 100m cotton @Rs. 100 per meter
ii. 50m Teri cotton @Rs. 200 per unit
b. Sold following items to Sital Clothing
i. 112m cloth @Rs. 800 per meter
ii. 80m nylon cloth @Rs. 100 per m
c. Sold an old T.V for Rs. 2,000
Required: (i) Sales book (ii) Sales Account
Solution: Sales Book
(i) In the book of ……..
Credit Amount
Date Particulars L.F.
Note No. Details Totals
a Aryal Garments
i. 100m cotton @Rs. 100 per meter 10,000
ii. 50m Teri cotton @Rs. 200 per m 10,000 20,000

a Sital Clothings
i. 12 m cloth @Rs. 800 per meter 9,600
ii. 80m nylon cloth @Rs. 120 per m 9,600 19,200
Total 39,200
(ii) Dr. Sales A/c Cr.
Date Particular Follow Amount Date Particular Follo Amount
30 To Balance c/d 39,200
30 By Debtors 39,200
39,200 39,200
1 By Balance b/d 39,200
P.16 Following transactions are given:
January 3: Return to Jaya-Durge Mobile, Gallery:
2 LAVA Mobiles @Rs. 4,000 each
1 Karbon Mobile of Rs. 6,500
January 5: Return to Anuradha Mobile Gallery
2 Intex Mobile Sets @Rs. 5,000 each
[10% trade discount]
January 8: Return to Dinesh Electronics
3 Samsung Mobile sets @Rs. 10,000 each
4 Nokia Lumia sets @Rs. 20,000 each
Required: (i) Purchase Return Book (ii) Purchase Return Account
Solution: Purchase Return Book
(i) In the book of ……..
Dedit Amount
Date Particulars L.F.
Note No. Details Totals
January JayaDurge Mobile Gallery
3 2 Lava Mobile @Rs. 4000 each 8,000
1 Karbon mobile 6,500 14,500
January Anuradha Mobile Gallery `
5 2 Intex mobile @Rs. 5,000 each 10,000
Less 10% Trade Discount 1,000 9,000
January Dinesh Electronics
8 3 Samsung mobile @Rs. 10,000 each 30,000
4 Nokia Lumia @Rs. 20,000 each 80,000 1,10,000
Total 1,33,500
(ii) Dr. Purchase return A/c Cr.
Date Particular Follow Amount Date Particular Follo Amount
January To Balance c/d 1,33,500 30-Jan Sundry creditor 1,33,500
30
1,33,500 1,33,500
1-Feb By Balance b/d 1,33,500
P.17 ABC LTD. Returned the goods to its suppliers as follows:
2012 Aug 23: Returned to Tara Trading Concern
2 Water Pumps @Rs. 17,000 each
Aug 24: Returned to Ujwal Store
1 Generator @Rs. 20,000
[Trade discount @10%]
Required: (i) Purchase Return Book (ii) Purchase Return Account
Solution: Purchase Return Book
(i) In the book of ABC LTD
Dredit Amount
Date Particulars L.F.
Note No. Details Totals
2012 Aug 23 Tara Trading Concern
2 water pumps @Rs. 17000 34,000 34,000
24 Ujwal Store
1 Generator @Rs. 23,000 20,000
Less: 10% Trade Discount 2,000 18,000
Total 52,000

(ii) Dr. Purchase Return A/c Cr.

Date Particular Follow Amount Date Particular Follo Amount
2012 Aug 31 To Balance c/d 52,000 2012 Aug 31 By Sundry creditors a/c 52,000
52,000 52,000
2012 Sep 1 By Balance b/d 52,000
P.18 Following transactions are related to sales return:
December 4. Returned from Ansari Shopping Centre, Nepalgunj:
10 pcs of Shirts @Rs. 325 each
10 pcs of Blue Jeans @Rs. 525 each
Less: trade discount @10%
December 8. Returned by Jamuna Cloths House, Butwal:
20 pairs of Ladies Shocks @Rs. 100 per pair
15 pcs of Ladies Jeans @Rs. 500 each, less trade discount @5%.
Required: (i) Sales Return Book (ii) Sales Return Account
Solution,(1) Sales Return Book
In the book of M/s …
Credit Account
Date Particulars L.F.
Note No. Details Total
4-Dec Ansari Shopping Center, Nepalgunj
10 pcs of Shirts @Rs. 325 each 3,250
10 pcs of Blue Jeans @Rs. 525 each 5,250
8,500
Less: 10% trade discount 850 7,650
8-Dec Janmuna Cloth House, Butwal
20 pairs of Ladies shocks @Rs. 100 per pair 2,000
15 pcs of Ladies Jeans @Rs. 500 each 7,500
Less: 5% trade discount [375] 9,125
Total 16,775
(2) Preparation of Sales Return A/c
Sales Return A/c
Date Particular Folio Amount Date Particular Folio Amount
8-Dec To Sundry debtos a/c 16,775 8-Dec By Balance c/d 16,775
16,775 16,775
1-Jan To Balance b/d 16,775

P.19 From the books of Laxmi Shopping Center, it has been found that following transactions are
related to sales return:
Jan 14. Returned by Nilam, Kathmandu:
20 pcs of T-shirt @Rs. 425 each
10 pcs of Blue Jeans @Rs. 1,000 each
Less: trade discount @10%
Jan 28. Returned by Nice Clothing, Kathmandu:
20 Ladies Pants @Rs. 500 each
50 Ladies Jeans @Rs. 400 each, less trade discount @10%
Required: (i) Sales Return Book (ii) Sales Return Account
Solution,(1) Sales Return Book
In the book of Laxmi Shopping Center
Credit Account
Date Particulars L.F.
Note No. Details Total
14-Jan Nilam, Kathmandu
20pcs of T-shirt @Rs. 425 each 8,500
10pcs of Blue Jeans @Rs. 1000 each 10,000
18,500
Less: 10% trade discount [1,850] 16,650
28-Jan Nice Clothing, Kathmandu
20 ladies pants @Rs. 500 each 10,000
50 ladies Jeans @Rs. 400 each 20,000
Less: 5% trade discount only on Jeans [2,000] 28,000
Total 44,650
Cr. Sale Return A/c Dr.
Date Particular Folio Amount Date Particular Folio Amount
31-Jan To Sundry debtos a/c 44,650 31-Jan By Balance c/d 44,650
45,695 45,695
1-Feb To Balance b/d 44,650
P.20 Following transactions are given:
Jan. 1 Purchased from Ram of Dharan:
10 ceiling fans @Rs. 1,000 per unit
5 table fans @Rs. 1,500 per unit
Jan. 5 Purchased From Suman of Butwal:
15 Electric fans @Rs. 1,000 per unit
5 table fans @Rs. 2,000 per unit
(Trade discount 10%)
Jan. 15 Purchased from Shyam of Lalitpur on cash:
20 Electric Heater @Rs. 2,000 per unit
Jan. 20 Purchased from Suresh of Dang:
5 Sofa Sets @Rs. 10,000 per unit.
Required: (a) Purchase Book (b) Purchase Account
Solution, Purchase Book
Invoice Account
Date Particulars L.F.
No. Details Total
1-Jan Ram, Dharan
10 ceiling fans @Rs. 1,000 10,000
5 table fans @Rs. 1,500 7,500 17,500
5-Jan Suman, Butwal
15 Electric fans @1,000 15,000
5 table fans @2,000 10,000
25,000
Less: Trade discount 10% 2,500 22,500
Total (Dr.) 40,000

Dr. Purchase A/c Cr.

Date Particular Folio Amount Date Particular Folio Amount
5-Jan To Creditors a/c 40,000 31-Jan By Balance c/d 80,000
15-Jan To Cash a/c 40,000
80,000 80,000
1-Feb To Balance b/d 80,000