2. Finance Basics Illustration : Journalize the following transactions in the books of Shri K.K. Luhra, post them into ledger and prepare a trial balance as on 30 th March 2010: March: 1 Commenced business with a capital of SAR 10,000 3Purchased office furniture for SAR 1,500 5 Purchased goods from Mr. Anil for SAR 3000 10 Sold Goods to Mr. Azad for SAR 2,500 15Received cash from Mr. Azad SAR 2,400 in full settlement 20 Paid to Mr. Anil in cash SAR 2,800 and he allowed discount SAR 200 22Sold goods for cash SAR 800 25Opened a bank account with SAR 1,100 28Paid salary to Mr. Gokul SAR 400 30Withdrew cash from bank for personal use SAR 300

3. Finance Basics Solution: Books of K. K. Luthra Journal DateParticularsDebit (SAR) Credit (SAR) Mar 1 Mar 3 Mar 5 Mar 10 Cash a/c Dr. To Capital a/c (Being business started with SAR 10,000) Office furniture a/c Dr. To cash a/c (Being purchase of office furniture for cash) Purchases a/c Dr. To Anil a/c (Being goods purchased on credit) Azad a/c Dr. To Sales a/c (Being goods sold on credit) 10,000 1,500 3,000 2,500 10,000 1,500 3,000 2,500

4. Finance Basics Solution: Books of K. K. Luthra Journal DateParticularsDebit (SAR) Credit (SAR) Mar 15 Mar 20 Mar 22 Cash a/c Dr. Discount allowed a/c Dr. To Azad a/c (Being cash received from Azad in full settlement) Anil a/c Dr. To cash a/c To discount received a/c (Being cash paid to Anil and received discount) Cash a/c Dr. To Sales a/c (Being goods sold for cash) 2,400 100 3000 800 2,500 2,800 200 800

5. Finance Basics Solution: Books of K. K. Luthra Journal DateParticularsDebit (SAR) Credit (SAR) Mar 25 Mar 28 Mar30 Bank a/c Dr. To Cash a/c (Being account opened in bank with cash SAR 1100) Salary a/c Dr. To cash a/c (Being salary paid in cash) Drawings a/c Dr. To Bank a/c (Being amount withdrawn from bank for personal use) 1,100 400 300 1,100 400 300

6. Finance Basics Solution: Books of K. K. Luthra Ledger Cash a/c DateParticularsAmountDateParticularsAmount Mar 1 Mar 10 Mar 22 To Capital a/c To Azad a/c To Sales a/c 10,000 2,400 800 Mar 3 Mar 20 Mar 25 Mar 28 Mar 30 By Office Furniture By Anil a/c By Bank a/c By Salary a/c By Balance a/c 1,500 2,800 1,100 400 7,400 13,200 Apr 1 To Balance b/d7,400

7. Finance Basics Solution: Books of K. K. Luthra Ledger Capital a/c DateParticularsAmountDateParticularsAmount Mar 30To Balance c/d 10,000 Mar 1 By Cash a/c10,000 10,000 Apr 1To Balance b/d10,000

8. Finance Basics Solution: Books of K. K. Luthra Ledger Office Furniture a/c DateParticularsAmountDateParticularsAmount Mar 3To Cash a/c 1,500 Mar 30 By Balance c/d1,500 1,500 Apr 1 To Balance b/d1,500

9. Finance Basics Solution: Books of K. K. Luthra Ledger Purchases a/c DateParticularsAmountDateParticularsAmount Mar 5To Anil a/c 3,000 Mar 30 By Balance c/d3,000 3,000 Apr 1 To Balance b/d3,000

10. Finance Basics Solution: Books of K. K. Luthra Ledger Anil a/c DateParticularsAmountDateParticularsAmount Mar 20 To Cash a/c To Discount received 2,800 200 Mar 5 By Purchases3,000 3,000

11. Finance Basics Solution: Books of K. K. Luthra Ledger Azad a/c DateParticularsAmountDateParticularsAmount Mar 10To Sales a/c 2,500 Mar 15 By Cash a/c By Discount allowed 2,400 100 2,500

12. Finance Basics Solution: Books of K. K. Luthra Ledger Sales a/c DateParticularsAmountDateParticularsAmount Mar 30To Balance c/d 3,300 Mar 10 By Azad a/c By Cash a/c 2,500 800 3,300 3,000Apr 1To Balance b/d3,300

13. Finance Basics Solution: Books of K. K. Luthra Ledger Discount Allowed a/c DateParticularsAmountDateParticularsAmount Mar 15To Azad a/c 100 Mar 30 By Balance c/d100 100 Apr 1 To Balance b/d100

14. Finance Basics Solution: Books of K. K. Luthra Ledger Discount Received a/c DateParticularsAmountDateParticularsAmount Mar 30To Balance c/d 200 Mar 20 By Anil a/c200 200 Apr 1By Balance b/d200

15. Finance Basics Solution: Books of K. K. Luthra Ledger Bank a/c DateParticularsAmountDateParticularsAmount Mar 25To Cash a/c 1,100 Mar 30 By Drawings a/c By Balance c/d 300 800 1,100 Apr 1 To Balance b/d800

16. Finance Basics Solution: Books of K. K. Luthra Ledger Salary a/c DateParticularsAmountDateParticularsAmount Mar 28To Cash a/c 400 Mar 30 By Balance c/d400 400 Apr 1 To Balance b/d400

17. Finance Basics Solution: Books of K. K. Luthra Ledger Drawings a/c DateParticularsAmountDateParticularsAmount Mar 30To Bank a/c 300 Mar 30 By Balance c/d300 300 Apr 1 To Balance b/d300

18. Finance Basics Trial Balance Trial balance of K.K.Luthra as on 30 th Mar, 2010 S. No Name/Head of accountsDebit total Credit Total 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Cash a/c Capital a/c Office furniture a/c Purchase a/c Anil a/c Azad a/c Sales a/c Discount allowed a/c Discount received a/c Bank a/c Salary a/c Drawings a/c 13,200 -- 1,500 3,000 2,500 --- 100 --- 1,100 400 300 5,800 10,000 --- 3,000 2,500 3,300 --- 200 300 --- 25,100