Page 58 - debkxi
P. 58

9.10                                                   Double Entry Book Keeping—CBSE XI

                     Solution:

                     Dr.                          BUDHIRAJA’S CAPITAL ACCOUNT                         Cr.
                     Particulars                         `      Particulars                        `

                     To  Drawings A/c                    6,500   By  Cash A/c—Capital              30,000
                     To  Balance c/d                    53,000  By  Cash A/c—Capital               22,000
                                                                By  Profit & Loss A/c (Profit)      7,500
                                                        59,500                                     59,500
                                                                By  Balance b/d                    53,000

                     Explanation:  Proprietor’s Capital Account has a credit balance of ` 53,000 which means that the business owes
                                 him this amount.
                      3.  Manish Gupta has the following transactions with Subrat Mukherjee for the month
                        of April, 2024:

                     April  1   Balance due from Subrat Mukherjee ` 5,000.
                     April  5   Rebate was given of ` 800 for poor quality of goods.
                              Cheque received in settlement of account; less ` 200 cash discount.
                     April  6   Sold goods for ` 10,000.
                     April  10   Received a letter from Subrat Mukherjee in which he informed that he would forward
                              a cheque of ` 10,000 on 20th April.
                     April  20   Received a cheque for ` 9,500 and allowed cash discount of ` 500.
                     April  30   Subrat Mukherjee’s cheque returned by bank marked “Refer to Drawer”.

                     Show how the account of Subrat Mukherjee would appear in the ledger of Manish
                     Gupta and balance the account on 30th April, 2024.

                     Solution:                       Ledger of Manish Gupta
                     Dr.                              SUBRAT MUKHERJEE                                Cr.
                     Date     Particulars         J.F.   `     Date     Particulars          J.F.   `
                     2024                                       2024
                     April   1  To  Balance b/d          5,000   April   5  By  Rebate Allowed A/c      800
                     April   6  To  Sales A/c           10,000   April   5  By  Bank A/c            4,000
                     April  30  To  Bank A/c             9,500   April   5  By  Discount Allowed A/c      200
                                (Cheque Returned)               April  20  By  Bank A/c             9,500
                     April  30  To  Discount Allowed A/c      500   April  20  By  Discount Allowed A/c      500
                               (Note 1)                         April  30  By  Balance c/d         10,000
                                                        25,000                                     25,000


                     Notes:  1.  Discount already allowed is cancelled due to return of cheque.
                           2.  Rebate is reduction in sale value due to reasons other than for which trade discount and cash discount
                              are allowed.
   53   54   55   56   57   58   59   60   61   62   63