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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.