Page 98 - debkxi

Trial Balance 14.5

3. Following is the Trial Balance of S.K. Gupta on 30th September, 2023:

Heads of Accounts L.F. Dr. Balance Cr. Balance
` `
Capital ............................................................................................................................................................... ... 4,50,000
A. Lal & Co. (Creditor) .................................................................................................................................... ... 20,000
B. Babu & Co. (Creditor) ................................................................................................................................ ... 25,000
C. Chand & Co. (Creditor) ............................................................................................................................. ... 25,000
Machinery ........................................................................................................................................................ 1,00,000 ...
Building ............................................................................................................................................................. 3,00,000 ...
Purchases .......................................................................................................................................................... 90,000 ...
Vijay Sales ......................................................................................................................................................... 15,000 ...
Akash Sales ....................................................................................................................................................... 10,000 ...
Bank .................................................................................................................................................................... 5,000 ...
Total 5,20,000 5,20,000

You are required to redraft the above Trial Balance as it would appear after
following transactions had taken place:
(i) S.K. Gupta had taken a cash loan of ` 50,000 from K.G. Gupta, out of which
he paid ` 20,000 towards his debts to A. Lal & Co. receiving no discount, and
he banked the balance amount.
(ii) He received ` 5,000 from Vijay Sales. No discount is allowed for this payment.
(iii) He purchased goods of ` 20,000 on credit from Vikas Trading Co.
(iv) He sold one-fifth of his stock on credit for ` 15,000 to Amit & Co.

Solution: Before preparing the Trial Balance, please see the Working Notes.

TRIAL BALANCE OF S.K. GUPTA
as on 30th September, 2023
Heads of Accounts L.F. Dr. Balance Cr. Balance
` `
Capital A/c ......................................................................................................................................................... ... 4,50,000
Cash A/c ............................................................................................................................................................. 5,000 ...

Loan A/c ............................................................................................................................................................. ... 50,000
B. Babu & Co. .................................................................................................................................................... ... 25,000
C. Chand & Co. ................................................................................................................................................. ... 25,000
Vikas Trading Co. ............................................................................................................................................. ... 20,000
Vijay Sales .......................................................................................................................................................... 10,000 ...
Akash Sales ....................................................................................................................................................... 10,000 ...
Amit & Co. .......................................................................................................................................................... 15,000 ...
Purchases A/c ................................................................................................................................................... 1,10,000 ...
Sales A/c............................................................................................................................................................. ... 15,000
Bank A/c ............................................................................................................................................................. 35,000 ...
Machinery A/c ................................................................................................................................................. 1,00,000 ...
Building A/c ...................................................................................................................................................... 3,00,000 ...
Total 5,85,000 5,85,000