Question

Cash brrowent indo' business & 20,000. 2) Salary Salary paid By bank # 5,000. Bank Balance 50,000 broweent into business. 4) Celectricity Bill & 2000 paid by Bank. 5) Intrest Recived 2 2,500 into the bank account Directly welfa 6) Dividend Received £5.00 directly into the bank account #) Goods Sold to Mr. Robit 5,000 on Credit Goods purchase from Karishma 2 10,000 on Credit. prepare a Ledger account

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Answer 1

To prepare the ledger account, you need to record all transactions related to cash and bank. The cash book ledger account will include opening balance, salary paid, bank balance, electricity bill paid, interest received, dividend received, goods sold to Mr. Robit on credit, and goods purchased from Karishma on credit. The bank account ledger will include the same transactions, but from the bank's perspective.

Step-by-step explanation:

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• Opening Balance: $20,000
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• Salary Paid by Bank: -$5,000
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• Bank Balance: $50,000
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• Electricity Bill Paid by Bank: -$2,000
• 
  
• Interest Received: +$2,500
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• Dividend Received: +$5.00
• 
  
• Sales to Mr. Robit on Credit: +$5,000
• 
  
• Purchase from Karishma on Credit: -$10,000

Bank Account

• 
  
• Opening Balance: $20,000
• 
  
• Salary Paid: +$5,000
• 
  
• Electricity Bill Paid: +$2,000
• 
  
• Interest Received: +$2,500
• 
  
• Dividend Received: +$5.00
• 
  
• Sales to Mr. Robit: +$5,000
• 
  
• Purchase from Karishma: -$10,000