Question

Journalise the following transactions in the books of Virat traders, open necessary ledger accounts, balance

the accounts and prepare a Trial Balance as on 31st March 2019

2019 March

1 Virat started business with Cash Rs.50,000, Cash at Bank of India Rs.7,000, Furniture Rs.10,000.
3 Purchased goods from Rohit worth Rs.10,000 less 10% T.D.
7 Sold goods to Sunil Rs.5,000 less 5% T.D.
10 Deposited Cash with Bank of India Rs.5,000.
12 Purchased Furniture from Varma on credit worth Rs.20,000.
15 Paid to Varma by net banking Rs.8,000.
17 Paid Printing expenses Rs.200.
20 Received Commission Rs.200.
25 Withdrew Cash from Bank Rs.1,000 by ATM
28 Paid to Varma Rs.11,500 in full settlement of his account.
30 Paid Advertisement bill Rs.500.​

Answer 1

Journalising transactions for Virat traders involves creating initial journal entries, posting them to the ledger, and preparing a trial balance, ensuring all trade discounts and bank transactions are accurately recorded.

Step-by-step explanation:

Journal Entries, Ledger Accounts and Trial Balance :

To journalise the transactions for Virat traders, we will record the business activities in the journal and then post them to the ledger accounts. We must consider trade discounts and direct bank transactions while doing so. As a result, we'll end up with balanced ledger accounts and we will then compile them into a trial balance as on 31st March 2019.

Sales are credited to the Sales account after reducing trade discounts from the selling price. Bank transactions are directly recorded in the Cash at Bank ledger. Direct payment to creditors or expenses are also recorded accordingly. Finally, transactions that settle creditor's account are adjusted with any outstanding amounts including discounts provided for early repayment or full settlements.