On January 1, 2018 the balance of Tanali Traders stood as follows:  Cash in hand Rs. 2,000; Cash at bank Rs. 12,300; Stock in trade Rs. 51,700; Furniture Rs. 8,200; Debtors Rs. 6,600 (Shyam Rs. 3,500, Shanker Rs. 2,600, Laxman Rs. 500); Creditors Rs. 7,100 (Reddy & Co. Rs. 3,020, Kishore Rs. 4,080); Capital Rs. 73,700.  Their transactions during the month of January were as follows:  2018  Jan. 1 Borrowed from Globe Finance Co 10,000        “ 2 Bought goods for cash 2,300       “ 2 Purchased from Reddy & Co 5,500      “ 3 Paid into bank 9,000      “ 5 Received cheque from Shyam 3,500      “ 6 Sold goods for cash 1,200      “ 7 Sold to Shanker 8,700      “ 8 Paid Kishore by cheque 2,000 Discount received 100     “ 9 Received cheque from Shanker on account 5,000     “ 9 Received credit note from Reddy & Co. for goods returned to them 380     “ 10 Sold goods to Thomas 10,000     “ 10 Drew cash from the bank 1,000     “ 12 Purchased postage stamps 300     “ 14 Bought of Bose & Sons 9,300    “ 16 Paid Globe Finance & Co. by cheque in part payment of loan 5,000     “ 17 Received cash from Laxman 500    “ 21 Paid Reddy & Co. by cheque 6,000   “ 23 Carriage paid 100   “ 24 Withdrew cash for private expenses 1,500   “ 28 Paid salaries in cash 800  “ 30 Rent due to landlord 500  “ 31 Purchased furniture on credit from Joseph 600  “ 31 Paid interest to Globe Finance Co. 100  Enter the above transactions in the appropriate books, post them into ledger and prepare a Trial Balance.  (Answer: Cash in hand Rs. 600, Cash at bank Rs. 15,800, Trial Balance Total Rs. 1,13,600.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2018 the balance of Tanali Traders stood as follows: 

Cash in hand Rs. 2,000; Cash at bank Rs. 12,300; Stock in trade Rs. 51,700; Furniture Rs. 8,200; Debtors Rs. 6,600 (Shyam Rs. 3,500, Shanker Rs. 2,600, Laxman Rs. 500); Creditors Rs. 7,100 (Reddy & Co. Rs. 3,020, Kishore Rs. 4,080); Capital Rs. 73,700. 

Their transactions during the month of January were as follows:

 2018

 Jan. 1 Borrowed from Globe Finance Co 10,000 

      “ 2 Bought goods for cash 2,300

      “ 2 Purchased from Reddy & Co 5,500

     “ 3 Paid into bank 9,000

     “ 5 Received cheque from Shyam 3,500

     “ 6 Sold goods for cash 1,200

     “ 7 Sold to Shanker 8,700 

    “ 8 Paid Kishore by cheque 2,000 Discount received 100

    “ 9 Received cheque from Shanker on account 5,000

    “ 9 Received credit note from Reddy & Co. for goods returned to them 380

    “ 10 Sold goods to Thomas 10,000

    “ 10 Drew cash from the bank 1,000

    “ 12 Purchased postage stamps 300 

   “ 14 Bought of Bose & Sons 9,300

   “ 16 Paid Globe Finance & Co. by cheque in part payment of loan 5,000 

   “ 17 Received cash from Laxman 500

   “ 21 Paid Reddy & Co. by cheque 6,000

  “ 23 Carriage paid 100

  “ 24 Withdrew cash for private expenses 1,500 

 “ 28 Paid salaries in cash 800

 “ 30 Rent due to landlord 500 

“ 31 Purchased furniture on credit from Joseph 600 

“ 31 Paid interest to Globe Finance Co. 100 

Enter the above transactions in the appropriate books, post them into ledger and prepare a Trial Balance.

 (Answer: Cash in hand Rs. 600, Cash at bank Rs. 15,800, Trial Balance Total Rs. 1,13,600.)

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