Page 58 - DEBK-XI(2020)

Ledger 9.9

TRIAL BALANCE as at 31st January, 2020
S. No. Heads of Accounts L.F. Dr. (`) Cr. (`)
1. Capital A/c ... 19,000
2. Cash A/c 1,520 ...
3. Bank A/c 17,425 ...
4. Machinery A/c 10,000 ...
5. Furniture A/c 900 ...
6. Stock A/c 4,000 ...
7. Purchases A/c 2,750 ...
8. Sales A/c ... 2,000
9. Bank Loan A/c ... 5,000
10. Jacob Bros. Ltd. ... 1,000
11. Samuel & Co. ... 1,000
12. Discount Allowed A/c 50
13. Discount Received A/c ... 25
14. Repairs A/c 100 ...
15. Cartage A/c 50 ...
16. Municipal Taxes A/c 100 ...
17. Sundry Receipts A/c ... 20
18. Advertisement A/c 100 ...
19. Rent A/c 150 ...
20. Salaries A/c 300 ...
21. Drawings A/c 250 ...
22. Bad Debts A/c 500 ...
23. Bad Debts Recovered A/c ... 150
24. Loan from Urania Ltd. A/c ... 10,000
Total 38,195 38,195

2. From the following particulars, prepare the account of Budhiraja, the proprietor
of the business:
`
(i) Capital introduced 30,000

(ii) Drawings made by him 6,500
(iii) Further Capital introduced 22,000
(iv) Profits for the period 7,500
Balance the same and explain what does the closing balance indicate.
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 and 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.