Page 92 - DEBK-XI(2020)

Trial Balance 13.5

3. Following is the Trial Balance of S.K. Gupta on 30th September, 2016:

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) Mr. S.K. Gupta had taken a cash loan of ` 50,000 from Mr. 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 MR. S.K. GUPTA
as on 30th September, 2016
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