OVERVIEW OF PROCEDURE

Following are a few transactions of M/s. Rajesh Traders consisting of 16 transactions along with Journal entries, Ledgers, Trial Balance, Financial Statements along with some of the ledgers and similarly, you can prepare the remaining ledgers.

The following are the transactions of M/s Rajesh Traders.
Date	Particulars
2012
April 1	Rajesh started his business with cash Rs 1,00,000
April 10	Rajesh opened an account in a bank with cash Rs 30,000
May 10	Purchased goods from Mohan Singh on credit Rs 40,000 and also paid carriage of Rs 2,000
May 20	Sold goods to Rajeev Rs 20,000
May 25	Due to some quality defect Mohan Singh returned goods of Rs 10,000
June 15	Sold goods to Ayesha for Rs 70,000
June 30	Paid rent of Rs 10,000
Aug.31	Purchased Furniture for cash of Rs 8,000
Sept.10	Paid through a cheque of Rs 5,000 for advertisement
Oct.05	Withdrawn Rs 6,000 from Bank for personal use
Nov.30	Recovered Rs 65,000 from Ayesha in full settlement of his account
Dec.12	Goods costing Rs 1,000 donated to NGO
Dec.31	Salaries paid to employees Rs 15,000
2013
Jan.15	Interest received from Bank Rs 2,000
Feb.10	Rajeev has become insolvent Rs 80 paisa in the rupees on a debt of Rs 20,000 was recovered as a compensation
March 31	Stock of good at end of the year is Rs 32,000

Journalize above transaction, post them in ledgers, prepare Trial Balance and Financial Statements for year ending March 31, 2013

Books of M/s Rajesh Traders
Journal
Date	Particulars			L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2012
April 01	Cash A/c		Dr.		1,00,000
	To Capital A/c					1,00,000
	(Business started with cash of Rs 1,00,000)
April 10	Bank A/c		Dr.		30,000
	To Cash A/c					30,000
	(Opened a Bank Account)
May 10	Purchase A/c		Dr.		40,000
	To Mohan Singh					40,000
	(Goods Purchased on credit)
May 10	Carriage A/c		Dr.		2,000
	To Cash A/c					2,000
	(Carriage paid on purchase of goods)
May 20	Rajeev		Dr.		20,000
	To Sales A/c					20,000
	(Goods sold to Rajeev)
May 25	Mohan Singh		Dr.		10,000
	To Purchase Return A/c					10,000
	(Goods returned by Mohan Singh)
June 15	Ayesha		Dr.		70,000
	To Sales A/c					70,000
	(Goods Sold to Ayesha)
June 30	Rent A/c		Dr.		10,000
	To Cash A/c					10,000
	(Rent Paid)
Aug.31	Furniture A/c		Dr.		8,000
	To Cash A/c					8,000
	(Furniture purchased)
Sept.10	Advertisement A/c		Dr.		5,000
	To Bank A/c					5,000
	(Advertisement expenses paid through cheque)
Oct.05	Drawing A/c		Dr.		6,000
	To Bank					6,000
	(Withdrawn from bank for personal use)
Nov.30	Cash A/c		Dr.		65,000
	Discount Allowed A/c		Dr.		5,000
	To Ayesha					70,000
	(Recovered from Ayesha in full settlement of his account)
Dec.12	Donation A/c		Dr.		1,000
	To Purchases A/c					1,000
	(Goods of Rs 1,000 donated to NGO)
Dec.31	Salaries A/c		Dr.		15,000
	To Cash A/c					15,000
	(Salaries Paid to employees)
2013
Jan.15	Bank A/c		Dr.		2,000
	To Interest A/c					2,000
	(Interest received)
Feb.10	Cash A/c		Dr.		16,000
	Bad debt A/c		Dr.		4,000
	To Rajeev A/c					20,000
	(Cash compensation of 80 paise in the rupees received from Rajeev)
Mar.31	Closing Stock A/c		Dr.		32,000
	To Trading A/c					32,000
	(Closing stock transferred in account)

Cash Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2012					2012
April.01		Capital A/c		1,00,000	April 10	Bank A/c		30,000
Nov.30		Ayesha		65,000	May 10	Carriage A/c		2,000
2013					June 30	Rent A/c		10,000
Feb.10		Rajeev		16,000	Aug.31	Furniture A/c		8,000
					Dec.31	Salaries A/c		15,000
					2013
					Mar.31	Balance c/d		1,16,000
				1,81,000				1,81,000

Bank A/c
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2012					2012
April 10		Cash A/c		30,000	Sept.10	Advertisement A/c		5,000
					Oct.05	Drawings A/c		6,000
2013					2013
Jan.15		Interest A/c		2,000	Mar.31	Balance c/d		21,000
				32,000				32,000

Mohan Singh
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2012					2012
May 25		Purchase Return		10,000	May 10	Purchases A/c		40,000
2013
Mar 31		Balance c/d		30,000
				40,000				40,000

Purchases A/c
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2012					2012
May 10		Mohan Singh		40,000	Dec.12	Donation A/c		1,000
					2013
					Mar.31	Balance c/d		39,000
				40,000				40,000

Bad Debts A/c
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2013					2013
Feb.10		Rajeev		4,000	Mar.31	Balance c/d		4,000
				4,000				4,000

Trial Balance as at March 31, 2013
S.No.	Name of Accounts	L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1	Cash A/c		1,16,000
2	Capital A/c			1,00,000
3	Bank A/c		21,000
4	Purchases A/c		39,000
5	Sales A/c			90,000
6	Purchases Return A/c			10,000
7	Mohan Singh			30,000
8	Carriage A/c		2,000
9	Rent A/c		10,000
10	Furniture A/c		8,000
11	Advertisement A/c		5,000
12	Drawings A/c		6,000
13	Discount Allowed A/c		5,000
14	Donation A/c		1,000
15	Salaries A/c		15,000
16	Interest A/c			2,000
17	Bad Debts A/c		4,000
			2,32,000	2,32,000

Financial Statements for the year ended March 31, 2013

Trading Account
Dr.						Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Purchases		39,000		Sales	90,000
Less: Purchases Return		(10,000)	29,000	Closing Stock	32,000
Carriage			2,000
Gross Profit (Balancing Figure)			91,000
			1,22,000		1,22,000

Profit and Loss Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Rent		10,000	Gross Profit	91,000
Advertisement		5,000	Interest	2,000
Discount Allowed		5,000
Donations		1,000
Salaries		15,000
Bad Debts		4,000
Net Profit (Balancing Figure)		53,000
		93,000		93,000

Balance Sheet as on March 31, 2013
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	1,00,000		Fixed Assets :
Less: Drawings	(6,000)		Furniture	8,000
Add: Net Profit	53,000	1,47,000
			Current Assets :
Current Liabilities :			Cash	1,16,000
Creditors:			Bank	21,000
Mohan Singh		30,000	Closing Stock	32,000
		1,77,000		1,77,000