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  1. This answer was edited.

    Yes. Let's take a set of transactions and prepare all the requisite information asked. Following are the transactions for the period April 20x1 to March 20x2 in the books of Michael Traders 1-Apr Michael started business with cash 600,000, cash at Bank of America 700,000, furniture 200,000. 1-Apr PuRead more

    Yes.

    Let’s take a set of transactions and prepare all the requisite information asked.

    Following are the transactions for the period April 20×1 to March 20×2 in the books of Michael Traders

    1-AprMichael started business with cash 600,000, cash at Bank of America 700,000, furniture 200,000.
    1-AprPurchased Plant & Machinery worth 250,000 by cheque.
    25-AprPurchased goods from ABC Ltd worth 800,000 @10% trade discount.
    5-MayCash Sales 1,000,000 @5% trade discount to XYZ Traders
    15-MayDeposited cash with Bank of America 500,000.
    5-JunPaid ABC Ltd 300,000 in cash.
    10-JunReceived commission 75,000 by cheque.
    25-JunCash Purchases 250,000.
    5-JulSold goods to XYZ Traders 475,000.
    15-JulReceived 275,000 by cheque from XYZ Traders.
    5-AugLoan taken from Bank of America 200,000
    25-AugPurchased goods from ABC Ltd 50,000.
    27-AugWithdrew cash from bank 10,000.
    5-SepReceived commission 55,000 in cash.
    10-SepPaid ABC Ltd 70,000 by cheque.
    20-SepReceived 90,000 in cash from XYZ Traders.
    1-OctBank loan repaid 50,000.
    25-OctCash Purchases 25,000.
    5-NovSold goods to XYZ Traders 47,000.
    15-NovWithdrew cash from bank 15,000.
    5-DecReceived interest from bank 5,000.
    25-DecPurchased goods from ABC Ltd 75,000.
    5-JanCash Sales 100,000.
    15-JanDeposited cash with Bank of America 35,000.
    25-FebCash Purchases 450,000.
    28-FebOffice was taken on rent in the month of Feb. Office rent paid in cash 50,000.
    28-FebEmployees were hired in the month of Feb. Paid salary by cheque 30,000 & cash 30,000 for the month of Feb 20×2.
    5-MarSold goods to XYZ Traders 675,000.
    31-MarPaid office rent by cheque 50,000.
    31-MarPaid salary in cash 30,000 for the month of March 20×2.

    You are required to:
    (i) Journalize the above transactions and post them in Ledgers and prepare a Trial Balance.

    (ii) Prepare Trading A/c, Profit & Loss A/c and Balance Sheet taking into consideration:
    1. Closing Stock as on 31st March 20×2 is 200,000.
    2. Salary outstanding for the month of March 20×2 is 30,000.
    3. [email protected]% to be charged on Furniture & Fixtures and @15% on Plant & Machinery.

    1. Journal Entries

    April & May Journal

    June-Aug Journal

    Sep-Nov Journal

    Dec-Jan Journal

    Feb-March Journal

    2. Ledgers

    Ledger-Micheal Capital A/c

    Ledger-Purchases & Sales A/c

    Ledger-Furniture A/c & Plant & Machinery A/c

    Ledger-Creditor & Debtor A/c

    Ledger-Bank Loan A/c

    Ledger-Salary & Office Rent A/c

    Ledger-Interest & Commission received A/c

    Ledger-Cash A/c

    Ledger-Bank of America A/c

    3. Trial Balance

    Trial Balance

    4. Trading A/c & Profit and Loss A/c

    Trading A/c and Profit & Loss A/c

    5. Balance Sheet

    Balance Sheet

    An excel sheet of the entire transactions along with the requisite information asked has been attached for your reference.

    30-transactions-of-Journal-Ledger-Trial-Balance-Financial-Statements

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