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.)