Question
Write a short note on 'balancing an account'. Explain by balancing a Cash Account.
✓
Answer
A balance of an account is the difference between the total of its debit and credit sides. If the total of debit side is more than the total of credit side, the account is said to have a debit balance. It has a credit balance when total of credit side is more than the total of debit side. Balancing a Cash Account.
| ₹ | ₹ | ||||
| 1. | Cash sales | 50,000 | 2. | Sold goods to X on credit | 80,000 |
| 3. | Cash received from X | 56,000 | 4. | Purchased goods from Y on credit | 44,000 |
| 5. | Paid to Y | 30,000 | 6. | Cash purchases from Y | 16,000 |
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
Prepare Accounting Equation from the following:
|
|
|
₹
|
|
i.
|
Kunal started business with Cash
|
2,50,000
|
|
ii.
|
He purchased furniture for cash
|
35,000
|
|
iii.
|
He paid commission
|
2,000
|
|
iv.
|
He purchased goods on credit
|
40,000
|
|
v.
|
He sold goods (Costing ₹ 20,000) for cash
|
26,000
|
Ram started business on $1st$ April, $2018$ with a Capital of ₹ $25,000$ and a loan of ₹ $12,500$. On $31^{st}$ March, $2019$, his assets were ₹ $50,000$. Find his capital as on $31^{st}$ March, $2019$ and the profit earned during the year.
→Give the journal entries corresponding to the narration given below:
Mohit has the following transactions, prepare Accounting Equation:
|
|
|
₹
|
|
i.
|
Business started with cash
|
1,75,000
|
|
ii.
|
Purchased goods from Rohit
|
50,000
|
|
iii.
|
Sold goods on credit to Manish (costing ₹ 17,500)
|
20,000
|
|
iv.
|
Purchased furniture for office use
|
10,000
|
|
v.
|
Cash paid to Rohit in full settlement
|
48,500
|
| vi. | Cash received from Manish | 20,000 |
| vii. | Rent paid | 1,000 |
| viii. | Cash withdrew for personal use | 3,000 |
Record the following transaction in the Sales Book of Karunakaran & Sons, Chennai (Tamilnadu) assuming CGST @ 90% and SGST @ 9% and post them into Ledger:
|
2017
|
|
|
Dec. 5
|
Sold of M/s Banwari Lal & Sons, Chennai, goods valued at ₹ 2,00,000 less Trade Discount 10%
|
|
Dec. 10
|
Sold to M/s Kanti Bhai & Sons, Bengaluru (Karnataka):
|
|
75 Electric Fans @ ₹ 4,000 each
|
|
|
20 Room Coolers @ ₹ 10,000 each
|
|
|
Less: Trade Discount 8%
|
|
|
Dec. 16
|
Mahindra & Co., Kochi (Kerala) purchased from us goods of ₹ 1,20,000, less: 5%
|
|
Dec. 24
|
Sold goods for cash ₹ 60,000
|
International Financial Reporting Standards (IFRS) provides a number of benefits. Explain any three.
Trial Balance is a link between ledger and final accounts.
Show the effect of following transaction on the accounting equation:
(Ans: Assets = Cash ₹ 2,42,000 + Goods ₹ 1,43,000 + Building ₹ 1,90,000 + Prepaid Insurouce ₹ 2,000 = ₹ 5,77,000; Liabilities = Outstanding Rent ₹ 3,000 + Creditor ₹ 10,000 + Capital ₹ 5,64,000 = ₹ 5,77,000)
|
a.
|
Manoj started business with
(i) Cash
(ii) Goods
(iii) Building
|
₹ 2,30,000
₹ 1,00,000
₹ 2,00,000
|
|
b.
|
He purchased goods for cash
|
₹ 50,000
|
|
c.
|
He sold goods (costing ₹ 20,000)
|
₹ 35,000
|
|
d.
|
He purchased goods from Rahul
|
₹ 55,000
|
|
e.
|
He sold goods to Varun (Costing ₹ 52,000)
|
₹ 60,000
|
|
f.
|
He paid cash to Rahul in full settlement
|
₹ 53,000
|
|
g.
|
Salary paid by him
|
₹ 20,000
|
|
h.
|
Received cash from Varun in full settlement
|
₹ 59,000
|
| i. | Rent outstanding | ₹ 3,000 |
| j. | Prepaid Insurance | ₹ 2,000 |
| k. | Commission received by him | ₹ 13,000 |
| l. | Amount withdrawn by him for personal use | ₹ 20,000 |
| m. | Depreciation charge on building | ₹ 10,000 |
| n. | Fresh capital invested | ₹ 50,000 |
| o. | Purchased goods from Rakhi | ₹ 10,000 |
Name the various entries which have to be passed through a Journal even though we might have kept all the subsidiary books in the business.
What is a Credit Note?