Journal entry:

Date | Particulars | L.F | Debit | Credit
---|---|---|---|---
31.01.2008 | Cash A/c | Dr | 20,000 |
31.01.2008 | Furniture A/c | Dr | 10,000 |
31.01.2008 | To Capital A/c | | | 30,000

Ledger accounts:

Cash A/c

Date | Particulars | L.F | Debit | Credit | Balance
---|---|---|---|---|---
31.01.2008 | To Balance b/d | | | |
31.01.2008 | By Capital A/c | | | 20,000 | 20,000
| | | 20,000 | 20,000 |

Furniture A/c

Date | Particulars | L.F | Debit | Credit | Balance
---|---|---|---|---|---
31.01.2008 | To Balance b/d | | | |
31.01.2008 | By Capital A/c | | | 10,000 | 10,000
| | | 10,000 | 10,000 |

Capital A/c

Date | Particulars | L.F | Debit | Credit | Balance
---|---|---|---|---|---
31.01.2008 | To Balance b/d | | | |
31.01.2008 | By Cash A/c | | 20,000 | | 20,000
31.01.2008 | By Furniture A/c | | 10,000 | | 30,000
| | | 30,000 | 30,000 |

Trial balance:

Particulars | Debit | Credit
---|---|---
Cash A/c | 20,000 |
Furniture A/c | 10,000 |
Capital A/c | 30,000 |
Total | 60,000 | 30,000

Explanation:

Karthik invested Rs. 20,000 in cash and bought furniture worth Rs. 10,000. These transactions are recorded as debit to Cash A/c and Furniture A/c respectively and credit to Capital A/c. The Ledger accounts are prepared for each of the accounts involved in the transaction. The Trial balance is prepared by listing all the accounts and their debit and credit balances. The total of all the debit balances should be equal to the total of all the credit balances. In this case, the trial balance shows that the total debits and credits are equal, which indicates that the transactions have been recorded correctly.