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1.Mr lal commenced business with cash 200000 2. Goods sold at 50000 and allowed 10% cash discount. 3. Salary paid 10000 4. Commission received 5000 5 .Rent paid 15000 Give ledger or trial balance?
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1.Mr lal commenced business with cash 200000 2. Goods sold at 50000 an...
**Ledger Account**
A ledger account is a record or a book that contains all the transactions related to a particular account in a business. It helps in summarizing and organizing the financial information for each account. In this case, we need to create ledger accounts for the different transactions mentioned.
**Trial Balance**
A trial balance is a statement that lists all the ledger accounts and their balances at a specific point in time. It is used to check the accuracy of the bookkeeping and ensure that the debits and credits are equal.
Now let's create the ledger accounts for the given transactions:
**1. Cash Account**
Date | Particulars | Debit | Credit
--- | --- | --- | ---
| Capital | 200,000 |
| Balance b/d | 200,000 |
| | | |
**2. Sales Account**
Date | Particulars | Debit | Credit
--- | --- | --- | ---
| Cash | | 45,000
| Discount Allowed | | 5,000
| | | |
**3. Salary Account**
Date | Particulars | Debit | Credit
--- | --- | --- | ---
| Salary Expense | 10,000 |
| | | |
**4. Commission Account**
Date | Particulars | Debit | Credit
--- | --- | --- | ---
| Cash | | 5,000
| | | |
**5. Rent Account**
Date | Particulars | Debit | Credit
--- | --- | --- | ---
| Rent Expense | 15,000 |
| | | |
Now, let's prepare the trial balance:
**Trial Balance**
Particulars | Debit | Credit
--- | --- | ---
Cash | 45,000 |
Capital | 200,000 |
Sales | | 50,000
Discount Allowed | | 5,000
Salary Expense | 10,000 |
Commission | | 5,000
Rent Expense | 15,000 |
| Total | 270,000 | 60,000
In the trial balance, we can see that the total debit and total credit are equal, which indicates that the accounting entries are balanced.
The ledger accounts and trial balance provide a clear picture of the financial transactions in the business. They help in analyzing the financial position, tracking expenses, monitoring sales, and ensuring accuracy in the bookkeeping process.
A ledger account is a record or a book that contains all the transactions related to a particular account in a business. It helps in summarizing and organizing the financial information for each account. In this case, we need to create ledger accounts for the different transactions mentioned.
**Trial Balance**
A trial balance is a statement that lists all the ledger accounts and their balances at a specific point in time. It is used to check the accuracy of the bookkeeping and ensure that the debits and credits are equal.
Now let's create the ledger accounts for the given transactions:
**1. Cash Account**
Date | Particulars | Debit | Credit
--- | --- | --- | ---
| Capital | 200,000 |
| Balance b/d | 200,000 |
| | | |
**2. Sales Account**
Date | Particulars | Debit | Credit
--- | --- | --- | ---
| Cash | | 45,000
| Discount Allowed | | 5,000
| | | |
**3. Salary Account**
Date | Particulars | Debit | Credit
--- | --- | --- | ---
| Salary Expense | 10,000 |
| | | |
**4. Commission Account**
Date | Particulars | Debit | Credit
--- | --- | --- | ---
| Cash | | 5,000
| | | |
**5. Rent Account**
Date | Particulars | Debit | Credit
--- | --- | --- | ---
| Rent Expense | 15,000 |
| | | |
Now, let's prepare the trial balance:
**Trial Balance**
Particulars | Debit | Credit
--- | --- | ---
Cash | 45,000 |
Capital | 200,000 |
Sales | | 50,000
Discount Allowed | | 5,000
Salary Expense | 10,000 |
Commission | | 5,000
Rent Expense | 15,000 |
| Total | 270,000 | 60,000
In the trial balance, we can see that the total debit and total credit are equal, which indicates that the accounting entries are balanced.
The ledger accounts and trial balance provide a clear picture of the financial transactions in the business. They help in analyzing the financial position, tracking expenses, monitoring sales, and ensuring accuracy in the bookkeeping process.
Community Answer
1.Mr lal commenced business with cash 200000 2. Goods sold at 50000 an...
Cash Dr to capital 200000 cash Dr. to sales 45000 salary Dr to cash 10000 cash Dr. to commission 5000 rent Dr to cash 15000 ledger make urslf trail balance s easy u try else I will tell u
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1.Mr lal commenced business with cash 200000 2. Goods sold at 50000 and allowed 10% cash discount. 3. Salary paid 10000 4. Commission received 5000 5 .Rent paid 15000 Give ledger or trial balance?
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1.Mr lal commenced business with cash 200000 2. Goods sold at 50000 and allowed 10% cash discount. 3. Salary paid 10000 4. Commission received 5000 5 .Rent paid 15000 Give ledger or trial balance? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about 1.Mr lal commenced business with cash 200000 2. Goods sold at 50000 and allowed 10% cash discount. 3. Salary paid 10000 4. Commission received 5000 5 .Rent paid 15000 Give ledger or trial balance? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 1.Mr lal commenced business with cash 200000 2. Goods sold at 50000 and allowed 10% cash discount. 3. Salary paid 10000 4. Commission received 5000 5 .Rent paid 15000 Give ledger or trial balance?.
1.Mr lal commenced business with cash 200000 2. Goods sold at 50000 and allowed 10% cash discount. 3. Salary paid 10000 4. Commission received 5000 5 .Rent paid 15000 Give ledger or trial balance? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about 1.Mr lal commenced business with cash 200000 2. Goods sold at 50000 and allowed 10% cash discount. 3. Salary paid 10000 4. Commission received 5000 5 .Rent paid 15000 Give ledger or trial balance? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 1.Mr lal commenced business with cash 200000 2. Goods sold at 50000 and allowed 10% cash discount. 3. Salary paid 10000 4. Commission received 5000 5 .Rent paid 15000 Give ledger or trial balance?.
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