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Journalise the following transactions and post them into the Ledger : |
Answer» Solution : Notes : 1. Discount allowed by OTHERS is discount received. It is a gain so it should be credited. 2. A combined or compound entry is passed since rent and salary to RAM have been paid in cash on the same day. 3. Ledger Folios are imaginary.   Note. : At the end of an accounting period, accounts marked with (*) will b closed by transferring to the ' Trading Account ' and accounts marked with (**) will be closed by transferring to the ' Profit and Loss Account ' since they are Nominal Accounts ( REVENUE and Expenses Accounts under MODERN Classification). In other words, balance of accounts related to Goods Account (e.g., Purchase Account, Sales Account, Purchase Return Account, Sales Return Account ) and Direct Expenses Accounts are transferred to the Trading Accounts and accounts relate to indirect expenses or INCOMES are transferred to the Profit and Loss Accounts. |
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