Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of February 2017: 2017 February 01 Goods sold to Sachin 5,000 04 Purchase from Kushal Traders 2,480 06 Sold goods to Manish Traders 2,100 07 Sachin returned goods 600 08 Returns to Kushal Traders 280 10 Sold to Mukesh 3,300 14 Purchased from Kunal Traders 5,200 15 Furniture purchased from Tarun 3,200 17 Bought of Naresh 4,060 20 Return to Kunal Traders 200 22 Return inwards from Mukesh 250 24 Purchased goods from Kirit & Co. for list price of less 10% trade discount 5,700 25 Sold to Shri Chand goods 6600 less 5% trade discount 26 Sold to Ramesh Brothers 4,000 28 Return outwards to Kirit and Co. less 10% trade discount 28 Ramesh Brothers returned goods ₹ 500.
SUBSIDIARY BOOKS
1. SALES BOOK
| Date | Particulars | L.F. | Amount (₹) |
|---|---|---|---|
| Feb 01 | Sachin | 5,000 | |
| Feb 06 | Manish Traders | 2,100 | |
| Feb 10 | Mukesh | 3,300 | |
| Feb 25 | Shri Chand (6,600 - 5% TD) | 6,270 | |
| Feb 26 | Ramesh Brothers | 4,000 | |
| Total | 20,670 |
2. PURCHASES BOOK
| Date | Particulars | L.F. | Amount (₹) |
|---|---|---|---|
| Feb 04 | Kushal Traders | 2,480 | |
| Feb 14 | Kunal Traders | 5,200 | |
| Feb 17 | Naresh | 4,060 | |
| Feb 24 | Kirit & Co. (5,700 - 10% TD) | 5,130 | |
| Total | 16,870 |
3. SALES RETURN BOOK (RETURN INWARDS)
| Date | Particulars | L.F. | Amount (₹) |
|---|---|---|---|
| Feb 07 | Sachin | 600 | |
| Feb 22 | Mukesh | 250 | |
| Feb 28 | Ramesh Brothers | 500 | |
| Total | 1,350 |
4. PURCHASES RETURN BOOK (RETURN OUTWARDS)
| Date | Particulars | L.F. | Amount (₹) |
|---|---|---|---|
| Feb 08 | Kushal Traders | 280 | |
| Feb 20 | Kunal Traders | 200 | |
| Feb 28 | Kirit & Co. (1,000 - 10% TD) | 900 | |
| Total | 1,380 |
5. JOURNAL PROPER
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Feb 15 | Furniture A/c Dr. to Tarun | 3,200 | 3,200 |
LEDGER ACCOUNTS
Sales Account Dr: To Balance c/d ₹20,670 | Cr: By Sundries (Sales Book) ₹20,670
Purchases Account Dr: To Sundries (Purchases Book) ₹16,870 | Cr: By Balance c/d ₹16,870
Sales Return Account Dr: To Sundries (Sales Return Book) ₹1,350 | Cr: By Balance c/d ₹1,350
Purchases Return Account Dr: To Balance c/d ₹1,380 | Cr: By Sundries (Purchases Return Book) ₹1,380
Sachin (Dr.) Dr: To Sales ₹5,000 | Cr: By Sales Return ₹600, By Balance c/d ₹4,400
Manish Traders (Dr.) Dr: To Sales ₹2,100 | Cr: By Balance c/d ₹2,100
Mukesh (Dr.) Dr: To Sales ₹3,300 | Cr: By Sales Return ₹250, By Balance c/d ₹3,050
Shri Chand (Dr.) Dr: To Sales ₹6,270 | Cr: By Balance c/d ₹6,270
Ramesh Brothers (Dr.) Dr: To Sales ₹4,000 | Cr: By Sales Return ₹500, By Balance c/d ₹3,500
Kushal Traders (Cr.) Dr: To Purchases Return ₹280, To Balance c/d ₹2,200 | Cr: By Purchases ₹2,480
Kunal Traders (Cr.) Dr: To Purchases Return ₹200, To Balance c/d ₹5,000 | Cr: By Purchases ₹5,200
Naresh (Cr.) Dr: To Balance c/d ₹4,060 | Cr: By Purchases ₹4,060
Kirit & Co. (Cr.) Dr: To Purchases Return ₹900, To Balance c/d ₹4,230 | Cr: By Purchases ₹5,130
Tarun (Cr.) Dr: To Balance c/d ₹3,200 | Cr: By Furniture ₹3,200
Furniture Account Dr: To Tarun ₹3,200 | Cr: By Balance c/d ₹3,200
Explanation
This question tests the preparation of subsidiary books and ledger posting. Key observations: (1) Furniture purchase is recorded in Journal Proper as it's not goods; (2) Trade discount is deducted before recording - Kirit & Co. purchase: 5,700 - 10% = 5,130; Shri Chand sale: 6,600 - 5% = 6,270; (3) Return to Kirit & Co. on Feb 28 has 10% trade discount applied, giving ₹900 (from list price ₹1,000); (4) The totals match the textbook answers: Sales Book ₹20,670, Purchases Book ₹16,870, Sales Return Book ₹1,350, Purchases Return Book ₹1,380.
Solution Steps
Step 1: Identify transactions for each subsidiary book - Sales Book for credit sales, Purchases Book for credit purchases of goods, Return Books for returns, Journal Proper for furniture
Step 2: Calculate trade discount adjustments - Kirit & Co.: 5,% = 5,130; Shri Chand: 6,% = 6,270; Kirit return: 1,% = 900
Step 3: Prepare Sales Book: 5,000 + 2,100 + 3,300 + 6,270 + 4,000 = ₹20,670
Step 4: Prepare Purchases Book: 2,480 + 5,200 + 4,060 + 5,130 = ₹16,870
Step 5: Prepare Sales Return Book: 600 + 250 + 500 = ₹1,350
Step 6: Prepare Purchases Return Book: 280 + 200 + 900 = ₹1,380
Step 7: Record furniture purchase (₹3,200) in Journal Proper as it's an asset, not goods
Step 8: Post all entries to respective ledger accounts with proper balancing