1. Post the following transactions of a restaurant to prepare the journal
ledger and trial balance.
Jan - 2011 Transaction Amount
5 Started the business with cash 2,50,000
10 Deposited in the bank 50,000
15 Purchased tables and chairs 80,000
20 Purchased Freeze 30,000
22 Purchased goods for cash 50,000
25 Sold food items for cash 60,000
27 Sold food items for credits 70,000
29 Paid salary 55,000
31 Paid rent 40,000
MCSL-036/ S4 3
To prepare the journal, ledger, and trial balance for the given transactions, you need to follow these steps:
1. Start by creating a journal entry for each transaction. The journal entry format consists of the date, a brief description of the transaction, and the debit and credit amounts.
Here are the journal entries for the given transactions:
Jan 5, 2011:
Cash 2,50,000
Capital 2,50,000 (Started the business with cash)
Jan 10, 2011:
Bank 50,000
Cash 50,000 (Deposited in the bank)
Jan 15, 2011:
Furniture and Fixtures 80,000
Cash 80,000 (Purchased tables and chairs)
Jan 20, 2011:
Freeze 30,000
Cash 30,000 (Purchased freeze)
Jan 22, 2011:
Purchase 50,000
Cash 50,000 (Purchased goods for cash)
Jan 25, 2011:
Cash 60,000
Sales 60,000 (Sold food items for cash)
Jan 27, 2011:
Accounts Receivable 70,000
Sales 70,000 (Sold food items on credit)
Jan 29, 2011:
Salary Expense 55,000
Cash 55,000 (Paid salary)
Jan 31, 2011:
Rent Expense 40,000
Cash 40,000 (Paid rent)
2. After recording the journal entries, transfer each entry to the respective accounts in the ledger. The ledger contains separate accounts for each type of transaction.
Here is an example of how the ledger accounts would look like:
Cash Account:
Date Description Debit Credit Balance
Jan 5, 2011 Capital 2,50,000
Jan 10, 2011 50,000 2,50,000 3,00,000
Jan 15, 2011 80,000 3,00,000 3,80,000
Jan 20, 2011 30,000 3,80,000 4,10,000
Jan 22, 2011 50,000 4,10,000 4,60,000
Jan 25, 2011 Sales 60,000 4,60,000 4,00,000
Jan 29, 2011 55,000 4,00,000 3,45,000
Jan 31, 2011 40,000 3,45,000 3,05,000
Similarly, create ledger accounts for other accounts like Bank, Furniture and Fixtures, Freeze, Purchase, Accounts Receivable, Sales, Salary Expense, Rent Expense, etc.
3. Finally, prepare the trial balance. The trial balance is a list of all the debit and credit balances in the ledger accounts. It helps to ensure that the total debits and credits match.
Here is an example of the trial balance based on the ledger accounts mentioned above:
Account Name Debit Credit
Cash 3,05,000 -
Bank 50,000
Furniture and Fixtures - 80,000
Freeze - 30,000
Purchase - 50,000
Accounts Receivable - 70,000
Sales - 1,30,000
Salary Expense - 55,000
Rent Expense - 40,000
Capital - 2,50,000
Total 3,05,000 4,45,000
In the trial balance, the total of the debit column should match the total of the credit column. In this case, both sides are equal, which means the accounts are balanced.
By following these steps, you will be able to prepare the journal, ledger, and trial balance for the given transactions of the restaurant.