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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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(Closing Entries) Give the necessary entries in the Journal Proper of Ram on 31st March, 2025 to close his books:
Freehold Premises ₹30,000; Plant and Machinery ₹20,000; Sundry Debtors ₹25,000; Purchases ₹37,500; Sales ₹95,000; Discount (Dr.) ₹150; Discount (Cr.) ₹175; Sundry Creditors ₹12,500; Carriage Inwards ₹375; Carriage Outwards ₹600; Furniture and Fixtures ₹2,500; Wages ₹5,000; Bad Debts ₹750; Salaries ₹3,600; Commission (Cr.) ₹2,125; Capital Account ₹25,000; Bills Payable ₹7,500; Bills Receivable ₹9,000; Trade Expenses ₹2,550; Opening Stock ₹22,075; Closing Stock ₹10,000; Ram's Loan Account ₹20,000; Cash in Hand ₹75; Cash at Bank ₹3,125.
Books of Ram
Journal
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2025 Mar 31 | Trading A/c Dr | 64,950 | ||
| To Opening Stock A/c | 22,075 | |||
| To Purchases A/c | 37,500 | |||
| To Carriage Inwards A/c | 375 | |||
| To Wages A/c | 5,000 | |||
| (Being direct expenses transferred to Trading A/c) | ||||
| Mar 31 | Sales A/c Dr | 95,000 | ||
| Closing Stock A/c Dr | 10,000 | |||
| To Trading A/c | 1,05,000 | |||
| (Being sales and closing stock credited to Trading A/c) | ||||
| Mar 31 | Trading A/c Dr | 40,050 | ||
| To Profit & Loss A/c | 40,050 | |||
| (Being gross profit transferred to Profit & Loss A/c) | ||||
| Mar 31 | Profit & Loss A/c Dr | 7,650 | ||
| To Discount A/c | 150 | |||
| To Carriage Outwards A/c | 600 | |||
| To Bad Debts A/c | 750 | |||
| To Salaries A/c | 3,600 | |||
| To Trade Expenses A/c | 2,550 | |||
| (Being indirect expenses transferred to Profit & Loss A/c) | ||||
| Mar 31 | Discount A/c Dr | 175 | ||
| Commission A/c Dr | 2,125 | |||
| To Profit & Loss A/c | 2,300 | |||
| (Being indirect incomes credited to Profit & Loss A/c) | ||||
| Mar 31 | Profit & Loss A/c Dr | 34,700 | ||
| To Capital A/c | 34,700 | |||
| (Being net profit transferred to Capital A/c) |
Working: Gross Profit = Sales ₹95,000 + Closing Stock ₹10,000 − Direct Expenses ₹64,950 = ₹40,050
Net Profit = Gross Profit ₹40,050 + Indirect Incomes ₹2,300 − Indirect Expenses ₹7,650 = ₹34,700
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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