Question No 09 Chapter No 7
09. From the information given below:
(a) Prepare the account of Mr Small as it would appear in the books of Mr Big.
|Mar. 1||Debit balance brought forward||3,000|
|Mar. 7||Mr Small made credit purchases from Mr Big||1,500|
|Mar. 12||Mr Small returned defective goods||150|
|Mar. 15||Mr Small paid on account||3,000|
|Mar. 30||Mr Small repaid the roof of Mr Bag’s premises and agrees to adjust the value of this work in his account Rs 530|
(b) What does the balance of the account at the end of the months mean?
The solution of Question No 09 Chapter No 7: –
|Dr.||Books of Big
|Mar. 1||To Balance b/d||3,000||Mar. 12||By Return inwards A/c||150|
|Mar. 7||To Sale A/c||1,500||Mar. 15||By Cash A/c||3,000|
|Mar. 30||By Repair A/c||530|
|Apr. 30||By Balance c/d||820|
(b) The debit balance of Rs 820 in the account of Mr Small indicates that he is indebted to Big
Thanks, Please Like and share with your friends
Comment if you have any question.
Also, Check out the solved question of all Chapters: –
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 3 – Origin of Transactions
Chapter No. 6 – Accounting for Goods and Services Tax(GST)