Set up a record from the accompanying exchanges in the books of a dealer Debit Balance on January 1, 2008:
Trade in for money Hand Rs. 8,000, Cash at Bank Rs. 25,000, Stock of Goods Rs. 20,000, Building Rs. 10,000. Sundry Debtors: Vijay Rs. 2,000 and Madhu Rs. 2,000.
Credit Balances on January 1, 2008:
Sundry Creditors: Anand Rs. 5,000.
Taking after were further exchanges in the month of January 2008
January 1
Purchased goods worth Rs. 5,000 for cash less 20% trade discount and 5% cash discount.
January 4
Received Rs. 1,980 from Vijay and allowed him Rs. 20 as discount.
January 8
Purchased plant from Mukesh for Rs. 5,000 and paid Rs. 100 as cartage for bringing the plant to the factory and another Rs. 200 as installation charges.
January 12
Sold goods to Rahim on credit Rs. 600.
January 15
Rahim became insolvent and could pay only 50 paise in a rupee.
January 18
Sold goods to Ram for cash Rs. 1,000.