09 – Paid to Mr. A Rs. 25,000 through cheque Lecture 1 09 – Paid to Mr. A Rs. 25,000 through cheque Mr. A Code 07 Date No Narration Dr. Rs. Cr. Rs. Bal. Dr/(Cr) Feb 01 Balance B/F 15,000 (15,000) Feb 10 06 Credit purchase from B 60,000 (75,000) Feb 17 09 Paid to A 25,000 (50,000) Bank Account Code 02 Date No Narration Dr. Rs. Cr. Rs. Bal. Dr/(Cr) Feb 01 Balance B/F 130,000 Feb 02 01 Cash deposited 25,000 155,000 Feb 05 03 Expenses payable paid 15,000 140,000 Feb 15 08 Fixed deposit placed 75,000 65,000 Feb 17 09 Paid to A 40,000

10 – Received cash from Mr. B. Rs. 75,000. Lecture 1 10 – Received cash from Mr. B. Rs. 75,000. Mr. B Code 09 Date No. Narration Dr. Rs. Cr. Rs. Bal. Dr/(Cr) Feb 01 Balance B/F 15,000 Feb 06 04 Cash received from B 14,000 1,000 Feb 07 05 Discount given to B Feb 12 07 Credit sale to B 95,000 Feb 20 10 Received from B 75,000 20,000 Cash Account Code 01 Date No. Narration Dr. Rs. Cr. Rs. Bal. Dr/(Cr) Feb 01 Balance B/F 35,000 Feb 02 01 Cash deposited 25,000 10,000 Feb 06 04 Cash received from B 14,000 24,000 Feb 20 10 Received from B 75,000 99,000

11 – Salaries accrued Rs. 5,000. Salaries Code 10 Date No. Narration Lecture 1 11 – Salaries accrued Rs. 5,000. Salaries Code 10 Date No. Narration Dr. Rs. Cr. Rs. Bal. Dr/(Cr) Feb 01 Balance B/F 5,000 Feb 28 11 Salaries Accrued 10,000 Expenses Accrued Code 12 Date No. Narration Dr. Rs. Cr. Rs. Bal. Dr/(Cr) Feb 01 Balance B/F 20,000 (20,000) Feb 03 02 Expenses payable reduced 5,000 (15,000) Feb 05 03 Expenses payable paid 15,000 Feb 28 11 Salaries Accrued (5,000)

12 – Expenses accrued Rs. 15,000. Expense Account Code 01 Date No. Lecture 1 12 – Expenses accrued Rs. 15,000. Expense Account Code 01 Date No. Narration Dr. Rs. Cr. Rs. Bal. Dr/(Cr) Feb 01 Balance B/F 20,000 Feb 03 02 Expenses payable reduced 5,000 15,000 Feb 28 12 Expenses accrued 30,000 Expenses Accrued Code 12 Date No. Narration Dr. Rs. Cr. Rs. Bal. Dr/(Cr) Feb 01 Balance B/F 20,000 (20,000) Feb 03 02 Expenses payable reduced 5,000 (15,000) Feb 05 03 Expenses payable paid 15,000 Feb 28 11 Salaries Accrued (5,000) 12 Expenses accrued

Trial Balance As On February 28, 20-- Lecture 1 Trial Balance Ali Traders Trial Balance As On February 28, 20-- Title of Account Code Dr. Rs. Cr. Rs. Cash Account 01 99,000 Bank Account 02 40,000 Capital Account 03 200,000 Furniture Account 04 15,000 Vehicle Account 05 50,000 Purchases Account 06 120,000 Mr. A (Creditor) 07

Trial Balance As On February 28, 20-- Lecture 1 Ali Traders Trial Balance As On February 28, 20-- Title of Account Code Dr. Rs. Cr. Rs. Sales 08 190,000 Mr. B (Debtor) 09 20,000 Salaries 10 10,000 Expenses 11 30,000 Expenses Payable 12 Discount 13 1,000 Fixed deposit 14 75,000 Total 460,000

Items purchased for the purpose of resale are treated as Purchases. Lecture 1 Items purchased for own use of the business are charged as expense, e.g. tube lights, bulbs, stationery etc. Items purchased for the purpose of resale are treated as Purchases.

Lecture 1 Stock Stock is the quantity of unutilized or unsold goods lying with the organization.

Lecture 1 Types of Stock In case of Trading Concern (an organization that does not manufacture goods and but resells the purchased goods.) Stock in Trade (Finished goods) In case of Manufacturing Concern (an organization that purchases material and converts into a finished product by putting it through a process). Raw Material Stock Work in Process Finished Goods Stock

Lecture 1 Stock Account Stock Account is Debited with the Value of the Goods Purchased. Stock account is Credited with the Purchase Price of the Goods Sold / Issued for Production. Stock Account shows the cost / purchase value of unsold goods.

Purchase of Stock Credit Cash Account OR Supplier / Creditor Account Lecture 1 Purchase of Stock Credit Cash Account OR Supplier / Creditor Account Debit Stock Account

Payment to Creditors Debit Supplier / Creditor Account Lecture 1 Payment to Creditors Debit Supplier / Creditor Account Credit Cash Account

Lecture 1 Sale of Goods Credit Stock Account Debit Cost of Goods Sold

– Value / Cost of Goods Sold = Closing Stock Lecture 1 + Opening Stock + Purchases – Value / Cost of Goods Sold = Closing Stock

Cost of Goods Sold Trading Concern Purchase Price of the Goods Sold Lecture 1 Cost of Goods Sold Trading Concern Purchase Price of the Goods Sold Manufacturing Concern + Cost of Raw Material Consumed + Other Manufacturing Costs e.g. salaries of labour, cost of machinery

Stock & Cost of Goods Sold In Manufacturing Conc. Lecture 1 Stock & Cost of Goods Sold In Manufacturing Conc. Raw Material Stock Other Costs Accounts Work in Process Account Finished Goods Account Cost of Goods Sold Account