Assignment 1
Mr. Arjun Sharma, a young entrepreneur, started a trading business in April 2025 named Arjun Traders. He
invested his savings, took a small business loan, and began purchasing and selling goods. During the first month
of operations, the business had multiple transactions, including cash, bank, credit, and compound transactions.
Some expenses were paid partly in cash and partly through bank, and some income included adjustments like
discount received and bad debts. At the end of the month, he needs to prepare Journal Entries, post into Ledgers,
and prepare a Trial Balance to understand the financial position of his business.
Transactions for April 2025
1. Started business with ₹6,00,000, of which ₹4,00,000 was deposited into bank and rest kept as cash.
2. Purchased goods worth ₹1,50,000 from M/s Verma Traders, payment made ₹1,00,000 by cheque and
balance on credit.
3. Sold goods worth ₹80,000 to M/s Mehta & Co. on credit, giving 10% trade discount.
4. Bought furniture ₹50,000 and paid half by cash, half by cheque.
5. Paid wages ₹15,000 in cash and ₹5,000 through bank transfer.
6. Cash sales of ₹70,000.
7. Returned goods to M/s Verma Traders worth ₹20,000.
8. M/s Mehta & Co. returned goods worth ₹10,000 (before discount).
9. Paid office rent ₹12,000, out of which ₹10,000 by cheque and balance in cash.
10. Paid insurance premium ₹8,000 fully by cheque.
11. Paid electricity bill ₹6,000 in cash.
12. Deposited additional cash ₹20,000 into bank.
13. Received ₹60,000 from M/s Mehta & Co. after allowing them a cash discount of ₹2,000.
14. Withdrew ₹25,000 for personal use (₹15,000 cash + ₹10,000 from bank).
15. Paid ₹30,000 to Verma Traders after receiving a discount of ₹2,000.
16. Bought stationery for ₹5,000, paid ₹3,000 cash and balance by cheque.
17. Commission income earned ₹15,000, out of which ₹10,000 received in cash and rest pending.
18. Sold goods worth ₹50,000 for cash and ₹30,000 on credit.
19. Paid advertisement expenses ₹12,000 by cheque.
20. Closing stock valued at ₹1,00,000.
