Chapter 2: Double Entry, Ledgers & T.

B
PRC -4 Introduction to Accounting

INTRODUCTION TO ACCOUNTING
PRC-4

CHAPTER # 2

Double ENTRY,
LEDGERS
&
TRIAL Balance

Instructor: H. M. Umer 1
 Chapter 2: Double Entry, Ledgers & T.B
PRC -4 Introduction to Accounting

Instructor Note:
These notes are prepared specifically by keeping in mind the new paper pattern of ICAP. In last few attempts
examiner focus conceptual questions and require that students think critically. Students emphasize more on
practice-based questions without understanding the concepts/logics behind it and that’s the major reason of
student’s failure in this subject. So, by these notes we try to overcome this issue and keep the wording as
simple/user friendly so students can get maximum benefit from it.
Students are advised to read it carefully and especially read Exam Tips 4 to 5 times before appearing in the exams.
Insha Allah this will help you to pass the paper (as these notes will easily cover theoretical and conceptual
questions). For practice purposes, ICAP Book Mcq's along with this document is enough.
Further, if any student wants to appear in ITA paper but facing any financial issues, here is the link of summary
lectures of all chapters (free access for all students) available on our YouTube channel (Crescent college of
Accountancy).
https://youtube.com/playlist?list=PLX8L0jzNjZfE9JzjTnSOlFcToPjj9MiaT
Note: There may be difference in the sequence of concepts in our notes and ICAP Study text. We tried to prepare
notes in a sequential way as the concepts are interlinked with each other. So, we have tried to place all concepts
in a sequential and logical way so are easily understandable for the students.
Question from Students
After reading these notes, still we need to read chapter from ICAP Book?
Answer (Instructor Note):
Please keep in mind that these notes are extracted from ICAP book. We ensure the 100% coverability of the
concepts along with some self-made examples and additional important points with the name of Exam Tips in a
simple/user friendly wording so students will be able to absorb the concept in a better and efficient way.

LO1 Part-I (Double Entry Book Keeping)

Every transaction must be recorded (entered) in at least two places. The process of doing this is called double entry
book-keeping/double entry system.
RULES OF DEBIT AND CREDIT
Each business transaction has two aspects which are named as debit (Replaced with Left hand side) and credit
(Replaced with Right hand side) by norm in accounting. By convention, the terms ‘debit’ and ‘credit’ are shortened
to ‘Dr’ and ‘Cr’ respectively. Total debit entries and total credit entries must always be equal, this maintains the
accounting equation.
An account is a record of an individual type of asset, liability, income, expense or equity. For example, a record of
amounts owed by an individual customer (an asset) or a record of utility bills (an expense). (Relevant for ledger).
Account type Increase Decrease
Assets, Expenses and Drawings Debit Credit
Liabilities, Income and Capital Credit Debit
Note:
In the first step we learnt about accounting equation and then the concept of ledgers.

Instructor: H. M. Umer 2
 Chapter 2: Double Entry, Ledgers & T.B
PRC -4 Introduction to Accounting

We prepared T-Accounts by the help of accounting equation. Left hand side (Assets) should be equal to Right hand
side (Capital & Liabilities). Then after this concept we replaced the word Left hand side with the Dr. and right hand
side with the Cr.

LO2 Part-II(Ledgers)
The sorted record from books of prime entry is posted to ledger accounts. The two most common format for ledger
accounts are ‘T account’ and ‘running balance account’ (will discuss later).
The process of classifying amounts from books of prime entry to ledgers is called ‘posting’.
T account
Debit transactions are posted on left side with reference to account of credit entry (Joh account credit ho rha hay
uska reference sath lkh dain). Credit transactions are posted on right side with reference to account of debit entry
(Joh account credit ho rha hay uska reference sath lkh dain).
Exam Tips
- For each new transaction at least two accounts are affected.
- Prepare separate new accounts for every asset, liability, income and expense.
Expenses
There should be a separate T-account for rent, insurance, utilities expenses and purchases etc. For purchase
return there should be a separate account (Nature of this account is opposite to the purchase account).
Assets
There should be separate T-account for building, vehicle, equipment, cash, bank and debtor (Separate
account for each new debtor is maintained, called individual accounts). etc.
Liability
Separate T-account for every liability i.e., Loan from bank, loan, Utilities payable, interest payable and
Creditor (Separate account for each new creditor is maintained, called individual accounts).etc.
Income
Separate T-account for income from core activity and non-core activity etc. For sales return there should
be a separate account (Nature of this account is opposite to the sales account).
Capital
There should be a single account for a capital but drawings have its own account.
No need to prepare new separate account if more than one transaction related to any account and account
already exists.

Once the transactions for a period have been recorded, it will be necessary to find the balance on the ledger
account:
• Find the higher side and insert the higher side balance on both sides as a total balance.
• Insert a balancing figure to the lower side of the T account. Call this balancing figure ‘balance c/f’
(carried forward) or ‘balance c/d’ (carried down). (Balance heavier side wala consider kiya jaye ga but
aye ga lower side pay).
Example: Total of the debit side (L.H.S) is Rs. 150 while total of Credit side is (R.H.S) is Rs. 120. There’s
a difference of Rs. 30 (Credit side/R.H.S is lower). We need to equalize both sides, so hm Rs. 30 say
Credit side/R.HS.S pr wazan daal dain gay but yh hoga debit balance lekin aye ga credit side pay.
• Carry forward/carried down (closing balance of any accounting period) would be the brought
forward (opening balance of next accounting period.

Instructor: H. M. Umer 3
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PRC -4 Introduction to Accounting

Exam Tip
- In normal means, Placemen of both opening (b/d) and closing (c/d) balance is opposite if the nature
of balance is same (See the T-accounts that will be discussed Later in this chapter).
- Income, expenses and drawings accounts are closed at the end of accounting period while assets,
liabilities and capital accounts are carried forward to next accounting period/year.
- Asset, liability and capital closing (c/f) balance would be the opening of balance/transfer to the next
accounting period while income, expenses and drawings are closed/transfer to the Profit or Loss
statement.
- While Profit or loss is transferred to Capital account in the Statement of Financial Position/Balance
Sheet.
Transfer of Income, expenses/drawings into P/L
Income account has a credit nature while expenses/drawings have a debit nature (Jb hm ksi cheez ko
transfer krty haan toh who km rh jati hay or jisko transfer kiya jaye who increase ho jati hay) so,
when we transfer income (isay km/khtm krny kay liye hm debit krna pry ga or P/L ko credit) while
in case of expenses/drawings (isay km/khtm krny kay liye hmain credit krna pry ga or P/L ko debit
krna pry ga).
Closing/Transfer Entries
Income Expenses/Drawings
Income Dr. P/L Dr.
P/L Cr. Expenses/Drawings Cr
Transfer of Profit and Loss into Capital
- If income > expense net result would be the profit and vice versa.
- Due to profit capital would increase while in case of loss capital would decrease.
- Profit has a credit nature (but due to transfer yh khtm ho jaye ga yani debit and capital would
increase yani credit while losss has a debit nature (due to transfer yh khtm ho jaye ga yani credit due
to loss capital will also reduce yani debit.
. Closing/Transfer Entries
Profit Loss
Profit Dr. Capital Dr.
Capital Cr. Loss Cr.

Running account balance (another format of ledger, Alternative to T-account)

Receivable account– Quality Traders
Date Particulars Dr. (Rs.) Cr. (Rs.) Balance Rs.
01 Feb Balance b/d 5,000 Dr
06 Feb Sales 15,000 20,000 Dr
08 Feb Sales return 2,000 18,000 Dr
18 Feb Bank 10,000 8,000 Dr
20 Feb Sales 8,000 16,000 Dr
24 Feb Bank 9,000 7,000 Dr
Exam Tip
In this format, closing balance is updated after each transaction while in T-account closing balance is
written after the end accounting period.

Instructor: H. M. Umer 4
 Chapter 2: Double Entry, Ledgers & T.B
PRC -4 Introduction to Accounting

LO3 Part-III(Trial Balance)

Trial balance is a memorandum listing of all account balances as an internal check on mathematical
accuracy of double entry book-keeping. It has two columns, debit and credit, and these two columns
should be equal to each other indicating there is no arithmetical error.
Source data for preparing trial balance
The source of balances for preparing trial balance consists of:
• Cash and bank balance from cash book
• Receivable balance from list of balances (receivables ledger, or general ledger if separate receivables
ledger is not maintained)
• Payables balance from list of balances (payables ledger, or general ledger if separate payables ledger
is not maintained)
• All other balances from general ledger

Purposes of a trial balance

• It is a starting point for producing a statement of comprehensive income and a statement of financial
position at the end of an accounting period.
• It is a useful means of checking for errors in the accounting system. Errors must have occurred if
the total of debit balances and total of credit balances on the ledger accounts are not equal.

Limitation of a trial balance

- Trial balance is taken as test of arithmetical accuracy. If both the debit and credit column are equal
then normally, we assume that there is no error/mistake in the Trial balance (Double entry is correctly
posted into the ledgers and then closing balance of ledgers are correctly recorded into the Trial
balance.
- This assumption is correct but should never be taken as conclusive proof of accuracy. There may be
certain errors/mistakes even if the debit and credit column may be equal. These errors may be
mentioned as under:
• Errors of omission in the books of original record (Means 1 entry ani chahye thee who kee hee nhi.
So, both debit and credit side are affected (understated with the same amount, but total of Debit and
Credit side of Trial balance is not affected).
• Errors of principle (posting on right side of wrong account nature wise). Entry posted in rent
expense account instead of insurance account.
• Compensating errors (same amount effect on debit and credit side). Double entry of Debtor is
recorded by Rs. 27 instead of 72. So, both debtor and sales are affected.
• Incorrect account in the original books (on both sides).
• Posting to wrong account (but on right side). Entry posted in rent expense account instead of
insurance account.

LO3.1 CHART OF ACCOUNTS

List of accounts created by a business to be used to organize its financial transactions into identified
categories of assets, liabilities, income and expenses.

Unique coding and arrangement

Instructor: H. M. Umer 5
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PRC -4 Introduction to Accounting

Each general ledger account is identified by a unique code and heading. This allows a business to generate
instructions and policies to be followed by those members of staff responsible for recording information.
The structure and headings in the list aim to result in consistent posting of transactions.

Assets, Liabilities, Income, Expense hr Head ko aik separate serial number assign kr diya jata hay. E-g.
Assets (Current/Non-Cuurent) kee serial no 200 say start ho kr 300 tk hogee (isy main sb assets ko record
krna hay) or expenses ka 500 say 600 tk serial number assign kr diya jata hay, hr exepsne ka apna code
hoga in between 500 to 600 (it will save time, reduce errors, and increase efficiency of accounting
process).

Design and future changes

- A company might have complete freedom (Ky joh mrzi code rkh lain) in designing its chart of accounts
(within the boundaries set by the rules of accounting).
- No one is allowed to change/amend (change sequence or opening/adding any new head of account)
without the written approval of Head of Finance.
Objective of using chart of accounts
- The aim of the chart is to ensure that all transactions are recognized in accordance with the
requirements of the business.
- The organization aims to maintain appropriate chart of accounts in order to cater the present and
future monetary transactions with an objective of coming up with timely, accurate and meaningful
financial reporting.
- The chart of accounts will act as a guiding and referring tool to the finance personnel while they post
accounting entries to their respective head of accounts.

Specimen
Each major heading in the financial statements might be given a range of codes from which codes can be
selected for individual general ledger accounts:
Code range
Non-current assets 100 – 199
Land 110-119
Office buildings 120-129
Warehouses 130-139
Factories 140-149
Motor vehicles 150-159
Current assets 200 – 299
Inventory 210-219
Receivable 220-269
Cash 270-279
Non-current liabilities 300 – 399
Current liabilities 400 – 499

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PRC -4 Introduction to Accounting

Equity 500 – 599

Income 600 – 699

Expenses 700 – 799

Practice Questions (Accounting head and Journal Entry)

Question-1
(i) Bought goods paying by cheque.
(ii) The owner puts further cash into the business.
(iii) Sold goods on cash.
(iv) Sold goods on credit.
(v) A debtor returns to us some goods. We agree to make an allowance for them.
(vi) Bought goods on credit.
(vii) The owner takes out cash for his personal use.
(viii) We pay a creditor by cheque.
Required:
(i) Identification of relevant accounting heads
(ii) Its effect (increase/decrease)
(iii) Pass journal entry for the above transactions.
Question -2
(i) We pay a creditor in cash.
(ii) Bought fixtures paying by cheque.
(iii) Bought goods on credit.
(iv) The proprietor introduces further cash into the business.
(v) A bank lends us in cash.
(vi) A debtor pays us by cheque.
(vii) We return goods costing to a supplier whose bill we had not paid.
(viii) Bought additional shop fixtures paying by cheque.
(ix) Bought a van on credit.
(x) Repaid by cash a loan owed to Bank.
Required :
(i) Identification of relevant accounting heads
(ii) Its effect (increase/decrease)
(iii) Pass journal entry for the above transactions.
Question -3
(i) Bought motor vehicle for cash.
(ii) Paid creditor, Nawabshah Traders, by cash.
(iii) Repaid Bank loan by cheque.
(iv) Sold Motor vehicle for cash.
(v) Paid office rent by cheque.
(vi) A debtor, Multan Traders, pays us by cash.
(vii) Paid electricity bill for the month by cash.
(viii) Proprietor puts a further amount into the business by cheque.
(ix) A loan in cash is received from Sahiwal Bank.
(x) Paid a creditor, Peshawar Enterprise, by cash.
(xi) Bought office machinery on credit from Lahore Limited
(xii) The proprietor paid a creditor, Layyah Enterprises, from his private funds.
(xiii) A debtor, Islamabad Limited, paid us in cash.
(xiv) Repaid part of loan from Quetta Bank by cheque.

Instructor: H. M. Umer 7
 Chapter 2: Double Entry, Ledgers & T.B
PRC -4 Introduction to Accounting

(xv) Returned some of office machinery to Lahore Limited.

(xvi) A debtor, Karachi Port, pays us by cheque.
(xvii) Interest on bank deposit received in bank account.
(xviii) Bought goods on credit from Arslan Traders
(xix) Returned good to supplier Amjad Enterprises
(xx) Sold goods to Habib Mall on credit
(xxi) Customer Rizwan Stores returned goods to us
(xxii) Owner took cash for his personal use
Required:
(i) Identification of relevant accounting heads
(ii) Its effect (increase/decrease)
(iii) Pass journal entry for the above transactions.
Question -4
(i) Started business with Rs. 75,000 cash and Rs. 900,000 in the bank.
(ii) Received a loan of Rs. 200,000 from KLM Bank by cheque.
(iii) Bought a computer for cash Rs. 30,000.
(iv) Bought display equipment on credit from Clear Count Ltd Rs. 42,000.
(v) Took Rs. 20,000 out of the bank and put it in the cash till.
(vi) Repaid part of KLM Bank loan by cheque Rs. 50,000.
(vii) Paid amount owing to Clear Count Ltd Rs. 42,000 by cheque.
(viii) Repaid part of KLM Bank loan by cash Rs. 25,000.
(ix) Bought a printer on credit from Image Traders for Rs. 20,000.
(x) Bought goods on credit from ABC for Rs. 10,000
(xi) Sold goods on credit to XYZ for Rs. 12,000
(xii) Owner took cash from bank of Rs. 7,000 for his personal use.
Required:

(i) Identification of relevant accounting heads

(ii) Its effect (increase/decrease)
(iii) Pass journal entry for the above transactions.
Question-5:
In respect of each of the following, give example of a transaction which would result in:
(i) Decrease in a liability and increase in another liability
(ii) Increase in an asset and decrease in another asset
(iii) Decrease in an asset and decrease in a liability
(iv) Decrease in capital and decrease in asset

ANSWER-1
Sr. # Account Element Effect Debit / Credit
(i) Purchases Expense Increase Debit
Bank Asset Decrease Credit
(ii) Cash Asset Increase Debit
Capital Equity Increase Credit
(iii) Cash Asset Increase Debit
Sales Income Increase Credit
(iv) Trade debtors (receivables) Asset Increase Debit
Sales Income Increase Credit
(v) Sales return Income Decrease Debit
Trade debtors (receivables) Asset Decrease Credit
(vi) Purchases Expense Increase Debit
Trade creditors (payables) Liability Increase Credit
(vii) Drawings Equity Decrease Debit

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PRC -4 Introduction to Accounting

Cash Asset Decrease Credit

Trade creditors (payables) Liability Decrease Debit
(viii)
Bank Asset Decrease Credit
ANSWER-2
Sr. # Account Element Effect Debit / Credit
(i) Trade creditors (payables) Liability Decrease Debit
Cash Asset Decrease Credit
(ii) Fixtures Asset Increase Debit
Bank Asset Decrease Credit
(iii) Purchases Expense Increase Debit
Trade creditors (payables) Liability Increase Credit
(iv) Cash Asset Increase Debit
Capital Equity Increase Credit
(v) Cash Asset Increase Debit
Bank Loan Liability Increase Credit
(vi) Bank Asset Increase Debit
Trade debtors (receivables) Asset Decrease Credit
(vii) Trade creditors (payables) Liability Decrease Debit
Purchase return Expense Decrease Credit
(viii) Fixtures Asset Increase Debit
Bank Asset Decrease Credit
(ix) Van Asset Increase Debit
Payable for Van Liability Increase Credit
(x) Bank Loan Liability Decrease Debit
Cash Asset Decrease Credit
ANSWER-3
Debit
Sr. # Description Element Effect /Credit
(i) Motor vehicle Asset Increase Debit
Cash Asset Decrease Credit
(ii) Nawabshah Traders: payables Liability Decrease Debit
Cash Asset Decrease Credit
(iii) Bank Loan Liability Decrease Debit
Bank Asset Decrease Credit
(iv) Cash Asset Increase Debit
Motor vehicle Asset Decrease Credit
(v) Office rent expense Expense Increase Debit
Bank Asset Decrease Credit
(vi) Cash Asset Increase Debit
Multan Traders: receivables Asset Decrease Credit
(vii) Electricity expenses Expense Increase Debit
Cash Asset Decrease Credit
(viii) Bank Asset Increase Debit
Capital Equity Increase Credit
(ix) Cash Asset Increase Debit
Loan from Sahiwal Bank Liability Increase Credit
(x) Peshawar Enterprises: payables Liability Decrease Debit
Cash Asset Decrease Credit
(xi) Office machinery Asset Increase Debit
Payable to Lahore Limited Liability Increase Credit
(xii) Layyah Enterprises: payables Liability Decrease Debit
Capital Equity Increase Credit
(xiii) Cash Asset Increase Debit
Islamabad Limited: receivables Asset Decrease Credit
(xiv) Loan from Quetta Bank Liability Decrease Debit
Bank Asset Decrease Credit

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PRC -4 Introduction to Accounting

(xv) Payable to Lahore Limited Liability Decrease Debit

Office machinery Asset Decrease Credit
(xvi) Bank Asset Increase Debit
Karachi Port: receivables Asset Decrease Credit
(xvii) Bank Asset Increase Debit
Interest income (other income) Income Increase Credit
(xviii) Purchases Expense Increase Debit
Arslan Traders: payables Liability Increase Credit
(xix) Amjad Enterprises: payables Liability Decrease Debit
Purchases return Expense Decrease Credit
(xx) Habib Mall: receivables Asset Increase Debit
Sales Income Increase Credit
(xxi) Sales return Income Decrease Debit
Rizwan Stores: receivables Asset Decrease Credit
(xxii) Drawings Equity Decrease Debit
Cash Asset Decrease Credit
ANSWER-4
Sr. Debit /
# Account Rs. Element Effect Credit
(i) Cash 75,000 Asset Increase Debit
Bank 900,000 Asset Increase Debit
Capital 975,000 Equity Increase Credit
(ii) Bank 200,000 Asset Increase Debit
Bank Loan 200,000 Liability Increase Credit
(iii) Computer 30,000 Asset Increase Debit
Cash 30,000 Asset Decrease Credit
Display
(iv) Equipment 42,000 Asset Increase Debit
Payable to 42,000 Liability Increase Credit
Clear
Count
Cash (in
(v) hand) 20,000 Asset Increase Debit
(Cash at) Asset Decrease Credit
20,000
Bank
(vi) Bank Loan 50,000 Liability Decrease Debit
Bank 50,000 Asset Decrease Credit
Payable to
Clear
(vii) Count 42,000 Liability Decrease Debit
Bank 42,000 Asset Decrease Credit
(viii) Bank Loan 25,000 Liability Decrease Debit
Cash 25,000 Asset Decrease Credit
(ix) Printer 20,000 Asset Increase Debit
Image Liability Increase Credit
Traders 20,000
(x) Purchases 10,000 Expense Increase Debit
Trade Liability Increase Credit
payables 10,000
Trade
(xi) receivables 12,000 Asset Increase Debit
Sales 12,000 Income Increase Credit
(xii) Drawings 7,000 Equity Decrease Debit
Bank 7,000 Asset Decrease Credit

ANSWER-5

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PRC -4 Introduction to Accounting

(i) Payment of creditors by using bank overdraft / loan.

(ii) Purchase of a machine against cash.
(iii) Payment of creditors through bank balance.
(iv) Cash withdrawal by owner of the business.
Practice Questions (Ledgers and Trial Balance)
QUESTION-1
Write up the asset and liability and capital accounts to record the following transactions in the records of F Murray.
20X7
July 1 Started business with Rs. 15,000 in the bank.
July 2 Bought office furniture by cheque Rs. 1,200.
July 3 Bought machinery Rs.1,400 on credit from Trees Ltd.
July 5 Bought a van paying by cheque Rs. 6,010.
July 15 Paid the amount owing to Trees Ltd Rs.1,400 by cheque.
July 31 Bought more machinery by cheque Rs.650.
QUESTION-2
You are required to open the asset and liability and capital accounts and record the following transactions for June 20X8 in the
records of P Bernard.
20X8
June 1 Started business with Rs.12,000 in cash.
June 2 Paid Rs.11,700 of the opening cash into a bank account for the business.
June 5 Bought office furniture on credit from Dream Ltd for Rs.1,900.
June 8 Bought a van paying by cheque Rs.5,250.
June 12 Bought equipment from Pearce & Sons on credit Rs.2,300.
June 18 Returned faulty office furniture costing Rs.120 to Dream Ltd.
June 26 Paid amount owing to Dream Ltd Rs.1,780 by cheque.
June 28 Took Rs.130 out of the bank and added to cash.
June 30 F Brown lent us Rs.4,000 - giving us the money by cheque.
QUESTION-3
Write up the asset, capital and liability accounts in the books of D Gough to record the following transactions:
20X9
June 1 Started business with Rs.16,000 in the bank.
June 2 Bought van paying by cheque Rs.6,400.
June 5 Bought office fixtures Rs.900 on credit from Old Ltd.
June 8 Bought van on credit from Carton Cars Ltd Rs.7,100.
June 12 Took Rs.180 out of the bank and put it into the cash till.
June 15 Bought office fixtures paying by cash Rs.120.
June 19 Paid Carton Cars Ltd a cheque for Rs.7,100.
June 21 A loan of Rs.500 cash is received from B Berry.
June 25 Paid Rs.400 of the cash in hand into the bank account.
June 30 Bought more office fixtures paying by cheque Rs.480.
QUESTION-4
Write up the accounts to record the following transactions:
20X7
March 1 Started business with Rs.750 cash and Rs.9,000 in the bank.
March 2 Received a loan of Rs.2,000 from B Blane by cheque.
March 3 Bought a computer for cash Rs.600.
March 5 Bought display equipment on credit from Clearcount Ltd Rs.420.
March 8 Took Rs.200 out of the bank and put it in the cash till.
March 15 Repaid part of Blane's loan by cheque Rs.500
March 17 Paid amount owing to Clearcount Ltd Rs.420 by cheque.
March 24 Repaid part of Blane's loan by cash Rs.250.
March 31 Bought a printer on credit from F Jones for Rs.200.
QUESTION-5

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You are to write up the following in the books:

20X8
July 1 Started in business with Rs.750 cash.
July 3 Bought goods for cash Rs. 110.
July 7 Bought goods on credit Rs.320 from F Herd.
July 10 Sold goods for cash Rs. 64.
July 14 Returned goods to F Herd Rs.46.
July 18 Bought goods on credit Rs.414 from D Exodus.
July 21 Returned goods to D Exodus Rs.31.
July 24 Sold goods to B Squire Rs.82 on credit.
July 25 Paid F Herd's account by cash Rs.274.
July 31 B Squire paid us his account in cash Rs.82.
QUESTION-6
Enter the following transactions in the appropriate accounts:
20X6
Aug. 1 Started in business with Rs.7,400 cash.
Aug. 2 Paid Rs.7,000 of the opening cash into the bank.
Aug. 4 Bought goods on credit Rs.410 from J Watson.
Aug. 5 Bought a van by cheque Rs.4,920.
Aug. 7 Bought goods for cash Rs.362.
Aug. 10 Sold goods on credit Rs.218 to L Less.
Aug. 12 Returned goods to J Watson Rs.42.
Aug. 19 Sold goods for cash Rs.54.
Aug. 22 Bought fixtures on credit from Firelighters Ltd Rs.820.
Aug. 24 F Holmes lent us Rs.1,500 paying us the money by cheque.
Aug. 29 We paid J Watson his account by cheque Rs.368.
Aug. 31 We paid Firelighters Ltd by cheque Rs.820.
QUESTION-7
Enter the following transactions in the accounts of L Linda:
20X7
July 1 Started in business with Rs.20,000 in the bank.
July 2 R Hughes lent us Rs.5,000 in cash.
July 3 Bought goods on credit from B Brown Rs.1,530 and I Jess Rs.4,162.
July 4 Sold goods for cash Rs.1,910.
July 6 Took Rs.200 of the cash and paid it into the bank.
July 8 Sold goods on credit to H Rise Rs.1,374.
July 10 Sold goods on credit to P Taylor Rs.341.
July 11 Bought goods on credit from B Brown Rs.488.
July 12 H Rise returned goods to us Rs.65.
July 14 Sold goods on credit to G Pate Rs.535 and R Sim Rs.262.
July 15 We returned goods to B Brown Rs.94.
July 17 Bought van on credit from Aberdeen Cars Ltd Rs.4,370.
July 18 Bought office furniture on credit from J Winter Ltd Rs.1,800.
July 19 We returned goods to I Jess Rs.130.
July 20 Bought goods for cash Rs.390.
July 24 Goods sold for cash Rs.110.
July 25 Paid money owing to B Brown by cheque Rs.1,924.
July 26 Goods returned to us by G Pate Rs.34.
July 27 Returned some of office furniture costing Rs.180 to J Winter Ltd.
July 28 L Linda put a further Rs.2,500 into the business in the form of cash.
July 29 Paid Aberdeen Cars Ltd Rs.4,370 by cheque.
July 31 Bought office furniture for cash Rs.365.
QUESTION-8
Enter the following transactions, in the books for the month of May 20X7.
20X7

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PRC -4 Introduction to Accounting

May 1 Started in business with Rs.10,000 in the bank.

May 2 Purchased goods Rs.290 on credit from D James
May 3 Bought fixtures and fittings Rs.1,150 paying by cheque
May 5 Sold goods for cash Rs.940.
May 6 Bought goods on credit Rs.325 from C Monty.
May 10 Paid rent by cash Rs.200.
May 12 Bought stationery Rs.45, paying in cash.
May 18 Goods returned to D James Rs.41
May 21 Received rent of Rs.25 by cheque for sublet of corner space.
May 23 Sold goods on credit to G Cross for Rs.845.
May 24 Bought a van paying by cheque of Rs. 4,100.
May 30 Paid the month's wages by cash Rs.360.
May 31 The proprietor took cash for his own personal use Rs.80.
QUESTION-9
Write up the following transactions in the books of P Hewitt:
20X8
March 1 Started in business with cash Rs. 8,500.
March 2 Bought goods on credit from W Young Rs. 420.
March 3 Paid rent by cash Rs.210.
March 4 Paid Rs.6,000 of the cash of the business into a bank account.
March 5 Sold goods on credit to D Unbar Rs.192.
March 7 Bought stationery Rs.25 paying by cheque.
March 11 Cash sales Rs.81.
March 14 Goods returned by us to W Young Rs.54.
March 17 Sold goods on credit to J Harper Rs.212.
March 20 Paid for repairs to the building by cash Rs.78.
March 22 D Unbar returned goods to us Rs.22.
March 27 Paid W Young by cheque Rs.366.
March 28 Cash purchases Rs.470.
March 29 Bought a van paying by cheque Rs.3,850.
March 30 Paid motor expenses in cash Rs.62.
March 31 Bought fixtures Rs.840 on credit from B Coal.
QUESTION-10
Write up the following transactions in the T-accounts of F Fernandes:
Feb. 1 Started in business with Rs.11,000 in the bank and Rs.1,600 cash.
Feb. 2 Bought goods on credit: J Biggs Rs.830; P Martin Rs.610; P Lot Rs.590.
Feb. 3 Bought goods for cash Rs.370.
Feb. 4 Paid rent in cash Rs.75.
Feb. 5 Bought stationery paying by cheque Rs.62.
Feb. 6 Sold goods on credit: D TwiggRs.370; B Hogan Rs.290, K Fletcher Rs.410.
Feb. 7 Paid wages in cash Rs.160.
Feb. 10 We returned goods to P Martin Rs.195.
Feb. 11 Paid rent in cash Rs.75.
Feb. 13 B Hogan returns goods to us Rs.35.
Feb. 16 Paid business rates by cheque Rs.970.
Feb. 18 Paid insurance in cash Rs.280.
Feb. 19 Paid rent by cheque Rs.75.
Feb. 20 Bought van on credit from B Black Rs.6,100.
Feb. 21 Paid motor expenses in cash Rs.24.
Feb. 23 Paid wages in cash Rs. 170.
Feb. 24 Received part of amount owing from K Fletcher by cheque Rs.250.
Feb. 28 Received refund of business rates Rs.45 by cheque.
Feb. 28 Paid by cheque: J Biggs Rs.830; P Martin Rs.415;
QUESTION-11
You are to enter up the necessary accounts for the month of May from the following information relating to a small printing firm.
Then balance off the accounts and extract a trial balance as at 31 May 20X6.

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May 1 Started in business with capital in cash of Rs.800 and Rs.2,200 in the bank.
May 2 Bought goods on credit from the following persons: J Ward Rs.610; P Green Rs.214; M Taylor Rs.174; S
GemmillRs.345: P Tone Rs.542.
May 4 Sold goods on credit to: J Sharpe Rs.340; G Boycott Rs.720; F TitmusRs.1,152.
May 6 Paid rent by cash Rs.180.
May 9 J Sharpe paid us his account by cheque Rs.340.
May 10 F Titmus paid us Rs.1,000 by cheque.
May 12 We paid the following by cheque: M Taylor Rs.174; J Ward Rs.610.
May 15 Paid carriage by cash Rs.38.
May 18 Bought goods on credit from P Green Rs.291; S GemmillRs.940.
May 21 Sold goods on credit to G Boycott Rs.810.
May 31 Paid rent by cheque Rs.230.
QUESTION-12
Record the following transactions for the month of January of a small finishing retailer, balance off all the accounts, and then
extract a trial balance as at 31 January 20X8;
20X8
Jan. 1 Started in business with Rs.10,500 cash.
Jan.2 Put Rs.9,000 of the cash into a bank account.
Jan. 3 Bought goods for cash Rs.550.
Jan. 4 Bought goods on credit from: T Dry Rs.800; F Hood Rs.930; M Smith Rs.160; G Low Rs.510.
Jan. 5 Bought stationery on credit from Buttons Ltd Rs.89.
Jan. 6 Sold goods on credit to: R Tong Rs.170; L Fish Rs.240; M Singh Rs.326; A Tom Rs.204.
Jan. 8 Paid rent by cheque Rs.220.
Jan. 10 Bought fixtures on credit from Chiefs Ltd Rs.610.
Jan. 11 Paid salaries in cash Rs.790.
Jan. 14 Returned goods to: F Hood Rs.30; M Smith Rs.42.
Jan. 15 Bought van by cheque Rs.6,500.
Jan. 16 Received loan from B Barclay by cheque Rs.2,000.
Jan. 18 Goods returned to us by: R Tong Rs.5; M Singh Rs.20.
Jan. 21 Cash sales Rs.145.
Jan. 24 Sold goods on credit to: L Fish Rs.130; A Tom Rs.410; R Pleat Rs.158.
Jan. 26 We paid the following by cheque: F Hood Rs.900; M Smith Rs.118.
Jan. 29 Received cheques from: R Pleat Rs.158; L Fish Rs.370.
Jan. 30 Received a further loan from B Barclay by cash Rs.500.
Jan. 30 Received Rs.614 cash from A Tom.
Question 13
The following information relates to Hamza & Co., a retailer of television sets for the month of December 2010:
Date Transaction Rs. 000
1 Started business with a capital:
(i) in cash 870
(ii) at bank 1,330
3 Bought television sets from Amin & Co., on credit. 2,200
3 Paid to Fast Motors for purchase of delivery van through cheque. 540
4 Televisions sold to Ahmed Brothers on credit. 1,880
8 Paid shop's rent in advance for six months to June 2011 to Mrs. Ali through cheque. 680
11 Payment received from Ahmed Brothers and deposited in the bank. 1,340
12 Paid cheque to Amin & Co. 784
18 Paid carriage by cash on purchases. 38
19 Defected televisions returned by Ahmed Brothers. 220
22 Bought LCD televisions on credit from Amin & Co. 1,230
28 Sold LCD televisions to Ahmed Brothers on credit. 810
30 The owner withdraws one television set for his personal use. 25
Required:
(a) Prepare journal entries of the above transactions.
(b) Post the information in the ledger accounts.

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(c) Extract a trial balance as at December 31, 2010.

Question 14
The following transactions in May 2013 are those of a new business entity, Home Oak Garden Traders.
Date
1 Set up the entity with capital in cash Rs. 2,500,000.
2 Bought goods on credit from the following suppliers: The Bushes Company Rs. 540,000, Flower City Rs. 870,000, D
Gibson Rs. 250,000, Wild Weed Rs. 760,000, T Greenery Rs. 640,000.
4 Sold goods on credit to: The Office Company Rs. 430,000, V Cork Rs. 640,000, Texas Chain Stores Rs. 1,760,000.
6 Paid rent Rs. 120,000.
9 The Office Company paid the Rs. 430,000 that it owed.
10 Texas Chain Stores paid Rs. 1,500,000.
12 The following payments were made to D Gibson Rs. 250,000 and to The Bushes Company Rs. 540,000.
15 Advertising costs of Rs. 230,000 were paid to the local newspaper publisher.
18 Bought goods on credit from the following suppliers: The Bushes Company Rs. 430,0, Landscape Rs. 1,100,000.
21 Sold goods on credit to Public Parks Rs. 670,000
31 Paid rent Rs. 180,000.
Required:
(a) Use T accounts to show how these transactions should be recorded in the main ledger accounts of the entity. The
accounting system maintains separate accounts for each individual payable and receivable in the main ledger.
(b) Prepare a trial balance as at 31 May 2013.
Question 15
March 2013
Date Transactions
1 Started business with Rs. 80,000 in the bank
Bought goods on credit from: KH Supplies Rs. 7,600; Hatts Rs. 2,700; Toby Traders
2
Rs. 5,600
5 Cash sales Rs. 8,700. The cash was kept in a safe in Lee's office.
6 Paid wages Rs. 1,400 by cheque.
7 Sold goods on credit to: Elliott Rs. 3,500; L. Lane Rs. 4,200; Carton Leisure Rs. 7,200
9 Bought goods for cash Rs. 4,600 using cash from Lee's safe.
10 Bought goods on credit from: KH Supplies Rs. 5,700; Toby Traders Rs.9,800
12 Paid wages Rs. 1,400 by cheque.
13 Sold goods on credit to: L. Lane Rs. 3,200; Carton Leisure Rs. 2,300
15 Bought shop fixtures on credit from Beta Fittings Rs. 5,000
17 Paid K H Supplies Rs. 8,400
18 Goods returned to Toby Traders Rs. 2,000
21 Paid Beta Fittings Rs. 5,000
24 Payment received from Carton Leisure Rs. 9,500
27 Goods returned to KH Supplies Rs. 2,400
30 King Bank provides a loan of Rs. 6,000
31 Bought a motor van, paying by cheque Rs. 40,000
Required:
Enter the above transactions in the main ledger accounts of Lee, and extract a trial balance as at 31 March 2013. Assume that all
receipts and payments are by cheque unless told otherwise.

Ledgers & Trial Balance-PQ Solution

ANSWER-1

Capital

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Date Particulars Debit Date Particulars Credit

Bank 15,000
Balance c/d 15,000
15,000 15,000

Bank Account
Date Particulars Debit Date Particulars Credit
Capital 15,000 Office furniture 1,200
Van 6,010
Payable to Trees Ltd. 1,400
Machinery 650
Balance c/d 5,740
15,000 15,000

Furniture Account
Date Particulars Debit Date Particulars Credit
Bank 1,200
Balance c/d 1,200
1,200 1,200

Machinery Account
Date Particulars Debit Date Particulars Credit
Payable to Trees Ltd. 1,400
Bank 650 Balance c/d 2,050
2,050 2,050

Payable to Trees Ltd.

Date Particulars Debit Date Particulars Credit
Bank 1,400 Machinery 1,400
Balance c/d -
1,400 1,400

Van
Date Particulars Debit Date Particulars Credit
Bank 6,010
Balance c/d 6,010
6,010 6,010

ANSWER-2

Capital
Date Particulars Debit Date Particulars Credit
Cash 12,000
Balance c/d 12,000
12,000 12,000

Bank Account
Date Particulars Debit Date Particulars Credit
Cash 11,700 Van 5,250
Loan payable to F Brown 4,000 Payable to Dream Ltd. 1,780
Cash 130
Balance c/d 8,540
15,700 15,700

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Cash Account
Date Particulars Debit Date Particulars Credit
Capital 12,000 Bank 11,700
Bank 130
Balance c/d 430
12,130 12,130

Furniture Account
Date Particulars Debit Date Particulars Credit
Payable to Dream Ltd. 1,900 Payable to Dream Ltd. 120
Balance c/d 1,780
1,900 1,900

Payable to Dream Ltd.

Date Particulars Debit Date Particulars Credit
Furniture 120 Furniture 1,900
Bank 1,780
Balance c/d -
1,900 1,900

Van Account
Date Particulars Debit Date Particulars Credit
Bank 5,250
Balance c/d 5,250
5,250 5,250

Equipment Account
Date Particulars Debit Date Particulars Credit
Payable to Pearce & Sons 2,300
Balance c/d 2,300
2,300 2,300

Payable to Pearce & Sons

Date Particulars Debit Date Particulars Credit
Equipment 2,300
Balance c/d 2,300
2,300 2,300

Loan payable to F Brown

Date Particulars Debit Date Particulars Credit
Bank 4,000
Balance c/d 4,000
4,000 4,000

ANSWER-3

Capital
Date Particulars Debit Date Particulars Credit
Bank 16,000
Balance c/d 16,000
16,000 16,000

Bank Account

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Date Particulars Debit Date Particulars Credit

Capital 16,000 Van 6,400
Cash 400 Cash 180
Payable to Cartoon Ltd. 7,100
Office Fixtures 480
Balance c/d 2,240
16,400 16,400

Van Account
Date Particulars Debit Date Particulars Credit
Bank 6,400
Payable to Carton Cars Ltd. 7,100 Balance c/d 13,500
13,500 13,500

Office fixture Account

Date Particulars Debit Date Particulars Credit
Payable to Old Ltd. 900
Cash 120
Bank 480
Balance c/d 1,500
1,500 1,500

Payable to Old Ltd.

Date Particulars Debit Date Particulars Credit
Office fixture Account 900
Balance c/d 900
900 900

Payable to Carton Cars Ltd.

Date Particulars Debit Date Particulars Credit
Bank 7,100 Van 7,100
Balance c/d -
7,100 7,100

Cash Account
Date Particulars Debit Date Particulars Credit
Bank 180 Office Fixtures 120
Loan from B Berry 500 Bank 400
Balance c/d 160
680 680

Loan from B Berry

Date Particulars Debit Date Particulars Credit
Cash 500
Balance c/d 500
500 500

ANSWER-4

Capital
Date Particulars Debit Date Particulars Credit
Cash 750
Balance c/d 9,750 Bank 9,000
9,750 9,750

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Bank Account
Date Particulars Debit Date Particulars Credit
Capital 9,000 Cash 200
Loan from B Blane 2,000 Loan from B Balance 500
Payable to Clearcount Ltd. 420
Balance c/d 9,880
11,000 11,000
Cash Account
Date Particulars Debit Date Particulars Credit
Capital 750 Computer 600
Bank 200 Loan from B Blane 250
Balance c/d 100
950 950

Loan from B Blane

Date Particulars Debit Date Particulars Credit
Bank 500 Bank 2,000
Cash 250
Balance c/d 1,250
2,000 2,000

Computer Account
Date Particulars Debit Date Particulars Credit
Cash 600
Balance c/d 600
600 600

Equipment Account
Date Particulars Debit Date Particulars Credit
Payable to Clearcount Ltd. 420
Balance c/d 420
420 420

Payable to Clearcount Ltd.

Date Particulars Debit Date Particulars Credit
Bank 420 Equipment Account 420
Balance c/d -
420 420

Printer Account
Date Particulars Debit Date Particulars Credit
Payable to F Jones 200
Balance c/d 200
200 200

Payable to F Jones
Date Particulars Debit Date Particulars Credit
Printer 200
Balance c/d 200
200 200

ANSWER-5

Instructor: H. M. Umer 19
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PRC -4 Introduction to Accounting

Capital
Date Particulars Debit Date Particulars Credit
Cash 750
Balance c/d 750
750 750

Cash Account
Date Particulars Debit Date Particulars Credit
Capital 750 Purchases 110
Sale 64 Creditor F Herd Account 274
Debtor – B Squire account 82
Balance c/d 512
896 896

Purchases account
Date Particulars Debit Date Particulars Credit
Cash 110
Creditor – F Herd 320
Creditor – D Exodus 414
Balance c/d 844
844 844

Creditor F Herd Account

Date Particulars Debit Date Particulars Credit
Purchase return 46 Purchases 320
Cash 274
Balance c/d 0
320 320

Sales Account
Date Particulars Debit Date Particulars Credit
Cash 64
Balance c/d 146 Debtor – B Squire account 82
146 146

Purchases return account

Date Particulars Debit Date Particulars Credit
Creditor – F Herd Account 46
Balance c/d 77 Creditor – D exodus Account 31
77 77

Creditor – D Exodus Account

Date Particulars Debit Date Particulars Credit
Purchase return 31 Purchases
Balance c/d 383 414
414 414

Debtor – B Squire account

Date Particulars Debit Date Particulars Credit
Sales 82 Cash 82
Balance c/d 0
82 82

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ANSWER-6

Capital
Date Particulars Debit Date Particulars Credit
Cash 7,400
Balance c/d 7,400
7,400 7,400

Cash Account
Date Particulars Debit Date Particulars Credit
Capital 7,400 Bank 7,000
Sale 54 Purchases 362
Balance c/d 92
7,454 7,454

Bank Account
Date Particulars Debit Date Particulars Credit
Cash 7,000 Van 4,920
Loan payable to F Holmes 1,500 Creditor J Watson 368
Payable to Firelighters Ltd 820
Balance c/d 2,392
8,500 8,500

Purchases account
Date Particulars Debit Date Particulars Credit
Creditor – J Watson 410
Cash 362 Balance c/d 772
772 772

Creditor J Watson
Date Particulars Debit Date Particulars Credit
Purchase return 42 Purchases 410
Bank 368
Balance c/d -
410 410

Van Account
Date Particulars Debit Date Particulars Credit
Bank 4,920
Balance c/d 4,920
4,920 4,920

Sales Account
Date Particulars Debit Date Particulars Credit
Debtor – L Less 218
Balance c/d 272 Cash 54
272 272

Debtor – L Less
Date Particulars Debit Date Particulars Credit
Sales 218 Balance c/d 218
218 218

Purchase return account

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PRC -4 Introduction to Accounting

Date Particulars Debit Date Particulars Credit

Creditor – J Watson 42
Balance c/d 42
42 42

Fixture Account
Date Particulars Debit Date Particulars Credit
Payable to Firelighters Ltd 820 Balance c/d 820
820 820

Payable to Firelighters Ltd

Date Particulars Debit Date Particulars Credit
Bank 820 Fixture Account 820
Balance c/d -
820 820

Loan payable to F Holmes

Date Particulars Debit Date Particulars Credit
Balance c/d 1,500 Bank 1,500
1,500 1,500

ANSWER-7

Capital
Date Particulars Debit Date Particulars Credit
Bank 20,000
Balance c/d 22,500 Cash 2,500
22,500 22,500

Bank Account
Date Particulars Debit Date Particulars Credit
Capital 20,000 Creditor B Brown Account 1,924
Cash 200 Payable to Aberdeen Cars Ltd 4,370
Balance c/d 13,906
20,200 20,200

Cash Account
Date Particulars Debit Date Particulars Credit
Sale 1,910 Bank 200
Sale 110 Purchases 390
Capital 2,500 Office furniture 365
Loan payable to R Hughes 5,000 Balance c/d 8,565
9,520 9,520

Loan payable to R Hughes

Date Particulars Debit Date Particulars Credit
Balance c/d 5,000 Cash 5,000
5,000 5,000

Purchases Account
Date Particulars Debit Date Particulars Credit
Creditor – B Brown 1,530

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Creditor – I Jess 4,162

Creditor – B Brown 488
Cash 390 Balance c/d 6,570
6,570 6,570

Creditor B Brown Account

Date Particulars Debit Date Particulars Credit
Purchase return 94 Purchases 1,530
Bank 1,924 Purchases 488
Balance c/d 0
2,018 2,018

Creditor I Jess Account

Date Particulars Debit Date Particulars Credit
Purchase return 130 Purchases 4,162
Balance c/d 4,032
4,162 4,162
Sales Account
Date Particulars Debit Date Particulars Credit
Cash 1,910
Debtor – H Rise account 1,374
Debtor – P Taylor account 341
Debtor – G Pate account 535
Debtor – R Sim account 262
Balance c/d 4,532 Cash 110
4,532 4,532
Debtor – H Rise account
Date Particulars Debit Date Particulars Credit
Sales 1,374 Sale Return 65
Balance c/d 1,309
1,374 1,374

Debtor – P Taylor account

Date Particulars Debit Date Particulars Credit
Sales 341
Balance c/d 341
341 341
Sale return
Date Particulars Debit Date Particulars Credit
Debtor – H rise account 65
Debtor – G Pate account 34 Balance c/d 99
99 99

Debtor – G Pate account

Date Particulars Debit Date Particulars Credit
Sales 535 Sale Return 34
Balance c/d 501
535 535
Debtor – R Sim account
Date Particulars Debit Date Particulars Credit
Sales 262
Balance c/d 262
262 262

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Purchase return Account

Date Particulars Debit Date Particulars Credit
Creditor B Brown Account 94
Balance c/d 224 Creditor I Jess Account 130
224 224

Van Account
Date Particulars Debit Date Particulars Credit
Payable to Aberdeen Cars Ltd 4,370 Balance c/d 4,370
4,370 4,370

Payable to Aberdeen Cars Ltd

Date Particulars Debit Date Particulars Credit
Bank 4,370 Van Account 4,370
Balance c/d -
4,370 4,370

Office furniture Account

Date Particulars Debit Date Particulars Credit
Payable to J Winter Ltd 1,800 Payable to J Winter Ltd 180
Cash 365 Balance c/d 1,985
2,165 2,165

Payable to J Winter Ltd

Date Particulars Debit Date Particulars Credit
Office furniture Account 180 Office furniture Account 1,800
Balance c/d 1,620
1,800 1,800

ANSWER-8

Capital
Date Particulars Debit Date Particulars Credit
Balance c/d 10,000 Bank 10,000
10,000 10,000

Bank Account
Date Particulars Debit Date Particulars Credit
Capital 10,000 Fixture and fitting 1,150
Rental income 25 Van 4,100
Balance c/d 4,775
10,025 10,025

Purchases account
Date Particulars Debit Date Particulars Credit
Creditor – D James account 290
Creditor – C Monty account 325
Balance c/d 615
615 615

Creditor – D James account

Date Particulars Debit Date Particulars Credit
Purchase return 41 Purchases 290
Balance c/d 249

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290 290

Fixture and fitting Account

Date Particulars Debit Date Particulars Credit
Bank 1,150 Balance c/d 1,150
1,150 1,150
Cash Account
Date Particulars Debit Date Particulars Credit
Sale 940 Rent 200
Stationery 45
Wages 360
Drawings 80
Balance c/d 255
940 940

Sales account
Date Particulars Debit Date Particulars Credit
Cash 940
Balance c/d 1,785 Debtor – G Cross 845
1,785 1,785
Creditor – C Monty account
Date Particulars Debit Date Particulars Credit
Balance c/d 325 Purchases 325
325 325

Rent expense account

Date Particulars Debit Date Particulars Credit
Cash 200 Balance c/d 200
200 200

Stationery expense account

Date Particulars Debit Date Particulars Credit
Cash 45 Balance c/d 45
45 45

Purchases return account

Date Particulars Debit Date Particulars Credit
Balance c/d 41 Creditor – D James 41
41 41

Rental income
Date Particulars Debit Date Particulars Credit
Balance c/d 25 Bank 25
25 25

Debtor – G Cross account

Date Particulars Debit Date Particulars Credit
Sale 845 Balance c/d 845
845 845
Van Account
Date Particulars Debit Date Particulars Credit
Bank 4,100 Balance c/d 4,100

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4,100 4,100

Wages account
Date Particulars Debit Date Particulars Credit
Cash 360 Balance c/d 360
360 360

Drawings account
Date Particulars Debit Date Particulars Credit
Cash 80 Balance c/d 80
80 80

ANSWER-9

Capital
Date Particulars Debit Date Particulars Credit
Balance c/d 8,500 Cash 8,500
8,500 8,500

Cash Account
Date Particulars Debit Date Particulars Credit
Capital 8,500 Rent 210
Sale 81 Bank 6,000
Building repairs expense 78
Purchases 470
Motor expense 62
Balance c/d 1,761
8,581 8,581

Purchases Account
Date Particulars Debit Date Particulars Credit
Creditor – W Young account 420
Cash 470 Balance c/d 890
890 890

Creditor – W Young Account

Date Particulars Debit Date Particulars Credit
Purchase return 54 Purchases 420
Bank 366
Balance c/d -
420 420

Rent expense account

Date Particulars Debit Date Particulars Credit
Cash 210 Balance c/d 210
210 210

Bank Account
Date Particulars Debit Date Particulars Credit
Cash 6,000 Stationery expense 25
Creditor – W Young 366
Van 3,850
Balance c/d 1,759
6,000 6,000

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Sales Account
Date Particulars Debit Date Particulars Credit
Debtors – D Unbar 192
Cash 81
Balance c/d 485 Debtor – J Harper 212
485 485

Debtor – D Unbar
Date Particulars Debit Date Particulars Credit
Sale 192 Sales return 22
Balance c/d 170
192 192

Stationery expense Account

Date Particulars Debit Date Particulars Credit
Bank 25 Balance c/d 25
25 25

Purchase return account

Date Particulars Debit Date Particulars Credit
Balance c/d 54 Creditors – W Young 54
54 54
Debtor - J Harper account
Date Particulars Debit Date Particulars Credit
Sale 212 Balance c/d 212
212 212

Building repair expense

Date Particulars Debit Date Particulars Credit
Cash 78 Balance c/d 78
78 78

Sales Return Account

Date Particulars Debit Date Particulars Credit
Debtor – D unbar 22 Balance c/d 22
22 22

Van Account
Date Particulars Debit Date Particulars Credit
Bank 3,850 Balance c/d 3,850
3,850 3,850

Motor expenses expense

Date Particulars Debit Date Particulars Credit
Cash 62 Balance c/d 62
62 62

Fixture Account
Date Particulars Debit Date Particulars Credit
Payable to B Coal 840 Balance c/d 840
840 840

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Payable to B Coal
Date Particulars Debit Date Particulars Credit
Balance c/d 840 Fixture account 840
840 840

ANSWER-10

Capital
Date Particulars Debit Date Particulars Credit
Bank 11,000
Balance c/d 12,600 Cash 1,600
12,600 12,600

Cash Account
Date Particulars Debit Date Particulars Credit
Capital 1,600 Purchases 370
Rent 75
Wages 160
Rent 75
Insurance expense 280
Motor expense 24
Wages 170
Balance c/d 446
1,600 1,600

Bank Account
Date Particulars Debit Date Particulars Credit
Capital 11,000 Business rates expense 970
Debtor – K Fletcher 250 Rent expense 75
Business rates (refund) 45 Creditor – J Biggs 830
Creditor – P Martin 415
Stationery expense 62
Balance c/d 8,943
11,295 11,295

Purchases account
Date Particulars Debit Date Particulars Credit
Creditor – J Biggs account 830
Creditor – P Martin account 610
Creditor – P Lot account 590
Cash 370 Balance c/d 2,400
2,400 2,400

Creditor – J Biggs account

Date Particulars Debit Date Particulars Credit
Bank 830 Purchases 830
Balance c/d -
830 830

Creditor – P Martin account

Date Particulars Debit Date Particulars Credit
Purchase return 195 Purchases 610
Bank 415

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Balance c/d -
610 610

Creditor – P Lot account

Date Particulars Debit Date Particulars Credit
Balance c/d 590 Purchases 590
590 590

Rent expense account

Date Particulars Debit Date Particulars Credit
Cash 75
Cash 75
Bank 75 Balance c/d 225
225 225

Stationery expense account

Date Particulars Debit Date Particulars Credit
Bank 62 Balance c/d 62
62 62

Sales Account
Date Particulars Debit Date Particulars Credit
Debtors – D Twigg 370
Debtors – B Hogan 290
Balance c/d 1,070 Debtors – K Fletcher 410
1,070 1,070

Debtor – D Twigg account

Date Particulars Debit Date Particulars Credit
Sale 370 Balance c/d 370
370 370

Debtor – B Hogan account

Date Particulars Debit Date Particulars Credit
Sale 290 Sale return 35
Balance c/d 255
290 290

Debtor – K Fletcher account

Date Particulars Debit Date Particulars Credit
Sale 410 Bank 250
Balance c/d 160
410 410

Wages account
Date Particulars Debit Date Particulars Credit
Cash 160
Cash 170 Balance c/d 330
330 330

Purchase return account

Date Particulars Debit Date Particulars Credit

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Balance c/d 195 Creditors – P Martin 195

195 195
Sales Return Account
Date Particulars Debit Date Particulars Credit
Debtor – B Hogan 35 Balance c/d 35
35 35

Business rates expense account

Date Particulars Debit Date Particulars Credit
Bank 970 Bank (refund) 45
Balance c/d 925
970 970

Insurance expense account

Date Particulars Debit Date Particulars Credit
Cash 280 Balance c/d 280
280 280

Van account
Date Particulars Debit Date Particulars Credit
Payable to B Black 6,100 Balance c/d 6,100
6,100 6,100

Payable to B Black
Date Particulars Debit Date Particulars Credit
Balance c/d 6,100 Van account 6,100
6,100 6,100

Motor expense account

Date Particulars Debit Date Particulars Credit
Cash 24 Balance c/d 24
24 24

ANSWER-11
Capital
Date Particulars Debit Date Particulars Credit
Bank 2,200
Balance c/d 3,000 Cash 800
3,000 3,000

Bank account
Date Particulars Debit Date Particulars Credit
Capital 2,200 Creditor – M Taylor account 174
Debtor – J Sharpe account 340 Creditor – J Ward account 610
Debtor – F Titmus account 1,000 Rent expense 230
Balance c/d 2,526
3,540 3,540

Cash Account
Date Particulars Debit Date Particulars Credit
Capital 800 Rent expense 180
Sale Carriage in 38
Balance c/d 582

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800 800

Purchases account
Date Particulars Debit Date Particulars Credit
Creditor – J Ward 610
Creditor – P Green 214
Creditor – M Taylor 174
Creditor – S Gemmill 345
Creditor – P Tone 542
Creditor – P Green 291
Creditor – S Gemmill 940 Balance c/d 3,116
3,116 3,116

Creditor – J Ward account

Date Particulars Debit Date Particulars Credit
Bank 610 Purchases 610
Balance c/d -
610 610

Creditor – M Tylor account

Date Particulars Debit Date Particulars Credit
Bank 174 Purchases 174
Balance c/d -
174 174

Creditor – S Gemmill account

Date Particulars Debit Date Particulars Credit
Purchases 345
Balance c/d 1,285 Purchases 940
1,285 1,285

Creditor – P Tone account

Date Particulars Debit Date Particulars Credit
Purchases 542
Balance c/d 542
542 542

Sales Account
Date Particulars Debit Date Particulars Credit
Debtors – J Sharpe 340
Debtors – G Boycott 720
Debtors – F Titmus 1,152
Balance c/d 3,022 Debtors – G Boycott 810
3,022 3,022

Debtor – J Sharpe account

Date Particulars Debit Date Particulars Credit
Sale 340 Bank 340
Balance c/d -
340 340

Debtor – G Boycott account

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Date Particulars Debit Date Particulars Credit

Sale 720
Sale 810 Balance c/d 1,530
1,530 1,530

Debtor – F Titmus account

Date Particulars Debit Date Particulars Credit
Sale 1,152 Bank 1,000
Balance c/d 152
1,152 1,152

Rent expense account

Date Particulars Debit Date Particulars Credit
Cash 180
Bank 230 Balance c/d 410
410 410

Carriage in account
Date Particulars Debit Date Particulars Credit
Cash 38
Balance c/d 38
38 38

Mr. XXX
Trial Balance as on May 31, 20X6
Description Dr. Cr.
Capital 3,000
Bank Account 2,526
Cash Account 582
Purchases account 3,116
Creditor – J Ward -
Creditor – P Green 505
Creditor – M Tylor -
Creditor – S Gemmill 1,285
Creditor – P Tone 542
Sales 3,022
Debtor – J Sharpe -
Debtor – G Boycott 1,530
Debtor – F 152
Rent expense 410
Carriage in 38
8,354 8,354
ANSWER-12

Capital
Date Particulars Debit Date Particulars Credit
Cash 10,500
Balance c/d 10,500
10,500 10,500

Creditor – T Dry account

Date Particulars Debit Date Particulars Credit

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Balance c/d 800 Purchases 800

800 800

Cash Account
Date Particulars Debit Date Particulars Credit
Capital 10,500 Bank 9,000
Sale 145 Purchases 550
Loan from B Barclay 500 Salaries 790
Debtor – A Tom 614 Balance c/d 1,419
11,759 11,759

Bank Account
Date Particulars Debit Date Particulars Credit
Cash 9,000 Rent 220
Loan from B Barclay 2,000 Van 6,500
Debtor – R Pleat 158 Creditor – F Hood 900
Debtor – L Fish 370 Creditor – M Smith 118
Balance c/d 3,790
11,528 11,528

Purchases Account
Date Particulars Debit Date Particulars Credit
Cash 550
Creditor – T Dry account 800
Creditor – F Hood account 930
Creditor – M Smith account 160
Creditor – G Low account 510
Balance c/d 2,950
2,950 2,950

Creditor – F Hood account

Date Particulars Debit Date Particulars Credit
Bank 900 Purchases 930
Purchase Return 30
Balance c/d -
930 930

Creditor – M Smith account

Date Particulars Debit Date Particulars Credit
Bank 118 Purchases 160
Purchase return 42
Balance c/d -
160 160

Creditor – G Low account

Date Particulars Debit Date Particulars Credit
Balance c/d 510 Purchases 510
510 510

Stationery expense account

Date Particulars Debit Date Particulars Credit
Payable to Buttons Ltd. 89
Balance c/d 89
89 89

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Payable to Buttons Ltd.

Date Particulars Debit Date Particulars Credit
Balance c/d 89 Stationary expense 89
89 89

Sales Account
Date Particulars Debit Date Particulars Credit
Debtors – R Tong 170
Debtors – L Fish 240
Debtors – M Singh 326
Debtors – A Tom 204
Cash 145
Debtors – L Fish 130
Debtors – A Tom 410
Balance c/d 1,783 Debtors – R Pleat 158
1,783 1,783

Debtor – R Tong account

Date Particulars Debit Date Particulars Credit
Sale 170 Sale return 5
Balance c/d 165
170 170

Debtor – L Fish account

Date Particulars Debit Date Particulars Credit
Sale 240 Bank 370
Sale 130 Balance c/d -
370 370

Debtor – M Singh account

Date Particulars Debit Date Particulars Credit
Sale 326 Sale return 20
Balance c/d 306
326 326

Debtor – A Tom account

Date Particulars Debit Date Particulars Credit
Sale 204 Cash 614
Sale 410 Balance c/d -
614 614

Rent expense account

Date Particulars Debit Date Particulars Credit
Bank 220 Balance c/d 220
220 220

Fixture Account
Date Particulars Debit Date Particulars Credit
Payable to Chiefs Ltd. 610 Balance c/d 610
610 610

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Payable to Chiefs Ltd.

Date Particulars Debit Date Particulars Credit
Balance c/d 610 Fixture account 610
610 610

Salaries expense account

Date Particulars Debit Date Particulars Credit
Cash 790
Balance c/d 790
790 790

Purchase return account

Date Particulars Debit Date Particulars Credit
Creditors – F Hood 30
Balance c/d 72 Creditors – M Smith 42
72 72

Van account
Date Particulars Debit Date Particulars Credit
Bank 6,500 Balance c/d 6,500
6,500 6,500

Loan from B Barclay

Date Particulars Debit Date Particulars Credit
Bank 2,000
Balance c/d 2,500 Cash 500
2,500 2,500

Sales Return Account

Date Particulars Debit Date Particulars Credit
Debtor – R Tong 5
Debtor – M Singh 20
Balance c/d 25
25 25

Debtor – R Pleat account

Date Particulars Debit Date Particulars Credit
Sale 158 Bank 158
Balance c/d -
158 158

Mr. XXXX
XXXX
Trial Balance as on January 31, 20X8
Description Dr. Cr.
Capital 10,500
Cash 1,419
Bank 3,790
Purchases 2,950
Creditor – T Dry 800
Creditor – F Hood -
Creditor – M Smith -
Creditor – G Low 510
Stationary expense 89

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Payable to Buttons Ltd. 89

Sales 1,783
Debtor – R Tong 165
Debtor – L Fish -
Debtor – M Singh 306
Debtor – A Tom -
Rent expense 220
Fixture Account 610
Payable to Chiefs Ltd. 610
Salaries 790
Purchase return 72
Van 6,500
Loan from B Barclay 2,500
Sales Return 25
Debtor – R Pleat -
16,864 16,864

ANSWER-13
(a) GENERAL JOURNAL
Debit Credit
Date Particulars LF
Rs.000 Rs.000
01 Dec Cash 870
Bank 1,330
Capital 2,200
03 Dec Purchases 2,200
Amin & Co (Payables) 2,200
03 Dec Delivery van 540
Bank 540
04 Dec Ahmed Brothers (Receivables) 1,880
Sales 1,880
08 Dec Advance rent 680
Bank 680
11 Dec Bank 1,340
Ahmed Brothers (RA) 1,340
12 Dec Amin & Co (PA) 784
Bank 784
18 Dec Carriage inward 38
Cash 38
19 Dec Sales return 220
Ahmed Brothers (RA) 220
22 Dec Purchases 1,230
Amin & Co (PA) 1,230
28 Dec Ahmed Brothers (RA) 810
Sales 810
30 Dec Drawings 25
Purchases 25

(b) LEDGER ACCOUNTS

Cash
Date Particulars Rs. Date Particulars Rs.
1 Dec Capital 870,000 18 Dec Carriage inward 38,000
31 Dec Balance c/d 832,000
870,000 870,000

Bank

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Date Particulars Rs. Date Particulars Rs.

1 Dec Capital 1,330,000 3 Dec Van 540,000
11 Dec Ahmed Brothers 1,340,000 8 Dec Prepaid rent 680,000
12 Dec Amin & Co. 784,000
31 Dec Balance c/d 666,000
2,670,000 2,670,000

Capital
Date Particulars Rs. Date Particulars Rs.
1 Dec Cash 870,000
31 Dec Balance c/d 2,200,000 1 Dec Bank 1,330,000
2,200,000 2,200,000

Purchase of Television
Date Particulars Rs. Date Particulars Rs.
3 Dec Amin & Co. 2,200,000 30 Dec Drawings 25,000
22 Dec Amin & Co. 1,230,000 31 Dec Balance c/d 3,405,000
3,430,000 3,430,000

Amin & Co (payables)

Date Particulars Rs. Date Particulars Rs.
12 Dec Bank 784,000 3 Dec Purchases 2,200,000
31 Dec Balance c/d 2,646,000 22 Dec Purchases 1,230,000
3,430,000 3,430,000

Van
Date Particulars Rs. Date Particulars Rs.
3 Dec Bank 540,000 31 Dec Balance c/d 540,000
540,000 540,000

Ahmed Brothers (receivables)

Date Particulars Rs. Date Particulars Rs.
4 Dec Sales 1,880,000 11 Dec Bank 1,340,000
28 Dec Sales 810,000 19 Dec Sales return 220,000
31 Dec Balance c/d 1,130,000
2,690,000 2,690,000

Sales of Television
Date Particulars Rs. Date Particulars Rs.
4 Dec Ahmad Bros. 1,880,000
31 Dec Balance c/d 2,690,000 28 Dec Ahmad Bros. 810,000

2,690,000 2,690,000

Prepaid rent
Date Particulars Rs. Date Particulars Rs.
8 Dec Bank 680,000 31 Dec Balance c/d 680,000
680,000 680,000

Carriage inwards
Date Particulars Rs. Date Particulars Rs.
18 Dec Cash 38,000 31 Dec Balance c/d 38,000

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38,000 38,000

Sales return
Date Particulars Rs. Date Particulars Rs.
19 Dec Ahmed Brothers 220,000 31 Dec Balance c/d 220,000
220,000 220,000

Drawings
Date Particulars Rs. Date Particulars Rs.
30 Dec Drawings 25,000 31 Dec Balance c/d 25,000
25,000 25,000

(c) TRIAL BALANCE

Dr Cr.
Sr. # Particulars
Rs. Rs.
1 Cash 832,000
2 Bank 666,000
3 Capital 2,200,000
4 Purchases 3,405,000
5 Amin & Co (Payables) 2,646,000
6 Van 540,000
7 Ahmed Brothers (Receivables) 1,130,000
8 Sales 2,690,000
9 Prepaid rent 680,000
10 Carriage inwards 38,000
11 Sales return 220,000
12 Drawings 25,000

ANSWER-14
(a)
Capital
Date Particulars Rs.000 Date Particulars Rs.000
May May
31 Balance c/d 2,500 1 Cash 2,500
2,500 2,500

Cash
Date Particulars Rs.000 Date Particulars Rs.000
May May
1 Capital 2,500 6 Rent 120
9 The office co. 430 12 D Gibson 250
10 Texas chain store 1,500 12 The Bushes Co. 540
15 Advertising cost 230
31 Rent 180
31 Balance c/d 3,110
4,430 4,430

Purchases
Date Particulars Rs.000 Date Particulars Rs.000
May May
2 The bushes co. 540
2 Flower city 870

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2 D Gibson 250
2 Wild Weed 760
2 T Greenery 640
18 The bushes co. 430
18 Landscape 1,100 31 Balance c/d 4,590
4,590 4,590

Payables – the Bushes Company

Date Particulars Rs.000 Date Particulars Rs.000
May May
12 Cash 540 2 Purchases 540
31 Balance c/d 430 18 Purchases 430
970 970

Payables - Flower city

Date Particulars Rs.000 Date Particulars Rs.000
May May
31 Balance c/d 870 2 Purchases 870
870 870

Payables – G Gibson
Date Particulars Rs.000 Date Particulars Rs.000
May May
12 Cash 250 2 Purchases 250
250 250

Payables – Wild Weed

Date Particulars Rs.000 Date Particulars Rs.000
May May
31 Balance c/d 760 2 Purchases 760
760 760

Payables – T Greenery
Date Particulars Rs.000 Date Particulars Rs.000
May May
31 Balance c/d 640 2 Purchases 640
640 640

Payables – Landscape
Date Particulars Rs.000 Date Particulars Rs.000
May May
31 Balance c/d 1,100 18 Purchases 1,100
1,100 1,100

Receivables – The Office company

Date Particulars Rs.000 Date Particulars Rs.000
May May
4 Sales 430 9 Cash 430
430 430

Receivables – V Cork
Date Particulars Rs.000 Date Particulars Rs.000
May May
4 Sales 640 31 Balance c/d 640

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640 640

Receivables – Texas Chain Stores

Date Particulars Rs.000 Date Particulars Rs.000
May May
4 Sales 1,760 10 Cash 1,500
31 Balance c/d 260
1,760 1,760

Receivables – Public Parks

Date Particulars Rs.000 Date Particulars Rs.000
May May
21 Sales 670 Balance c/d 670
670 670
Sales
Date Particulars Rs.000 Date Particulars Rs.000
May May
4 The office company 430
4 V Cork 640
4 Texas chain stores 1,760
31 Balance c/d 3,500 21 Public Parks 670

Rent
Date Particulars Rs.000 Date Particulars Rs.000
May May
6 Cash 120
31 |Cash 180 31 Balance c/d 300
300 300

Advertising
Date Particulars Rs.000 Date Particulars Rs.000
May May
15 Cash 230 31 Balance c/d 230
230 230

(b)
HOME OAK GARDEN TRADERS
Trial Balance
As at 31st May 2013
Sr. Description Dr. Cr.
Rs. 000 Rs. 000
1 Capital 2,500
2 Cash 3,110
3 Purchases 4,590
4 Payables:
5 The Bushes Company 430
6 Flower city 870
7 Wild Weed 760
8 T Greenery 640
9 Landscape 1,100
10 Receivables:
11 V Cork 640
12 Texas Chain Stores 260
13 Public Parks 670

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14 Sales 3,500
15 Rent 300
16 Advertising 230
9,800 9,800
ANSWER-15

Capital
Date Particulars Rs. Date Particulars Rs.
Mar Mar
31 Balance c/d 80,000 1 Bank 80,000
80,000 80,000

Bank
Date Particulars Rs. Date Particulars Rs.
Mar Mar
1 Capital 80,000 6 Wages 1,400
24 Carton Leisure 9,500 12 Wages 1,400
30 King Bank Loan 6,000 17 KH Supplies 8,400
21 Beta Fittings 5,000
31 Motor Van 40,000
31 Balance c/d 39,300
95,500 95,500
Bank
Date Particulars Rs. Date Particulars Rs.
Mar Mar
5 Sales 8,700 9 Purchases 4,600
31 Balance c/d 4,100
8,700 8,700

Purchases
Date Particulars Rs. Date Particulars Rs.
Mar Mar
2 KH Supplies 7,600
2 Hatts 2,700
2 Toby Traders 5,600
9 Cash 4,600
10 KH Supplies 5,700
10 Toby Traders 9,800 31 Balance c/d 36,000
36,000 36,000

Purchases – KH Supplies
Date Particulars Rs. Date Particulars Rs.
Mar Mar
17 Bank 8,400 2 Purchases 7,600
27 Purchase returns 2,400 10 Purchases 5,700
31 Balance c/d 2,500
13,300 13,300

Payables - Hatts
Date Particulars Rs. Date Particulars Rs.
Mar Mar
31 Balance c/d 2,700 2 Purchases 2,700
2,700 2,700

Payables - Toby Traders

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PRC -4 Introduction to Accounting

Date Particulars Rs. Date Particulars Rs.

Mar Mar
18 Purchase returns 2,000 2 Purchases 5,600
31 Balance c/d 13,400 10 Purchases 9,800
15,400 15,400

Payables - Beta Fittings

Date Particulars Rs. Date Particulars Rs.
Mar Mar
21 Bank 5,000 15 Fixtures and fittings 5,000
5,000 5,000

Receivables – Elliot’s
Date Particulars Rs. Date Particulars Rs.
Mar Mar
7 Sales 3,500 31 Balance c/d 3,500
3,500 3,500

Receivables – L Lane
Date Particulars Rs. Date Particulars Rs.
Mar Mar
7 Sales 4,200
13 Sales 3,200 31 Balance c/d 7,400
7,400 7,400
Receivables - Carton Leisure
Date Particulars Rs. Date Particulars Rs.
Mar Mar
7 Sales 7,200 24 Bank 9,500
13 Sales 2,300
9,500 9,500

Sales
Date Particulars Rs. Date Particulars Rs.
Mar Mar
5 Cash 8,700
7 Elliott 3,500
7 L Lane 4,200
7 Carton Leisure 7,200
L Lane 3,200
31 Balance c/d 29,100 13 Carton Leisure 2,300
29,100 29,100

Wages
Date Particulars Rs. Date Particulars Rs.
Mar Mar
6 Bank 1,400
12 Bank 1,400 31 Balance c/d 2,800
2,800 2,800

Fixture and Fittings

Date Particulars Rs. Date Particulars Rs.
Mar Mar
15 Beta Fittings 5,000 31 Balance c/d 5,000
5,000 5,000

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Motor Van
Date Particulars Rs. Date Particulars Rs.
Mar Mar
31 Bank 40,000 31 Balance c/d 40,000
40,000 40,000

Purchase Return
Date Particulars Rs. Date Particulars Rs.
Mar Mar
18 Toby Traders 2,000
31 Balance c/d 4,400 27 KH Supplies 2,400
4,400 4,400

Loan
Date Particulars Rs. Date Particulars Rs.
Mar Mar
31 Balance c/d 6,000 30 Bank 6,000
6,000 6,000
(b) LEE
Trial Balance
As at 31st March 2013

Description Dr. Rs Cr. Rs

Capital 80,000
Bank 39,300
Cash 4,100
Purchases 36,000
Payables:
KH Supplies 2,500
Hatts 2,700
Toby Traders 13,400
Receivables:
Elliott 3,500
L Lane 7,400
Sales 29,100
Wages 2,800
Fixture and Fittings 5,000
Motor Van 40,000
Purchase returns 4,400
Loan 6,000
138,100 138,100

Instructor: H. M. Umer 43