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Question
What is credit balance?
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Solution
If the credit side total is more than the total of the debit side, the difference is credit balance and is placed on the debit side as ‘To Balance c/d’.
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What is meant by posting?
Prepare Furniture A/c from the following transactions.
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| 1 | Furniture in hand | 2,000 |
| 1 | Purchased furniture for cash | 4,000 |
| 30 | Sold furniture | 400 |
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| Cash | 1,00,000 | Amount due to Anush | 40,000 |
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| Amount due from Rohit | 10,000 | ||
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| 2016 June | Particulars | ₹ |
| 1 | Commenced business with cash | 1,10,000 |
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Journalise the following transactions in the books of Vasu and post them to ledger accounts.
| 2017 Nov | Particulars |
| 1 | Cash in hand ₹ 1,00,000; Cash at bank: ₹ 30,000 |
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| 4 | Received as commission ₹ 5,000 |
| 8 | Bank paid ₹ 15,000 directly for the insurance premium of Vasu. |
| 15 | Cash deposited into bank ₹ 30,000 |
| 20 | Cash withdrawn from bank for personal use ₹ 45,000. |
Put ‘4’ mark for the nature of balance for the following.
| Account | Dr. Balance | Cr. Balance |
| 1. Capital A/c | ||
| 2. Goodwill | ||
| 3. Bank Overdraft | ||
| 4. Bills Receivable | ||
| 5. Creditors | ||
| 6. Drawings | ||
| 7. Advertisement | ||
| 8. Prepaid Rent | ||
| 9. Outstanding Salary | ||
| 10. Bad debts |
