FINANCIAL ACCOUNTING Self Balancing System Self balancing system is the system which each ledger is balanced...

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FINANCIAL ACCOUNTING Self Balancing System Self balancing system is the system which each ledger is balanced independently. Practical question and answers: Sam is a person who keeps his books under self balancing system. The following detailes are extracted from his books for the three months ended 31st March, 2002. Credit balance in Creditors Ledger Adjustment Account on 1.1.02 Debit balance in Creditors Ledger Adjustment Account on 1.1.02 The transactions during the period were: Total purchases Cash purchases Discount earned. Bills receivable endorsed Payment to creditors by cheque Payment to creditors in cash Bills of exchanges accepted Interest charged for delay in payment Allowances by creditors Dishonour of cheque issued Rs. 8000 500 80000 25000 4000 2000 9000 34000 8000 400 500 3000 300 Charges by Creditors Transfer to Debtors Ledger Cash received from creditors for over payment Debit balance in Creditors Ledger on 31.03.02 Prepare Purchase Ledger Adjustment Account and General Ledger Adjustment Account. 700 200 600 FINANCIAL ACCOUNTING Self Balancing System Self balancing system is the system which each ledger is balanced independently. Practical question and answers: Sam is a person who keeps his books under self balancing system. The following detailes are extracted from his books for the three months ended 31st March, 2002. Credit balance in Creditors Ledger Adjustment Account on 1.1.02 Debit balance in Creditors Ledger Adjustment Account on 1.1.02 The transactions during the period were: Total purchases Cash purchases Discount earned. Bills receivable endorsed Payment to creditors by cheque Payment to creditors in cash Bills of exchanges accepted Interest charged for delay in payment Allowances by creditors Dishonour of cheque issued Rs. 8000 500 80000 25000 4000 2000 9000 34000 8000 400 500 3000 300 Charges by Creditors Transfer to Debtors Ledger Cash received from creditors for over payment Debit balance in Creditors Ledger on 31.03.02 Prepare Purchase Ledger Adjustment Account and General Ledger Adjustment Account. 700 200 600

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