Prepare Minerva Traders A/c from the following information for the month of December 2017. Transactions: Dec 1: Purchased goods from Minerva Traders Rs. 50,000; Dec 5: Paid Rs. 40,... Prepare Minerva Traders A/c from the following information for the month of December 2017. Transactions: Dec 1: Purchased goods from Minerva Traders Rs. 50,000; Dec 5: Paid Rs. 40,000 to Minerva Traders; Dec 10: Sold goods to Minerva Traders Rs. 70,000; Dec 15: Purchased Furniture from Minerva Traders Rs. 26,000; Dec 20: Purchased Machinery from Minerva Traders Rs. 75,000; Dec 25: Paid Rs. 1, 00,000 to Minerva Traders.
Understand the Problem
The question requires preparing Minerva Traders A/c (account) using the given transactions for the month of December 2017. This involves recording purchases, sales, and payments to and from Minerva Traders to determine the account balance or any outstanding amounts.
Answer
The transactions with Minerva Traders are recorded. Payments to Minerva Traders are debited, and purchases/sales from them are credited. The balance is calculated as Rs. 81,000.
To prepare Minerva Traders A/c, we need to record all the transactions. On the debit side, we record when Minerva Traders gives us something, like sales. On the credit side, we record when we give Minerva Traders something, like purchases or payments.
Debit Side: Dec 05: Paid Rs. 40,000 Dec 25: Paid Rs. 1,00,000 Total Debit: Rs. 1,40,000
Credit Side: Dec 01: Purchased Goods Rs. 50,000 Dec 10: Sold Goods Rs.70,000 Dec 15: Purchased Furniture Rs. 26,000 Dec 20: Purchased Machinery Rs. 75,000 Total Credit: Rs. 221,000
Final Answer = Credit - Debit = 81,000
Answer for screen readers
To prepare Minerva Traders A/c, we need to record all the transactions. On the debit side, we record when Minerva Traders gives us something, like sales. On the credit side, we record when we give Minerva Traders something, like purchases or payments.
Debit Side: Dec 05: Paid Rs. 40,000 Dec 25: Paid Rs. 1,00,000 Total Debit: Rs. 1,40,000
Credit Side: Dec 01: Purchased Goods Rs. 50,000 Dec 10: Sold Goods Rs.70,000 Dec 15: Purchased Furniture Rs. 26,000 Dec 20: Purchased Machinery Rs. 75,000 Total Credit: Rs. 221,000
Final Answer = Credit - Debit = 81,000
More Information
An account is a detailed record of all increases and decreases that have occurred in an individual asset, liability, or equity during a specific period.
Tips
Ensure you understand which side represents giving to Minerva Traders (Credit) and which represents receiving from them (Debit). Double-check your addition to avoid calculation errors.
Sources
- Hsslive-xi-acc-prvs-qn-ans-3- Recording of Transaction I - 1 Chapter 3 - studocu.com
- Plus One Accountancy Previous Year Question Paper March 2018 - aplustopper.com
- One Accountancy Final Exam Question Paper 2024 with Answer Key - adda247.com
AI-generated content may contain errors. Please verify critical information
