Record the following transactions of Amar Constructions for financial year 2000-01

2000

Apr 1           Amar Started business with capital Rs. 20,000

Apr 2           Opened bank account with         Rs. 15,000

May 1          Goods purchased from Vihari for Rs. 7,000

May 31        Purchased Xerox Machine for Rs. 2,000

Jun 2           Sold goods on credit to Chandu worth Rs. 1,500

Jul 31          Purchased goods on cash for Rs. 1,000

Aug 2          Cash sales to Sunil worth Rs. 1,000

Sep 1           Purchased machinery and

payment made by cheque Rs. 6,500;

Rs. 200 spent on installation

Oct 31         Paid Rent to Hari Rs. 100

Nov2           Paid Salaries Rs. 150

Dec 31         Drawings Rs. 500

2001

Mar 31        Bank credited towards interest Rs. 50

Solution:

Trail Balance: 29,550/-

Gross Loss: 5,500/-; Net Loss: 5,700

Balance Sheet:26,500/-