On 1 January 2009, Vas had the following assets and liabilities:

Building Rs 5,000; A’s acceptance Rs 1,000; Due from X Rs 3,000; Due from Y Rs 2,000; Cash Rs 1,500; Shares Rs 5,000; B’s acceptance Rs 2,000; Stock-in-hand Rs 20,000; Overdraft at bank Rs 1,500; Bills Payable Rs 1,200; Due to Kumar Rs 1,000; Due to Ravi Rs 2,500; Reserve for doubtful debts Rs 250; Wages due Rs 250.

Transactions during the month of January 2009.

Rs

Jan

1

Paid wages due

200

3

Sold goods to Mr. P less 10% for cash in 20 days.

2,000

5

Sold goods to Mr. X less 5% trade discount

5,000

7

Cash paid into bank

7,000

9

Paid Kumar by cheque in full settlement

950

11

Sent Mr. X a credit note for Rs 250 for an allowance claimed by him for inferior goods

15

Discounted A’s acceptance at bank for

975

17

B became insolvent; received from him first and final dividend of forty-paise in the rupee.

19

Withdrew from bank for office use

750

23

Received cheque from Mr. P for the amount due and paid the same into bank.

25

Sold shares Rs 5,000 at a premium of 3% less brokerage 1%

27

Paid Ravi by cheque in full settlement

2,450

28

Mr. P’s cheque was returned dishonoured and the discount was disallowed.