Journalizing transactions

S.NO TRANSAC- ACCOUNTS NATURE OF DEBIT/

TION INVOLVED ACCOUNT CREDIT
1 Rent Paid Rent a/c Nominal Debit
Cash a/c Real Credit
2 Salaries Paid Salaries a/c Nominal Debit
Cash a/c Real Credit

3 Interest Interest a/c Nominal Credit

received Cash a/c Real Debit

4 Furniture Furniture a/c Real Debit

purchased Cash a/c Real Credit

5 Machinery Machinery a/c Real Credit

Sold Cash a/c Real Debit

6 Outstanding Salaries a/c Nominal Debit

for salaries o/s salaries a/c Personal Credit

7 Paid to Mr. A Mr. A’s a/c Personal Debit

Cash a/c Real Credit
Q. 1 Analyze the following transactions and make the
journal entries:
1. Mr. A started his business with cash Rs.50,000
2. Purchased goods Rs.5,000
3. Sold goods Rs.12,000
4. Purchased goods from Mr. B Rs.10,000
5. Sold goods to Mr. C Rs.12,500
6. Return goods to Mr. B Rs.2,000
7. Mr. C returned goods Rs.2,500
8. Received from Mr. C Rs.9,900, Discount allowed
Rs.100
9. Paid to Mr. B Rs.7,880, Discount allowed by him
Rs.120
10. Withdrew for personal use Rs.1,000
11. Withdrew goods for private use Rs.500
12. Paid salary Rs.500
13. Paid rent to the landlord Rs.500
3. Following are a few transactions of M/s. Rajesh Traders consisting of 16 transactions
along with Journal entries, Ledgers, Trial Balance, Financial Statements along with some
of the ledgers and similarly, you can prepare the remaining ledgers.

The following are the transactions of M/s Rajesh

Traders.
Date Particulars
2014  
April 1 Rajesh started his business with cash Rs 1,00,000
April Rajesh opened an account in a bank with cash Rs
10 30,000
May 10Purchased goods from Mohan Singh on credit Rs
40,000 and also paid carriage of Rs 2,000
May 20Sold goods to Rajeev Rs 20,000
May 25Due to some quality defect goods of Rs. 10000 was
returned to Mohan Singh
June 15Sold goods to Ayesha for Rs 70,000
June 30Paid rent of Rs 10,000
Aug.31 Purchased Furniture for cash of Rs 8,000
Sept.10Paid through a cheque of Rs 5,000 for
advertisement
Oct.05 Withdrawn Rs 6,000 from Bank for personal use
Nov.30 Recovered Rs 65,000 from Ayesha in full
settlement of his account
Dec.31 Salaries paid to employees Rs 15,000
2013  
Jan.15 Interest received from Bank Rs 2,000
Feb.10 Rajeev has become insolvent Rs 80 paisa in the
rupees on a debt of Rs 20,000 was recovered as a
 compensation

4.
Company A was incorporated on January 1, 2010 with an initial capital of
Rs.1,00,000. During the first month of its operations, the company engaged
in following transactions:
Date Transaction
Jan 2 An amount of Rs.36,000 was paid as advance rent for three months.
Jan 3 Paid Rs.60,000 cash on the purchase of equipment costing Rs.80,000.
Jan 4 Purchased office supplies costing Rs.17,600 on account.
Jan 13 Provided services to its customers and received Rs.28,500 in cash.
Jan 13 Paid the accounts payable on the office supplies purchased on January
4.
Jan 14 Paid wages to its employees for first two weeks of January,
aggregating Rs.19,100.
Jan 18 Provided Rs.54,100 worth of services to its customers. They paid
Rs.32,900 and promised to pay the remaining amount.
Jan 23 Received Rs.15,300 from customers for the services provided on
January 18.
Jan 25 Received Rs.4,000 as an advance payment from customers.
Jan 26 Purchased office supplies costing Rs.5,200 on account.
Jan 28 Paid wages to its employees for the third and fourth week of January:
Rs.19,100.
Jan 31 Paid Rs.5,000 as dividends.
Jan 31 Received electricity bill of Rs.2,470.
Jan 31 Received telephone bill of Rs.1,494.
Jan 31 Miscellaneous expenses paid during the month totaled Rs.3,470