Homework (27-02-2023)

Journal
Question

Rathan is a trader dealing in automobiles. For the following transactions, pass

journal
entries
for the month of January 2018
Jan.

1. Commenced business with cash Rs 90,000

2. Purchased goods from Ram on credit Rs 40,000
3. Ram Accepted payment Rs 20,000
4. Sold goods to D on credit Rs 10,000
5. Cash Deposited Rs 50,000
6. Returned goods to Ram Rs 5,000
7. Received cheque from D in full settlement and deposited the same in bank Rs
9,000
8. Commission received in cash Rs 5,000
9. Goods costing Rs 40,000 was sold and cash received Rs 50,000
10.Withdrawn Cash for personal use Rs 5,000
11.Salaries paid Through NEFT Rs 4,000
12.Building purchased from Kumar and Co. for Rs 1,60,000 and an advance of Rs
50,000
is given in cash and Received Discount of Rs 10,000
13.Paid Electricity Bill ECS Rs 2,500
Answer:

Date Particulars L.F Debit Credit

Jan, 2018 Cash A/c Dr. 90,000
To Rathan Capital A/c 90,000
(Being amount invested in the business)
Purchase A/c Dr. 40,000
To Ram’s A/c 40,000
(Being goods purchased from Ram on credit)
Cash A/c Dr. 20,000
To Ram’s A/c 20,000
(Being amount received by Ram)
D’s A/c Dr. 10,000
To Sales A/c 10,000
(Being goods sold to D on credit)

Bank A/c Dr. 50,000

To Cash A/c 50,000
(Being cash deposited)
Ram A/c Dr. 5,000
To Purchase Returns A/c 5,000
(Being goods returned to ram)
Bank A/c Dr. 9,000
To D’s A/c 9,000
(Being cheque received from D and deposited the same in
bank)
Cash A/c Dr. 5,000
To Commission Received A/c 5,000
(Being commission received)
Cash A/c Dr. 50,000
To Sales A/c 50,000
(Being goods sold on cash)
Drawings A/c Dr. 5,000
To Cash A/c 5,000
(Being cash withdrawn for personal use)
Salaries A/c Dr. 4,000
To Bank A/c 4,000
(Being salaries paid through NEFT)
Building A/c Dr. 1,60,000
To Kumar and Co. A/c 1,00,000
To Cash A/c 50,000
To Discount allowed A/c 10,000
(Being Building purchased from Kumar and Co. for Rs
1,60,000 and an advance of Rs 50,000 is given in cash and
Received Discount of Rs 10,000)

Electricity bill A/c Dr. 2,500

To Cash A/c 2,500
(Being Electricity bill paid)