Illustration

ILLUSTRATION

  • Journalize and make Ledger entries for the following transactions of a trader in January 2004.
    • 3 Started businesses with cash Rs.50000
    • 4 Opened bank accounts with Rs.35000
    • 7 Bought goods for cash Rs.1500
    • 12 Bought furniture by cheque Rs.1750
    • 14 Purchases from Mohan Rs.11000
    • 17 Sales by cash Rs.2750
    • 20 Retuned goods to Mohan Rs.1000
    • 23 Withdrew cash from bank Rs.2500
    • 25 Rent paid in cash Rs.500
    • 28 Commission received in cash Rs.200

Solution: Journal

Date
Jan 2004
Particulars
V.No
L.F
Dr(Rs)
Cr(Rs)
3
  • Cash Account
  • To Capital Account
    (Being the capital brought in cash)
Dr.
50000
50000
4
  • Bank Account
  • To cash Account
    (Being cash paid into Bank)
Dr
35000
35000
7
  • Purchases Account
  • To Cash Account
    (Being Cash Purchase made)
Dr
1500
1500
12
  • Furniture Account
  • To Bank Account
    (Being Purchase of furniture by Cheque)
Dr
1750
1750
14
  • Purchases Account
  • To Mohan’s Account
    (Being credit Purchase from Mohan)
Dr
11000
11000
17
  • Cash Account
  • To sales Account
    (Being cash received on account of sales)
Dr
2750
2750
20
  • Mohan’s Account
  • To purchases return Account
    ( Being returns to Mohan)
Dr
1000
1000
23
  • Cash Account
  • To Bank Account
    (Being cash drawn from Bank)
Dr
2500
2500
25
  • Rent Accounts
  • To Cash Accounts
    (Being the rent paid in cash)
Dr
500
500
28
  • Cash Account
  • To Commission Account
    (Being Commission received in cash)
Dr
200
200

Solution: Ledger

Dr
Capital Account
Cr
2004
Rs
2004
Rs.
Jan 3
By Cash Account
50000
Dr
Cash Account
Cr
Jan 3
To Capital Account
50000
Jan4
By Bank Account
35000
Jan 17
To Sales Account
2750
Jan 7
By Purchase Account
1500
Jan 23
To Bank Account
2500
Jan25
By Rent Account
500
Jan 28
To Commission Account
200
Dr
Bank Account
Cr
Jan 4
To Cash Account
45000
Jan12
By Furniture Account
1750
Jan 23
By Cash Account
2500
Jan 25
By Capital Account
10000
Dr
Drawings Account
Cr
Jan 2
To Bank Account
250
Dr
Furniture Account
Cr
Jan 4
To Bank Account
1750
Dr
Mohan’s Account
Cr
Jan 20
To Purchase Return Account
1000
Jan 14
By Purchases Account
11000
Dr
Purchases Account
Cr
Jan 7
To Cash Account
1500
Jan14
To Mohan’s Account
11000
Dr
Purchases Returns Account
Cr
Jan 20
By Mohan’s Account
1000
Dr
Rent Account
Cr
Jan 25
To Cash Account
500
Dr
Commission Account
Cr
Jan 28
By Cash Account
200
Last modified: Saturday, 2 June 2012, 7:34 AM