Journal Entry – Exercise Problem

Problem

Mr Ashok commenced business on 1st January, 1992 with a capital of Rs.1,00,000 in cash. On the same date he opened the bank account and deposited Rs.20,000. He also purchased furniture Rs. 5000, building Rs.50,000 and machinery Rs.20,000. During the month of January 1992 the following transactions took place:

                                                                          Rs.

Jan       1 Paid rent by cheque                           1000

               Bought goods for cash                       2000

            2 Sold good to Rahul & Co.(Credit)   3800

            4 Paid for printing and Stationery            300

            7 Bought goods from Bhim  (Cr.)     17000

            11 Sold goods to Madan on credit        9000

            15 Sold goods for cash             9000

            20 Paid wages                                        500

            21 Rahul & co. paid                             3800

            23 Paid cheque to Ram Singh on a/c  8000

            24 Cash sales                                       7000

            25 Paid into bank                                 6000

            28 Paid for Advertisement by cheque 1000

            29 Paid for Building repairs                     700

            30 Madan paid                                     4500

            31 Withdrew cash personal use   500

Make journal entires for the transactions.

     

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
1992 Jan 1	Cash A/c                        Dr.     To Capital A/c (Ashok brought in capital of Rs.1,00,000 in cash)		1,00,000	1,00,000

Explanatory Article

Journalising a Business Transaction

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