Saturday, January 28, 2012

Solution to Journal Entry – Exercise Problem 2

Problem Given in
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. During the month of January 1992 the following transactions took place:
                                                                          Rs.
Jan       1 Bought goods for cash                      70,000
            2 Sold good to Rahul & Co.(Credit)   38,000
         
           15 Sold goods for cash                         9,000
           
            21 Rahul & co. paid by cheque          35,000
          
            31 Paid rent by cash                            2,000
                
                Paid wages by cash                          3,000
                Withdrew cash personal use            5,000
Make journal entries 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
1
Bank A/c                         Dr.   
 To Cash A/c
(Open the bank account and deposited Rs. 20,000)
 
20,000 
20,000 
1
  Purchases A/c                 Dr.
    To Cash A/c
  (Bought goods for cash)
 
70,000
 
70,000
 
  2
  Rahul & Co A/c                Dr.  
    To Sales A/c
(Sales on credit)
  
 
38,000
 
38,000
 
  15
Cash A/c                          Dr.
  To Sales A/c
 (Cash sales) 
   
 
9,000
 
9,000
 
 
21
Bank A/c                          Dr.
   To Rahul & Co. A/c
  (Rahul & Co. Paid by cheque and cheque deposited in bank)
   
 
35,000
 
35,000
 
31
Rent A/c                            Dr.
   To Cash A/c
  (Rent paid by cash)
 
2,000
 
2,000
 
  31
  Wages A/c                       Dr.
     To Cash A/c
(Wages paid by cash) 
 
 
3,000
 
3,000
 
31
Drawals A/c                        Dr.
    To Cash A/c
(Withdrawal of money by Mr. Ashok for personal used
 
 
5,000
 
5,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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