Question

1 Opening cash balance 7,000, opening bank balance 6,000.
3 Cash purchase 76,000; cash sales 7,000.
5 3.000 is deposited in the bank.
6 As more funds are required in the business, a loan of 75,000 is taken from Prabhu bearing 8% interest
rate.
8 Goods of 7 3.000 sold to Mansi at 10 % cash discount, Mansi issued a cheque of the necessary amount,

Answer 1

Answer:

Journals for the above transactions:

1) Opening balances do not have journals...

3) Purchase A/c ....Dr. 76000

To Cash A/c 76000

(Being purchases in cash)

Cash A/c ....Dr. 7000

To Sales A/c 7000

(Being sales in cash)

5) Bank A/c ....Dr. 3000

To Cash A/c 3000

(Being cash deposited in bank)

6) Bank A/c ....Dr. 75000

To Loan from Prabhu 75000

(Being loan taken from Prabhu)

Interest on loan A/c Dr. 6000

To Prabhu 6000

(Being interest on loan due to Prabhu)

8) Bank A/c ....Dr. 65700

Discount allowed A/c ..Dr. 7300

To Mansi A/c 73000

(Being discount allowed to Mansi for payment)