3 Prepare journals from the following: -
(1) Shyam started business with cash Rs. 20.000
(ii) Purchases goods for Rs. 5,000 from Radha
(iii) Rent received Rs. 300
(iv) Sold goods costing 3,000 for Rs. 6,000 to Ram Avtar
(v) Paid Salaries Rs. 200
(vi) Brought goods for Rs. 10,000 from A @ 10% trade discour
(vii) Paid to A 8,500 in full settlement.
Answers
Answer :
Golden Rules of Journal
Personal account rule
Debit- The receiver.
Credit- The giver.
Real account rule
Debit- What comes in.
Credit- What goes out.
Nominal account rule
Debit- All expenses and losses.
Credit- All incomes and gains.
Now
The journal entries will be
1. Cash A/C DR ₹ 20,000
To Capital A/C ₹ 20,000
(Being started business with cash Rs. 20.000 By Shyam)
2. Purchases A/C DR ₹ 5,000
To Radha 's A/C ₹ 5,000
(Being Purchased goods from radha ₹ 5,000)
3. Cash A/C DR ₹ 300
To Rent A/C ₹ 300
(Being Rent Received ₹ 300)
4. Ram Avtar A/C DR ₹ 6000
To Sales A/C ₹3000
To Profit & Loss A/C ₹ 3000
(Being Sold goods costing 3,000 for Rs. 6,000 to Ram Avtar)
5. Salary A/C DR ₹ 200
To Cash A/C ₹ 200
(Being Salary Paid ₹ 200)
6. Purchases A/C DR ₹ 9000
To Cash A/C ₹ 9000
(Brought goods for Rs. 10,000 from A @ 10% trade discount )
7. Amit's A/C DR ₹ 9000
To Discount received A/C ₹ 500
To Cash A/C ₹ 8,500
( Paid to Amit ₹ 8,500 in full settlement )