3. Record the following transactions in the Journal of Amitabh:
2020
May 1 Amitabh started business with cash 80,000
May 2 Purchased furniture from Modern Furnishers for
cash 10,000
May 5 Deposited in bank 30,000
May 6 Purchased goods for
cash 5,000
May 8 Purchased goods on credit from Hari 4,500
May 10 Purchased goods from Suresh for cash 3,000
May 12 Purchased goods from
Ajay 4,000
May 14 Sold goods for cash 7,000
May 15 Sold goods to Karim 6,500
May 16 Sold goods to Ganesh for cash 5,000
May 18 Sold goods to Bansi 3,500
May 19 Withdrew from bank for office use 5,000
20 Karim paid on account 5,000
May 29 Paid rent for
residence 6,000
May 30 Purchased a cycle for his son 3,000
May 30 Paid to Ajay in settlement of his account 3,800
Answers
Explanation:
in last entry we have closed ajay account as it is given settlement so we have received a cash discount of 200 and it will be shown in the books
Journal Entries in the books of Amitabh
1 May 2020
Cash A/C DR 80,000
To Capital A/C 80,000
( Being business started with cash 80,000)
2 May 2020
Furniture A/C DR 10,000
To Cash A/C 10,000
( Being furniture purchased with cash )
5 May 2020
Bank A/C DR 5,000
To Cash A/C 5,000
(Being cash deposited into bank )
8 May 2020
Purchase A/C DR 4,500
To Hari A/C 4,500
( Being goods purchased on credit )
10 May 2020
Purchase A/C DR 3,000
To Cash A/C 3,000
( Being goods purchased on credit )
12 May 2020
Purchase A/C DR 4,000
To Ajay A/C 4,000
( Being goods purchased )
14 May 2020
Cash A/C DR 7,000
To Sales A/C 7,000
(Being goods sold on cash )
15 May 2020
Karim A/C DR 6,500
To Sales A/C 6,500
( Being goods sold )
16 May 2020
Cash A/C DR 5,000
To Sales A/C 5,000
( Being goods sold for cash )
18 May 2020
Bansi A/C DR 3,500
To Sales A/C
( Being goods sold )
19 May 2020
Cash A/C DR 5,000
To Bank A/C 5,000
( Being money withdrawn from bank )
20 May 2020
Cash A/C DR 5,000
Karim A/C 5,000
( Being cash recieved )
29 May 2020
Rent A/C DR 6,000
To Cash A/C 6,000
( Being rent paid )
30 May 2020
Drawing A/C DR 3,000
To Cash A/C 3,000
( Being cash withdrawn for personal use )
30 May 2020
Ajay A/C DR 4,000
To Discount A/C 200
To Cash A/ C 3,800
( Being cash given to ajay in full settlement of his account and recieved discount )