Question

33. Pass the journal entries for the following transactions applying the Accounting Equation approach
(a) Cash introduced into the business 2,00,000
(b) Goods purchased in cash worth 48,000
(c) Wages & Salaries paid 64,000
(d) Cash sales to Z Ltd. 48,000
(e) Credit sales to Alpha Ltd. 375,000
(1) Sold goods for cash to Gamma Ltd. for 43,000
(e) Borrowed 4,00,000 from SBI
th) Purchased a plant costing 82,000 for cash


marks = 5​

Answer 1

Answer:

Cash A/c          Dr.                    2,00,000

     To Capital A/c                    2,00,000

(Being capital introduced in the business)

Purchases A/c          Dr.                    48,000

       To Cash A/c                              48,000

(Being goods purchased for cash)

Wages & Salaries A/c          Dr.                    64,000

         To Cash A/c                                        64,000

(Being wages and salaries paid)

Cash A/c          Dr.                    48,000

         To Sales A/c                    48,000

(Being cash sales made to Z Ltd.)

Alpha Ltd. A/c          Dr.                    3,75,000

      To Sales A/c                              3,75,000

(Being goods sold to Alpha Ltd. on credit)

Cash A/c          Dr.                    43,000

         To Sales A/c                    43,000

(Being goods sold for cash to Gamma Ltd.)

Cash A/c          Dr.                                     4,00,000

         To Bank Overdraft A/c                    4,00,000

(Being amount borrowed from SBI)

Plant A/c          Dr.                    82,000

         To Cash A/c                    82,000

(Being plant purchased for cash)