Question

8. Jeyaseeli is a sole proprietor having a provisions store. Following are the transactions
during the month of January, 2018. Journalise them.
Jan.
Rs.
7. Commenced business with cash
8. Deposited cash with bank
9. Purchased goods by paying cash
80,000
40,000
5,000
10,000
11,000
5.000
10.Purchased goods from Lipton & Co. on credit
11.Sold goods to Joy and received cash
12.Paid salaries by cash
13.Paid Lipton & Co. by cheque for the purchases
made on 4th Jan.
14.Bought furniture by cash
15.Paid electricity charges by cash
16.Bank paid insurance premium on furniture as
per standing instructions
4,000
1,000
300​

Answer 1

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Cash a/c $\: \:$ ...Dr. 80,000

To Capital a/c $\: \: \:\:\:\:\:\:\:\:\:\:$ 80,000

$\: \:$

Bank a/c $\: \:$ .....Dr. 40,000

To cash a/c $\: \:\:\:\:\:\: \: \:\:\:\:\:\:\:\:\:\:$ 40,000

$\: \:$

Purchase a/c $\: \:$ ......Dr. 5000

To cash a/c $\:\:\:\:\:\:\:\:\: \:\:\:\:\:\:\: \: \:\:\:\:\:\:\:\:\:\:$ 5000

$\: \:$

Purchase a/c $\: \:$ ..... Dr. 10,000

To Lipton & Co. a/c $\: \: \:\:\:\:\:\:\:\:\:\:$ 10,000

$\: \:$

Cash a/c $\: \:$ ....Dr. 11,000

To Joy a/c $\: \: \:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:$ 11,000

$\: \:$

Salary a/c $\: \:$ .......Dr. 5000

To cash a/c $\: \: \:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:$ 5000

$\: \:$

Lipton & Co. a/c $\: \:$.....Dr. 10,000

To bank a/c $\: \:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\: \: \:\:\:\:\:\:\:\:\:\:$ 10,000

$\: \:$

Furniture a/c $\: \:$ .......Dr. 4000

To cash a/c $\: \: \:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:$ 4000

$\: \:$

Electricity charges a/c $\: \:$ .....Dr. 1000

To cash a/c $\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\: \:\:\:\:\:\:\:\:$ 1000

$\: \:$

Insurance premium a/c$\: \:$ ......Dr. 300

To bank a/c $\: \:\:\:\:\:\:\:\: \:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\: \: \:\:\:\:\:\:\:\:\:\:$ 300

$\: \: \:$

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• The amount in debit and credit column should be equal.

• When a credit transaction occurs the name of the creditor/debtor is to be mentioned.

$\: \: \:$

$\: \:$

• Personal Account :

Debit the receiver

Credit the giver

• Real Account :

What comes in = Debit

What goes out = Credit

• Nominal Account :

Expense & loss = Debit

Income & Gain = Credit