(a) Started business with cash Rs. 1,20,000
(b) Rent received Rs. 10,000
(c) Invested in shares Rs. 50,000
(d) Received dividend Rs. 5,000
(e) Purchase goods on credit from Rajani Rs. 35,000
(f) Paid cash for house hold Expenses Rs. 7,000
(g) Sold goods for cash (costing Rs.10,000) Rs. 14,000
(h) Cash paid to Rajani Rs. 35,000
(i) Deposited into bank Rs. 20,000
pls send the answer in journal entry table
Answers
(a) Started business with cash.
The cash account will be debited as it is considered an asset and the capital account will be credited as it is considered a liability.
Cash A/c ... Dr - 1,20,000
- To capital A/c - 1,20,000
(b) Rent received.
Since we're receiving cash, it will be considered to be debit. As per the rules of accounting, we must debit what comes in and credit what goes out.
Cash A/c ... Dr - 10,000
- To rent A/c - 10,000
(c) Invested in shares.
Since cash is going out on investment, we credit it.
Investment A/c ... Dr - 50,000
- To cash A/c - 50,000
(d) Received dividend.
Since our cash balance is increasing [by receiving dividend], we debit it.
Cash A/c ... Dr - 5,000
- To dividend A/c - 5,000
(e) Purchased goods on credit from Rajani.
We're receiving goods [stock] and giving money out. Goods will be considered to be debit and we'll credit the seller.
Purchases A/c ... Dr - 35,000
- To Rajani - 35,000
(f) Paid cash for household expenses.
Expenses are considered to be debit balances. Since cash is going out, we credit it.
Household expenses A/c ... Dr - 7,000
- To cash A/c - 7,000
(g) Sold goods for cash.
Since we're receiving cash out of sales, we debit it.
Cash A/c ... Dr - 14,000
- To sales - 14,000
(h) Cash paid to Rajani.
Cash is reducing/going out, hence we credit it.
Rajani A/c ... Dr - 35,000
- To cash A/c - 35,000
(i) Deposited into bank.
Since the balance in the bank is increasing, we debit it.
Bank A/c ... Dr - 20,000
- To cash - 20,000