Question

Building purchased for 6,00,000 Goods sold on credit to m/s reema trader 1,10,000 Salary paid 1,00,000 Withdrew cash for personal use 6,000 Cash receipts from debtors m/s Ankit bros 22,000

Answer 1

hello Frnd


Following are the Journal entry of the above transsactions.


1. Building Purchased for ₹600,000

Building a/C Dr. 600,000
>>>>To Cash/Bank a/C 600,000


✔Reason: Building is an asset and when a asset increses it's debited.
Here our Cash or Bank is Decrease, it's credited.

2.Goods sold on credit

M/S Reema Traders a/C Dr. 110,000
>>>>>>>>>>>>>>>To sales a/C 110,000

✔Reason:
Goods are asset for us and when it reduces it's credited. The reason of reduction is goods is sale, therefore sales account is always credited.

M/S Reema is our debtor and debtors are assets for business. It's increasing therefore it's debited.


3. Salary Paid


Salary a/C Dr. 100,000
>>>To Cash a/C 100,000

✔Reason:
Salary is a expenses and It's a Nominal Account. Expenses are always debit.

Cash is reducing therefore it's credit.


4. Withdraw cash for personal use


Drawings a/C Dr. 6000
>>>>>>To Cash a/C 6000

✔Reason:
Drawing is not a expenses of the business therefore DRWAING reduces the capital of business man.


5. Received cash from Debtors

Cash a/C Dr. 22,000
>>>To M/S Ankit Bros. 22,000

✔Reason:
Cash is increasing and debtor is reducing.



hope it helps
jerri