Question

DU
)
2. Pass a journal entry in each of the following cases. 1 09-19
[N18, N19 - RTP)
a) A running business was purchased by Mohan with following assets and liabilities.
Cash Rs.2,000, Land Rs.4,000, Furniture Rs.1,000, Stock Rs.2,000, Creditors Rs.1,000, Bank
Overdraft Rs.2,000.
b) Goods distributed by way of free samples, Rs.1,000.
c) Rahim became an insolvent and could pay only 50 paise in a rupee. Amount due from him
Rs.600.
in the following transactions in. the books of Gamma Bros. (8997​

Answer 1

Answer:

a) cash A/C.........dr. 2000

land A/C............dr. 4000

furniture A/c.....dr 1000

stock of goods A/C.....dr. 2000

To creditor A/C 1000

To Bank A/C 2000

To capital A/C 6000

b) Good distributed as free sample A/C....dr. 1000

To cash A/C 1000

sorry i can able to done the 3 sum

Answer 2

Answer:

a)To  Capital a/c 6000

b) To cash a/c 1000

c) bank and bad debts debit to debtor account

Explanation:

In the books of Gamma Bros..

A) Cash a/c   Dr. 2000

land a/c        Dr. 4000

Furniture a/c  Dr. 1000

Stock a/c      Dr. 2000

To Creditor                           1000

To bank overdraft a/c           2000

To Capital a/c                         6000

B) Goods distributed as free samples  Dr. 1000

To cash a/c                                                              1000

C) Bank a/c              Dr. 50

Bad Debt a/c           Dr.550

To Debtor a/c                             600

• The books in which transaction is recorded for the first time from a source document are called " books of original entry".
• Journal is one of the basic books of original entry in which transactions are originally recorded in a chronological order according to the principle of double entry system.
• Journal provides a date-wise record of all transactions with details of debit and credit and the amount of each transaction.
• Journal is also called primary entry book.
• It helps to analyze each transaction and provides basis for ledger
• Journal helps to maintain the identity of each transaction by keeping a complete record of each transaction on a permanent basis.
• By the help of Narration in journal entry a brief explanation of the transaction is given.

Thus, The journal provides a date wise record of all transaction with details of debit and credit amount and a brief explanation in form of narration.

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