Question

Following are the transactions of Dhani Ram and Sons for the month
of July 2006. Make journal entries, post them into ledger and balance
the account.
2006
July 1 Commenced business with cash 60,000
” 2 Paid into bank 40,000
” 5 Purchased furniture for cash 5000
” 7 Purchased Goods and paid for them by cheque 20000
” 10 Sold Goods to Lata Gupta for cash 12000
” 12 Sold Goods to Mahavir on credit 24000
” 18 Purchased Goods from Harish 30000
” 19 Withdrew cash for domestic use 2500
” 20 Received a cheque from Mahavir on account 18900
Allowed him discount 100
” 27 Paid to Harish cash on account 16800
Discount allowed by him 200
” 31 Paid salary by cheque 1800
Paid cash for telephone bill 600

Answer 1

cash account debit to capital account rupees 60000 for commencement of business bank account debit to capital account rupees 40000
furniture account debit to cash account rupees 5000 purchase account debit to bank account rupees 20000 cash account debit to sales account for selling goods in cash to Lata Gupta rupees 12000 Mahavir account debit to sales account rupees 24000 for credit in for selling in credit purchase account debit to Harish rupees 30000 drawing account debit to cash account rupees 2500 bank bank account debit bank account debit 18900 discount allowed account debit 100 to Mahavir account 20000 Harish account debit 17000 to discount received those to bank account 16800 salary account debit 1800 telephone bills account debit 600 tobank account 2400