Question

Following transactions are given:  

i.  Shyam started business with cash Rs.200,000 and furniture of Rs. 25,000

ii.  Purchased goods from Ram of Rs.40,000

iii.  Sold goods to Shiva of Rs.5,000

iv.  Settled Ram’s account receiving discount at 10%.  

v. Interest on drawing Rs. 5,000.

Required: Journalise entries  

​

Answer 1

Jσυrnαℓ Entríєs

• Shyam started business with cash Rs.200,000 and furniture of Rs. 25,000

Cash A/c Dr. 200000

Furniture A/c Dr. 25,000

To Capital A/c. 225000

________________________________

• Purchased goods from Ram of Rs.40,000

Purchase A/c Dr. 40000

To Ram A/c. 40000

________________________________

• Sold goods to Shiva of Rs.5,000

Shiva A/c Dr. 5000

To sells A/c. 5000

________________________________

• Settled Ram’s account receiving discount at 10%.  

Ram A/c Dr. 40000

To discount received A/c 4000

To cash A/c. 36000

________________________________

• Interest on drawing Rs. 5,000.

Drawing A/c Dr. 5000

To interest on drawing 5000

________________________________

★ Working note ★

→ Cost of goods that purchased from Ram = 40000

→ Discount allowed = 10%

• Now discount in cost

→ 10% of 40000

→ 10/100 × 40000

→ 40000/10

→ 4000

•°• Discount allowed = Rs.4000

________________________________

Extra Information

• Pᴇʀsᴏɴᴀʟ Aᴄᴄᴏᴜɴᴛ

Debit the receiver, Credit the giver

• Rᴇᴀʟ Aᴄᴄᴏᴜɴᴛ

Debit what comes in, Credit what goes out

• Nᴏᴍɪɴᴀʟ Aᴄᴄᴏᴜɴᴛ

Debit all expenses and losses, Credit all incomes and gains

Answer 2

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Following transactions are given –

• Shyam started business with cash Rs.200,000 and furniture of Rs. 25,000

• Purchased goods from Ram of Rs.40,000

• Sold goods to Shiva of Rs.5,000

• Settled Ram’s account receiving discount at 10%.  

• Interest on drawing Rs. 5,000.

Required – Journalise entries.

$\huge{\boxed{\rm{Answer}}}$

ᴀɴsᴡᴇʀ ❶

Cash A/c Dr. = 2,00,000 Rupees

Furniture A/c Dr. = 25,000 Rupees

To capital A/c = 2,25,000 Rupees

ᴀɴsᴡᴇʀ ❷

Purchase A/c Dr. = 40,000 Rupees

To Ram A/c = 40,000 Rupees

ᴀɴsᴡᴇʀ ❸

Shiva A/c Dr. = 5,000 Rupees

To sell A/c = 5,000 Rupees

ᴀɴsᴡᴇʀ ❹

Ram A/c Dr. = 40,000 Rupees

Discount received = 4,000 Rupees

To cash A/c = 36,000 Rupees

ᴀɴsᴡᴇʀ ❺

Drawing A/c Dr. = 5,000 Rupees

To interest on drawing = 5,000 Rupees