Question

From the following transactions of Mr. Velmurugan, you are required to write up his
Joumal, post the entries in the ledger accounts and balance the accounts
Velmurugan commenced business with furniture
stock Rs. 12,000 and cash 6000
Purchased from Satya 12000
Sold goods for cash 6000
Returned goods to Satya 1400
Purchased goods for cash 6000
Sold goods to Anand 8000
Anand returned goods
Paid cash to Satya Rs. 4,120 and he allowed us discount 80
Sold goods to Balaji 5200
Received cash from Anand Rs. 2,160 and allowed him discount 50
Purchased stationery 600
Received cash from Balaji 3200
Sold old furniture for cash 200
Paid commission 2000
Velmurugan withdrew cash 200
Postage stamps purchased 100
Received cash from Balaji 2000
Paid salary Rs. 1,800 and office rent 600
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Answer 1

Answer:

This is a transaction that needs to be recorded, as Printing Plus has received money, and the stockholders have invested in the firm.

Printing Plus now has more cash. Cash is an asset, which in this case is increasing. Cash increases on the debit side.

When the company issues stock, stockholders purchase common stock, yielding a higher common stock figure than before issuance. The common stock account is increasing and affects equity. Looking at the expanded accounting equation, we see that Common Stock increases on the credit side.

Answer 2

Answer:

Velmurugan commenced business with furniture

stock Rs. 12,000 and cash 6000