Question

From the following transactions you are required to:
1. Record Journal entries for all the above transactions date wise.
2. Post all entries into respective ledger accounts.
2020
April 1. Started business with Cash ₹ 17,00,000, Furniture worth ₹ 1,00,000 and Machinery
worth ₹ 2,00,000 and Roshan (Creditor) ₹ 50,000.
April 2. Deposited ₹ 3,00,000 in bank.
April 3. Purchased goods from Vikram for ₹ 15,000 and from Sharma for ₹ 7,500.
April 4. Goods returned to Sharma worth ₹ 1000 since the same were not as per the
sample.
April 5. Sold goods for cash worth ₹ 8,000.
April 6. Sold goods to Kiran worth ₹ 8,900.
April 7. Damaged goods returned by Kiran worth ₹ 900.
April 8. Purchased goods at list price for ₹ 18,000 from Rao at a trade discount of 10%.
April 9. Sold goods at list price of ₹ 6,000 to Sunil at a trade discount of 5% April 10.
Received ₹ 6,000 from Kiran on account.
April 11. Paid to Vikram by cheque ₹ 14,900 and he allowed discount of ₹ 100.
April 12. Paid to Sharma ₹ 6450 in full settlement of his account.

April 13. Paid for repair of furniture ₹ 700.
April 14. Paid for insurance of machinery ₹ 1,000.
April 15. Sold goods for Cash worth ₹ 3,400.
April 16. Purchased goods from Hari for ₹ 13,500.
April 17. Received from Sunil the full amount due to him.
April 18. Kiran became insolvent and a final payment of 50 paisa in a rupee was received
from her official receiver.
April 19. Paid wages ₹ 3,400.
April 20. Withdrew cash for personal use ₹ 5,000.
April 21. Deposited cash into bank ₹ 1,50,000.
April 22. Paid to Hari ₹ 10,000 on account.
April 23. Paid for petty expenses ₹ 200.
April 24. Paid trade expenses of ₹ 800.
April 25. Paid commission ₹ 1,200.
April 26. Withdrew goods of the cost price of ₹ 900 for personal use.
April 27. Withdrew cash from bank ₹ 5,000.
April 28. Purchased goods for cash ₹ 17,000.
April 29. Sold goods for cash ₹ 13,500.
April 30. Paid rent of ₹ 10,000 and salary, ₹ 28,000.

Answer 1

Answer:

Journal is the book of original entry or prime entry in which transactions are recorded in the books of accounts from the source documents. The transactions are recorded in a chronological order, i.e. as and when they take place. The transactions are recorded following the double-entry system of accounting.

Answer 2

Answer:

cash a/c dr

furniture a/c dr

machinery a/c dr

To capital a/c