Question

I need your help with journal entries:

Following are the transactions of business of Rohit for the year ending 31st March 2020:
1/4/19 - Started business with cash Rs 5,00,000, building worth Rs 10,00,000; and Machinery for Rs 3,00,000; stock of Rs 20,000.
2/4/19 - Rs 25,000 was paid installation of machinery.
3/4/19 - Rohit acquired a bank loan of Rs 5,00,000 @ 10% p.a.
5/4/19 Goods were purchased for Rs 1,50,000 and paid through cheque.
6/5/19 Goods were sold to Chirag for Rs 3,50,000.
8/5/19 Goods of Rs 2,00,000 were purchased from Divya.
20/6/19 Received Rs 1,45,000 cheque from Chirag on account.
25/7/19 Paid Rs 1,50,000 on account to Divya.
26/7/19 Goods of Rs 5,000 were returned by Chirag and of Rs 3,000 to Divya.
30/9/19 Paid Rs 30,000 for whitewash of building and incurred Rs 70,000 for construction of parking shed.
1/11/19 Goods of list price of Rs 1,00,000 were purchased; trade discount Rs 5,000; cash discount Rs 1,000.
15/11/19 Goods of list price of Rs 3,00,000 were sold, trade discount @5%, cash discount Rs 2,000
31/12/20 following were recorded: Salary Rs 29,000; Wages Rs 17,000; Rent received Rs 1,00,000; mCommission ( Cr) Rs 50,000.

Answer 1

JOURNAL ENTRIES OF BUSINESS OF ROHIT AS ON 31st MARCH 2020

Explanation:

The Three Rules of Journal applies here:

1) Debit what comes in, Credit what goes out.

2)Debit the receiver, Credit the giver.

3)Debit all the expenses, Credit all the gains.

REFER TO THE IMAGE ATTACHED BELOW FOR THE ANSWER.