Question

Illustration 2:
Enter the following transactions in the books of Paresh, for the month of
April, 2014
1 Cash on hand Rs. 2,000 and cash at Bank of India Rs. 15,000.
2 Purchased books from Ajay Products, Rs. 50,000 at 5% trade discount
3 Sold our shares (personal) for Rs. 25,000 and invested that sum in the
business
4 Sold to Vijay Traders goods worth Rs. 30,000 for cash.
5 Deposited Rs. 20,000 in bank sent a cheque of Rs. 25,000 to Ajay
Products
6 Paid Rs. 400 for the fees of son from office (Paresh's son).
7 LIC premium Rs. 420 and insurance for the goods Rs. 320 (Rs. 420
paid from house).
8 Purchased goods worth Rs. 30,000 from Jeet & Co. at 15% trade
discount and 10% cash discount.
8 Settled amount with Ajay Products
10 Sold goods to Parth & Co. for Rs. 30,000 at 10% trade discount.
11 Received cash from Parth & Co. in full settlement.
13 Goods worth Rs. 15,000 destroyed by fire. Insurance Company paid
Rs. 12,000 as claim​

Answer 1

Explanation:

1.Capital A/c Dr. 17000

To Cash a/c. 2000

To Bank a/c 15000

2. Purchase A/c Dr. 47500

To Cash a/c. 47500

3. Cash a/c Dr 25000

To Capital a/c. 25000

4. Cash a/c Dr. 30000

To Sales a/c. 30000