Question

ILLUSTRATION 5:
Mr. Vishnu furnishes the following information relating to his business in
October 2014. Pass Journal Entries in his books.
1 Bought Plant and Machinery for 2,40,000
4. Purchased goods on credit from Krishna 1,20,000
7 Sold goods on credit to Pramesh 45,000
8 Cash paid to Krishna 54,500
12 Commission received 2,000
15 Rent received 12,000​

Answer 1

Explanation:

plant and machinery A/c Dr 240000

To cash A/c 240000

Purchase A/c Dr 120000

To krishna A/c 120000

pramesh A/c Dr 45000

To sales A/c 45000

krishna A/c Dr 54500

To cash A/c 54500

cash A/c Dr 2000

To commission 2000

cash A/c Dr 12000

To rent A/c 12000