Question

John commenced business with a capital of Rs.50000. He purchased goods for cash Rs.30000. He paid wages Rs.2000 and salaries Rs.5000. He sold goods to thomas Rs.50000 on credit. Cash sales Rs. 20000. He purchased furniture Rs.10000. Prepare journal entries, ledger account, trial balance, trading and profit and loss account and balance sheet.​

Answer 1

Answer:

1. cash Dr 50000

To capital Cr 50000

( Being business started with capital.)

2. Purchase Dr 30000

To Cash Cr 30000

( Being Goods bought in cash.)

3. Wages Dr 2000

Salary Dr 5000

To Cash/ Bank Cr 7000

(Being wages & Salary paid.)

4. Thomas. Dr 50000

To Sale Cr. 50000

(Being Goods sold to Thomas.)

5. Cash. Dr 20000

To Sale Cr. 20000

(Being Goods sold in cash.)

6. Furniture Dr. 10000

To cash/Bank Cr 10000

(Being furniture bought .)

4.