Question

Jouralise the following transactions:

1. Rama Bros. Invested Rs. 5, 00,000 in business of general stores and also invested furniture costing Rs. 80,000

2. Purchased goods from Rahul for Rs. 15,000 at 10 percent trade discount and 5 percent cash discount and payment was made by cheque.

3. Sold 1/5th of above goods at a profit of 20 percent on cost.

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Answer 1

Answer:

Journal Entry

1. Cash account. dr 500000

Furniture account dr 80000

To capital account. 580000

2. Purchase account dr 13500

To bank account. 12825

To discount received a/c 675

3. cash account. dr 3240

To sales account. 3240

13500*1/5=2700

(+) profit 20%if 2700= 540

total 3240