Question

. Journalise the following transaction in the books of Subham. 2015 Jan 1 Commenced business with cash 1,00,00 Buildings valued at 5,00,000 and stock 40,000 2 Deposited in bank 75,000 4 Sold household furniture for 10,000 and invested the money into business 8 Withdrawn Cash 5,000, goods cost * 6,000 (Selling price * 7,500) from business for personal use. 9 Paid Life Insurance premium * 10,000, Income Tax 9,000 and for Bicycle for Son 5,000 ​

Answer 1

Answer:

Date Particulars

1Jan Cash a/c Dr

Building a/c Dr

Stock a/c Dr

To capital a/c

(Being bus. commenced &

pur. building & stock)

2Jan Bank a/c Dr

To cash a/c

(Being cash deposited

into bank)

4Jan Cash a/c Dr

To capital a/c

(Being household furniture

sold & invested into bus)

8Jan Drawings a/c Dr

To Cash a/c

To Goods a/c

(Being cash & goods withdraw

for personal use)

9Jan Drawings a/c Dr

To Cash a/c

(Being amount withdrawn to pay

premium, income tax & bycycle)