Question

Journalise the following transactions
1. Mr. Tom started business with cash Rs 100000
2. Purchased land for Rs 50000
3. Machinery purchased Rs 28000
4. Salary paid Rs 1 0000
5. Rent paid Rs 8000
6. Commission received Rs 5000
7. Machinery sold Rs. 12000
8. Insurance paid Rs 7000
9. Rent received Rs. 4000
10. Sold land for Rs 14000

Answer 1

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• Mr. Tom started business with cash Rs 100000

★ Cash A/c Dr. Rs.100000

★ To capital A/c. Rs.100000

━━━━━━━━━━━━━━━━━━━━━━━━━━

• Purchased land for Rs 50000

★ Land A/c Dr. Rs.50000

★ To cash A/c. Rs.50000

━━━━━━━━━━━━━━━━━━━━━━━━━━

• Machinery purchased Rs 28000

★ Machinery A/c Dr. Rs.28000

★ To cash A/c. Rs.28000

━━━━━━━━━━━━━━━━━━━━━━━━━━

• Salary paid Rs 10000

★ Salary A/c Dr. Rs.10000

★ To cash A/c. Rs.10000

━━━━━━━━━━━━━━━━━━━━━━━━━━

• Rent paid Rs 8000

★ Rent A/c Dr. Rs.8000

★ To cash A/c. Rs.8000

━━━━━━━━━━━━━━━━━━━━━━━━━━

• Commission received Rs 5000

★ Cash A/c Dr. Rs.5000

★ To commission received A/c. Rs.5000

━━━━━━━━━━━━━━━━━━━━━━━━━━

• Machinery sold Rs. 12000

★ Cash A/c Dr. Rs.12000

★ To Machinery A/c Rs.12000

━━━━━━━━━━━━━━━━━━━━━━━━━━

• Insurance paid Rs 7000

★ Insurance premium A/c Dr. Rs.7000

★ To cash A/c. Rs.7000

━━━━━━━━━━━━━━━━━━━━━━━━━━

• Rent received Rs. 4000

★ Cash A/c Dr. Rs.4000

★ To rent received A/c. Rs.4000

━━━━━━━━━━━━━━━━━━━━━━━━━━

• Sold land for Rs 14000

★ Cash A/c Dr. Rs.14000

★ To land A/c. Rs.14000

≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡

Answer 2

Answer :

• Journal entries -

1 ) Capital a/c Dr. 100000

To cash a/c. 100000

( Started business with cash 100000 )

2 ) Land a/c Dr. 50000

To cash a/c. 50000

( Purchased land for Rs. 50000 )

3 ) Purchases a/c Dr. 28000

To cash 28000

( Machinery purchased for Rs. 28000 )

4 ) Salary a/c Dr 10000

To cash 10000

( Salary paid for Rs. 10000 )

5 ) Rent a/c Dr 8000

To cash a/c 8000

( Rent paid Rs. 8000 )

6 ) Cash a/c Dr 5000

To commission a/c 5000

( Commission received Rs. 5000 )

7 ) Cash a/c Dr. 12000

To machinery 12000

( Sold machinery for Rs. 12000 )

8 ) Insurance a/c Dr 7000

To cash a/c. 7000

( Insurance paid for Rs. 7000 )

9 ) Cash a/c Dr. 4000

To rent a/c. 4000

( Rent received Rs. 4000 )

10 ) Cash a/c Dr. 14000

To Land a/c. 14000

( Sold Land for Rs. 14000 )