Question

Journalise the following transactions in the books
of Mr. Rohit for the month of May 2020
1.started business with cash ₹ 1,20,000
2. Bought goods of ₹7000 at 2%Trade Discount
3. Received commission 3000 by cheque.
4. sold furniture of ₹ 15,000 at 5% cash Discount.
5. Paid cash to Kavita ₹ 14,500 who allowed us discount
₹ 500​

Answer 1

Answer:

1. Cash. Dr. 120000

To Capital Cr. 120000

(Being business started with cash.)

2. Purchase. Dr 6860

To cash Cr. 6869

(Being Goods bought in Cash and Received trade discount.)

3. Bank. Dr 3000

To Commission Received Cr. 3000

(Being commission Received by cheque.)

4. cash. Dr 14250

Discount Allowed. Dr 750

To Sales Cr. 15000

(Being Goods sold in cash and discount Allowed him.)

5. Kabita. Dr 15000

To Discount Received Cr 450

To Cash Cr. 14550

(Being amount paid to kavita in cash and discount Received by him.)