Question

Journalise the following transactions in the books of Ram Lal.
(i) Ram Lal borrowed from his friend Sham Lal 20,000 @ 15% p.a. and introduced
the amount into his already existing business.
(ii) Purchased goods from Mohan 5,000 less 20 per cent trade discount.
(111) Paid Mohan the amount due to him less 5 per cent cash discount.
(iv) Bought one delivery van for 10,000 from Patiala Automobiles payment to be
made by half yearly instalment of 2,000 each together with interest at 10% p.a.
(v) A machinery of 7 4,000 was sold for * 5,200. Depreciation provision to date was
* 400; and commission paid to selling agents was 320 and wages paid to the
workers for removing the machine was 50.
(vi) Purchased new machinery from M/s Machine Makers on credit * 5,000; paid
installation charges 300; freight 200.
(vii) Received a cheque from Murari for 800 in full settlement of his account of 820
and paid the same into the bank.
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Answer 1

Answer:

I, cash a/c Dr 20000

interest a/c Dr 3000

to sham lal 23000

cash a/c Dr 20000

to capital a/c 20000

2nd

purchase a/c Dr 4000

to mohan a/c 4000

3rd

mohan a/c Dr 4000

to cash a/c 3800

to cash discount a/c 200

Explanation:

just remember this that all asset have Dr balance all liability have cr balance so when asset Increase u need to Dr and when liability increase u have to cr .

. income has cr balance expenditure has Dr balance do opposite to reduce them and remember trade discount is not recorded in books u have to just remove trade discount from the amount