JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF RAM & CO. :
2016
APRIL 2 A MERCHANT STARTED BUSINESS WITH 10,000
APRIL 2 GOODS WITHDRWAN BY PROPRIETOR FOR PERSONAL USE 5,000
APRIL 5 PURCHASED GOODS ON CREDIT FROM RAM 4,000
APRIL 6 PAID CASH TO MOHAN 500
APRIL 10 CASH SALES 1,000
APRIL 15 GOODS SOLD TO SOHAN 2,000
APRIL 20 RECEIVED CASH FROM GANESH 6,000
APRIL 25 PURCHASED GOODS FOR CASH 2,000
APRIL 28 PAID INCOME TAX 3,000
APRIL 28 INTEREST ON CAPITAL 300
APRIL 28 GOODS GIVEN AS CHARITY 500
APRIL 30 PAID RENT 100
APRIL 30 GOODS GIVEN AS FREE SAMPLE 1000
Answers
Answer:
Apr2 Cash A/c Dr 10,000
To capital A/c 10,000
(being cash brought in as capital)
Apr 2 Drawings A/c Dr 5,000
To Purchases A/c 5,000
(being goods withdrawn by proprietor for personal use)
Apr 5 Purchases A/c Dr 4,000
To Ram A/c 4000
(Being goods purchased from ram on credit)
Apr 6 Mohan A/c Dr 500
To Cash A/c 500
(Being cash paid to Mohan )
Apr 10 Cash A/c Dr 1000
To Sales 1000
(Being goods sold)
Apr 15 Sohan A/c Dr 2000
To Sales A/c 2000
(Being goods sold to sohan on credit )
Apr 20 Cash A/c dr 6000
To Ganesh A/c 6000
(Being cash received from ganesh)
Apr 25 Purchases A/c Dr 2000
To Cash A/c 2000
(Being goods purchased)
Apr 28 Drawings A/c Dr 3000
To Cash A/c 3000
(being income tax paid )
Apr 28 Interest on capital A/c dr 300
To Capital A/c 300
(Being interest on Capital allowed)
Apr 28 Charity A/c Dr 500
To Purchases A/c 500
(Being goods given away as charity)
Apr 30 Rent A/c Dr 100
To Cash A/c 100
(Being Rent paid )
Apr 30 Free Sample A/c Dr 1000
To Purchases A/c 1000
(Being goods given as free samples)
Explanation:
On Apr 28 INCOME TAX paid is drawings . Income tax is paid for income earned by proprietor . So income tax paid is considered as drawings.
HOPE IT HELPED!!!