Question

Journalise the following transactions of ‘AVATAR’ Co. Ltd. for the month of 1st April, 2018 :
2018 April :
1 Invested in the business sum of Rs. 5,00,000
3 Purchased Machinery worth Rs. 50,000
7 Sold Goods to Madan in cash for Rs. 60,000
8 Opened an Account with SBI Rs. 2,00,000
10 Purchased Goods from Rakesh for Rs. 20,000 and paid amount by cheque
15 Sold Goods to Jay for Rs. 70,000
20 Paid Electricity bill Rs. 2,000
28 Paid Rent Rs. 10,000 by cheque.

Answer 1

1. Cash A/C 5,00,000

To Capital A/C 5,00,000

Explanation:

Being Capital Invested

2. Machinery A/C 50,000

To Cash A/C 50,000

3. Cash A/C 60,000

To Good's A/C 60,000

4.