Question

Journalised the following transactions in the books of Mr. Raju
a) On 1/1/16 business started with cash Rs. 100000
b) On 5/1/16 opened a bank account in SBI Rs. 25000
c) On 10/1/16
purchased goods for cash Rs. 10000
d) On 20/1/16 sold goods for cash Rs. 5000
e) On 25/1/16 paid rent Rs. 5000
f) On 30/1/16 paid salary Rs. 20000
journal entry
​

Answer 1

Answer:

Journal Entry

In the books of Mr. Raju

a) Cash a/c Dr. 100000

To capital a/c 100000

[ being business started with 100000 cash ]

b) Bank a/c Dr. 25000

To cash a/c 25000

[ being bank a/c opened in SBI ]

c) Purchase a/c Dr. 10000

To cash a/c 10000

[ being goods purchased for cash ]

d) Cash a/c Dr. 5000

To sales a/c 5000

[ being goods sold for cash ]

e) Rent a/c Dr. 5000

To cash/ bank a/c 5000

[ being rent paid ]

f) Salary a/c Dr. 20000

To cash/ bank a/c 20000

[ being salary paid ]

Note :

As it is not specified in the question about the mood of payment of expenses ( rent and salary ), I felt it is better to mention both the moods ( cash and bank ).