journalize the following transcation in the books of Mr (X) for the month of December 2020
1. commanced business with cash 2,00,000
2. on 5th purchase goods from Mr (A) for 10,000
3. on 8th th cash sales 20,000
4. on 20th paid rent 2,000
5. on 22nd interest recivied 500
6. on 30th salary paid 5,000
7. on 31st cash deposited in the bank 3,000
and on 31st vehicle purchase for 10,000
Answers
1. Commenced business with cash - Rs 2,00,000
Cash A/c ... Dr - Rs 2,00,000
- To capital A/c - Rs 2,00,000
(Being a business started with cash.)
2. Purchased goods from Mr A for Rs 10,000
Purchases A/c ... Dr - Rs 10,000
- To A's A/c - Rs 10,000
(Being goods purchased from Mr A.)
3. Cash sales - Rs 20,000
Cash A/c ... Dr - Rs 20,000
- To sales A/c - Rs 20,000
(Being goods sold for cash.)
4. Paid rent - Rs 2,000
Rent A/c ... Dr - Rs 2,000
- To cash A/c - Rs 2,000
(Being the rent paid.)
5. Interest received - Rs 500
Cash A/c ... Dr - Rs 500
- To interest receivable A/c - Rs 500
(Being some interest received.)
6. Paid salary - Rs 5,000
Salary A/c ... Dr 5,000
- To cash A/c - Rs 5,000
(Being salary paid.)
7. Deposited cash into a bank - Rs 3,000
Bank A/c ... Dr - Rs 3,000
- To cash A/c - Rs 3,000
(Being cash deposited into a bank.)
8. Purchased a vehicle for Rs 10,000
Purchases A/c ... Dr - Rs 10,000
- To vehicle A/c - Rs 10,000
(Being a vehicle purchased.)
While journaling, the following rule is to be kept in mind:
- Debit what comes in.
- Credit what goes out.