Question

Make the journal entries​

Answer 1

Question :-

1. Invested in shares - 50,000
2. Received dividend - 5000
3. Purchased goods on credit from Ragani - 35000
4. paid cash for household expenses - 7000

Required Answer :-

• Refer the attachment

Explanation :-

1. Investment in shares affect investment account and cash account. Since both investment and cash are the type of asset, increase in investment makes it be debited and decrease in cash makes it credited.
2. Received dividend makes affect in dividend account and cash account. Since dividend is an Revenue, increase in dividend will be credited. Cash is an asset hence increase in asset makes it to be debited.
3. Purchased goods in credit from Ragani. This transaction affect Ragani account and purchases account. Ragani is a creditor since, creditor is an liability increase in creditor makes it be credited and Since purchases increase stock, it is an type of asset. increase in asset makes purchases account to be debited.
4. Withdrawal of cash for household expenses affect drawings account and cash account. Since drawings is an type of expenses increase in drawings makes it to be debited. We all know that cash is an type of asset and decrease in cash made it to be credited.

Explore More :-

$\boxed{\begin{array}{c|c|c} \underline{\sf Type\:of\: Account}&\underline{\sf Increase}&\underline{\sf Decrease}\\\\\sf Capital&\sf Credit&\sf Debit \\\\\sf Liability &\sf Credit &\sf Debit \\\\\sf Expense & \sf Debit&\sf Credit\\\\\sf Asset &\sf Debit&\sf Credit\\\\\sf Revenue &\sf Credit &\sf Debit\end{array}}$