Mr Abeer commences a retail business in computer
peripherals. in this connection he purchased a building for
rupees 2,00,000 and invested rupees 3,50,000 in cash as
capital, on 1" April 2016, he deposited rupees 330000 in his
bank current account held with union Bank of India, he
purchased computers worth rupees 4,80,000 and paid rupees
1,20,000 from bank and remaining amount by availing a loan
from HDFC Bank was 3,60,000 the first installment of loan is to
be paid on 31" March with interest at the rate 10% annually
and principal amount of rupees 90,000 he deposited rupees
10,000 for electricity connection with Torrent Power limited
and also deposited rupees 1,50,000 with Reliance
telecommunication for internet connection, he spent rupees
40,000 on furniture and fixtures and rupees 6,000 for
advertisement for his business. All payments were made by
cheque and all receipts are deposited on the same day in bank
the other transactions during the month of March 31" were as
follows:
Purchase of computer stationery 92,000
Sale of computer stationery and consultation fee 6,50,000
Salaries paid 12,000
Telephone bill 73,000
Internet charges 48,000
Income tax 7,000
General expenses 52,00
Drawings 60,000
Outstanding salary at the end of the year is rupees 6800 and
depreciation to be provided furnitures rupees 8000 computer
144000 on building rupees 62000
You are required to journalise the above
Transaction
Answers
You are legend the question is too long
Answer:
1)Buildings Account Dr
Cash Account Dr
To Capital Account
(Being cash invested and building purchased for commencing business)
2)Union Bank of India Account Dr
To cash Account
(being cash deposited in to Bank)
3) Computer Account Dr
To Union Bank of India Account
To HDFC Bank Loan Account
(being computer purchased and paid from bank partly and availed loan from HDFC Bank partly)
4)Torrent Power Limited Account Dr
To Bank Account
(Being cash deposited for electricity connection with Torrent Power Limited)
5)Reliance Telecommunication Account Dr
To Bank Account
(being money deposited for internet connection)
6) Furniture& Fixtures Account Dr
Advertisement Account Dr
To Bank Account
(Being spent on fixtures and furniture and advertisement expenses paid)
7) Purchases Account Dr
To Bank Account
(Being computer stationery purchased)
8) Bank Account Dr
To Sales Account
(Being sales and consulation fee received)
9) Salaries Account Dr
To Bank Account
( Being salaries paid)
10) Telephone Bill Account Dr
To bank Account
(Being telephone bill paid)
11) Internet charges Account Dr
To Bank Account
(Being internet charges paid)
12) Income tax Account Dr
To Bank Account
(Being paid Income Tax)
13) General Expenses Account Dr
To Bank Account
(being general expenses paid)
14) Drawings Account Dr
To Bank Account
(being drawings for the year)
15) Outstanding Salaries Account Dr
To salaries Account
(being outstanding salaries for the year)
16) Depreciation Account Dr
To Furniture Account
(Being depreciation provided on furniture)
17) Depreciation Account Dr
To Computer Account
(Being depreciation on computer)
18) depreciation Account Dr
To Buildings Account
(Being depreciation on Buildings)
19) HDFC Bank Loan Account Dr
Interest Account
To Bank Account
(Being principal amount paid with interest)
