Question

Mr has following transaction – make journal entry

A- Purchases good worth Rs 100000 with 10% Trade discount and 5 % Cash discount

B- Sold good to Ramesh worth Rs 300000 at 10% Cash discount and 20% trade

discount

C- Received Cheque from Ramsesh of Rs 48500 in full settlement of Rs 50000 and

Cheque deposited same day into the bank

D- Above cheque dishonoured by bank due to insufficient bank balance​

Answer 1

Answer:

Journal

In the Books of Manohar Lal

Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)

2018          

Mar. 01 Cash A/c Dr.   60,000  

 

To Capital A/c

     60,000

 ( Started business with cash)        

           

Mar. 02 Furniture A/c Dr.   10,000  

 

To Cash A/c

     10,000

 (Furniture purchased for cash)        

           

Mar. 04 Purchases A/c Dr.   25,000  

 

To Cash A/c

     25,000

 ( Goods purchased for cash)        

           

Mar. 05 Purchases A/c Dr.   15,000  

 

To Kamlesh’s A/c

     15,000

 (Goods purchased from Kamlesh)        

           

Mar. 10 Kamlesh’s A/c Dr.   15,000  

 

To Cash A/c

     15,000

 (Cash  paid to Kamlesh)        

           

Mar. 16 Purchases A/c Dr.   6,000  

 

To Sohan’s A/c

     6,000

 (Goods purchased from Sohan)        

           

Mar. 18 Purchases A/c Dr.   8,000  

 

To Cash A/c

     8,000

 (Goods purchased from Sohan for cash)        

           

Mar. 20 Rent A/c Dr.   1,000  

 

To Cash A/c

     1,000

 (Paid office rent)        

TOTAL   1,40,000 1,40,000

     

Explanation: