MR.KANHA HAD 1OOO SHARES OF ICIC LTD. OF RS.1OO EACH IN MARCH 2017,HE SOLD HIS SHARES @980 EACH 1 APRIL 2017 WITH THIS AMOUNT HE DECIDED TO START BUSINESS OF KIDS GARMENTS UNDER THE NAME OF KANHA GARMENTS.HE DECIDED TO MAKE ALL TRANSACTION THROUGH BANK AND DEPOSIT ALL MONEY IN ICICI BANK. HE PURCHASED LAND BUILDING FOR FACTORY AT 400000 PLANT
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Answer:
Journal in the books of Supreme Coolers
Date Particulars Debit Credit
01-04-16 Bank A/c Dr. 9,800,000
To Capital A/c 9,800,000
(Being Capital introduced in the business)
Land and Building Dr. 400,000
Plant and Machinery A/c Dr. 350,000
Furniture A/c Dr. 50,000
Stock A/c Dr. 90,000
To Bank A/c 890,000
(Being Assets purchased)
Bank A/c Dr. 400,000
To Bank Loan A/c 400,000
(Being Bank loan taken)
During the Year
Purchase A/c Dr. 1,240,000
To Bank A/c 410,000
To Creditors A/c 830,000
(Being Purchases made)
Cash A/c Dr. 525,000
Debtors A/c Dr. 1,525,000
To Sales A/c 2,050,000
(Being Sales made)
Wages Dr. 230,000
Carriage Dr. 20,500
Power and Lighting Dr. 15,500
Salary To staff and Manager Dr. 125,000
Postage Dr. 4,200
Printing and Stationery Dr. 3,800
Advertising Dr. 16,700
Insurance Premium Dr. 12,100
Conveyance Dr. 13,200
Drawings Dr. 60,000
To Bank A/c 501,000
Bank A/c Dr. 1,210,000
To Debtors A/c 1,210,000
(Being Amt received from debtors)
Creditors A/c Dr. 650,000
To Bank A/c 650,000
(Being Amt paid to creditors)