Mr. Ram runs a grocery store, he has furnished following transactions.
1. Started business with capital of Rs. 5,00,000
2. Purchased goods of Rs. 35,000 on cash
3. Purchased goods of Rs. 28,000 on credit from Laxam Ltd
4. Sold goods of Rs. 45,000 on cash
5. Sold goods to Mr. Ravan for Rs. 60000 on credit
6. Deposited Rs. 8,000 in bank
7. Withdrew Rs. 10000 for daughter’s birthday
8. Withdrew Rs. 5000 from bank for office use
9. Rent paid by cheque Rs. 9000
10. Salary paid Rs. 12000 in cash
11. Purchased grocery store building of Rs. 10,00,000 by cheque
12. Purchased small cash counting machine of Rs. 20,000 by cash
13. Received commission Rs. 2000 in cash
14. Received brokerage of 5000 by cheque
15. Paid Rs. 27,000 to laxman Ltd receiving discount of Rs. 1000
Passed journal eentri
Answers
Explanation:
journal entries in the books of mr. ram stores
1) cash a/c dr 5,00,000
bto capital a/c 5,00,000
(Being capital brought into business)
2)purchases a/c dr 35,000
to cash a/c. 35,000
(Being purchases made by cash)
3)Purchases a/c dr 28,000
to Laxman Ltd a/c 28,000
(Being goods purchased on credit)
4)Cash a/c dr 45,000
to sales a/c 45,000
(Being goods sold on cash)
5)Mr.Ravan a/c dr 60,000
to sales a/c. 60,000
(Being goods sold on credit)
6)Bank a/c dr. 8000
to cash a/c. 8000
( Being cash deposited into bank)
7) Drawings a/c dr 10,000
to Bank a/c 10,000
(Being drawings made)
8) cash a/c dr 5000
to Bank a/c 5000
( Being cash withdrawn for office use)
9) Rent a/c dr. 9000
to Bank a/c 9000
(Being rent paid by bank)
10)salary a/c dr 12000
to cash a/c 12000
(Being salary paid)
11) Building a/c dr 10,00,000
to Bank a/c. 10,00,000
(Being building purchased)
12) machine a/c dr. 20,000
to cash a/c 20,000
(Being machine purchased)
13) cash a/c dr. 2,000
to commission a/c 2,000
( Being commission received)
14) Bank a/c dr. 5,000
to brokerage a/c. 5,000
(Being brokerage received)
15)Laxman Ltd a/c dr 28,000
to discount received a/c 1,000
to cash a/c. 27000
(Being cash paid to Laxman and discount received)