Question

Mr X started a company with cash 50000
2. Purchased goods worth 10000 and 12000 on credit for Mr J
3. Paid to Mr J 11500 on account
4. Sold goods to Mr. P 7000 and on cash 2000 to Mr R
5. Paid salary 20000 to manager Mr. M
6. Received cash from P in full and final settlement

Answer 1

Journal entry

1) cash A/c   Dr   50000

          To capital A/c          50000

(being cash brought to business)

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2) Purchases A/c   Dr   22000

               To cash A/c                     10000

                To Mr J A/c                      12000

( being goods purchased )

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3) Mr J   A/c                        Dr     12000

           To    Discount received A/c               500

               To  Cash  A/c                                 11500

(being paid to Mr J as full settlement )

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4) Cash A/c            Dr    2000

    Mr P A/c            Dr     7000

               To  Sales A/c                  9000

( being sold goods )

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5) Salary A/c Dr   20000

           To cash A/c               20000

(being salary paid )

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6)  Cash A/c  Dr     9000

             Mr  P A/c              9000

( Being cash received in full payment from Mr P)