Question

on 1st january , 2017 Rajan & Sanjan Ltd . purchased a machine for Rs 80000 and spent rs 20000 on its cartage and ​

Answer 1

ANSWER :

❖ The given transaction :-

• Purchased a machine for Rs. 80000 and spent Rs. 20000 on its cartage.

❖ The Compound Journal Entry :-

$\bigstar \: \: \sf{Machinery \: \: A/C \: \: Dr. \: \: \: \: Rs. \: 80000} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \sf{Carriage \: \: Inward \: \: A/C \: \: Dr. \: \: \: Rs. \: 20000} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \: \: \: \: \: \: \sf{To \: \: Cash \: \: A/C \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: Rs. \: 100000} \\ \\ \sf{[Being \: \: purchased \: \: a \: \: machine \: \: and \: \: spent \: \: on \: \: its \: \: cartage]}$

$\underline{ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: }$

ADDITIONAL INFORMATION :

❖ Journal :-

• ★ Journal is a book of original entry in which transaction are originally recorded in chronological order (in order of date) from source documents showing the accounts to be debited and credited in a systematic manner.

• ★ Normally transaction are first recorded in a book of original entry which is called Journal.

❖ Journalising :-

• ★ Journalising is the process of recording the dual aspect of the transaction in journal. In other words, recording entries in the journal is known as the Journalising.

• ★ In Journalising, each and every entry recorded in the journal is followed by a short explanation which is known as Narration. The narration must be start complete and clear.

❖ Steps involved in Journalising :-

• ★ Step 1 : Identification of accounts for account heads affected by the transaction

• ★ Step 2 : Classification of accounts or account heads either under Traditional/English Approach or under Modern/American Approach.

• ★ Step 3 : Application of rules for Debit and Credit.