On 1st March 2017 Mr. Sharma started business with cash Rs.15000. Of this pays 5000 into his bank
account. His transactions during the month were:
Rs.
March-05 Cash sales
12,000
March-08 Cash purchases
7,000
March-12 Withdrew from bank for office use
3,000
March-15 Paid for sundry expenses
2,500
March-18 Purchase of type writer
4,000
March-20 Withdrew cash for domestic use
5,000
March-26 Paid travelling expenses
1,500
March-30 Postage paid
400
119
Answers
Answer:
cash dr 10,000
bank dr 5,000
to capital 15,000
Cash dr
to sales
purchases dr
to cash
Office use dr
to bank
sundry expenses dr
to cash
type writer dr
to cash
drawings dr
to cash
travelling expenses dr
to cash
postage dr
to cash
hope my answer is helpful for you!!! please mark me the brainliest.
In this question, we are asked to pass necessary journal entries.
1 March
Cash A/C DR 15,000
Bank A/C DR 5,000
To Capital A/C 20,000
(Being business started)
5 March
Cash A/C DR 12,000
To Sales A/C 12,000
(Being cash sales done)
8 March
Purchase A/C DR 7,000
To Cash A/C 7,000
(Being purchase done through cash)
12 March
Cash A/C DR 3,000
To Bank A/C 3,000
(Being cash withdrawn from bank for office use)
15 March
Sundry Expenses A/C DR 2,500
To Cash A/C 2,500
(Being expenses paid)
18 March
Typewriter A/C DR 4,000
To Cash A/C 4,000
(Being typewriter purchased)
20 March
Drawings A/C DR 5,000
To Cash A/C 5,000
(Being cash withdrawn for personal use)
26 March
Traveling Expense A/C DR 1,500
To Cash A/C 1,500
(Being traveling expenses paid)
30 March
Postage A/C DR 400
To Cash A/C 400
(Being postage paid)
- Cash is an asset when it increases it is debited and when it decreases it is credited.
- Expenses when the increase is credited and when it decreases it is debited.
- Drawing is the withdrawal done for personal use, so it is debited when it increases.
PROJECT CODE #SPJ2