Question

Pass necessary journal entries in the books of Mr. Vishwanath:


Sl. No.
Particulars
1
Vishwanath started business with the following: Cash in Hand ₹1,500, Cash at Bank ₹3,500, Goods in Hand ₹3,000, Furniture ₹2,000
2
Gave Charity ₹100
3
Loan taken from the bank ₹5,000
4
Purchased a cycle for ₹2,000 and paid by cheque
5
Paid proprietor’s life insurance premium ₹500
6
Bought goods from Lakshman on account ₹2,000

Answer 1

Answer:

1) Cash a/c dr 1500

bank a/c dr 3500

purchases a/c dr 3000

furniture a/c dr 2000

         To capital a/c 10000

2) Charity a/c dr 100

               To cash a/c 100

3) Bank a/c dr 5000

               to bank loan a/c 5000

4) cycle a/c dr 2000

            to bank a/c 2000

5) life insurance premium a/c dr 500

               to cash/bank a/c 500

6) purchases a/c dr 2000

                to lakshman 2000

Explanation: