Question

prepare journal entry

1 2000 jan 1 startes business with goods and cash 1500and2500

2 jan 6 purchased from amir khan rupees 1000 for cash at 10% T.D and C.D

3 jan 15 withdraw for personal uses Goods R.s 100 and cash to 100 R.s

4 jan 30 sold goods to rajesh R.s 500​

Answer 1

Answer:

Journal Entries:

1) 01-Jan-2000       Cash A/c -------------------------Dr               1500

                             Goods A/c-----------------------Dr               2500

                                         To Capital A/c                                     4000

                         (Being cash and goods bought into the business)      

2) 06-Jan-2000   Purchases A/c--------------------Dr              900

                                   To Discount received A/c                            90

                                   To Cash A/c                                                 810

                         (Being Purchased goods  after trade discount@ 10%)

3) 15-Jan-2000   Drawings A/c------------------------Dr             200

                                     To Goods A/c                                           100

                                      To Cash A/c                                            100

                         (Being goods and cash withdrawn for personal use)

4) 30-Jan-2000  Rajesh A/c----------------------------Dr             500

                                        To  Sales A/c                                      500

                        (Being goods sold to rajesh)

Explanation:

Note: In given transaction 2, Trade discount is not considered for accounting purpose