Question

Purchase Goods for Cash Rs. 2,000 and for Credit Rs. 1,000 from Khalid Retail Store

Answer 1

Purchases 3000
To cash 2000
To khalid retail store 1000

Answer 2

Answer:

Purchases account will be debited by 3000 & cash and Khalid Retail Store will be credited by 2000 & 1000 respectively.

Explanation:

Purchases a/c                       Dr. 3000

To cash a/c                                               2000

To  Khalid Retail Store                             1000

(being goods purchased for cash & credit from  Khalid Retail Store)

Meaning of Journal:

• Journal refers to books of original entries.
• In which monetary transactions are noted down for the first time in chronological order.
• The word Jour in Journal is derived from the French word which means diary.
• A journal is a daily record book in which daily transactions are recorded for the first time.
• A journal records both debit and credit aspects of transactions according to the double entry system.
• It provides a basis for posting into the ledger.
• The transactions are recorded on a permanent basis which acts as evidence in case of emergency.
• Each entry in the journal is followed by a brief explanation of the transactions which is called Narration.

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