Question

Q.3 Journalise the following transactions in the books of Mr.Ambani. [10 Marks)
2019
May 1
Started business with Cash Rs. 8,00,000
May 8 Purchased goods from Aamir Rs. 2,00,000 at 10% T.D. and 5% C.D.
May 11 Sold goods to Salman for Rs. 5,00,000 at 5%T.D. and 10% C.D.
May 18 Advertisement purpose goods of Rs.10,000 distributed as free sample.
May 20 Paid Income tax RS. 75,000.
May 25 Bought 100 share of Tata Motors @ Rs. 1000 each.
May 28 Purchased machinery worth Rs. 2,50,000.
May 30 Commission received from Sanjay Rs. 50,000.

Answer 1

Journal entry in the books of Mr. Ambani

Explanation:

Following is the Journal entry in the books of Mr. Ambani

This question applies major three rule of the journal:-

1. Debit what comes in, credit what goes out.

2. Debit the receiver, credit the giver.

3. Debit all the expenses, credit all the gains.