Q1 Deepak is a dealer in stationery items. From the following
transactions, pass journal entries for the month of January and
February, 2018.
Jan. Rs.
1 Commenced business with cash 2,00,000
2 Opened a bank account by depositing cash 1,00,000
3 ‘A 4 papers’ sold on credit to Padmini and Co. 60,000
4 Bills received from Padmini and Co. for the amount due
5 Bills received from Padmini and Co. discounted with the
bank 58,000 Feb.
15 Bills of Padmini and Co. dishonoured
Answers
Answer:
Cash ac dr
To capital ac
Bank ac dr
To cash ac
Padmini and co dr.
To sales ac
Bills recievable ac dr
To padamini and co
Discounts allowed ac dr
To padmini and co
To bank ac
Padmini and co dr
To bank ac
JOURNAL ENTRIES
GIVEN: Transaction of Deepak who is a dealer of stationery items
TO FIND Journal Entries of given transactions.
SOLUTION:
As we know,
The following transactions will be recorded in a journal based on the golden rule of accounting and the dual entry rule.
Cash A/c --dr 2,00,000
To capital A/c 2,00,000
(being business commenced.)
Bank A/c --dr 1,00,000
To cash A/c 1,00,000
(being Cash transferred to the bank.)
Padmini and co A/c --dr. 60,000
To sales A/c 60,000
(being goods sold on credit)
Bills receivable A/c --dr 60,000
To padamini and co 60,000
(being bill receivable received from the debtor.)
Discounts allowed A/c --dr 2,000
To Padmini and co 2,000
(being bill discounted with the bank.)
Padmini and co --dr 60,000
To bank A/c 60,000
(being Bill dishonored.)
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