Question

Q1. Give journal entries for the following transactions giving in each case the nature of account

(whether personal, real or nominal) and the rule applicable.

1. Ajit started business by investing cash Rs. 5,00,000, Goods of Rs. 40,000

and furniture of Rs. 50,000.

2. Purchased building for Rs. 1,00,000.

3. Purchased goods for cash Rs 30,000.

4. Purchased goods from Mohan Rs. 2,500.

5. Paid cartage Rs. 200.

6. Sold goods for cash Rs. 25,500

7. Sold goods for cash to Avtar Rs. 2,400

8. Sold goods to Mahendra on credit Rs. 4,650.

9. Paid freight Rs. 120.

10. Deposited cash into bank Rs. 8,000.

11. Paid salary Rs. 4,600.

12. Withdrawn from the bank Rs. 5,000 for office use.

13. Withdrawn from the bank Rs. 3,000 for private use.

14. Charged interest on capital Rs. 12,500.

15. Mahendra became insolvent. Only Rs. 3,000 could be realised from him.
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Answer 1

see the photo for reference