Question

Q5- pass journal entries and post them into ledger:
1) purchase office furniture for cash rupees 20000.
2) cash received from Ram& company rupees 15500 and discount allowed to them is rupees 500​

Answer 1

Explanation:

1) Furniture A/C Dr 20,000

To cash A/C 20,000

(Being furniture purchased for cash)

2) cash A/C Dr 15500

Discount A/C Dr 500

To Ram & Co A/C 16,000

(Being cash received from Ram&co and discount allowed to Ram & Co)