Question 1.
On 1st April, 2018, Mohit started business with a capital of ₹ 50,000. He made the following transactions:
You are required to journalise the above transactions and show the respective Ledger accounts.
Answers
Answer:
goods a/ c dr. 20000
to rita. 20000
Journal Entries for the given transactions.
Explanation:
In the Books of Mohit
Journal Entries:-
01/04/2018 Cash A/c Dr. Rs.50,000
To Capital A/c Rs.50,000
(Being capital introduced into the business)
03/04/2018 Purchases A/c Dr. Rs.20,000
To Rita A/c Rs.20,000
(Being goods purchased on credit from Rita)
04/04/2018 Rita A/c Dr. Rs.10,000
To Cash A/c Rs.10,000
(Being cash payment made to Rita)
06/04/2018 Rohit A/c Dr. Rs.25,000
To Sales A/c Rs.25,000
(Being goods sold to Rohit)
08/04/2018 Cash A/c Dr. Rs.20,000
To Rohit A/c Rs.20,000
(Being cash received from debtor Rohit)
or,you can also pass a combined journal entry of above 2 transactions as follows:
Cash A/c Dr. Rs.20,000
Rohit A/c Dr. Rs.5,000 (Debtor remaining balance)
To Sales A/c Rs.25,000
12/04/2018 Purchases A/c Dr. Rs.12,000
To Rita A/c Rs.12,000
(Being goods purchased from Rita on credit)
18/04/2018 Rita A/c Dr. Rs.20,000
To Cash A/c Rs.20,000
(Being cash paid to Rita)
25/04/2018 Rohit A/c Dr. Rs.10,000
To Sales A/c Rs.10,000
(Being goods sold to Rohit on credit)
30/04/2018 Cash A/c Dr.Rs.6,000
To Rohit A/c Rs.6,000
(Being cash received from Rohit)
Tip: If the question is silent about the method of purchase/sale,then assume that such purchase/sale is being made on credit basis.
Please check the attached image for ledgers.
