Question

Rahul started business with ` 30,00,000 which he arranged by getting a loan of ` 20 lakhs from his father and ` 10 lakhs from a bank @ 12% p.a. He bought machines for ` 15 lakhs, raw material for ` 7,80,000 and paid rent of ` 12,000 during the year.

Answer 1

Answer:

Explanation:

Answer:

journal entry

Explanation:

1- cash a/c          Dr.        20,00,000

   Bank a/c         Dr.        10,00,000

        To Capital a/c                                  30,00,000

( being business started)

2- Purchase a/c   Dr.      22,80,000

      To Machinery a/c                  15,00,000

       To Raw material a/c              7,80,000

( being asset purchase)

3- Rent a/c            Dr.     12,000

         To Cash a/c                            12,000

( being rent paid)

Answer 2

Answer:

journal entries:

1)cash account debit              2000000

bank account debit              1000000

         to capital account                         3000000

2)purchase account debit    2280000

          to machinery account                    1500000

          to raw materials account                780000

3)rent account debit                12000

          to cash account                                  12000