Question

rajat started business at 5 lakhs. purchased goods on cash 1 lakh. purchased goods on credit 60,000.purchased building through a loan 1 lakh. paid rent 5,000. paid salary 30,000..paid to creditors 20,000

Answer 1

Explanation:

ssume that u asked to prepare journal entries

1) cash A/c            dr                100000

         To capital A/c                                   100000

(being started business with cash )

2)Purchases A/c       dr                          50000

           To cash A/c                                                 20000

           To Creditor A/c                                            30000

(Being goods purchased on cash and credit )

3) working note 

      cash =10000+10000*0.20

              =12000

       credit =15000+15000*0.20

                 =18000

 

           Cash A/c        Dr             12000

           Debtor A/c       Dr             18000

                     To sales A/c                            30000

           ( being goods sold on cash and credit )