ram was carrying on business as a cloth dealer on 1 January 2012 his assets were furniture and office equipment rs 12500 stock of cloth 125000 cash in hand rs2250 bank balance 42500 amount due from B rs6000 amount due from G rs 7500. on thatdate he owed rs 10000 toM and rs 7250 to P.his transactions during january2012 were as follows:Jan 1. sold cloth on credit to G rs 2500.jan2.purchased cloth from A on credit rs 10000.jan3 paid rent for January by cheque rs 1500.jan 4 cash purchases of cloth(paid by cheque) rs 4000.cash sales rs 2250 Jan 5 received cheque from B rs 4900.allowed him discount rs100.jan 6. paid for stationery and postage rs 250.jan 8 drawn cash for private use rs 2500.jan 10 drawn cash from bank for office use RS 7500.jan 12 B's cheque returned dishonoured by bank which charges rs 25 for office expenses .Jan 13 purchased goods on credit from M. RS12500. Jan 15 sent cheque to M in full settlement of amount due on Jan 1. RS 9750. sent to P RS 7250 Jan 16 sold goods on credit to G RS9000. Jan 17 paid telephone charges 2400.jan 18 cash sales RS 1500.paid for advertising RS 1750 .Jan 20 paid income tax RS 9500. received letter from P saying that he has not received the cheque cancelled the cheque and paid cash .Jan 21. B becomes insolvent ; only 50 percentage received from his estate.jan22. cash purchases RS 4500 Jan 24 purchased filling cabinet and paid by cheque 2500 Jan 27 purchased government securities RS 15000. paid salaries for month rs 4000. Give journal entries.
Answers
Answer:
toM and rs 7250 to P.his transactions during january2012 were as follows:Jan 1. sold cloth on credit to G rs 2500.jan2.purchased cloth from A on credit rs 10000.jan3 paid rent for January by cheque rs 1500.jan 4 cash purchases of cloth(paid by cheque) rs 4000.cash sales rs 2250 Jan 5 received cheque from B rs 4900.allowed him discount rs100.jan 6. paid for stationery and postage rs 250.jan 8 drawn cash for private use rs 2500.jan 10 drawn cash from bank for office use RS 7500.jan 12 B's cheque returned dishonoured by bank which charges rs 25 for office expenses .Jan 13 purchased goods on credit from M. RS12500. Jan 15 sent cheque to M in full settlement of amount due on Jan 1. RS 9750. sent to P RS 7250 Jan 16 sold goods on credit to G RS9000. Jan 17 paid telephone
Explanation:
ram was carrying on business
from his estate.jan22. cash purchases RS 4500 Jan 24 purchased filling cabinet and paid by cheque 2500 Jan 27 purchased government securities RS 15000. paid salaries for month rs 4000. Give journal