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    50 Journal Entries

    Uploaded by

    Ashish Gupta
    - Ram started a business with Rs. 500,000 in cash capital. Throughout the document, various business transactions are recorded including purchases, sales, expenses, returns, losses, additional capital introduced, bank transactions, and other accounting entries. - The document tracks the business's transactions from startup through operations over multiple periods. It records all cash and credit transactions, assets and liabilities, income and expenses.

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    50 Journal Entries

    Uploaded by

    Ashish Gupta
    110K views13 pages
    - Ram started a business with Rs. 500,000 in cash capital. Throughout the document, various business transactions are recorded including purchases, sales, expenses, returns, losses, additional capital introduced, bank transactions, and other accounting entries. - The document tracks the business's transactions from startup through operations over multiple periods. It records all cash and credit transactions, assets and liabilities, income and expenses.

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    - Ram started a business with Rs. 500,000 in cash capital. Throughout the document, various business transactions are recorded including purchases, sales, expenses, returns, losses, additional capital introduced, bank transactions, and other accounting entries. - The document tracks the business's transactions from startup through operations over multiple periods. It records all cash and credit transactions, assets and liabilities, income and expenses.

    Copyright:

    © All Rights Reserved
    Download as RTF, PDF, TXT or read online from Scribd
    Download as rtf, pdf, or txt
    110K views13 pages

    50 Journal Entries

    Uploaded by

    Ashish Gupta
    - Ram started a business with Rs. 500,000 in cash capital. Throughout the document, various business transactions are recorded including purchases, sales, expenses, returns, losses, additional capital introduced, bank transactions, and other accounting entries. - The document tracks the business's transactions from startup through operations over multiple periods. It records all cash and credit transactions, assets and liabilities, income and expenses.

    Copyright:

    © All Rights Reserved
    Download as RTF, PDF, TXT or read online from Scribd
    Download as rtf, pdf, or txt
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    At a glance
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    The document shows various journal entries recording transactions of a business such as purchases, sales, expenses and receipts. Debit and credit rules are followed for increasing and decreasing accounts respectively.

    Accounts used are Cash, Bank, Capital, Purchase, Sales, Mohan, Anil etc. Cash and bank accounts track money, capital tracks owner's equity, purchase and sales track inventory, other accounts track amounts owed to and from customers/suppliers.

    Expenses include salary, rent, wages, depreciation, insurance premium, interest on loan etc. These are recorded by debiting the respective expense accounts and crediting cash/bank.

    Ram started business with cash Rs.

    5,00,000
    Cash a/c
    Dr
    5,00,000
    To Capital a/c
    5,00,000
    Goods purchase for cash Rs. 4,000.
    Purchase a/c
    Dr
    4,000
    To Cash a/c
    4,000
    Goods purchase from Mohan for cash Rs. 3,000.
    Purchase a/c
    Dr
    3,000
    To Cash a/c
    3,000
    Goods purchase from Mohan on credit Rs. 4,000.
    Purchase a/c
    Dr
    4,000
    To Mohan a/c
    4,000
    Cash paid to Mohan Rs. 4,000.
    Mohan a/c
    Dr
    4,000
    To Cash a/c
    4,000
    Goods purchase from Anil Rs. 6,000.
    Purchase a/c
    Dr
    6,000
    To Anil a/c
    6,000
    Cash paid to Anil Rs. 5,000.

    Anil a/c
    Dr
    5,000
    To Cash a/c
    5,000

    Furniture purchase for cash Rs. 8,000.


    Furniture a/c
    Dr
    8,000
    To cash a/c
    8,000
    Machinery purchase from sunil on credit Rs. 5,000.
    Machinery a/c
    Dr
    5,000
    To Sunil a/c
    5,000
    Goods sold for cash Rs. 5,000.
    Cash a/c
    Dr
    5,000
    To Sales a/c
    5,000
    Goods sold to Ramesh on credit Rs. 6,000.
    Ramesh a/c
    Dr
    6,000
    To Sales a/c
    6,000
    Cash received from Ramesh Rs. 4,000.

    Cash a/c
    Dr
    4,000
    To Ramesh a/c
    4,000
    13
    Goods sold to Rakesh Rs. 5,000.

    Rakesh a/c
    Dr
    5,000
    To Sales a/c
    5,000
    Cash received from Rakesh Rs. 4,000.
    Cash a/c
    Dr
    4,000
    To Rakesh a/c
    4,000
    Old furniture sold for cash Rs. 1,000.

    Cash a/c
    Dr
    1,000
    To Furniture
    1,000
    16.
    Salary paid Rs. 800.

    Salary a/c
    Dr
    800
    To Cash a/c
    800
    17.

    Rent paid Rs. 900.

    Rent a/c
    Dr
    900
    To Cash a/c
    900
    18.
    Wages paid Rs. 500.

    Wages a/c
    Dr
    500
    To Cash a/c
    500

    Goods return to Anil Rs. 700.

    Anil a/c
    Dr
    700
    To Purchase return
    700
    20
    Goods return by Rakesh Rs. 600.

    Sales return a/c


    Dr
    600
    To Rakesh
    600
    Commission Received Rs. 2,000.
    Cash a/c
    Dr
    2,000
    To Commission

    2,000
    Goods purchase from Ashok on credit Rs. 1,000.
    Purchase a/c
    Dr
    1,000
    To Ashok a/c
    1,000

    Cash paid to Ashok in full settlement Rs. 950.


    Ashok a/c
    Dr
    1,000
    To Cash a/c
    950
    To Discount a/c
    50
    Goods sold to Mahesh Rs. 5,000.
    Mahesh a/c
    Dr
    5,000
    To Sales a/c
    5,000
    Cash received from Mahesh in full settlement Rs. 4900.
    Cash a/c
    Dr
    4900
    Discount a/c
    Dr
    100
    To Mahesh
    5000
    Depreciation charge on Machinery Rs. 600 & Furniture Rs. 200.
    Depreciation a/c
    Dr
    800
    To Machinery
    600
    To Furniture
    200
    Goods worth Rs. 600 given as free Sample.
    Free sample a/c Dr
    600
    To Purchase a/c
    600

    Goods worth Rs. 800 given as charity.


    Charity a/c
    Dr
    800

    To Purchase a/c
    800

    Goods worth Rs. 600 lost by fire.


    Loss by fire a/c Dr
    600
    To Purchase a/c
    600

    Goods worth Rs. 1000 lost by fire, Insurance Co. pays Rs. 600.
    Cash a/c
    Dr.
    600
    Loss by fire a/c
    Dr.
    400
    To Purchase a/c
    1000
    Goods sold to Ramesh on credit Rs. 1000.
    Ramesh a/c
    Dr.
    1000
    To Sales a/c
    1000
    Ramesh become insolvent and 60% amount received as final payment.

    Cash a/c
    Dr.
    600
    Bad debts a/c
    Dr.
    400
    To Ramesh
    1000

    Rs. 300 recovered which were originally Bad debts.


    Cash a/c
    Dr
    300
    To Bad debts recovered a/c
    300
    Goods sold to Ramesh on credit Rs. 2000 & 10% trade discount allowed.

    Ramesh a/c
    Dr
    1800
    To Sales a/c
    1800
    Mohan Purchased goods from us Rs. 1000.
    Mohan a/c
    Dr
    1000
    To Sales
    1000
    Cash received from Mohan in full settlement Rs. 900.
    Cash a/c
    Dr
    900
    Discount a/c
    Dr
    100
    To Mohan
    1000
    Interest on capital allowed Rs. 750.

    Interest on capital a/c


    Dr
    750
    To Capital a/c
    750
    38.
    Loan Received Rs.5,000

    Cash a/c
    Dr

    5000
    To Loan a/c
    5000
    Interest on loan Rs. 500 paid.
    Interest on loan a/c
    Dr
    500
    To Cash a/c
    500
    Life insurance premium of prop writer paid Rs. 1500.
    Drawings a/c
    Dr
    1500
    To Cash a/c
    1500

    Additional capital introduced by owner Rs. 20,000.


    Cash a/c
    Dr
    20000
    To Capital a/c
    20000

    Cash deposited into bank Rs. 15,000.


    Bank a/c
    Dr
    15000
    To Cash a/c
    15000
    Salary paid by cheque Rs. 800.
    Salary a/c

    Dr

    800

    To Bank a/c
    800
    Cash sales Rs. 2000 & deposited into bank on same day.
    Bank a/c
    Dr
    2000
    To Sales a/c
    2000
    Bank charges charged by bank Rs. 50.
    Bank charge a/cDr
    50
    To Bank a/c
    50

    Goods sold to Raman Rs. 1000 & cheque received on same day.
    Cash a/c
    Dr
    1000
    To Sales a/c
    1000

    Above cheque deposited into bank .


    Bank a/c
    Dr
    1000
    To Cash a/c
    1000

    Goods sold to Rajesh Rs. 500 & cheque received & deposited into bank on same day.

    Bank a/c
    Dr
    500
    To Sales a/c
    500
    Cash paid to Ram Rs. 500 on behalf of mohan.
    Mohan a/c
    Dr

    500
    To Cash a/c
    500

    Rs. 1000 directly deposited by Kamal in our Bank a/c.


    Bank a/c
    Dr
    1000
    To Kamal a/c
    1000

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