Pass the journal entries.
a. Amit introduced Rs. 6,00,000 capital in the business through cash Rs. 1,00,000 and balance by cheque.
b. Cash purchases worth Rs. 15,000.
c. Land purchased for Rs. 2,50,000 and payment is made by cheque.
d. Goods purchased from Harish Rs. 1,00,000.
e. Goods returned to Hari Rs. 4,000
f. Newspaper bill paid Rs. 250.
g. Cheque of Rs. 10,000 issued to Akhil.
h. Loan of Rs. 20,000 was taken again fixed deposit.
i. Cartage paid on purchases Rs. 500.
j. Interest charged by bank Rs. 200.
k. Goods sold to Vivek of Rs. 50,000 against with 50 percent payment is made in cash.
l. 75 paise paid in a rupee received out of Rs. 10,000 due from Christ on his becoming bankrupt or insolvent.
m. Amount written off as bad debt fully recovered.
n. Purchase of goods worth Rs. 30,000, received a cash discount of 2 percent.
o. Goods costing Rs. 15,000 lost in fire, Insurance company accepted claim of Rs. 12,000 and cheque is received from the company.
p. Sold household furniture for Rs. 5,000 and the proceeds were invested in the business.
q. Paid Rs. 5,000 as life insurance premium of the proprietor.
r. Received Rs. 19,000 from Swati on her account for Rs. 20,000.
s. Received Rs. 19,000 from Bharti in settlement of her account for Rs. 20,000.
t. Bricks, cement etc. for Rs. 1,50,000 purchased for the renovation of building. Payment was made by cheque.
Solution :-
JOURNAL
Note: Due to time constraint, we are providing you solution of first 10 entries. Kindly try to do other ones by your own. If you had any doubt, revert back to us.
JOURNAL
| S.No. | Particulars | L/F | Debit | Credit |
| a) | Cash A/c Dr. | 1,00,000 | ||
| Bank A/c Dr. | 5,00,000 | |||
| To Capital A/c | 6,00,000 | |||
| (Being Business started.) | ||||
| b) | Purchases A/c Dr. | 15,000 | ||
| To Cash A/c | 15,000 | |||
| (Being purchases made.) | ||||
| c) | Land A/c Dr. | 2,50,000 | ||
| To Bank A/c | 2,50,000 | |||
| (Being Land purchased.) | ||||
| d) | Purchases A/c Dr. | 1,00,000 | ||
| To Harish's A/c | 1,00,000 | |||
| (Being credit purchases made.) | ||||
| e) | Harish A/c Dr. | 4,000 | ||
| To Purchases return A/c | 4,000 | |||
| (Being goods returned.) | ||||
| f) | Newspaper Bill A/c Dr. | 250 | ||
| To Cash A/c | 250 | |||
| (Being newspaper bill paid.) | ||||
| g) | Akhil A/c Dr. | 10,000 | ||
| To Bank A/c | 10,000 | |||
| (Being cheque issued.) | ||||
| h) | Bank A/c Dr. | 20,000 | ||
| To Fixed Deposit A/c | 20,000 | |||
| (Being loan taken against fixed deposit.) | ||||
| i) | Cartage A/c Dr. | 500 | ||
| To Cash A/c | 500 | |||
| (Being Cartage paid.) | ||||
| j) | Interest A/c Dr. | 200 | ||
| To Bank A/c | 200 | |||
| (Being interest charged by bank.) |
Note: Due to time constraint, we are providing you solution of first 10 entries. Kindly try to do other ones by your own. If you had any doubt, revert back to us.