Page 69 - DMGT104_FINANCIAL_ACCOUNTING

Unit 5: Preparation of Journal, Ledger and Balancing

Solution: Notes
Journal of Mr. Ram Krishna
Date Particulars L.F. Amount Dr. Amount Cr.
( ) ( )
2007
July 1 Cash Account Dr. 2,00,000
To Capital Account 2,00,000
(Being start of business by Mr. Ram Krishna)
July 4 Purchase Account Dr. 20,000
To Cash Account 20,000
(Being purchase of goods in cash)
July 5 Bank Account Dr. 40,000
To Cash Account 40,000
(Being deposit of cash into Bank)
July 7 Cash Account Dr. 15,000
To Sales Account 15,000
(Being sale of goods in cash)
July 10 Purchase Account Dr. 25,000
To Mr. Kamlesh 25,000
(Being purchase on credit from Mr. Kamlesh)
July 11 Furniture Account Dr. 18,000
To Cash Account 18,000
(Being purchase of furniture)
July 12 Wage Account Dr. 8,000
To Cash Account 8,000
(Being payment of wages in cash)
July 20 Cash Account Dr. 500
To Interest Account 500
(Being receipt of interest)
July 25 Mr. Kamlesh Dr. 25,000
To Cash Account 25,000
(Being payment of credit purchases)
July 30 Cash Account Dr. 50,000
To Capital Account 50,000
(Being introduction of additional capital in business)
Total 3,97,500 3,97,500

Notes For the purpose of Journalising of the transactions, the goods are classified into
purchases, sales, purchase returns and sales returns.

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