Page 84 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting

Notes Journalise the following transactions and post them in the ledger 2011.
January 1: Commenced business with cash 50000
January 3: Paid into bank 25000
January 5: Purchased furniture for cash 5000

January 8: Purchased goods and paid by cheque 15000
January 8: Paid for carriage 500
January 14: Purchased Goods from K. Murthy 35000
January 18: Cash Sales 32000

January 20: Sold Goods to Ashok on credit 28000
January 25: Paid cash to K. Murthy in full settlement 34200
January 28: Cash received from Ashok 20000
January 31: Paid Rent for the month 2000

January 31: Withdrew from bank for private use 2500
Solution:
Journal

Date Particulars L.F. Amount (Dr.) Amount (Cr.)
( ) ( )
2007
Jan. 1 Cash A/c Dr. 50,000
To Capital A/c 50,000
(Commenced business with cash)
Jan. 3 Bank A/c Dr. 25,000
To Cash A/c 25,000
(Cash paid in the Bank)
Jan. 5 Furniture A/c Dr. 5,000
To Cash A/c 5,000
(Purchased furniture for cash)
Jan. 8 Purchase A/c Dr. 15,000
To Bank A/c 15,000
(Purchased goods and paid by cheque)
Jan. 8 Carriage A/c Dr. 500
To Cash A/c 500
(Cash paid for carriage charges)
Jan. 14 Purchase A/c Dr. 35,000
To K. Murthy 35,000
(Goods purchased on credit)
Jan. 18 Cash A/c Dr. 32,000
To Sales A/c 32,000
(Goods sold for cash)

Jan. 20 Ashok Dr. 28,000 Contd...
To Sales A/c 28,000
(Goods sold to Ashok credit)
Jan. 25 K Murthy Dr. 35,000
78 LOVELY PROFESSIONAL UNIVERSITY
To Cash A/c 34,200
To Discount A/c 800
(Cash paid to K. Murthy a discount allowed by
them)
Jan. 28 Cash A/c Dr. 20,000
To Ashok 20,000
(Cash received from Ashok on Account)
Jan. 31 Rent A/c Dr. 2,000
To Cash A/c 2,000
(Cash paid for rent)
Jan. 31 Drawings A/c Dr. 2,500
To Bank A/c 2,500
(Cash withdrawn from bank for domestic use)