Question

Journalise the following transactions.

2011 Aug.	1	Shri Akshay started his business with Cash Rs 90,000, Building Rs 1,50,000 borrowed from friend Jayesh Rs 40,000.
	3	Paid cash into Bank of Maharashtra Rs 80,000.
	6	Purchased furniture from Mohan and issued him a cheque Rs 10,000.
	9	Credit purchase from Sohan Rs 20,000 less 5% Trade Discount.
	10	Returned goods to Sohan Rs 200.
	13	Credit sales to Amit Rs 6,000 less 2% Trade Discount.
	15	Amit returned goods of Rs 588.
	17	Goods taken by Akshay for his personal use Rs 500.
	18	Paid postage Rs 200 and Electricity bill Rs 900.
	20	Sent a Telegram of Rs 30 to Sohan to supply goods of Rs 9,000 immediately.
	21	Purchased Laptop & Printer of Rs 41,000 from Keshav & Co. and paid him cash Rs 21,000
	27	Paid insurance premium on life of Akshay of Rs 4,000.
	29	Paid Telephone Deposit for new telephone connection by cheque Rs 4,000.
	31	Audit fees paid by cheque Rs 4,500.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
Aug 2011
1	Cash A/c	Dr.		90,000
	Building A/c	Dr.		1,50,000
	To Jayesh				40,000
	To Capital A/c				2,00,000
	(Business commenced with cash, building and loan from Jayesh)
3	Bank A/c	Dr.		80,000
	To Cash A/c				80,000
	(Cash deposited into Bank of Maharashtra)
6	Furniture A/c	Dr.		10,000
	To Bank A/c				10,000
	(Furniture purchased through issue of cheque)
9	Purchases A/c [20,000 – 1,000]	Dr.		19,000
	To Sohan				19,000
	(Purchases made on credit at a trade discount of 5%)
10	Sohan A/c [200 – 10]	Dr.		190*
	To Purchases Returns A/c				190*
	(Goods returned)
13	Amit [6,000 – 120]	Dr.		5,880
	To Sales A/c				5,880
	(Sold goods to Amit on credit, at trade discount of 2%)
15	Sales Returns A/c	Dr.		588
	To Amit				588
	(Goods returned by Amit)
17	Drawings A/c	Dr.		500
	To Purchases A/c				500
	(Goods withdrawn for personal use)
18	Postage A/c	Dr.		200
	Electricity A/c	Dr.		900
	To Cash A/c				1,100
	(Payment of postage and electricity bill)
20	Telegram Expenses A/c	Dr.		30
	To Cash A/c				30
	(Telegram expenses incurred)
20	Purchases A/c	Dr.		9,000
	To Sohan				9,000
	(Goods purchased from Sohan)
21	Laptop & Printer A/c	Dr.		41,000
	To Cash A/c				21,000
	To Keshav & co.				20,000
	(Laptop & printer purchased from Keshav & Co. and Rs 21,000 paid in cash)
27	Drawings A/c	Dr.		4,000
	To Cash A/c				4,000
	(Insurance Premium on life of proprietor paid)
29	Telephone Deposit A/c	Dr.		4,000
	To Bank A/c				4,000
	(Deposits made for new telephone connection)
31	Audit Fees A/c	Dr.		4,500
	To Bank A/c				4,500
	(Paid audit fees)

*Goods returned to Sohan of value Rs 200 will be recorded at a discount of 2% which was allowed as trade discount i.e. at Rs 190 [200-10(5% of 200)]