Question

Journalise the following transactions :

2017		₹
March 1	Started business with cash	50,000
2	Purchased Machinery for cash	20,000
	Paid installation charges on machinery	2,000
5	Purchased goods from X of the list price of ₹ 25,000, Trade Discount 20% and cash discount 5%. Payment was made in cash immediately.
10	Sold goods to Y costing ₹ 10,000 at 30% profit on cost less 10% trade discount.
15	Paid Rent	1,000
20	Goods stolen from business	2,000
22	Gave as charity : Cash	100
	Goods	200
31	Purchased Post Cards and Envelopes	50
31	Purchased a Computer for business	25,000

Answer 1

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2017
Mar. 01	Cash A/c	Dr.		50,000
	To Capital A/c				50,000
	(Started business with cash)
Mar. 02	Machinery A/c	Dr.		22,000
	To Cash A/c				22,000
	(Machinery purchased for cash and installation charges paid)
Mar. 05	Purchases A/c	Dr.		20,000
	To Cash A/c				19,000
	To Discount Received A/c				1,000
	(Goods purchased for cash and received discount)
Mar. 10	Y’s A/c	Dr.		11,700
	To Sales A/c				11,700
	(Goods sold on credit to Y at 30% profit on cost)
Mar. 15	Rent A/c	Dr.		1,000
	To Cash A/c				1,000
	(Rent paid)
Mar. 20	Loss by Theft A/c	Dr.		2,000
	To Purchases A/c				2,000
	(Goods stolen from business)
Mar. 22	Charity A/c	Dr.		300
	To Cash A/c				100
	To Purchases A/c				200
	(Charity given)
Mar. 31	Postage A/c	Dr.		50
	To Cash A/c				50
	(Paid for postage)
Mar. 31	Computer A/c	Dr.		25,000
	To Cash A/c				25,000
	(Computer purchased)
	TOTAL			1,32,050	1,32,050