Question

Journalise the following transactions of Satish, Noida (UP):

2019		₹
Jan 1	Started business with cash	40,000
Jan 2	Opened Bank Account by cheque from Savings Account	60,000
Jan 3	Bought goods from M/s. S. Singh & Co., Delhi	20,000
Jan 4	Introduced additional capital by cheque	5,000
Jan 4	Purchased computer against cheque from Computer Mart, Noida	15,000
Jan 6	Paid for postage stamps	150
Jan 8	Sold goods for cash	4,000
Jan 9	Sold goods to M/s Sharda & Co., Delhi	10,000
Jan 15	Paid the due amount to M/s S. Singh & Co. after availing discount of ₹ 400
Jan 25	Sold goods to M/s Ray & Co., Kolkata	5,600
Jan 27	Received cheque from M/s Sharda & Co. in full settlement of amount due from them	11,000
Jan 31	Paid for electricity charges	1,000
Jan 31	Paid rent of building by cheque. Half of the building is used by the proprietor for residential use.	5,000
Jan 31	Drew for personal use	3,500

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan 01	Cash A/c	Dr.		40,000
	To Capital A/c				40,000
	(Started business with cash)
Jan 02	Bank A/c	Dr.		60,000
	To Capital A/c				60,000
	(Cheque from Savings A/c to Firm’s A/c)
Jan 03	Purchases A/c	Dr.		20,000
	To M/s S. Singh & Co. A/c				20,000
	(Goods purchased)
Jan 04	Computer A/c	Dr.		15,000
	To Bank A/c				15,000
	(Purchased computer)
Jan 06	Postage A/c	Dr.		150
	To Cash A/c				150
	(Paid for postage)
Jan 08	Cash A/c	Dr.		4,000
	To Sales A/c				4,000
	(Goods sold)
Jan 09	M/s Sharda & Co. A/c	Dr.		10,000
	To Sales A/c				10,000
	(Goods sold)
Jan 15	M/s S. Singh & Co. A/c	Dr.		20,000
	To Cash A/c				19,600
	To Discount Received A/c				400
	(Paid to M/s S. Singh & Co.)
Jan 25	M/s Ray & Co. A/c	Dr.		5,600
	To Sales A/c				5,600
	(Goods sold)
Jan 27	Bank A/c	Dr.		10,000
	To M/s Sharda & Co. A/c				10,000
	(Received from M/s Sharda & Co.)
Jan 31	Electricity Charges A/c	Dr.		1,000
	To Cash A/c				1,000
	(Paid for electricity charges)
Jan 31	Rent A/c	Dr.		2,500
	Drawings A/c	Dr.		2,500
	To Cash A/c				5,000
	(Paid rent for building, half building is occupied by proprietorfor residential purpose)
Jan 31	Drawings A/c	Dr.		3,500
	To Cash				3,500
	(Drawings made by proprietor)

Note: There is an error in the question as the amount paid by M/s Sharda & Co. against goods sold can be eaqual to or less than the amount due but not more. Thus, taken to be as ₹10,000 instead of ₹11,000.