Question

Suresh, Kanpur commenced business on 1st January, 2019 introducing capital in cash ₹ 1,00,000. His other transactions during the month were as follows:

2019			₹
Jan 1	Started business with cash		1,00,000
Jan 2	Bought goods for cash		20,000
Jan 3	Sold goods for cash		7,000
Jan 15	Sold goods to Shravan, Delhi		6,000
Jan 18	Bought goods on credit from Anurag, Kanpur		50,000
Jan 19	Goods returned to Anurag		5,000
Jan 20	Sold goods for cash		30,000
Jan 22	Paid electricity bill		1,000
Jan 28	Paid for telephone bill		500
Jan 29	Paid rent		800
Jan 31	Paid wages		3000

​Enter the above transactions in his books of account.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2019
Jan 01	Cash A/c	Dr.		1,00,000
	To Capital A/c				1,00,000
	(Started business with cash)
Jan 02	Purchases A/c	Dr.		20,000
	To Cash A/c				20,000
	(Goods purchased)
Jan 03	Cash A/c	Dr.		7,000
	To Sales A/c				7,000
	(Goods sold)
Jan 15	Shravan A/c	Dr.		6,000
	To Sales A/c				6,000
	(Goods sold)
Jan 18	Purchases A/c	Dr.		50,000
	To Anurag A/c				50,000
	(Goods purchased)
Jan 19	Anurag A/c	Dr.		5,000
	To Purchases Return A/c				5,000
	(Goods returned)
Jan 20	Cash A/c	Dr.		30,000
	To Sales A/c				30,000
	(Goods sold)
Jan 22	Electricity Expenses A/c	Dr.		1,000
	To Cash A/c				1,000
	(Paid electricity bill)
Jan 28	Telephone Expenses A/c	Dr.		500
	To Cash A/c				500
	(Paid telephone bill)
Jan 29	Rent A/c	Dr.		800
	To Cash A/c				800
	(Paid rent)
Jan 31	Wages A/c	Dr.		3,000
	To Cash A/c				3,000
	(Paid wages)

Cash Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 01		Capital A/c		1,00,000	Jan 02	Purchases A/c		20,000
Jan 03		Sales A/c		7,000	Jan 22	Electricity Expenses A/c		1,000
Jan 20		Sales A/c		30,000	Jan 28	Telephone Expenses A/c		500
					Jan 29	Rent A/c		800
					Jan 31	Wages A/c		3,000
					Jan 31	Balance c/d		1,11,700
				1,37,000				1,37,000

Capital Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 01		Cash A/c		1,00,000	Jan 31	Balance c/d		1,00,000
				1,00,000				1,00,000

Purchases Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 02		Cash A/c		20,000	Jan 31	Balance c/d		70,000
Jan 18		Anurag A/c		50,000
				70,000				70,000

Sales Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 31		Balance c/d		43,000	Jan 03	Cash A/c		7,000
					Jan 15	Shravan A/c		6,000
					Jan 20	Cash A/c		30,000
				43,000				43,000

Shravan Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 15		Sales A/c		6,000	Jan 31	Balance c/d		6,000
				6,000				6,000

Anurag Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 19		Purchases Return A/c		5,000	Jan 18	Purchases A/c		50,000
Jan 31		Balance c/d		45,000
				50,000				50,000

Purchases Return Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 31		Balance c/d		5,000	Jan 19	Anurag A/c		5,000
				5,000				5,000

Electricity Expenses Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 22		Cash A/c		1,000	Jan 31	Balance c/d		1,000
				1,000				1,000

Telephone Expenses Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 28		Cash A/c		500	Jan 31	Balance c/d		500
				500				500

Rent Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 29		Cash A/c		800	Jan 31	Balance c/d		800
				800				800

Wages Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particulars	J.F.	Amount (₹)
Jan 31		Cash A/c		3,000	Jan 31	Balance c/d		3,000
				3,000				3,000