You have been provided with the following transactions:
Jan 1 Bhandari invested Rs. 100,000 cash in Bhandari trade concern.
Jan 5 Office furniture purchased for Rs. 15,000 cash.
Jan 16 A new saving account opened with Rs. 50,000 in NB Bank.
Jan 18 Purchased goods for Rs. 25,000 cash.
Jan 20 Purchased goods on credit for Rs. 22,000.
Jan 28 Rent expenses Rs. 1,000.
Jan 29 Salary paid to staff Rs. 5,000 by cheque.
Jan 30 Charged depreciation on furniture Rs. 200.
Required:
- Journalize the above transactions.
- Posting into Capital account , Furniture account, Rent account, Bank account. Use standard T- form ledger
1. Solution:
Journal Entries in the book of Bhandari Trade Concern
| Date | Particulars | PR | Debit (Rs.) | Credit (Rs.) |
| Jan 1 | Cash a/c Dr. To capital a/c (For cash invested by owner) | 100,000 | 100,000 | |
| Jan 5 | Furniture a/c Dr. To cash a/c (For office furniture purchased on cash) | 15,000 | 15,000 | |
| Jan 16 | NB Bank a/c Dr. To cash a/c (For a new saving account opened by depositing cash) | 50,000 | 50,000 | |
| Jan 18 | Purchase a/c Dr. To cash a/c (For goods purchased on cash) | 25,000 | 25,000 | |
| Jan 20 | Purchase a/c Dr. To accounts payable a/c (For goods purchased on credit) | 22,000 | 22,000 | |
| Jan 28 | Rent a/c Dr. To cash a/c (For rent paid) | 1,000 | 1,000 | |
| Jan 29 | Salary a/c Dr. To Bank a/c (For salary paid to the staff by cheque) | 5,000 | 5,000 | |
| Jan 30 | Depreciation a/c Dr. To furniture a/c (For depreciation charged on furniture) | 200 | 200 |
2. Solution :
Dr. Capital Account Cr.
| Date | Particulars | PR | Amt. (Rs.) | Date | Particulars | PR | Amt. (Rs.) |
| Jan 31 | To Balance c/d | 100000 100000 | Jan 1 Feb 1 | By cash a/c To Balance c/d | 100000 100000 100000 |
| Date | Particulars | PR | Amt. (Rs.) | Date | Particulars | PR | Amt. (Rs.) |
| Jan 5 Feb 1 | To cash a/c To Balance b/d | 15000 15000 14800 | Jan 30 Jan 31 | By Depreciation a/c By Balance c/d | 200 14800 15000 |
| Amt. (Rs.) | Date | Particulars | PR | Amt. (Rs.) | |||
| Jan 28 Feb 1 | To cash a/c To Balance b/d | 1000 1000 1000 | Jan 31 | By Balance c/d | 1000 1000 |
Dr. Bank Account Cr.
| Date | Particulars | PR | Amt. (Rs.) | Date | Particulars | PR | Amt. (Rs.) |
| Jan 16 Feb 1 | To cash a/c To Balance b/d | 50000 50000 45000 | Jan 29 Jan 31 | By salary a/c By Balance c/d | 5000 45000 50000 |
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