Following transactions are provided to you:
Baisakh 1 Business started with bank balance Rs. 200,000
Baisakh 2 Purchased goods from Prabhu for cash Rs. 30,000
Baisakh 5 Machinery purchased from Gupta and Co. for Rs. 40,000
Baisakh 9 Goods sold to Mrs. Khalida for Rs. 25,000
Baisakh 13 Payment made to Prabhu by a cheque Rs. 30,000
Baisakh 18 Paid to Gupta and Co. by a cheque
Baisakh 27 Cash received from Mrs. Khalida Rs. 25,000
Required: Journal Entries
Following transactions are provided to you:
June 1 Mahesh Duwal started a business with a bank balance of Rs. 500
June 4 Cash withdrawn from the bank Rs. 100,000
June 6 Purchased goods for Rs. 30,000
June 7 Purchased goods from Mr. Ashok Maharjan Rs. 60,000
June 9 Withdrawn from the bank for personal use Rs. 5,000
June 12 Goods sold for Rs. 50,000
June 14 Goods sold to Mrs. Dolma Sherpa Rs. 25,000
June 16 Goods returned to Mr. Maharjan of Rs. 10,000
June 18 Goods returned from Mrs. Sherpa of Rs. 5,000
June 23 Paid to Mr. Maharjan Rs. 50,000 by cheque
June 25 A cheque of Rs. 20,000 received from Mrs. Sherpa
Required: Journal entries
Following transactions are given to you:
August 10 Wages paid Rs. 2,000
August 15 Rent paid Rs. 20,000
August 20 Commission received Rs. 9,000
August 25 Interest received Rs. 7,000
August 30 Salary paid to the staff Rs. 50,000
Required: Journal Entries
Following transactions are provided to you:
Chaitra 1 Borrowed a loan of Rs. 100,000 from the bank
Chaitra 2 Cash of Rs. 500 withdrawn from the bank for office use
Chaitra 5 Sold old furniture for Rs. 4,000
Chaitra 7 Provided loan to Ranjit Rs. 20,000 cash
Chaitra 9 Commission paid Rs. 6,000 cash
Chaitra 25 Interest paid on bank loan Rs. 9,000
Answer (2)
To create journal entries for the given transactions, we'll need to understand the basic principles of accounting, where each transaction affects at least two accounts with debits and credits maintaining the accounting equation: Assets = Liabilities + Equity .
For the first set of transactions (Baisakh):
Baisakh 1: Business started with a bank balance of Rs. 200,000
Journal Entry:
Debit: Bank Account Rs. 200,000
Credit: Capital Account Rs. 200,000
Baisakh 2: Purchased goods from Prabhu for cash Rs. 30,000
Journal Entry:
Debit: Purchases Account Rs. 30,000
Credit: Cash Account Rs. 30,000
Baisakh 5: Machinery purchased from Gupta and Co. for Rs. 40,000
Journal Entry:
Debit: Machinery Account Rs. 40,000
Credit: Accounts Payable (Gupta and Co.) Rs. 40,000
Baisakh 9: Goods sold to Mrs. Khalida for Rs. 25,000
Journal Entry:
Debit: Accounts Receivable (Mrs. Khalida) Rs. 25,000
Credit: Sales Account Rs. 25,000
Baisakh 13: Payment made to Prabhu by a cheque Rs. 30,000
Journal Entry:
Debit: Accounts Payable (Prabhu) Rs. 30,000
Credit: Bank Account Rs. 30,000
Baisakh 18: Paid to Gupta and Co. by a cheque
Journal Entry: (assuming Rs. 40,000 as no specific amount provided)
Debit: Accounts Payable (Gupta and Co.) Rs. 40,000
Credit: Bank Account Rs. 40,000
Baisakh 27: Cash received from Mrs. Khalida Rs. 25,000
Journal Entry:
Debit: Cash Account Rs. 25,000
Credit: Accounts Receivable (Mrs. Khalida) Rs. 25,000
These entries help in tracking the flow of funds and resources within the business. Each transaction showcases how different accounts within the accounting system are adjusted to reflect business activities accurately.
The answer provides detailed journal entries for four sets of transactions, covering various business activities, including purchases, sales, expenses, and loan transactions. Each entry is structured to illustrate the accounting equation with appropriate debits and credits, ensuring clarity in financial record keeping. These entries showcase the mechanics of maintaining accurate financial track of a business's financial engagements.
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