Give journal entries of the following transactions and post them into the ledger: July, 2009 1 Started business with cash (₹) 10,000 7 Bought goods from Patwardhan 9,000 10 Returned goods to Patwardhan 200 18 Sold goods for Cash 3,000 20 Sold goods to Kumar 5,000 25 Received from Kumar 4,900 Allowed him discount 100
Answer (1)
To record the given transactions, we'll first prepare the journal entries and then post them into their respective ledger accounts.
Journal Entries:
July 1 : Started Business with Cash Debit: Cash Account ₹10,000 Credit: Capital Account ₹10,000
July 7 : Bought Goods from Patwardhan Debit: Purchases Account ₹9,000 Credit: Patwardhan Account ₹9,000
July 10 : Returned Goods to Patwardhan Debit: Patwardhan Account ₹200 Credit: Purchases Return Account ₹200
July 18 : Sold Goods for Cash Debit: Cash Account ₹3,000 Credit: Sales Account ₹3,000
July 20 : Sold Goods to Kumar Debit: Kumar Account ₹5,000 Credit: Sales Account ₹5,000
July 25 : Received from Kumar Debit: Cash Account ₹4,900 Debit: Discount Allowed Account ₹100 Credit: Kumar Account ₹5,000
Ledger Postings:
Cash Account :
Debit: ₹10,000 on July 1
Debit: ₹3,000 on July 18
Debit: ₹4,900 on July 25
Capital Account :
Credit: ₹10,000 on July 1
Purchases Account :
Debit: ₹9,000 on July 7
Purchases Return Account :
Credit: ₹200 on July 10
Patwardhan Account :
Credit: ₹9,000 on July 7
Debit: ₹200 on July 10
Sales Account :
Credit: ₹3,000 on July 18
Credit: ₹5,000 on July 20
Kumar Account :
Debit: ₹5,000 on July 20
Credit: ₹5,000 on July 25
Discount Allowed Account :
Debit: ₹100 on July 25
These journal entries and ledger postings will help keep the financial records accurate by documenting every transaction effectively. This process is fundamental in accounting to ensure a clear financial picture of the business operations.
