JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF GAJANAN

 2019 May 

3. Purchased goods for Rs.90,000 and amount paid by bank directly. 
7. Sold goods to Satish on credit Rs.30,000. 
9. Paid for Postage Rs.10,000. 
12. Paid for Wages Rs.15,000. 
15. Received cheque of Rs.30,000 from Sati. 
21. Received Dividend Rs.5,000. 
25. Purchased Laptop of Rs.40,000 and paid by cheque. 
28. Deposited cash Rs.10,000 into State Bank of India. 
31. Purchased goods for Rs.40,000 and paid by RTGS.

Solution:

 

In the Books of Gajanan. 

DATE	PARTICULARS	L/F	DEBIT	CREDIT
2019  April,3	Purchase A/c                Dr.                To Bank A/c  [Being Purchased Goods and Paid by Bank]		90,000	90,000
7	Satish A/c                  Dr.               To Sales A/c   [Being Sold goods to Satish on credit]		30,000	30,000
9	Postage A/c                 Dr.               To cash A/c  [Being Paid for Postage]		10,000	10,000
12	Wages A/c               Dr.                To Cash A/c   [Being Paid for wages]		15,000	15,000
15	Bank A/c                  Dr.               To Sati A/c   [Being Received cheque from sati]		30,000	30,000

 

21	Cash A/c                   Dr.                To Dividend A/c  [Being received dividend]		5,000	5,000
25	Laptop A/c                  Dr.                To Bank A/c   [Being purchased laptop by cheque]		40,000	40,000
28	State Bank of India A/c         Dr.                 To Cash A/c   [Being deposited cash in state bank of India]		10,000	10,000
31	Purchase A/c              Dr.                To Bank A/c  {Being Purchased good and paid by RTGS]		40,000	40,000

 

Explanatory Notes:

3. Purchased goods by cash and amount paid by Bank directly. Goods are coming inside the business therefore Real account is debited to debit side [debit what comes in]. Cash is going out of the business therefore credited to credit side [credit what goes out] Refer Golden Account Rules. 

7. Sold goods to Satish on credit. Goods are not sold on cash basis therefore Satish account is debited [Refer Personal account formula]. Goods are going out of the Business therefore sales account is credited [Credit the Giver]. 

 

9. Paid for postage 10,000. Postage is an expense for the Business therefore it is debited to debit side [Refer Nominal Account Formula]. Cash is going out therefore credited to credit side [Refer Real Account Formula]. 
 
12. Paid for Wages 15,000. [Refer Transaction 9]. 
 
15. Received cheque of Rs.30,000 from Sati. Bank account is debited to debit side because Bank is the receiver and Sati account is credited to credit side because Sati is the giver [Refer Personal Account Formula]. 
 
21. Received Dividend Rs.5,000. Dividend is an income which gets from shares and all the rewards from shares are directly received by bank therefore bank account is debited to debit side and Dividend account is credited to credit side [Refer Nominal Account Formula]. 
 
25. Purchased Laptop of Rs.40,000 and paid by cheque. Laptop is an Asset for the Business therefore Laptop account is debited and Bank Account is Credited Because cash is going out of the business [Refer Real Account Formula]. 
 
28. Deposited cash Rs.10,000 into State Bank of India. State bank of India account is debited to Debit Side because State bank Of India is the Receiver. And cash account is credited because proprietor is giving cash [Refer Personal Account Formula]. 

 
31. Purchased Goods and paid by RTGS. Purchase account is debited because goods are coming into the business and RTGS means Real Time Gross Settlement which refers to fund transfer system by Bank therefore bank Account is credited. 

 

3 Gold Rule of Accounting.

Personal Account: 1. Debit the Receiver. 

                               2. Credit The Giver. 

 

Real Account: 1. Debit What Comes In. 

                        2. Credit What Goes Out. 

 

Nominal Account: 1. Debit All Expenses and Losses. 
                               2. Credit All Income and Gain. 

JOURNALISE THE FOLLOWING TRANSACTIONS IN THE BOOKS OF GAJANAN