Transactions for Capital and drawings. Write journal entries for the following transactions in the books of Shubham.
Jan
1. Introduced goods of ₹10,000, cash ₹15,000, furniture ₹5,000, debtors of ₹10,000 and commenced business.
12. Personal motor car sold for ₹80,000 and introduced ₹50,000 in business.
13. ₹1,000 withdrawn from bank for personal use.
15. Income tax refund of ₹500 of owner of sole proprietor deposited with bank account of business.
20. from business goods of ₹1000 and cash ₹400 are withdrawn for personal use.
21. Traveling expense of daughter ₹1,500 paid from business.
28. Furniture of 42000, purchased from Ganga furniture Mart for house.
31. Life insurance premium of ₹500 paid by cheque.
Solution :
Journal entries.
In the books Shubham
Date | Particulars | L/F | Debit ₹ | Credit ₹ |
2014 Jan. |
|
|
|
|
1. | Stock of goods A/c Dr. Cash A/c Dr. Furniture A/c Dr. Debtors A/c Dr. To Capital A/c [Being Commenced business with goods, cash, furniture and debtors] |
| 10,000 15,000 5,000 10,000 |
40,000 |
12. | Cash A/c Dr. To Capital A/c [Being Sold personal motor and introduced cash into the business] |
| 50,000 |
50,000 |
13. | Drawings A/C Dr. To Bank A/c [Being Withdrawn cash from bank for personal use] |
| 1000 |
1000 |
15. | Income tax refund A/c Dr. To Capital A/c [Being income tax refund and de posited in business bank account] |
| 500 |
500 |
20. | Drawings A/c Dr. To Purchase A/c To Cash A/c [Being goods and cash withdrawn for personal use] |
| 1400 |
1000 400 |
21. | Drawings A/c Dr. To Cash A/c [Being cash withdrawn and paid daughter travelling expense] |
| 1500
|
1500 |
28. | Drawings A/c Dr. To Ganga Furniture Mart A/c [Being purchased Furniture for house] |
| 2,000 |
2,000 |
31. | Drawings A/c Dr. To Bank A/c [being Life insurance premium paid by cheque] |
| 500 |
500 |
|
|
| 96,900 | 96,900 |
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