Illustration :: Recording a Transaction in the Journal : Journalising

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Illustration » Problem

 
 

Journalise the following transactions (Or) Record the following transactions in a Journal

  1. 15th June: Ibrahim a sole proprietor Commenced business with a capital of Rs. 2,00,000.
  2. 17th June: Bought Furniture for cash Rs. 20,000.
  3. 17th June: Paid Rent to the shop owner Mr. Murugan Rs. 5,000.
  4. 18th June: Paid cash into bank Rs. 1,50,000
  5. 18th June: Bought Goods for cash Rs. 10,000 from M/s Shamir Jain & Co.,
  6. 18th June: Bought Goods on credit from M/s Ramdas & Bros. for Rs. 10,000.
  7. 19th June: Sold goods for cash Rs. 12,000 to Mr. Naryan Tiwari
  8. 20th June: Bought Machinery from M/s Boolani Machinery and paid by cheque Rs. 25,000.
  9. 21st June: Sold goods on credit to Mr. Natekar for Rs. 8,000
  10. 21st June: Paid weekly wages to workers Rs. 5,000
  11. 24th June: Paid M/s Ramdas and Brothers by cheque Rs. 5,000
  12. 24th June: Received from Mr. Natekar Rs. 2,000
  13. 24th June: Received commission from M/s Orion Traders for giving a trade lead Rs. 500.

Illustration » Working Notes

 
 
Wherever a student needs to build certain notes which would help in the process of deriving the ultimate solution, they can be included as a part of the solution by marking the workings separately as working notes.

This can be done even in examination conditions. Sometimes it would be needed of the student to include the working notes compulsorily in the solution (say when the question says "Working notes should form part of the solution").

In the initial stages of learning students are advised to work out some problems with analysis so that they would get accustomed to analysing the transaction for deriving the journal entry.

Journal is everything of accounting

Remember » No Journal : No Accounting.
  1. Commenced Business with a Capital of Rs. 2,00,000.

    Capital a/c

    Person

    Personal a/c

    Giving benefit

    Credit
    [Credit the benefit giver]
    Cash a/c

    Tangible aspect/Asset

    Real a/c

    Coming in

    Debit
    [Debit what comes in]

  2. Bought Furniture for cash Rs. 20,000.

    Furniture a/c

    Tangible aspect/Asset

    Real a/c

    Coming in

    Debit
    [Debit what comes in]
    Cash a/c

    Tangible aspect/Asset

    Real a/c

    Going out

    Credit
    [Credit what goes out]

  3. Paid Rent to the shop owner Mr. Murugan Rs. 5,000.

    Rent Paid a/c

    Expenditure

    Nominal a/c

    Expenditure

    Debit
    [Debit all expenses and losses]
    Cash a/c

    Tangible aspect/Asset

    Real a/c

    Going out

    Credit
    [Credit what goes out]

  4. Paid cash into bank Rs. 1,50,000

    Cash a/c

    Tangible aspect/Asset

    Real a/c

    Going out

    Credit
    [Credit what goes out]
    Bank a/c

    Organisation

    Personal a/c

    Receiving

    Debit
    [Debit the benefit receiver]

  5. Bought Goods for cash Rs. 10,000 from M/s Shamir Jain & Co.,

    Cash a/c

    Tangible aspect/Asset

    Real a/c

    Going out

    Credit
    [Credit what goes out]
    Goods/Stock a/c

    Tangible aspect/Asset

    Real a/c

    Coming in

    Debit
    [Debit what comes in]

  6. Bought Goods on credit from M/s Ramdas & Bros. for Rs. 10,000.

    M/s Ramdas & Bros. a/c

    Organisation

    Personal a/c

    Giving benefit

    Credit
    [Credit the benefit giver]
    Goods/Stock a/c

    Tangible aspect/Asset

    Real a/c

    Coming in

    Debit
    [Debit what comes in]

  7. Sold goods for cash Rs. 12,000 to Mr. Naryan Tiwari.

    Cash a/c

    Tangible aspect/Asset

    Real a/c

    Coming in

    Debit
    [Debit what comes in]
    Goods/Stock a/c

    Tangible aspect/Asset

    Real a/c

    Going out

    Credit
    [Credit what goes out]

  8. Bought Machinery from M/s Boolani Machinery and paid by cheque Rs. 25,000.

    Bank a/c

    Organisation

    Personal a/c

    Giving benefit

    Credit
    [Credit the benefit giver]
    Machinery a/c

    Tangible aspect/Asset

    Real a/c

    Coming in

    Debit
    [Debit what comes in]

  9. Sold goods on credit to Mr. Natekar for Rs. 8,000.

    Goods/Stock a/c

    Tangible aspect/Asset

    Real a/c

    Going out

    Credit
    [Credit what goes out]
    Mr. Natekar a/c

    Person

    Personal a/c

    Taking benefit

    Debit
    [Debit the benefit receiver]

  10. Paid weekly wages to workers Rs. 5,000

    Cash a/c

    Tangible aspect/Asset

    Real a/c

    Going out

    Credit
    [Credit what goes out]
    Wages Paid a/c

    Expenditure

    Nominal a/c

    Expenditure

    Debit
    [Debit all expenses and losses]

  11. Paid M/s Ramdas and Brothers by cheque Rs. 5,000.

    M/s Ramdas & Bros. a/c

    Organisation

    Personal a/c

    Taking benefit

    Debit
    [Debit the benefit receiver]
    Bank a/c

    Organisation

    Personal a/c

    Giving benefit

    Credit
    [Credit the benefit giver]

  12. Received from Mr. Natekar Rs. 2,000

    Mr. Natekar a/c

    Person

    Personal a/c

    Giving benefit

    Credit
    [Credit the benefit giver]
    Cash a/c

    Tangible aspect/Asset

    Real a/c

    Coming in

    Debit
    [Debit what comes in]

  13. Received commission from M/s Orion Traders for giving a trade lead Rs. 500.

    Commission Received a/c

    Income

    Nominal a/c

    Income

    Credit
    [Credit all Incomes and Gains]
    Cash a/c

    Tangible aspect/Asset

    Real a/c

    Coming in

    Debit
    [Debit what comes in]

Illustration » Solution

 
 
Journal in the books of M/s __ for the period from ____ to _____
Date V/R
No.
L/F Debit Amount
(in Rs)
Credit Amount
(in Rs)
June 15th Dr
2,00,000
2,00,000
17th Dr
20,000
20,000
17th Dr
5,000
5,000
18th Dr
1,50,000
1,50,000
18th Dr
10,000
10,000
18th Dr
10,000
10,000
19th Dr
12,000
12,000
20th Dr
25,000
25,000
21th Dr
8,000
8,000
21th Dr
5,000
5,000
24th Dr
5,000
5,000
24th Dr
2,000
2,000
24th Dr
500
500

"accountancy,basic,financial,accounting,process"

» Note:

The narration written above is to give an idea of how it would appear in books in practice. The details relating to the invoice/bill no's and their dates can be eliminated in solving problems.

There is no set rule for writing the narration. Its purpose is to give an understanding on why the journal entry is being recorded. Any sentence that sounds meaningful and which serves the purpose would be acceptable.

Author Credit : The Edifier ... Continued Page 17

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