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Journal

The document outlines a series of transactions involving Suprajith's business, detailing investments, purchases, sales, and expenses along with their corresponding journal entries. Each transaction specifies the accounts involved, the type of account, and applies the debit/credit rules. The transactions include cash investments, purchases of furniture and goods, bank deposits, withdrawals, and salary payments.

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davidangelo.2346
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19 views4 pages

Journal

The document outlines a series of transactions involving Suprajith's business, detailing investments, purchases, sales, and expenses along with their corresponding journal entries. Each transaction specifies the accounts involved, the type of account, and applies the debit/credit rules. The transactions include cash investments, purchases of furniture and goods, bank deposits, withdrawals, and salary payments.

Uploaded by

davidangelo.2346
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Transaction Slip Accounts Involved Type of Account (Real /

Sr. No Personal / Nominal)

Suprajith invested ₹5,00,000 cash to start the


1 business. Cash A/c, Capital A/c Real, Personal

2 Purchased office furniture for ₹50,000 in cash. Furniture A/c, Cash A/c Real, Real

Deposited ₹2,00,000 from cash into a bank


3 account. Bank A/c, Cash A/c Personal, Real

4 Purchased goods for ₹50,000 in cash. Purchase A/c, Cash A/c Nominal, Real

5 Sold goods worth ₹25,000 for cash Cash A/c, Sales A/c Real, Nominal

6 Paid electricity bill of ₹2,500. Electricity Expense A/c, Cash A/c Nominal, Real
Purchased goods for ₹30000 on credit from Ram
7 Enterprises ltd. Purchase A/c, Ram Enterprises Ltd. A/c Nominal, Personal

8 Withdrew ₹80,000 from Bank. Cash A/c, Bank A/c Real, Personal

9 Suprajith withdrew ₹15000 for personal use Drawings A/c, Cash A/c Personal, Real

10 Paid salaries of ₹20,000 to employees by cheque. Salaries A/c, Bank A/c Nominal, Personal
Debit / Credit Rule Applied Journal Entry

Particulars Debit(₹) Credit(₹)


Debit what comes in (Cash), Credit the giver
(Capital) Cash A/c Dr. 500000
To Capital A/c 500000
(Being capital introduced into the
business by Suprajith.)

Debit what comes in (Furniture), Credit what goes


out (Cash) Furniture A/c Dr. 50000
To Cash A/c 50000
(Being office furniture purchased and
paid in cash.)

Debit the receiver (Bank), Credit what goes out


(Cash) Bank A/c Dr. 200000
To Cash A/c 200000
(Being cash deposited into the bank
account.)

Debit all expenses (Purchase), Credit what goes out


(Cash) Purchase A/c Dr. 50000
To Cash A/c 50000
(Being goods purchased for cash.)

Debit what comes in (Cash), Credit all incomes


(Sales) Cash A/c Dr. 25000
To Sales A/c 25000
(Being goods sold for cash.)

Debit all expenses (Electricity), Credit what goes out


(Cash) Electricity Expense A/c Dr. 2500
To Cash A/c 2500
(Being electricity bill paid in cash.)

Debit all expenses (Purchase), Credit the giver (Ram


Enterprises Ltd.) Purchase A/c Dr. 30000
To Ram Enterprises Ltd. A/c 30000
(Being goods purchased on credit from
Ram Enterprises Ltd.)

Debit what comes in (Cash), Credit the giver (Bank) Cash A/c Dr. 80000
To Bank A/c 80000
(Being cash withdrawn from bank for
office use.)

Debit the receiver (Drawings), Credit what goes out


(Cash) Drawings A/c Dr. 15000
To Cash A/c 15000
(Being cash withdrawn by proprietor
for personal use.)

Debit all expenses (Salaries), Credit the giver (Bank) Salaries A/c Dr. 20000
To Bank A/c 20000
(Being salaries paid to employees in
cash.)

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