By Rao M.E. Thukaram
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Sample text
1,000. Rahim bought goods for cash Rs. 8,000 from Ram. Rahim received from Ram Rs. 5,000 and allowed him discount Rs. 250. Ram sold goods to Rahim Rs. 7,000 Rahim supplied goods worth Rs. 2500 for Ram’s domestic use. Ram received Rs. 5,000 from Rahim for repairing the private car of Rahim. Solution (In the books of Ram) Journal Entires Date 1. 2. 3. 4. 5. 6. Particulars LF Debit Purchases a/c Dr. To Rahim’s a/c (Being goods purchased from Rahim) 1,000 Cash a/c To Sales a/c (Being cash sales to Rahim) 8,000 Credit 1,000 Dr.
John’s cheque was paid into the Bank. 31. John advanced a loan of Rs. 2,000 to Joseph. Solution In the Books of John Journal Entires Date Particulars 2004 Jan 1, 2. LF Debit Purchases a/c Dr. To Joseph’s a/c (Being goods purchased from Joseph on credit) 1,000 Cash a/c To Sales a/c (Being goods sold for cash) 1,500 Dr. Credit 1,000 1,500 Accounting and Financial Management 24 Date Particulars 3. 8. 15. 19. 22. 25. 31. LF Debit Joseph’s a/c Dr. To Cash a/c To Discount received A/c (Being cash paid to Joseph and discount received from him) 800 Cash a/c To Sales a/c (Being goods sold for cash) 700 Credit 780 20 Dr.
15. 19. 22. 25. 31. LF Debit Joseph’s a/c Dr. To Cash a/c To Discount received A/c (Being cash paid to Joseph and discount received from him) 800 Cash a/c To Sales a/c (Being goods sold for cash) 700 Credit 780 20 Dr. 700 Drawings a/c Dr. To Joseph’s a/c (Being goods received from Joseph on credit for domestic use) 300 Furniture a/c Dr. Purchases a/c Dr. Cash a/c Dr. To Machinery a/c (Being machinery exchanged for furniture, goods and cash) 1,000 800 200 Commission a/c Dr. To Joseph’s a/c (Being commission due to Joseph) 50 Joseph’s a/c Dr.