Journal Entry - Problem 1

Journal Entry - Problems for Exercise:

2008 Apr. 1^st. Laxman commenced business with cash Rs. 50000.

His other transactions during the month were as follows.

Pass Journal Entries.

April 2: Cash Sales Rs. 5000

April 4 Cash Purchase Rs. 4000

April 6 Paid Salary Rs. 2500

April 7 Purchased Machinery   Rs. 10000

April 9 Cash deposited with bank   Rs. 2000

April 11 Cash paid to Rajesh     Rs. 1000

April 14 Goods sold to Raghu    Rs. 750

April 16 Purchased goods from Sita    Rs. 800

April 17 Received cash from krishna   Rs. 1400

April 19 Rent     Rs. 1500

April 20 Postage Rs. 200

April 27 Cash used for personal use Rs. 1500

April 29 Sold goods to Sudhakar   Rs. 8000

April 30 Cash Purchases from Madhu   Rs. 3000

April 30 Audit Fee    Rs. 500

Date	Particular	L.F (Ledger Folio)	Debit	Credit	Explanation
APRIL 2	CASH A/C   TO SALES		5000	5000	CASH SALES - CASH COMING IN BY SEELING GOODS “DEBIT - CASH” AS CASH COMING IN “CREDIT” - SALES AS GOODS GOING OUT.
APRIL 4	PURCHASED A/C   TO CASH		4000	4000	PURCHASED GOODS - CASH GOING OUT “CREDIT CASH” & “DEBIT PURCHASE A/C”
APRIL 6	SALARIES A/C    TO CASH		2500	2500	WE PAID SALARY - WE DID EXPENDITURE - CASH GOING OUT. “CREDIT CASH” & “DEBIT SALARIES A/C”
APRIL 7	MACHINERY A/C    TO CASH		10000	10000	PURCHASE MACHINERY. CASH GOING OUT - “CREDIT CASH”. MACHINERY COMING IN “DEBIT MACHINERY”
APRIL 9	BANK A/C    TO CASH		2000	2000	CASH GOING OUR TO THE BANK - “CREDIT CASH” & “DEBIT BANK” AS CASH GOING TO BANK A/C.
APRIL 11	RAJESH A/C    TO CASH		1000	1000	WE PAID CASH TO RAJESH. CASH GOING OUT “CREDIT CASH” & “DEBIT RAJESH” AS RAJESH TAKING CASH.
APRIL 14	RAGHU A/C    TO SALES		750	750	GOODS SOLD TO RAGHU ON CREDIT. FOR CREDIT TRANSACTION MENTION PARTY NAME FROM WHOM CASH WILL COME IN FUTURE. “DEBIT PARTY NAME WHEN WE SELL ON CREDIT” & CREDIT SALES A/C.
APRIL 16	PURCHASED A/C    TO SITA		800	800	PURCHASED FROM SITA ON CREDIT. “CREDIT PARTY NAME WHEN WE PURCHASE ON CREDIT” AND DEBIT PURCHASE A/C.
APRIL 17	CASH A/C   TO KRISHNA		1400	1400	CASH TAKEN FROM KRISHNA - CASH COMING IN. “DEBIT CASH” & “CREDIT KRISHNA A/C” AS WE ARE RECEIVING CASH FROM KRISHNA.
APRIL 19	RENT A/C   TO CASH		1500	1500	RENT PAID - IT’S A EXPENSES - CASH GOING OUT. “CREDIT CASH” & “DEBIT RENT” AS WE ARE PAYING RENT.
APRIL 20	POSTAGE A/C   TO CASH		200	200	POSTAGE PAID - IT’S A EXPENSES - CASH GOING OUT. “CREDIT CASH” & “DEBIT POSTAGE” AS WE ARE PAYING RENT
APRIL 27	DRAWING A/C   TO CASH		1500	1500	IF CASH IS USED FOR PERSONAL WE ALWAYS “CREDIT CASH A/C” AS CASH IS GOING OUT & WE DEBIT THE WORD “DRAWING” AS BUSINESS CASH IS USED FOR PERSONAL USE.
APRIL 29	SUDHAKAR A/C   TO SALES		8000	8000	WE SOLD GOODS TO SUDHAKAR. WE WILL RECEIVE MONEY FROM HIM BUT IN FUTURE AS IT IS A CREDIT TRANSACTION. TILL WE RECEIVE MONEY WE MENTION SUDHAKAR NAME INSTAED OF CASH IN DEBIT SIDE & CREDIT SALES A/C
APRIL 30	PURCHASED A/C   TO CASH		3000	3000	WE PURCHASED FROM MADHU AND GIVEN CASH. CASH GOING OUT - “CREDIT CASH A/C” & DEBIT PURCHASE A/C. NO NEED TO CONSIDER MADHU NAME AS ITS A CASH TRANSACTION.
APRIL 30	AUDIT FEE A/C   TO CASH		500	500	AUDIT FEE IS EXPENSES - CASH GOES OUT - “CREDIT CASH A/C”. DEBIT THE EXPENSES NAME FOR WHICH WE PAID CASH. “DEBIT AUDIT FEE”.