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Module Two Part Four

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14 views

Module Two Part Four

Notes

Uploaded by

sharanhilary
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PRACTICAL PROBLEMS

QUESTION 1

Pass the opening journal entry from the following details:

Cash in hand 5,000

Stock 20,000

Building 40,000

Debtors 15,000

Furniture 3,000

Bank overdraft 8,000

Creditors 12,000

Capital ?

QUESTION 2

Prepare compound journal entry for the transaction given below:

Mr. Don Tom started his own business with the following:

Cash 1,60,000

Stock 85000

Furniture 90,000

Machinery 1,25,000
QUESTION 3

Use the following details for preparing journal:

2019 January 21 started business with cash 90,000

January 23 purchased furniture for cash 8,000

January 24 purchased goods for cash 6,000

January 28 purchased machinery for cash 30,000

January 29 sold goods for cash 3,000

January 30 cash paid to Mr. Ashwin 4,800

January 31 cash received from Mr. Antony 10,000

QUESTION 4

Give journal entries for the following transactions:

2020 April 2 started business with cash 2,00,000

2020 April 3 opened bank account 1,00,000

2020 April 4 purchased furniture 35,000

2020 April 5 purchased goods 50,000

2020 April 6 withdrawn from bank for office use 5,000

2020 April 7 withdrawn from bank for personal use 6,000

2020 April 8 goods sold for cash 8,000

2020 April 9 purchased goods and paid by cheque 9,000

2020 April 10 cash paid into bank 12,000

2020 April 11 purchased goods from Mr. X on credit 16,000

2020 April 13 sold goods to Mr. Y on credit 25,000

2020 April 15 cheque received from Mr. Y 15,000

2020 April 16 cheque received from Mr. Y presented to bank 15,000

2020 April 17 paid salary by cash 28,000

2020 April 18 paid salary again by cheque 56,000

2020 April 20 received commission 8,600


2020 April 21 paid rent 12,000

2020 April 22 paid cash for advertisement 32,000

2020 April 23 withdrew cash from business (not from bank)

for personal use 29,500

2020 April 25 Paid wages 5,500

Please Note:

1) The journal entry for bank account opened and for cash paid into bank is same as the journal
entry for cash deposited into bank

i.e. Bank a/c Dr

To Cash

2) If salary or rent is paid by Cash, then cash will be credited. But if it is paid by Cheque, then
bank will be credited instead of cash. For example, if rent is paid by cheque, then the journal
entry will be
Rent a/c Dr

To Cash

3) One more thing is that, in question if purchases or sales made is not mentioned whether it is
for cash or credit, please assume that it is made for cash. Otherwise the question will clearly
state that such purchases or sales are made for cash.

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