Journal Entries/Ledger | Numerical Problems Part - 5

A new saving account opened with Rs. 50,000 in NB Bank; Charged depreciation on furniture Rs. 200 ; Salary paid to staff Rs. 5,000 by cheque,

You have been provided with the following transactions:

Jan 1 Bhandari invested Rs. 100,000 cash in Bhandari trade concern.

Jan 5 Office furniture purchased for Rs. 15,000 cash.

Jan 16 A new saving account opened with Rs. 50,000 in NB Bank.

Jan 18 Purchased goods for Rs. 25,000 cash.

Jan 20 Purchased goods on credit for Rs. 22,000.

Jan 28 Rent expenses Rs. 1,000.

Jan 29 Salary paid to staff Rs. 5,000 by cheque.

Jan 30 Charged depreciation on furniture Rs. 200.

Required:

1. Journalize the above transactions.
2. Posting into Capital account , Furniture account, Rent account, Bank account. Use standard T- form ledger

1. Solution:

Journal Entries in the book of Bhandari Trade Concern
 Date Particulars PR Debit (Rs.) Credit (Rs.) Jan 1 Cash a/c                          Dr.     To capital a/c(For cash invested by owner) 100,000 100,000 Jan 5 Furniture a/c                   Dr.     To cash a/c(For office furniture purchased on cash) 15,000 15,000 Jan 16 NB Bank a/c                   Dr.     To cash a/c(For a new saving account opened bydepositing cash) 50,000 50,000 Jan 18 Purchase a/c                    Dr.     To cash a/c(For goods purchased on cash) 25,000 25,000 Jan 20 Purchase a/c                    Dr.     To accounts payable a/c(For goods purchased on credit) 22,000 22,000 Jan 28 Rent a/c                           Dr.     To cash a/c(For rent paid) 1,000 1,000 Jan 29 Salary a/c                        Dr.     To Bank a/c(For salary paid to the staff by cheque) 5,000 5,000 Jan 30 Depreciation a/c              Dr.     To furniture a/c(For depreciation charged on furniture) 200 200

2. Solution :
Dr. Capital Account                                                             Cr.
 Date Particulars PR Amt. (Rs.) Date Particulars PR Amt. (Rs.) Jan 31 To Balance c/d 100000100000 Jan 1 Feb 1 By cash a/cTo Balance c/d 100000 100000 100000

Dr. Furniture Account                                                  Cr.
 Date Particulars PR Amt. (Rs.) Date Particulars PR Amt. (Rs.) Jan 5  Feb 1 To cash a/cTo Balance b/d 15000 15000 14800 Jan 30 Jan 31 By Depreciation a/c By Balance c/d 200 14800 15000

Dr. Rent Account                                                       Cr.
 Amt. (Rs.) Date Particulars PR Amt. (Rs.) Jan 28 Feb 1 To cash a/cTo Balance b/d 1000 1000 1000 Jan 31 By Balance c/d 1000 1000

Dr. Bank Account                                                     Cr.

 Date Particulars PR Amt. (Rs.) Date Particulars PR Amt. (Rs.) Jan 16 Feb 1 To cash a/c To Balance b/d 50000            50000 45000 Jan 29 Jan 31 By salary a/c By Balance c/d 5000 45000 50000