Pass Journal Entries: Mr. A started business with 50,000$. Bought merchandise for cash 10,000$. Sold goods for cash 15,000$. Purchased goods from X on credit for 5,000$. Sold good for cash6,000$. Purchased furniture for office use in cash 4,000$. Paid wages in cash 4,000$.
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Pass Journal Entries: Mr. A started business with 50,000$. Bought merchandise for cash 10,000$. Sold goods for cash 15,000$. Purchased goods from.
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Pass Journal Entries: Mr. A started business with 50,000$. Bought merchandise for cash
10,000$. Sold goods for cash 15,000$. Purchased goods from X on credit
for 5,000$. Sold good for cash6,000$. Purchased furniture for office use in
cash 4,000$. Paid wages in cash 4,000$.
May 1 2009 Mr. A Started business with cash.
Debit: Cash (increase an assets). (current asset)
Capital is introduced in the business is an increase in liability.
(Owner investment)
Date Description Post.Ref
Debit$ Credit
$
2009
May 1
Cash a/c
Capital a/c
Introduced cash in business
50,000
50,000
(2 May 2009 Bought merchandise for cash 10,000)
Debit : Merchandise increase in expenses (merchandise purchased for resale).
Credit : Cash credit because going out (decrease in assets). (current assets)
Date Description Post.
Ref
Debit
$
Credit
$
May 2 Merchandise a/c
Cash a/c
Merchandise purchased
10,000
10,000
May 3 Sold goods for cash 15,000$. Debit: cash (increase in an assets
a/c) (cash is coming into the business that is the increased in an asset.)
Credit: Sale (increase in revenue a/c)
Date Description Post.Ref
Debit
$
Credit
$
May 3 Cash a/c
sale a/c
Sold goods for cash
15,000
15,000
Purchased goods from x 5000$. Debit: Merchandise a/c
(increase in expenses)
•Credit: Account payable (increase in liability)
Date Description Post.
Ref
Debit
$
Credit
$
May 4
Merchandise a/c
Act. Pay a/c
(Goods purchased on account from x)
5,000
5,000
5 may 2009 Sold goods to b for 6,000$.
Debit: Account receivable (increase in an assets a/c)
Credit: Sale (increase in revenue a/c)
Date Description Post. Ref
Debit
$
Credit
$
May 5 Account Receivable (B) a/c
Sale a/c
Goods sold on account
6,000
6,000
(6 may 2009 Furniture purchased for office use in cash 4,000$.)
Debit: Furniture (increase in an assets). (fixed asset).
Credit: Cash (Decrease in an asset)
Date Description Post. Ref
Debit
$
Credit
$
May 6 Furniture a/c
Cash a/c
Asset purchased
4,000
4,000
(7 may 2009 plant purchased on cash 10,000$.)
Debit: Plant (Increase in an assets).
Credit: Cash (Decrease in an asset)
Date Description Post. Ref
Debit
$
Credit
$
May 7 Plant a/c
Cash a/c
Plant purchased
10,000
10,000
(7 may 2009 Wages paid in cash 4,000$).
Debit: Wages (Increase in Expenses)
Credit: Cash (decrease in asset)
Date Description post. Ref
Debit
$
Credit
$
May 7 Wages a/c
Cash a/c
Wages paid
4,000
4,000
02 : Purchased merchandise for cash 15000004 : Purchased furniture for cash 1500006 : Purchased merchandise from Ahmad worth
5000009 : Sold merchandise in cash 3500010 : Returned merchandise to Ahmad 2000012 : Sold merchandise to Sameen for 2000017 : Settle the claim of Ahmad in full24 : Received cash from Sameen 2000030 : Paid rent expense in cash 25000
01: Laiba started a business with cash 50000$02: Purchased a car for Cash 10000$05: Purchased merchandise from Sami 5000$11: Purchased Furniture for cash 3000$15: Sold merchandise to Sania for 2500$19: Salaries paid 6000$ 20: Sania returned merchandise worth 1000$27: Received cash from Sania 1500$
2010 March, 1:Mr.Peter commences business as a computer merchant trading under the name of “Computer Point”with capital of 400000 in cash
3: He buys 10 computers @30000 each from “Brilliant computers Ltd.” on credit15: He opens a bank account by depositing 100000 cash20: He sells 6 computers on credit to ABC computers @ 35000 each22: Paid wages 500025: He issues a cheque to Brilliant computers Ltd. for 30000.
2
Oct 1. The owner Fahad invested an additional $80,000 cash in the business.
Oct 5. Purchased a plot for $102,000 of which $30600 was paid in cash , a account payable is created for balance.
Oct15.Issued a check for $71400 in full payment of an account payable.
Oct18.Borrowed $30,000 cash from the bank by signing a 90 day note payable.
Oct23. Collected an account receivable of $2900 from customer
Oct30. Acquired office equipment for $6000 made a cash down payment of $2000,balance to be paid with in 30 days.
1ST Oct: Fahad as an owner started a business with cash so for fahad you will apply the rule of Owner equity and 2nd account is cash.so for cash u will apply the rule of Asset.
Increase in asset in shape of cash Increase in owner equity as capital so entry
will be Cash a/c Debit 80000 Capital a/c Credit 80000(started business with cash)
05th Jan: It is a compound entry. compound entry involves three or more than three accounts. So
Plot a/c Debit 102000(Increase in asset) Cash a/c Credit 30600(decrease in
Asset) Account Payable Cr 71400(Increase in
Liability) Note: 102000-30600=71400 for balance
u have created liability of outsider
15th Oct: we have issued a check in favor of an account payable instead of cash so he will draw money from our bank account then entry is:
Account payable Dr 71400(Decrease in Liability)
Bank a/c Cr 71400(Decrease in Asset)
Oct18: we have taken loan from a bank so increased in Asset and increased in outsider Liability
Cash a/c Dr 30000(Increase in Asset) Bank Loan Cr 30000(Increase in
Liability)
23 Oct: Received cash from A/c Receivable. It means increase in cash bcoz we have received cash and decrease in another asset i.e. A/c Receivable
Cash a/c Dr 2900(Increase in Asset) A/c Receivable Cr 2900(Decrease in
asset)
30th Oct: Again Compound Entry: Office Equipment Dr 6000(increase in Asset) Cash a/c Cr 2000(Decrease in Asset) A/c Payable Cr 4000 (Increase in Liability)
Note: Out of 6000 we have paid only 2000 so a portion(balance) is still payable to creditor i.e.