Prepare journal entries for the following transactions: 1. Business started with cash ₹1,00,000, bank…

Question

Prepare journal entries for the following transactions: 1. Business started with cash ₹1,00,000, bank ₹50,000, stock ₹40,000, and furniture ₹10,000. 2. Purchased goods from Rahul on credit for ₹20,000

ScanSolve AI Tutor · Accepted Answer

Here are the journal entries for the given transactions:

Step 1: Journal entry for starting the business.

\begin{array}{l l r r} \text{Cash A/c} & \text{Dr.} & ₹ 1,00,000 & \\ \text{Bank A/c} & \text{Dr.} & ₹ 50,000 & \\ \text{Stock A/c} & \text{Dr.} & ₹ 40,000 & \\ \text{Furniture A/c} & \text{Dr.} & ₹ 10,000 & \\ \quad \text{To Capital A/c} & & & ₹ 2,00,000 \\ \text{(Being business started with various assets)} & & & \\ \end{array}

Step 2: Journal entry for purchasing goods from Rahul.

\begin{array}{l l r r}
Purchases A/c & Dr. & ₹ 20,000 & \\
\quad To Rahul A/c & & & ₹ 20,000 \\
(Being goods purchased on credit from Rahul) & & & \\
\end{array

Prepare journal entries for the following transactions: 1. Business started with cash ₹1,00,000, bank ₹50,000, stock ₹40,000, and furniture ₹10,000. 2. Purchased goods from Rahul on credit for ₹20,000

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