Journalize (give journal entries) the following transactions in Gaurav\'s books
ID: 2336950 • Letter: J
Question
Journalize (give journal entries) the following transactions in Gaurav's books for April 2017:
April 1: gaurav started business with 1000000 of which 25% amount was borrowed from wife
April 4: purchased goods from Raj worth 40000 at 20% trade discount and 1/5th amount paid in cash
April 7: Cash purchases of 25000
April 10: sold goods to Vishakha 30000 at 30% trade discount and received 30% amount in cash
April 12: deposited cash into bank 20000
April 15: uninsured goods destroyed by fire 5500
April 19: received commission 3500
April 22: Paid Raj 25600 in full settlement of Account
April 25: cash stolen from cash box 1000
April 27: received from vishakha 14500 and discount allowed 200
April 30: interest received 2400 directly added in our bank account.
Explanation / Answer
Journal Entries in the books of Gaurav for April 2017 (Amounts in $)
Date Account Titles and Explanations Debit Credit April 1 Cash 1,000,000 Loan from Wife 250,000 Common Stock 750,000 (To record business started by Gaurav) April 4 Purchase (40,000*80%) 32,000 Accounts Payable-Raj (Bal. fig) (32,000-6,400) 25,600 Cash ($32,000*1/5) 6,400 (To record purchase of goods) April 7 Purchases 25,000 Cash 25,000 (To record cash purchases) April 10 Cash ($21,000*30%) 6,300 Accounts Receivable-Vishakha ($21,000-$6,300) 14,700 Sales Revenue ($30,000*70%) 21,000 (To record sales) April 12 Bank 20,000 Cash 20,000 (To record cash deposited into bank) April 15 Loss on Fire 5,500 Purchases 5,500 (To record loss of goods by fire) April 19 Cash 3,500 Commission Income 3,500 (To record the receipt of commission) April 22 Accounts Payable-Raj 25,600 Cash 25,600 (To record the cash paid to Raj) April 25 Loss by theft 1,000 Cash 1,000 (To record cash stolen from cash box) April 27 Cash 14,500 Discount Allowed 200 Accounts Receivable-Vishakha 14,700 (To record cash received from Vishakha) April 30 Bank 2,400 Interest Income 2,400 (To record the interest received in bank)Related Questions
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