1 / 27

Pass Journal Entries: Mr. A started business with 50,000$. Bought merchandise for cash 10,000$.

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$.

ciara
Download Presentation

Pass Journal Entries: Mr. A started business with 50,000$. Bought merchandise for cash 10,000$.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 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$.

  2. 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)

  3. (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)

  4. 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)

  5. Purchased goods from x 5000$. • Debit: Merchandise a/c (increase in expenses) • Credit: Account payable (increase in liability)

  6. 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)

  7. (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)

  8. (7 may 2009 plant purchased on cash 10,000$.) • Debit: Plant (Increase in an assets). • Credit: Cash (Decrease in an asset)

  9. (7 may 2009 Wages paid in cash 4,000$). • Debit: Wages (Increase in Expenses) • Credit: Cash (decrease in asset)

  10. On 1stJanuary, 2010 a trader started a business with capital of 1000000 in cash & his transactions for the month were: 02 : Purchased merchandise for cash 150000 04 : Purchased furniture for cash 15000 06 : Purchased merchandise from Ahmad worth 50000 09 : Sold merchandise in cash 35000 10 : Returned merchandise to Ahmad 20000 12 : Sold merchandise to Sameen for 20000 17 : Settle the claim of Ahmad in full 24 : Received cash from Sameen 20000 30 : Paid rent expense in cash 25000

  11. Pass the Journal Entries for the month April 2009. 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$

  12. Pass the Journal entries 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 credit 15: He opens a bank account by depositing 100000 cash 20: He sells 6 computers on credit to ABC computers @ 35000 each 22: Paid wages 5000 25: He issues a cheque to Brilliant computers Ltd. for 30000. 2

  13. TRANSACTIONS 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.

  14. 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)

  15. 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

  16. 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)

  17. 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)

  18. 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)

  19. 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. 6000 – 2000= 4000(Balance Amount)

More Related