PRACTICAL PROBLEMS
QUESTION 1
Pass the opening journal entry from the following details:
Cash in hand 5,000
Stock 20,000
Building 40,000
Debtors 15,000
Furniture 3,000
Bank overdraft 8,000
Creditors 12,000
Capital ?
QUESTION 2
Prepare compound journal entry for the transaction given below:
Mr. Don Tom started his own business with the following:
Cash 1,60,000
Stock 85000
Furniture 90,000
Machinery 1,25,000
QUESTION 3
Use the following details for preparing journal:
2019 January 21 started business with cash 90,000
January 23 purchased furniture for cash 8,000
January 24 purchased goods for cash 6,000
January 28 purchased machinery for cash 30,000
January 29 sold goods for cash 3,000
January 30 cash paid to Mr. Ashwin 4,800
January 31 cash received from Mr. Antony 10,000
QUESTION 4
Give journal entries for the following transactions:
2020 April 2 started business with cash 2,00,000
2020 April 3 opened bank account 1,00,000
2020 April 4 purchased furniture 35,000
2020 April 5 purchased goods 50,000
2020 April 6 withdrawn from bank for office use 5,000
2020 April 7 withdrawn from bank for personal use 6,000
2020 April 8 goods sold for cash 8,000
2020 April 9 purchased goods and paid by cheque 9,000
2020 April 10 cash paid into bank 12,000
2020 April 11 purchased goods from Mr. X on credit 16,000
2020 April 13 sold goods to Mr. Y on credit 25,000
2020 April 15 cheque received from Mr. Y 15,000
2020 April 16 cheque received from Mr. Y presented to bank 15,000
2020 April 17 paid salary by cash 28,000
2020 April 18 paid salary again by cheque 56,000
2020 April 20 received commission 8,600
2020 April 21 paid rent 12,000
2020 April 22 paid cash for advertisement 32,000
2020 April 23 withdrew cash from business (not from bank)
for personal use 29,500
2020 April 25 Paid wages 5,500
Please Note:
1) The journal entry for bank account opened and for cash paid into bank is same as the journal
entry for cash deposited into bank
i.e. Bank a/c Dr
To Cash
2) If salary or rent is paid by Cash, then cash will be credited. But if it is paid by Cheque, then
bank will be credited instead of cash. For example, if rent is paid by cheque, then the journal
entry will be
Rent a/c Dr
To Cash
3) One more thing is that, in question if purchases or sales made is not mentioned whether it is
for cash or credit, please assume that it is made for cash. Otherwise the question will clearly
state that such purchases or sales are made for cash.
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