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Afm 5

This document provides an example of accounting journal entries for a business. It shows journal entries made throughout January 2010 for transactions such as: (1) the business owner contributing capital of Rs. 50,000; (2) purchasing and selling goods for cash; (3) purchasing goods on credit from Mittal & Co. and selling goods on credit to Ganesh & Co.; (4) returning goods to Mittal & Co. and goods returned by Ganesh & Co.; and (5) paying office rent. The example helps illustrate how to record transactions in journal entries and post them to the relevant ledger accounts.

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21 views2 pages

Afm 5

This document provides an example of accounting journal entries for a business. It shows journal entries made throughout January 2010 for transactions such as: (1) the business owner contributing capital of Rs. 50,000; (2) purchasing and selling goods for cash; (3) purchasing goods on credit from Mittal & Co. and selling goods on credit to Ganesh & Co.; (4) returning goods to Mittal & Co. and goods returned by Ganesh & Co.; and (5) paying office rent. The example helps illustrate how to record transactions in journal entries and post them to the relevant ledger accounts.

Uploaded by

helpevery7
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
Download as pdf or txt
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Accounting for Managers

Notes

Example: Post the journal entries into respective ledger accounts and list out their
accounting balances.

(i) Jan 1,2010 Mr. Sundar has started business with a capital of 50,000.

Dr Cr

Jan 1,2010 Cash A/c Dr 50,000


To Sundar Capital A/c 50,000
Being capital brought by Sundar as cash

26 LOVELY PROFESSIONAL UNIVERSITY


Unit 2: Recording of Transactions

(ii) Jan 2, 2010 Goods purchased 10,000 Notes

Jan 2, 2010 Purchase A/c Dr 10,000


To Cash A/c 10,000
Being cash purchase is made

(iii) Jan 5, 2010 Goods sold 5,000

Jan 5, 2010 CashA/c Dr 5,000


To Sale A/c 5,000
Being cash sale is made

(iv) Jan 10, 2010 Goods purchased from Mittal & Co 10,000

Jan 10, 2010 Purchase A/c Dr 10,000


To Mittal A/c 10,000
Being credit purchase from Mittal

(v) Jan 11, 2010 Goods sold to Ganesh & co 10,000

Jan 11, 2010 Ganesh A/c Dr 10,000


To SaleA/c 10,000
Being credit sale made to Ganesh

(vi) Jan 12, 2010 Goods returned to Mittal & Co 1,500

Jan 12, 2010 Mittal &Co A/c Dr 1,500


To Purchase Return A/c 1,500
(Being the goods returned to supplier Mittal &Co)

(vii) Jan 20, 2010 Goods returned from Ganesh 2,000

Jan 20, 2010 Sales ReturnA/c Dr 2,000


To Ganesh&co 2,000
Being sales return made by Ganesh &Co

(viii) Jan 31, 2010 Office Rent paid 500

Jan 31, 2010 Office Rent A/c Dr 500


To Cash A/c 500
Being office rent paid

LOVELY PROFESSIONAL UNIVERSITY 27

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