Question

Journalize the following transactions: 2022
March 1 Manohar Lal and Sons started a business with cash ₹ 60,000
March 2 Purchased furniture for cash ₹ 10,000
March 4 Purchased goods for cash ₹ 25,000
March 5 Bought goods from Kamlesh ₹ 15,000

Hint:

Remember: Cash coming in = Debit Cash
Cash going out = Credit Cash
Purchase of goods = Debit Purchases

Answer 1

Step 1: Identify accounts involved.
Each transaction affects two accounts — one debit and one credit based on accounting rules.

Step 2: Apply rules of accounting.
- Personal A/c: Debit the receiver, Credit the giver
- Real A/c: Debit what comes in, Credit what goes out
- Nominal A/c: Debit expenses, Credit incomes

Step 3: Journal Entries.
\begin{tabular}{|l|l|l|r|r|} \hline Date & Particulars & L.F. & Debit (₹) & Credit (₹)
\hline March 1 & Cash A/c Dr. & & 60,000 &
& \quad To Capital A/c & & & 60,000
& (Being business started with cash) & & &
\hline March 2 & Furniture A/c Dr. & & 10,000 &
& \quad To Cash A/c & & & 10,000
& (Being furniture purchased for cash) & & &
\hline March 4 & Purchases A/c Dr. & & 25,000 &
& \quad To Cash A/c & & & 25,000
& (Being goods purchased for cash) & & &
\hline March 5 & Purchases A/c Dr. & & 15,000 &
& \quad To Kamlesh A/c & & & 15,000
& (Being goods purchased on credit from Kamlesh) & & &
\hline \end{tabular}

Step 4: Conclusion.
All transactions are recorded by following debit and credit rules ensuring proper accounting records.