*Posting* Journalise the following transaction in the books of Sanjana and post them into the ledger: | January, 2017 | | ₹ | |---|---|---| | 1. | Cash in hand | 6,000 | | | Cash at bank | 55,000 | | | Stock of goods | 40,000 | | | Due to Rohan | 6,000 | | | Due from Tarun | 10,000 | | 3. | Sold goods to Karuna | 15,000 | | 4. | Cash sales | 10,000 | | 6. | Goods sold to Heena | 5,000 | | 8. | Purchased goods from Rupali | 30,000 | | 10. | Goods returned from Karuna | 2,000 | | 14. | Cash received from Karuna | 13,000 | | 15. | Cheque given to Rohan | 6,000 | | 16. | Cash received from Heena | 3,000 | | 20. | Cheque received from Tarun | 10.000 | | 22. | Cheque received from to Heena | 2,000 | | 25. | Cash given to Rupali | 18,000 | | 26. | Paid cartage | 1,000 | | 27. | Paid salary | 8,000 | | 28. | Cash sale | 7,000 | | 29. | Cheque given to Rupali | 12,000 | | 30. | Sanjana took goods for Personal use | 4,000 | | 31. | Paid General expense | 500 |

> [!TLDR] > The assets and liabilities on 1 January are recorded by an opening entry whose balancing figure is Capital ₹1,05,000; the month's transactions are then journalised and posted. Cash closes at ₹11,500, Bank at ₹49,000 and Stock (unchanged, no closing-stock adjustment given) at ₹40,000. **Accounting treatment.** Opening assets (cash, bank, stock, debtor Tarun) are debited and opening liabilities (creditor Rohan) credited; Capital is the balancing figure. Credit sales debit the customer; credit purchases credit the supplier. Cash/cheque received debits Cash/Bank; cash/cheque paid credits them. Goods taken by the proprietor for personal use are Drawings (Dr) against Purchases (Cr) at cost. **Journal of Sanjana** | Date | Particulars | L.F. | Debit (₹) | Credit (₹) | |---|---|---|---|---| | 2017 Jan 1 | Cash A/c Dr. | | 6,000 | | | | Bank A/c Dr. | | 55,000 | | | | Stock A/c Dr. | | 40,000 | | | | Tarun Dr. | | 10,000 | | | | To Rohan | | | 6,000 | | | To Capital A/c | | | 1,05,000 | | | (Opening balances brought forward) | | | | | Jan 3 | Karuna Dr. | | 15,000 | | | | To Sales A/c | | | 15,000 | | | (Goods sold to Karuna on credit) | | | | | Jan 4 | Cash A/c Dr. | | 10,000 | | | | To Sales A/c | | | 10,000 | | | (Cash sales) | | | | | Jan 6 | Heena Dr. | | 5,000 | | | | To Sales A/c | | | 5,000 | | | (Goods sold to Heena on credit) | | | | | Jan 8 | Purchases A/c Dr. | | 30,000 | | | | To Rupali | | | 30,000 | | | (Goods purchased from Rupali on credit) | | | | | Jan 10 | Sales Return A/c Dr. | | 2,000 | | | | To Karuna | | | 2,000 | | | (Goods returned by Karuna) | | | | | Jan 14 | Cash A/c Dr. | | 13,000 | | | | To Karuna | | | 13,000 | | | (Cash received from Karuna) | | | | | Jan 15 | Rohan Dr. | | 6,000 | | | | To Bank A/c | | | 6,000 | | | (Cheque given to Rohan) | | | | | Jan 16 | Cash A/c Dr. | | 3,000 | | | | To Heena | | | 3,000 | | | (Cash received from Heena) | | | | | Jan 20 | Bank A/c Dr. | | 10,000 | | | | To Tarun | | | 10,000 |

*Posting* Journalise the following transaction in – Class 11 Accountancy

Numerical Questions · Q21

Posting

Journalise the following transaction in the books of Sanjana and post them into the ledger:

January, 2017		₹
1.	Cash in hand	6,000
	Cash at bank	55,000
	Stock of goods	40,000
	Due to Rohan	6,000
	Due from Tarun	10,000
3.	Sold goods to Karuna	15,000
4.	Cash sales	10,000
6.	Goods sold to Heena	5,000
8.	Purchased goods from Rupali	30,000
10.	Goods returned from Karuna	2,000
14.	Cash received from Karuna	13,000
15.	Cheque given to Rohan	6,000
16.	Cash received from Heena	3,000
20.	Cheque received from Tarun	10.000
22.	Cheque received from to Heena	2,000
25.	Cash given to Rupali	18,000
26.	Paid cartage	1,000
27.	Paid salary	8,000
28.	Cash sale	7,000
29.	Cheque given to Rupali	12,000
30.	Sanjana took goods for Personal use	4,000
31.	Paid General expense	500

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Concept understanding — Purchase Journal Entry

Purchase Journal Entry – A First Look

Think of a shopkeeper who buys goods to sell. Every time they bring stock into the shop, something changes: the shop now has more goods, but it also owes money (or has paid cash). The purchase journal entry is simply the accountant’s way of recording that moment — the moment goods come in.

The Everyday Intuition

You walk into a stationery shop and buy 50 notebooks for ₹2,000. From the shop’s point of view, two things happen at once:

The shop gains notebooks (an asset).
The shop loses cash (another asset) or owes the supplier (a liability).

The purchase entry captures both sides of that single transaction. It is not about the sale to a customer — that comes later. This is the inward movement of goods meant for resale.

The Precise Meaning

In Accountancy, a Purchase Journal Entry records the credit purchase of goods (stock-in-trade) for resale in the normal course of business. If the purchase is for cash, it goes into the Cash Book, not the Purchase Journal. The Purchase Journal (also called the Purchase Book) is specifically for credit purchases of goods.

Important

Only goods bought for resale are recorded here. Buying a computer for office use, or buying raw materials for manufacturing, is not a “purchase” in this sense — those are asset purchases and go elsewhere.

Why It Matters

Without this entry, the business would not know:

How much stock it holds.
How much it owes to each supplier.
The true cost of goods sold when calculating profit.

The Purchase Journal is the first step in the trading account. If you get this entry wrong, the entire profit figure goes wrong.

Accounting Treatment – The Golden Rule

For a credit purchase of goods, the rule is:

Debit Purchases Account (increase in expenses/goods)

Credit Supplier’s Personal Account (increase in liability)

The logic: Purchases is a nominal account (expense), so an increase is debited. The supplier is a personal account — when we owe them, we credit.

Example

On 5th April, bought goods from Ramesh for ₹10,000 on credit.

Journal Entry:

Date	Particulars	Debit (₹)	Credit (₹)
2024 Apr 5	Purchases A/c Dr.	10,000
	To Ramesh A/c		10,000
	(Being goods bought on credit from Ramesh)

Note

The narration “Being goods bought on credit from Ramesh” is mandatory in the journal. It explains the transaction in plain words.

If It Were a Cash Purchase

If the same goods were bought for cash, the entry would be:

Date	Particulars	Debit (₹)	Credit (₹)
2024 Apr 5	Purchases A/c Dr.	10,000
	To Cash A/c		10,000
	(Being goods bought for cash)

Notice: the credit side changes from a personal account (Ramesh) to a real account (Cash). The debit remains the same because the nature of the transaction — gaining goods — is unchanged.

The Purchase Book Format (Proforma)

The Purchase Journal itself (the book of original entry) has a standard format. Each credit purchase is recorded here before being posted to the ledger.

Purchase Book (Journal) Format: …

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Opening balances are brought in through an opening journal entry (Capital ₹1,05,000 being the balancing figure), later transactions are journalised, and all accounts are posted and balanced.

Date	Particulars	Debit (₹)	Credit (₹)
Jan 1	Cash, Bank, Stock, Tarun Dr. — To Rohan, To Capital	1,11,000	1,11,000
Jan 8	Purchases Dr. — To Rupali	30,000	30,000

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The assets and liabilities on 1 January are recorded by an opening entry whose balancing figure is Capital ₹1,05,000; the month's transactions are then journalised and posted. Cash closes at ₹11,500, Bank at ₹49,000 and Stock (unchanged, no closing-stock adjustment given) at ₹40,000.

Accounting treatment. Opening assets (cash, bank, stock, debtor Tarun) are debited and opening liabilities (creditor Rohan) credited; Capital is the balancing figure. Credit sales debit the customer; credit purchases credit the supplier. Cash/cheque received debits Cash/Bank; cash/cheque paid credits them. Goods taken by the proprietor for personal use are Drawings (Dr) against Purchases (Cr) at cost.

Journal of Sanjana

Date	Particulars	Debit (₹)	Credit (₹)
2017 Jan 1	Cash A/c Dr.	6,000
	Bank A/c Dr.	55,000
	Stock A/c Dr.	40,000
	Tarun Dr.	10,000
	To Rohan		6,000
	To Capital A/c		1,05,000
	(Opening balances brought forward)
Jan 3	Karuna Dr.	15,000
	To Sales A/c		15,000
	(Goods sold to Karuna on credit)
Jan 4	Cash A/c Dr.	10,000
	To Sales A/c		10,000
	(Cash sales)
Jan 6	Heena Dr.	5,000
	To Sales A/c		5,000
	(Goods sold to Heena on credit)
Jan 8	Purchases A/c Dr.	30,000
	To Rupali		30,000
	(Goods purchased from Rupali on credit)
Jan 10	Sales Return A/c Dr.	2,000
	To Karuna		2,000
	(Goods returned by Karuna)
Jan 14	Cash A/c Dr.	13,000
	To Karuna		13,000
	(Cash received from Karuna)
Jan 15	Rohan Dr.	6,000
	To Bank A/c		6,000
	(Cheque given to Rohan)
Jan 16	Cash A/c Dr.	3,000
	To Heena		3,000
	(Cash received from Heena)
Jan 20	Bank A/c Dr.	10,000
	To Tarun		10,000
	(Cheque received from Tarun)
Jan 22	Bank A/c Dr.	2,000
	To Heena		2,000
	(Cheque received from Heena)
Jan 25	Rupali Dr.	18,000
	To Cash A/c		18,000
	(Cash paid to Rupali)
Jan 26	Cartage A/c Dr.	1,000
	To Cash A/c		1,000
	(Cartage paid)
Jan 27	Salary A/c Dr.	8,000
	To Cash A/c		8,000
	(Salary paid)
Jan 28	Cash A/c Dr.	7,000
	To Sales A/c		7,000
	(Cash sales)
Jan 29	Rupali Dr.	12,000
	To Bank A/c		12,000
	(Cheque given to Rupali)
Jan 30	Drawings A/c Dr.	4,000
	To Purchases A/c		4,000
	(Goods taken by Sanjana for personal use)
Jan 31	General Expenses A/c Dr.	500
	To Cash A/c		500
	(General expenses paid)

Ledger (principal accounts)

Cash Account

Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	6,000	By Rupali	18,000
To Sales A/c	10,000	By Cartage A/c	1,000
To Karuna	13,000	By Salary A/c	8,000
To Heena	3,000	By General Expenses A/c	500
To Sales A/c	7,000	By Balance c/d	11,500
Total	39,000	Total	39,000

Bank Account

Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	55,000	By Rohan	6,000
To Tarun	10,000	By Rupali	12,000
To Heena	2,000	By Balance c/d	49,000
Total	67,000	Total	67,000

Capital Account

|---|---|---|---| …

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