Journalising
Journalise the following transactions in the books of Himanshu:
| 2017 | ₹ | |
|---|---|---|
| Dec.01 | Business started with cash | 75,000 |
| Dec.07 | Purchased goods for cash | 10,000 |
| Dec.09 | Sold goods to Swati | 5,000 |
| Dec.12 | Purchased furniture | 3,000 |
| Dec.18 | Cash received from Swati In full settlement | 4,000 |
| Dec.25 | Paid rent | 1,000 |
| Dec.30 | Paid salary | 1,500 |
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Start your 14-day free trial to unlock the full solution →Himanshu's seven transactions are journalised below with narrations; the notable entry is the full settlement of Swati (₹4,000 cash + ₹1,000 discount allowed against ₹5,000 owed).
Treatment. Capital introduced → Cash Dr., Capital Cr. Cash purchase → Purchases Dr., Cash Cr. Credit sale to Swati → Swati (debtor) Dr., Sales Cr. Furniture (asset) bought for cash → Furniture Dr., Cash Cr. On receipt in full settlement, Cash and the loss "Discount Allowed" are debited and Swati credited. Rent and Salary are expenses → Dr., Cash Cr.
Journal of Himanshu
| Date (2017) | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| Dec 01 | Cash A/c Dr. | 75,000 | ||
| To Capital A/c | 75,000 | |||
| (Business started with cash) | ||||
| Dec 07 | Purchases A/c Dr. | 10,000 | ||
| To Cash A/c | 10,000 | |||
| (Goods purchased for cash) | ||||
| Dec 09 | Swati A/c Dr. | 5,000 | ||
| To Sales A/c | 5,000 | |||
| (Goods sold to Swati on credit) | ||||
| Dec 12 | Furniture A/c Dr. | 3,000 | ||
| To Cash A/c | 3,000 | |||
| (Furniture purchased for cash) | ||||
| Dec 18 | Cash A/c Dr. | 4,000 | ||
| Discount Allowed A/c Dr. | 1,000 | |||
| To Swati A/c | 5,000 | |||
| (Cash received from Swati in full settlement, discount allowed) | ||||
| Dec 25 | Rent A/c Dr. | 1,000 | ||
| To Cash A/c | 1,000 |
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