Ananth is a trader dealing in textiles. For the following transactions, pass journal entries for the month of January, 2016.

| Jan | Particulars | ₹ |
| --- | --- | --- |
| 1 | Commenced business with cash | 70,000 |
| 2 | Purchased goods from X and Co. on credit | 30,000 |
| 3

Question

Ananth is a trader dealing in textiles. For the following transactions, pass journal entries for the month of January, 2016.

| Jan | Particulars | ₹ |
| --- | --- | --- |
| 1 | Commenced business with cash | 70,000 |
| 2 | Purchased goods from X and Co. on credit | 30,000 |
| 3 | Cash deposited into bank | 40,000 |
| 4 | Bought a building from L and Co on credit | 68,000 |
| 5 | Cash withdrawn from bank for office use | 9,000 |
| 6 | Cash withdrawn from bank for personal use of Ananth | 4,000 |
| 7 | Towels given as charities | 3,000 |
| 8 | Shirts taken away by Ananth for personal use | 12,000 |
| 9 | Sarees distributed as free samples | 3,000 |
| 10 | Goods (table cloths) used for office use | 200 |

OR

Pass journal entries for the following transactions and post them to ledger.

2017
| Aug | Particulars | ₹ |
| --- | --- | --- |
| 1 | Dharma Started business with cash | 70,000 |
| 6 | Cash received from Ganesan | 10,000 |
| 10 | Rent paid | 3,000 |
|  | Received commission from Anand | 5,000 |

Accepted Answer

>

> [!TLDR]
> Part (a): full journal of Ananth's 10 January transactions (goods withdrawn for charity/personal/samples/office all credited to Purchases). Part (b) OR: journalise Dharma's four transactions and post to ledger, Cash A/c closing balance ₹82,000.
>
> ### (a) Journal of Ananth (January 2016)
>
> | Date | Particulars | L.F. | Dr ₹ | Cr ₹ |
> | --- | --- | --- | --- | --- |
> | Jan 1 | Cash A/c ..... Dr |  | 70,000 |  |
> |  |   To Capital A/c |  |  | 70,000 |
> |  | *(Commenced business with cash)* |  |  |  |
> | Jan 2 | Purchases A/c ..... Dr |  | 30,000 |  |
> |  |   To X and Co. A/c |  |  | 30,000 |
> |  | *(Goods bought on credit)* |  |  |  |
> | Jan 3 | Bank A/c ..... Dr |  | 40,000 |  |
> |  |   To Cash A/c |  |  | 40,000 |
> |  | *(Cash deposited into bank)* |  |  |  |
> | Jan 4 | Building A/c ..... Dr |  | 68,000 |  |
> |  |   To L and Co. A/c |  |  | 68,000 |
> |  | *(Building bought on credit)* |  |  |  |
> | Jan 5 | Cash A/c ..... Dr |  | 9,000 |  |
> |  |   To Bank A/c |  |  | 9,000 |
> |  | *(Cash withdrawn from bank for office use)* |  |  |  |
> | Jan 6 | Drawings A/c ..... Dr |  | 4,000 |  |
> |  |   To Bank A/c |  |  | 4,000 |
> |  | *(Cash withdrawn from bank for personal use)* |  |  |  |
> | Jan 7 | Charity A/c ..... Dr |  | 3,000 |  |
> |  |   To Purchases A/c |  |  | 3,000 |
> |  | *(Towels given as charity, at cost)* |  |  |  |
> | Jan 8 | Drawings A/c ..... Dr |  | 12,000 |  |
> |  |   To Purchases A/c |  |  | 12,000 |
> |  | *(Shirts taken by Ananth for personal use)* |  |  |  |
> | Jan 9 | Advertisement A/c (Free samples) ..... Dr |  | 3,000 |  |
> |  |   To Purchases A/c |  |  | 3,000 |
> |  | *(Sarees distributed as free samples)* |  |  |  |
> | Jan 10 | Office Expenses A/c ..... Dr |  | 200 |  |
> |  |   To Purchases A/c |  |  | 200 |
> |  | *(Table cloths used for office)* |  |  |  |
>
> ### (b) OR — Journal of Dharma (August 2017) and posting to ledger
>
> | Date | Particulars | L.F. | Dr ₹ | Cr ₹ |
> | --- | --- | --- | ---

Jan	Particulars	₹
1	Commenced business with cash	70,000
2	Purchased goods from X and Co. on credit	30,000
3	Cash deposited into bank	40,000
4	Bought a building from L and Co on credit	68,000
5	Cash withdrawn from bank for office use	9,000
6	Cash withdrawn from bank for personal use of Ananth	4,000
7	Towels given as charities	3,000
8	Shirts taken away by Ananth for personal use	12,000
9	Sarees distributed as free samples	3,000
10	Goods (table cloths) used for office use	200

Aug	Particulars	₹
1	Dharma Started business with cash	70,000
6	Cash received from Ganesan	10,000
10	Rent paid	3,000
	Received commission from Anand	5,000

Date	Particulars	Dr ₹	Cr ₹
Jan 1	Cash A/c ..... Dr	70,000
	To Capital A/c		70,000
	(Commenced business with cash)
Jan 2	Purchases A/c ..... Dr	30,000
	To X and Co. A/c		30,000
	(Goods bought on credit)
Jan 3	Bank A/c ..... Dr	40,000
	To Cash A/c		40,000
	(Cash deposited into bank)
Jan 4	Building A/c ..... Dr	68,000
	To L and Co. A/c		68,000
	(Building bought on credit)
Jan 5	Cash A/c ..... Dr	9,000
	To Bank A/c		9,000
	(Cash withdrawn from bank for office use)
Jan 6	Drawings A/c ..... Dr	4,000
	To Bank A/c		4,000
	(Cash withdrawn from bank for personal use)
Jan 7	Charity A/c ..... Dr	3,000
	To Purchases A/c		3,000
	(Towels given as charity, at cost)
Jan 8	Drawings A/c ..... Dr	12,000
	To Purchases A/c		12,000
	(Shirts taken by Ananth for personal use)
Jan 9	Advertisement A/c (Free samples) ..... Dr	3,000
	To Purchases A/c		3,000
	(Sarees distributed as free samples)
Jan 10	Office Expenses A/c ..... Dr	200
	To Purchases A/c		200
	(Table cloths used for office)

Date	Particulars	Dr ₹	Cr ₹
Aug 1	Cash A/c ..... Dr	70,000
	To Capital A/c		70,000
	(Started business with cash)
Aug 6	Cash A/c ..... Dr	10,000
	To Ganesan A/c		10,000
	(Cash received from Ganesan)
Aug 10	Rent A/c ..... Dr	3,000
	To Cash A/c		3,000
	(Rent paid)

(a) Journal of Ananth (January 2016)

(b) OR — Journal of Dharma (August 2017) and posting to ledger

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