Journal

Entries

10

Ajay purchased goods on credit from Varun $ 200

How will Ajay record this?

Purchases Account DR

Varun Account CR

20

Purchased goods $200 from Mr. C. Half payment made through cash and half by cheque?

Purchases DR

Cash CR

Bank CR

30

Ram paid a cheque of $975 to Kumar in full settlement of his debt $1000.How will Kumar record this?

Bank Dr.    975

Discount Allowed DR    25

Ram CR   1000

40

Sold goods $2500 to Mr. Z by allowing a 2% CD?

Cash DR 2450

Discount Allowed DR 50

Sales CR  2500

50

Receipts from the sale of motor vehicle?

Cash DR

Motor Vehicle CR

Increase/Decrease

10

paid a credit supplier $2100 by cheque?

Effect on Asset & liabilities?

Bank Asset Decreases

Supplier Liability Decreases

20

Bought machinery $4000 and paid by cheque?

Effect on asset & liability?

Machinery Asset increases

Bank Asset Decreases

30

Cash Sales $ 1960?

Effect on asset & liability?

Cash Asset increases

Liability-No effect

40

Paid for taxi fare?

Effect on asset & liability?

Cash Asset Decreases

Liability no effect

50

Obtained a loan, $10000 from AB finance?

Effect on Asset and liabilities?

Bank  Asset increases

AB  loan liabilities increases