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    Journal Entries (Modern Approach)

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    umair talash
    Usama started a business with a Rs. 50,000 cash investment. Throughout January there were various business transactions including purchases and sales recorded. Purchases and expenses were recorded as debits, and sales, cash received and liabilities as credits. The journal entries recorded the flow of cash and goods throughout the month for the new business.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Journal Entries (Modern Approach)

    Uploaded by

    umair talash
    266 views5 pages
    Usama started a business with a Rs. 50,000 cash investment. Throughout January there were various business transactions including purchases and sales recorded. Purchases and expenses were recorded as debits, and sales, cash received and liabilities as credits. The journal entries recorded the flow of cash and goods throughout the month for the new business.

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    Modern Approach

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    Usama started a business with a Rs. 50,000 cash investment. Throughout January there were various business transactions including purchases and sales recorded. Purchases and expenses were recorded as debits, and sales, cash received and liabilities as credits. The journal entries recorded the flow of cash and goods throughout the month for the new business.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    266 views5 pages

    Journal Entries (Modern Approach)

    Uploaded by

    umair talash
    Usama started a business with a Rs. 50,000 cash investment. Throughout January there were various business transactions including purchases and sales recorded. Purchases and expenses were recorded as debits, and sales, cash received and liabilities as credits. The journal entries recorded the flow of cash and goods throughout the month for the new business.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    Journal Entries

    Date Account Titles and Discription Debit


    1-Jan-20 Cash Account 50000
    To Capital Account
    being started business with cash
    4-Jan-20 Purchase Account 7000
    To Cash Account

    5-Jan-20 Cash Account 5000


    To sales account

    7-Jan-20 Purchase Account 4500


    To Accounts payable

    12-Jan-20 Accounts receivable 2000


    To sales acc

    16-Jan-20 Wages acc 4000


    To cash acc

    17-Jan-20

    22-Jan-20 Cash Acc 2000


    To Comissions

    25-Jan-20 Sales return ac 1500


    To Acc payable

    28-Jan-20 Acc receivable 1000


    to purchase return

    30-Jan-20 Cash acc 1200


    To Ali (Customer, Loan, Acc Rec)

    31-Jan-20 Furniture acc 5000


    To Acc pay (interwood)
    Credit

    50000 §Usama started business with cash Rs. 50000 on 1st Jan
    §Purchased Goods for cash Rs. 7000 on 4th Jan
    §Sold goods for cash Rs. 5000 on 5th Jan
    7000 §Purchased goods from Vendor on credit Rs. 4500 on 7th Jan
    §Sold goods to Customer on credit Rs. 2000 on 12th Jan
    §Paid wages Rs. 4000 on 16th Jan
    5000 §Paid salaries Rs. 2500 on 17th Jan
    §Received commission Rs. 2000 on 22nd Jan
    §Goods returned by customer worth Rs. 1500 on 25th Jan
    4500 §Returned goods to vendor worth Rs. 1000 on 28th Jan
    §Cash Rs.1200 received from Ali on 30th Jan
    §Purchased furniture worth Rs. 5000 on credit from Interwood on 31st Jan
    2000

    Capital + Liabilities = Assets Goods Acc receiv


    4000 - +
    (+) Credit (+) Debit
    Cr Dr
    (-) Debit (-) Credit

    Capital Cash
    2000 + +
    Cr Dr

    1500 Cash Capital Cash Libility Cash


    + + + + +
    Dr Cr Dr Cr Dr
    1000

    Furniture Acc pay


    1200 + +
    Dr Cr

    5000
    Acc rec
    -
    Cr
    Journal Entries

    Date Account Titles and Discription Debit


    1-Jan-20 Cash Account 50000
    To Capital Account
    Being started business with cash
    4-Jan-20 Purchase Account 7000
    To Cash Account

    5-Jan-20 Cash Account 5000


    To Sales Account

    7-Jan-20 Purchase Account 4500


    To Vendor Account

    12-Jan-20 Customer Account 2000


    To sales Account

    16-Jan-20 Wages Account 4000


    To Cash Account

    17-Jan-20 Salaries Account 2500


    To Cash Account

    22-Jan-20 Cash Account 2000


    To Comission Acoount

    25-Jan-20 Sales Return Account 1500


    To Customer Account

    28-Jan-20 Vendor Account 1000


    To Purchase return Account

    30-Jan-20 Cash Account 1200


    To Ali

    31-Jan-20 Furniture Account 5000


    To Interwood
    Credit

    50000 §Usama started business with cash Rs. 50000 on 1st Jan
    §Purchased Goods for cash Rs. 7000 on 4th Jan
    §Sold goods for cash Rs. 5000 on 5th Jan
    7000 §Purchased goods from Vendor on credit Rs. 4500 on 7th Jan
    §Sold goods to Customer on credit Rs. 2000 on 12th Jan
    §Paid wages Rs. 4000 on 16th Jan
    5000 §Paid salaries Rs. 2500 on 17th Jan
    §Received commission Rs. 2000 on 22nd Jan
    §Goods returned by customer worth Rs. 1500 on 25th Jan
    4500 §Returned goods to vendor worth Rs. 1000 on 28th Jan
    §Cash Rs.1200 received from Ali on 30th Jan
    §Purchased furniture worth Rs. 5000 on credit from Interwood on 31st Jan
    2000

    Capital + Liabilities = Assets


    4000
    (+) Credit (+) Debit

    (-) Debit (-) Credit


    2500

    2000

    1500

    1000

    1200

    5000

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