Journal Entries

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What is meant by journalising?

Briefly explain about steps in journalising.

Enter the following transactions in the journal of Manohar who is dealing in textiles:

2018 March	Particulars	₹
1	Manohar started business with cash	60,000
2	Purchased furniture for cash	10,000
3	Bought goods for cash	25,000
6	Bought goods from Kamalesh on credit	15,000
8	Sold goods for cash	28,000
10	Sold goods to Hari on credit	10,000
14	Paid Kamalesh	12,000
18	Paid rent	500
25	Received from Hari	8,000
28	Withdrew cash for personal use	4,000

Pass journal entries in the books of Sasi Kumar who is dealing in automobiles.

2017 Oct	Particulars	₹
1	Commenced business with goods	40,000
3	Cash introduced in the business	60,000
4	Purchased goods from Arul on credit	70,000
6	Returned goods to Arul	10,000
10	Paid cash to Arul on account	60,000
15	Sold goods to Chandar on credit	30,000
18	Chandar returned goods worth	6,000
20	Received cash from Chandar in full settlement	23,000
25	Paid salaries through ECS	2,000
30	Sasi Kumar took for personal use goods worth	10,000

Journalise the following transactions in the books of Ramesh who is dealing in computers:

2018 March	Particulars
1	Ramesh started business with cash ₹ 3,00,000, Goods ₹ 80,000 and Furniture ₹ 27,000.
2	Money deposited into bank ₹ 2,00,000
3	Bought furniture from M/s Jayalakshmi Furniture for ₹ 28,000 on credit.
4	Purchased goods from Asohan for ₹ 5,000 by paying through debit card.
5	Purchased goods from Guna and paid through net banking for cash ₹ 10,000
6	Purchased goods from Kannan and paid through credit card ₹ 20,000
7	Purchased goods from Shyam on credit for ₹ 50,000
8	Bill drawn by Shyam was accepted for ₹ 50,000
9	Paid half the amount owed to M/s Jayalakshmi Furniture by cheque
10	Shyam’s bill was paid

Raja has a hotel. The following transactions took place in his business. Journalise them.

Jan.	Particulars	₹
1	Started business with cash	3,00,000
2	Purchased goods from Rajiv on credit	1,00,000
3	Cash deposited with the bank	2,00,000
20	Borrowed loan from bank	1,00,000
22	Withdrew from bank for personal use	800
23	Amount paid to Rajiv in full settlement through NEFT	99,000
25	Paid club bill of the proprietor by cheque	200
26	Paid electricity bill of the proprietor’s house through debit card	2,000
31	Lunch provided at free of cost to a charity	1,000
31	Bank levied charges for locker rent	1,000

From the following transactions of Shyam, a stationery dealer, pass journal entries for the month of August 2017.

Aug.	Particulars
1	Commenced business with cash ₹ 4,00,000, Goods ₹ 5,00,000
2	Sold goods to A and money received through RTGS ₹ 2,50,000
3	Goods sold to Z on credit for ₹ 20,000
5	Bill drawn on Z and accepted by him ₹ 20,000
8	Bill received from Z is discounted with the bank for ₹ 19,000
10	Goods sold to M on credit ₹ 12,000
12	Goods distributed as free samples for ₹ 2,000
16	Goods taken for office use ₹ 5,000
17	M became insolvent and only 0.80 per rupee is received in final settlement
20	Bill of Z discounted with the bank is dishonoured

Mary is a rice dealer having business for more than 5 years. Pass journal entries in her books for the period of March, 2018.

March	Particulars	₹
1	Cement bags bought on credit from Sibi	20,000
2	Electricity charges paid through net banking	500
3	Returned goods bought from Sibi	5,000
4	Cement bags taken for personal use	1,000
5	Advertisement expenses paid	2,000
6	Goods sold to Mano	20,000
7	Goods returned by Mano	5,000
8	Payment received from Mano through NEFT	15,000