On January 1. 2016. Mr Nozir started business with a cash investment of Rj. 200.
ID: 2489190 • Letter: O
Question
On January 1. 2016. Mr Nozir started business with a cash investment of Rj. 200.000 and equipment He completed the following transactions during the month. Jan 05. Purchased merchandise for cash Rs. 50.000. Jan. 10. Purchased equipment on account from Jawaid A Sons for Rs. 40.000 Jan. 15: Sold merchandise for cash Rs. 70,000. Jan. 18: Rerurned equipment, costing Rs. 10.000 to Jawaid & Sons, being defective. Jan. 31: Mr. Nazir withdrew cash Rs. 10,000 and merchandise costing Rs. 5.000 for personal use Required: Record the above transactions in General Journal (Standard form).Explanation / Answer
Date ACCOUNT TITLE Debit Credit Jan 1 2016 Cash 200000 Equipment 50000 Owner's Capital 250000 (Investment in cash and by way of equipment ,recorded) 05-Jan Merchandise 50000 Cash 50000 (Purchase of Merchandise for cash) 10-Jan Equipment 40000 AccountsPayable- Jawaid& Sons 40000 (Purchase of equipment on account) 15-Jan Cash 70000 Sales 70000 (Cash sale of merchandise) 18-Jan AccountsPayable- Jawaid& Sons 10000 Equipment 10000 (Defective equipment returned to Jawaid& Sons) 31-Jan Drawings 15000 Cash 10000 Merchandise 5000 (Owner'sdrawingsin cash and merchandise for personal use)