Journalise the following transactions in the books of Ashok Gehlot:
2022
Jan. 1 Ashok Gehlot deposited personal cash into business bank account ₹ 90,000.
Jan. 4 Received order of ₹ 2,50,000 for supply of goods, from Sachin Pilot.
Jan. 7 Received an advance of ₹ 1,30,000 from Sachin Pilot against order received.
Jan. 10 Supplied goods to Sachin Pilot worth ₹ 2,50,000.
Jan. 13 Balance of payment received from Sachin Pilot.
Jan. 16 Goods destroyed by accident ₹ 40,000.
Jan. 19 Insurance claim received ₹ 33,000.
Jan. 24 Advance for furniture given ₹ 65,000 to Mahesh.
Jan. 27 Mahesh supplied the furniture bill ₹ 75,000, balance paid by cheque.
Answer (1)
To record the transactions in the books of Ashok Gehlot, we will make journal entries based on the given information. A journal entry typically consists of the date of transaction, accounts involved, debit and credit amounts, and a brief description of each entry.
Jan. 1
Transaction : Ashok Gehlot deposited personal cash into the business bank account ₹90,000.
Journal Entry : Dr. Bank Account ₹90,000 Cr. Capital Account ₹90,000 Narration: Being cash deposited into the business bank account by the owner.
Jan. 4
Transaction : Received an order of ₹2,50,000 for the supply of goods from Sachin Pilot (no journal entry required as this is only an order, not a financial transaction).
Jan. 7
Transaction : Received an advance of ₹1,30,000 from Sachin Pilot against the order.
Journal Entry : Dr. Bank Account ₹1,30,000 Cr. Advance from Customers ₹1,30,000 Narration: Being advance received from Sachin Pilot against the order.
Jan. 10
Transaction : Supplied goods to Sachin Pilot worth ₹2,50,000.
Journal Entry : Dr. Accounts Receivable - Sachin Pilot ₹2,50,000 Cr. Sales ₹2,50,000 Narration: Being goods supplied to Sachin Pilot as per order.
Jan. 13
Transaction : Balance of payment received from Sachin Pilot.
Journal Entry : Dr. Bank Account ₹1,20,000 Cr. Accounts Receivable - Sachin Pilot ₹1,20,000 Narration: Being balance payment received from Sachin Pilot.
Jan. 16
Transaction : Goods destroyed by accident ₹40,000.
Journal Entry : Dr. Loss by Accident ₹40,000 Cr. Inventory ₹40,000 Narration: Being goods destroyed by accident.
Jan. 19
Transaction : Insurance claim received ₹33,000.
Journal Entry : Dr. Bank Account ₹33,000 Cr. Insurance Claims ₹33,000 Narration: Being insurance claim received for goods destroyed by accident.
Jan. 24
Transaction : Advance for furniture given ₹65,000 to Mahesh.
Journal Entry : Dr. Advance for Furniture ₹65,000 Cr. Bank Account ₹65,000 Narration: Being advance payment given to Mahesh for furniture.
Jan. 27
Transaction : Mahesh supplied the furniture; bill ₹75,000, balance paid by cheque.
Journal Entry : Dr. Furniture ₹75,000 Cr. Advance for Furniture ₹65,000 Cr. Bank Account ₹10,000 Narration: Being balance payment made to Mahesh for furniture supplied.
These entries accurately capture each financial transaction that occurred over the course of the month in Ashok Gehlot's business.
