Journalise the following transactions in the Books of Balan.
1999
| Date | Description | Rs. |
| :----- | :------------------------------- | :------ |
| Dec. 1 | Balan commenced business with a capital of | 1,00,000 |
| 3 | Bought goods for cash | 60,000 |
| 4 | Sold goods for cash | 50,000 |
| 5 | Deposited in IOB | 40,000 |
| 6 | Bought goods from Ravi | 30,000 |
| 7 | Bought furniture for cash | 4,000 |
| 8 | Sold goods to Nathan | 40,000 |
| 9 | Paid cash to Seenu | 10,000 |
| 10 | Nathan returned goods worth | 2,000 |
| 11 | Paid advertisement charges | 4,000 |
| 12 | Returned goods to Ravi | 3,000 |
| 13 | Withdrew cash from bank | 10,000 |
| 15 | Bought a bicycle for office use | 3,000 |
| 16 | Received commission | 1,000 |
| 18 | Drew cash for personal use | 6,000 |
| 19 | Electricity charges paid | 600 |
Answer (2)
Balan started the business with cash, which increases the cash and capital accounts.)
Dec. 3: Bought goods for cash Rs. 60,000
Debit: Purchases Account ₹60,000
Credit: Cash Account ₹60,000 (
The journal entries for Balan’s transactions in December 1999 have been outlined according to standard accounting practices. Each entry reflects the effect on both debits and credits, ensuring that the accounting equation remains balanced. This method allows a clear tracking of assets, liabilities, and equity changes during the month.
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