From the following transaction write Journal entries in the books of Pranjal.

.From the following transaction write Journal entries in the books of Pranjal.

 

1. Introduced ₹10,000 cash and commenced business.

2. Goods of ₹5,000 purchased on cash.

3. Goods of ₹8,000 purchased on credit from Rajan.

4. Goods of ₹4,000 given for donation.

5. Given order to Shivani to dispatch goods of ₹4,000

 6. Shivani has dispatched goods as per order.

7. paid ₹2,500 for life Insurance premium.

Solution

Journal Entry

In the Books of pranjal.

 

Date	Particulars	L/F	Debit ₹	Credit ₹
1.	Cash A/c                                Dr.      To Capital A/c  [Being Commenced Business with Cash]		10,000	10,000
2.	Purchase A/c                        Dr.       To Cash A/c  [Being purchased goods on Cash]		5,000	5,000
3.	Purchase A/c                        Dr        To Rajan A/c   [Being Purchased goods from Rajan on credit]		8,000	8,000

4.	Donation A/c                 Dr.        To Purchase A/c  [Being Cash Goods given for donation]		4,000	4,000
5.	No Entry
6.	Purchase A/c                        Dr.      To shivani A/c   [Being Shivani dispatched goods]		4,000	4,000
7.	Drawings A/c                        Dr.          To Cash A/c  [Being paid life insurance premium]		2,500	2,500