Analyze the following transactions in the books of Anand. Mr. Anand started business with cash of ₹ 60,000. Purchased goods for cash ₹ 30,000. Paid for Rent ₹ 3000 and paid by debi... Analyze the following transactions in the books of Anand. Mr. Anand started business with cash of ₹ 60,000. Purchased goods for cash ₹ 30,000. Paid for Rent ₹ 3000 and paid by debit card. Purchased Furniture from Mr. Govind on credit ₹ 30,000. Sold goods of ₹ 10,000 to Suresh. Paid for transport ₹ 1,000 to United Transport. Purchased goods from Urmila ₹ 20,000 on credit ₹ 70,000. Transferred from Fixed Deposit A/c of Proprietor ₹ 50,000. Purchased Horse for ₹ 10,000. Sanjay became insolvent and HONORED ₹ 10,000.
Understand the Problem
The question is asking to analyze a series of business transactions and record them in the books of Mr. Anand. It requires understanding of accounting principles to classify and document these transactions properly.
Answer
Journal entries include Cash A/c, Purchases A/c, Rent A/c, Furniture A/c, Suresh A/c, Transport A/c, Bank A/c, Horse A/c, and Bad Debts Recovered A/c.
[{"transaction":"Started business with cash.","entry":"Cash A/c Dr. \u20b9 60,000; To Capital A/c \u20b9 60,000"},{"transaction":"Purchased goods for cash.","entry":"Purchases A/c Dr. \u20b9 30,000; To Cash A/c \u20b9 30,000"},{"transaction":"Paid for rent by debit card.","entry":"Rent A/c Dr. \u20b9 3,000; To Bank A/c \u20b9 3,000"},{"transaction":"Purchased furniture on credit.","entry":"Furniture A/c Dr. \u20b9 30,000; To Mr. Govind A/c \u20b9 30,000"},{"transaction":"Sold goods to Suresh.","entry":"Suresh A/c Dr. \u20b9 10,000; To Sales A/c \u20b9 10,000"},{"transaction":"Paid for transport.","entry":"Transport A/c Dr. \u20b9 1,000; To Cash A/c \u20b9 1,000"},{"transaction":"Purchased goods on credit.","entry":"Purchases A/c Dr. \u20b9 20,000; To Urmila A/c \u20b9 20,000"},{"transaction":"Transferred from fixed deposit.","entry":"Bank A/c Dr. \u20b9 50,000; To Fixed Deposit A/c \u20b9 50,000"},{"transaction":"Purchased horse.","entry":"Horse A/c Dr. \u20b9 10,000; To Cash A/c \u20b9 10,000"},{"transaction":"Sanjay honored debt.","entry":"Sanjay A/c Dr. \u20b9 10,000; To Bad Debts Recovered A/c \u20b9 10,000"}]
Answer for screen readers
[{"transaction":"Started business with cash.","entry":"Cash A/c Dr. \u20b9 60,000; To Capital A/c \u20b9 60,000"},{"transaction":"Purchased goods for cash.","entry":"Purchases A/c Dr. \u20b9 30,000; To Cash A/c \u20b9 30,000"},{"transaction":"Paid for rent by debit card.","entry":"Rent A/c Dr. \u20b9 3,000; To Bank A/c \u20b9 3,000"},{"transaction":"Purchased furniture on credit.","entry":"Furniture A/c Dr. \u20b9 30,000; To Mr. Govind A/c \u20b9 30,000"},{"transaction":"Sold goods to Suresh.","entry":"Suresh A/c Dr. \u20b9 10,000; To Sales A/c \u20b9 10,000"},{"transaction":"Paid for transport.","entry":"Transport A/c Dr. \u20b9 1,000; To Cash A/c \u20b9 1,000"},{"transaction":"Purchased goods on credit.","entry":"Purchases A/c Dr. \u20b9 20,000; To Urmila A/c \u20b9 20,000"},{"transaction":"Transferred from fixed deposit.","entry":"Bank A/c Dr. \u20b9 50,000; To Fixed Deposit A/c \u20b9 50,000"},{"transaction":"Purchased horse.","entry":"Horse A/c Dr. \u20b9 10,000; To Cash A/c \u20b9 10,000"},{"transaction":"Sanjay honored debt.","entry":"Sanjay A/c Dr. \u20b9 10,000; To Bad Debts Recovered A/c \u20b9 10,000"}]
More Information
These journal entries help track the financial activities and obligations of Anand's business, ensuring proper accounting records.
Tips
Ensure correct identification of debit and credit accounts to maintain balanced entries.
Sources
AI-generated content may contain errors. Please verify critical information
