Journal entry examples.

Same journal entry examples:

Giving journal entries in the books of Ram traders. Proprietor of which is Ram.

1. Started business with cash rs 25000. Furniture rs 12000.

Cash a/c.                   25000
Furniture a/c.           12000
     To capital a/c.                         37000.
( being: business started with cash 25000 or furniture 12000.)



2. Purchased goods rs 2000.

Purchases a/c.         2000
To cash a/c.                          2000
( being purchases made in cash ).

3. Purchased goods worth 3000 from mohan

Purchase a/c.      3000
  To Mohan.                    3000
(Being purchase made from Mohan on credit worth rs 3000.)

To be continue.........