Gaurav Lal and Kanika Raj, both MBAs from the renowned FSM School of Management and having worked in the industry in various capacities for over ten years, called it a day and decided to be on their own. They enter into a partnership on 1st July 2006 and form a firm Kanika and Gaurav Management Consultants. They agree to bring in capital of ₹Six Lacs in the ratio of Gaurav 3 and Kanika 2, maintain their personal drawings in that ratio and share the profits or losses of the firm also in the same proportion. They hire a furnished office at G-40, Fort, Mumbai @₹17,000 P.M. inclusive of electricity. They also get two telephones already connected for which they have to make monthly payment to the owner. They also appoint one financial analyst Pawan Sharma; research associate Neena Kapoor and peon Satish Rane. The following are the details of the transactions entered into by the firm during the month of July.

Required:
1. Analyse the above transactions with reference to rules of recording and dual aspect concept.
2. Record all the transactions in the journal of Kanika and Gaurav Management Consultants.

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Date Tr. No. Transactions Amount (Rupees) July 1 1 Gaurav Lal brings his capital in cash. 3,60,000 July 1 2 Kanika Raj brings her capital in cash. 2,40,000 July 1 3 Opened a current account with ICICI Bank. 5,75,000 July 2 4 July 4 July 5 5 Purchased an Esteem car. Paid cheque for *1, 40,000. Balance *3, 60,000 term loan from ICICI Bank, against security of car, repayable over 3 years in equal monthly installments with interest @12% P.A. payable monthly on reducing balance method. First installment to fall due on August 1. Purchased 4 computers with printers. Issued cheque. 5,00,000 6 Subscribed to Capitaline plus database for a year. Issued cheque. 1,80,000 1,25,000 July 5 7 July 20 8 Subscribed to five business magazines for a year. Issued cheque to the subscription agency. Raised bill for consulting fee on Modi Ventures ltd. 3,500 75,000 July 27 9 Received cheque from Modi Ventures ltd. and deposited in ICICI Bank C/A. July 29 July 30 10 Raised bill for consulting fee on Bata and Tata Ltd. 75,000 1,15,000 11 July 30 12 Paid cheque to the office owner towards telephones' use for the month. Salary paid to Pawan Sharma for the month by cheque. 4,500 25,000 July 30 July 30 13 Salary paid to Neena Kapoor for the month by cheque. 10,000 14 Salary paid to Satish Rane for the month in cash. 4,000 July 30 15 Issued cheque for office rent for the month. 17,000 July 30 July 30 July 31 16 Paid by cheque to petrol pump for the month's consumption of Esteem. 5,000 17 Cheque issued to Gaurav for personal use. 6,000 18 Cheque issued to Kanika for personal use. 4,000