Question

Deri is a sole trader dealing in automobiles. From the following transactions, pass journal entries for the month of January, 2018.

1 Commenced business with cash 100,000, with goods 200,000 and with buildings 500,000

2 Purchased goods from A and Co. on credit 300,000

4 Purchased goods from B and Co. and payment made through credit card 5,000

5 Paid A and Co. through cheque

6 Sold goods to C and Co. and cheque received 50,000

8 Purchased goods from Z & Co. and paid through debit card 12,000

9 Stationery purchased for and paid through net banking 6,000

10 Income tax of Deri is paid by cheque 10,000