Commerce Exam > Commerce Questions > Journalise the following transactions: jan 17...
Start Learning for Free
Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000?
Most Upvoted Answer
Journalise the following transactions: jan 17: purchased goods for rup...
**Journalizing Transactions: Jan 17 and Jan 20**
To journalize the given transactions, we need to record them in a journal entry format. A journal entry consists of the date of the transaction, the accounts affected, and the corresponding debits and credits.
Here are the journal entries for the given transactions:
**Jan 17: Purchased Goods on Credit for Rs. 18,000**
On January 17, the company purchased goods on credit for Rs. 18,000. This means the company acquired goods without making an immediate payment, and the amount will be paid at a later date.
The journal entry for this transaction would be as follows:
**Date: Jan 17**
**Accounts Affected:**
- Inventory (or Purchases) - Debit: Rs. 18,000
- Accounts Payable (or Creditors) - Credit: Rs. 18,000
Explanation:
- The Inventory (or Purchases) account is debited because the company acquired goods, which increases the value of inventory on hand.
- The Accounts Payable (or Creditors) account is credited because the company acquired goods on credit, creating a liability to pay the supplier in the future.
**Jan 20: Cash Purchases for Rs. 15,000**
On January 20, the company made a cash purchase of goods worth Rs. 15,000. This means the company paid the supplier in cash at the time of the purchase.
The journal entry for this transaction would be as follows:
**Date: Jan 20**
**Accounts Affected:**
- Inventory (or Purchases) - Debit: Rs. 15,000
- Cash - Credit: Rs. 15,000
Explanation:
- The Inventory (or Purchases) account is debited because the company acquired goods, increasing the value of inventory on hand.
- The Cash account is credited because the company made a cash payment for the purchase.
In summary, for the given transactions:
- On January 17, goods were purchased on credit, resulting in an increase in inventory and a liability to pay the supplier in the future.
- On January 20, goods were purchased for cash, resulting in an increase in inventory and a decrease in cash.
To journalize the given transactions, we need to record them in a journal entry format. A journal entry consists of the date of the transaction, the accounts affected, and the corresponding debits and credits.
Here are the journal entries for the given transactions:
**Jan 17: Purchased Goods on Credit for Rs. 18,000**
On January 17, the company purchased goods on credit for Rs. 18,000. This means the company acquired goods without making an immediate payment, and the amount will be paid at a later date.
The journal entry for this transaction would be as follows:
**Date: Jan 17**
**Accounts Affected:**
- Inventory (or Purchases) - Debit: Rs. 18,000
- Accounts Payable (or Creditors) - Credit: Rs. 18,000
Explanation:
- The Inventory (or Purchases) account is debited because the company acquired goods, which increases the value of inventory on hand.
- The Accounts Payable (or Creditors) account is credited because the company acquired goods on credit, creating a liability to pay the supplier in the future.
**Jan 20: Cash Purchases for Rs. 15,000**
On January 20, the company made a cash purchase of goods worth Rs. 15,000. This means the company paid the supplier in cash at the time of the purchase.
The journal entry for this transaction would be as follows:
**Date: Jan 20**
**Accounts Affected:**
- Inventory (or Purchases) - Debit: Rs. 15,000
- Cash - Credit: Rs. 15,000
Explanation:
- The Inventory (or Purchases) account is debited because the company acquired goods, increasing the value of inventory on hand.
- The Cash account is credited because the company made a cash payment for the purchase.
In summary, for the given transactions:
- On January 17, goods were purchased on credit, resulting in an increase in inventory and a liability to pay the supplier in the future.
- On January 20, goods were purchased for cash, resulting in an increase in inventory and a decrease in cash.
Community Answer
Journalise the following transactions: jan 17: purchased goods for rup...
1.purchase a/c dr. 18000
To creditors a/c 18000
(Being purchased goods for rupees 18000 on credit)
2. purchase a/c dr. 15000
To cash a/c 15000
(Being cash purchases rupees 15000)
To creditors a/c 18000
(Being purchased goods for rupees 18000 on credit)
2. purchase a/c dr. 15000
To cash a/c 15000
(Being cash purchases rupees 15000)
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000?
Question Description
Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000?.
Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000?.
Solutions for Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000? defined & explained in the simplest way possible. Besides giving the explanation of
Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000?, a detailed solution for Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000? has been provided alongside types of Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000? theory, EduRev gives you an
ample number of questions to practice Journalise the following transactions: jan 17: purchased goods for rupees 18000 on credit Jan 20: cash purchases rupees 15000? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup