Journal Entries for Yash Raj and Sons

1. Yash Raj started business with cash of Rs. 1,00,000

Cash A/c Dr. 1,00,000
To Capital A/c 1,00,000

Yash Raj has invested Rs. 1,00,000 as capital in the business to start the business.

2. Purchased goods from Ram on credit for Rs. 50,000

Purchase A/c Dr. 50,000
To Ram’s A/c 50,000

Yash Raj purchased goods worth Rs. 50,000 from Ram on credit.

3. Sold goods to Gopal for Rs. 40,000 on credit

Gopal A/c Dr. 40,000
To Sales A/c 40,000

Yash Raj sold goods worth Rs. 40,000 to Gopal on credit.

4. Paid rent for the shop Rs. 10,000

Rent A/c Dr. 10,000
To Cash A/c 10,000

Yash Raj paid rent for the shop for Rs. 10,000 in cash.

5. Received cash from Gopal Rs. 20,000

Cash A/c Dr. 20,000
To Gopal A/c 20,000

Yash Raj received Rs. 20,000 in cash from Gopal.

6. Purchased furniture for cash Rs. 15,000

Furniture A/c Dr. 15,000
To Cash A/c 15,000

Yash Raj purchased furniture for Rs. 15,000 in cash.

Explanation:

The given journal entries are related to Yash Raj and Sons, which is a trading business. In the first transaction, Yash Raj invested Rs. 1,00,000 as capital to start the business, and the entry is recorded in the Cash A/c Dr. and Capital A/c Cr.

In the second transaction, Yash Raj purchased goods on credit from Ram, and the entry is recorded in the Purchase A/c Dr. and Ram’s A/c Cr.

In the third transaction, Yash Raj sold goods on credit to Gopal, and the entry is recorded in the Gopal A/c Dr. and Sales A/c Cr.

In the fourth transaction, Yash Raj paid rent for the shop, and the entry is recorded in the Rent A/c Dr. and Cash A/c Cr.

In the fifth transaction, Yash Raj received cash from Gopal, and the entry is recorded in the Cash A/c Dr. and Gopal A/c Cr.

In the last transaction, Yash Raj purchased furniture for cash, and the entry is recorded in the Furniture A/c Dr. and Cash A/c Cr.

These transactions are recorded in the journal of Yash Raj and Sons to maintain the record of all the business transactions. The journal is the primary book of accounts, where all the transactions are recorded in chronological order. The journal entries help in preparing the ledger, trial balance, and financial statements of the business.

Where are the transactions?