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Q. 3 Starting a business with ₹ 2,00,000 Cash, ₹ 1,70,000 goods and ₹ 16,000 furniture on 1st january 2017.Post the above behaviour in journal and ledgering it.?
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Q. 3 Starting a business with ₹ 2,00,000 Cash, ₹ 1,70,000 goods and ₹ ...
Cash--₹2,00,000 stock---₹1,70,000 furniture--- ₹16,000debit--____, liability_____, capital₹2,00,000
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Q. 3 Starting a business with ₹ 2,00,000 Cash, ₹ 1,70,000 goods and ₹ ...
Journal Entry:
On January 1, 2017, a business was started with the following assets:
- Cash: ₹ 2,00,000
- Goods: ₹ 1,70,000
- Furniture: ₹ 16,000
The journal entry to record the above transaction is as follows:
Date: January 1, 2017
Particulars Debit (₹) Credit (₹)
Cash 2,00,000
Goods 1,70,000
Furniture 16,000
Capital 3,86,000
Explanation:
1. Cash:
- The business started with ₹ 2,00,000 cash.
- Cash is an asset, and therefore, it is debited to increase its balance.
- The amount is recorded in the Cash account.
2. Goods:
- The business started with ₹ 1,70,000 worth of goods.
- Goods are also assets, and therefore, they are debited to increase their balance.
- The amount is recorded in the Goods account.
3. Furniture:
- The business started with ₹ 16,000 worth of furniture.
- Furniture is an asset, and therefore, it is debited to increase its balance.
- The amount is recorded in the Furniture account.
4. Capital:
- The owner invested ₹ 3,86,000 in the business.
- Capital represents the owner's equity or investment in the business.
- Capital is credited to reflect the increase in the owner's equity.
Ledger Accounts:
The above journal entry will be posted to the respective ledger accounts as follows:
Cash Account
Date Particulars L.F. Amount (₹) Balance (₹)
Jan 1, 2017 To Balance b/d 2,00,000 2,00,000
Goods Account
Date Particulars L.F. Amount (₹) Balance (₹)
Jan 1, 2017 To Balance b/d 1,70,000 1,70,000
Furniture Account
Date Particulars L.F. Amount (₹) Balance (₹)
Jan 1, 2017 To Balance b/d 16,000 16,000
Capital Account
Date Particulars L.F. Amount (₹) Balance (₹)
Jan 1, 2017 By Cash 3,86,000 3,86,000
The ledger accounts are updated with
On January 1, 2017, a business was started with the following assets:
- Cash: ₹ 2,00,000
- Goods: ₹ 1,70,000
- Furniture: ₹ 16,000
The journal entry to record the above transaction is as follows:
Date: January 1, 2017
Particulars Debit (₹) Credit (₹)
Cash 2,00,000
Goods 1,70,000
Furniture 16,000
Capital 3,86,000
Explanation:
1. Cash:
- The business started with ₹ 2,00,000 cash.
- Cash is an asset, and therefore, it is debited to increase its balance.
- The amount is recorded in the Cash account.
2. Goods:
- The business started with ₹ 1,70,000 worth of goods.
- Goods are also assets, and therefore, they are debited to increase their balance.
- The amount is recorded in the Goods account.
3. Furniture:
- The business started with ₹ 16,000 worth of furniture.
- Furniture is an asset, and therefore, it is debited to increase its balance.
- The amount is recorded in the Furniture account.
4. Capital:
- The owner invested ₹ 3,86,000 in the business.
- Capital represents the owner's equity or investment in the business.
- Capital is credited to reflect the increase in the owner's equity.
Ledger Accounts:
The above journal entry will be posted to the respective ledger accounts as follows:
Cash Account
Date Particulars L.F. Amount (₹) Balance (₹)
Jan 1, 2017 To Balance b/d 2,00,000 2,00,000
Goods Account
Date Particulars L.F. Amount (₹) Balance (₹)
Jan 1, 2017 To Balance b/d 1,70,000 1,70,000
Furniture Account
Date Particulars L.F. Amount (₹) Balance (₹)
Jan 1, 2017 To Balance b/d 16,000 16,000
Capital Account
Date Particulars L.F. Amount (₹) Balance (₹)
Jan 1, 2017 By Cash 3,86,000 3,86,000
The ledger accounts are updated with
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Q. 3 Starting a business with ₹ 2,00,000 Cash, ₹ 1,70,000 goods and ₹ 16,000 furniture on 1st january 2017.Post the above behaviour in journal and ledgering it.?
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Q. 3 Starting a business with ₹ 2,00,000 Cash, ₹ 1,70,000 goods and ₹ 16,000 furniture on 1st january 2017.Post the above behaviour in journal and ledgering it.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Q. 3 Starting a business with ₹ 2,00,000 Cash, ₹ 1,70,000 goods and ₹ 16,000 furniture on 1st january 2017.Post the above behaviour in journal and ledgering it.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q. 3 Starting a business with ₹ 2,00,000 Cash, ₹ 1,70,000 goods and ₹ 16,000 furniture on 1st january 2017.Post the above behaviour in journal and ledgering it.?.
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