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Write the following transactions in the journal June 1 commenced buisness with cash rs. 15,000 June 2 bought goods for cash rs. 5,000 June 4 purchased goods From Ramesh rs 1,500?
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Write the following transactions in the journal June 1 commenced buisn...
Journal Entries for Business Transactions


June 1: Commenced Business with Cash Rs. 15,000


When a business starts, the first transaction is the infusion of capital. In this case, the business commenced with cash worth Rs. 15,000. Therefore, the journal entry for this transaction would be:



  • Debit: Cash Account - Rs. 15,000

  • Credit: Capital Account - Rs. 15,000



June 2: Bought Goods for Cash Rs. 5,000


When a business purchases goods for cash, the journal entry would be:



  • Debit: Purchases Account - Rs. 5,000

  • Credit: Cash Account - Rs. 5,000



June 4: Purchased Goods From Ramesh Rs. 1,500


When a business purchases goods on credit, the journal entry would be:



  • Debit: Purchases Account - Rs. 1,500

  • Credit: Ramesh Account - Rs. 1,500



Note: In this transaction, Ramesh is considered a creditor as the business has not paid him yet. When the business pays Ramesh, the entry would be:



  • Debit: Ramesh Account - Rs. 1,500

  • Credit: Cash Account - Rs. 1,500

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