All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Commerce Exam  >  Commerce Questions  >  Pass the necessary journal entries for the fo... Start Learning for Free
SaveJoin the Discussion on the App
Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.?
Clear all your Commerce doubts with EduRev
Most Upvoted Answer
Pass the necessary journal entries for the following transactions :- a...
Journal Entries for Readymade Garments Business Transactions

Heading 1: Introduction
Mr. Rachit started a readymade garments business in Lalitpur on 1st November 2020 with an investment of Rs.50,00,000. The following are the journal entries for the transactions.

Heading 2: Investment Made by Mr. Rachit
Date: 1st November 2020
Particulars | Debit (Rs.) | Credit (Rs.)
--- | --- | ---
Cash/Bank | 50,00,000 |
Capital Account (Mr. Rachit) | | 50,00,000
Explanation: Mr. Rachit invested Rs.50,00,000 in the business. The cash/bank account is debited, and the capital account (Mr. Rachit) is credited as he is the sole proprietor of the business.

Heading 3: Cash Deposited into the Bank
Date: 2nd November 2020
Particulars | Debit (Rs.) | Credit (Rs.)
--- | --- | ---
Bank Account | | 30,00,000
Cash Account | 30,00,000 |
Explanation: On 2nd November 2020, cash worth Rs.30,00,000 is deposited into the bank account. The bank account is credited, and the cash account is debited as the cash is no longer in hand and deposited into the bank.

Conclusion:
The above journal entries record the transactions of Mr. Rachit's readymade garments business. It is essential to record all the transactions of the business in the accounting system to keep track of the financial health of the business.
Community Answer
Pass the necessary journal entries for the following transactions :- a...
(a)Cash A/c ....Dr. 50,00,000
To Capital A/c. 50,00,000
(Being amount invested in the business)

(b)Bank A/c ....Dr. 30,00,000
To Cash A/c. 30,00,000
(Being cash deposited into the bank)
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

Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThe transaction on the 15th of May will be recorded in ______________.

Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damages.Where will the transaction of 1st of May recorded?

Direction: Read the following passage and answer the questions that follow:Mr. Krishna Kumar is a businessman, dealing in confectionery items. His marketing strategy and quality control system has enabled him to create a niche market for his products. He has opened an account with PNB and every day he makes a number of transactions, both deposits and withdrawals to conduct his business smoothly. Sometimes he even withdraws more than the balance available in his account. But he doesn’t earn any interest on this account. Apart from this account, he has opened Recurring Deposit Account also in which he deposits ` 10,000 monthly. He believes that money should not be kept idle, rather it should be invested in productive channels as money begets money.“He has opened an account with PNB and every day he makes number of transactions, both deposits and withdrawals.”Q. Identify the bank account stated in the above line.

Top Courses for CommerceView all

Top Courses for Commerce

Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.?
Question Description
Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.?.
Solutions for Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.? 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 Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.? defined & explained in the simplest way possible. Besides giving the explanation of Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.?, a detailed solution for Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.? has been provided alongside types of Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.? theory, EduRev gives you an ample number of questions to practice Pass the necessary journal entries for the following transactions :- a) On 1st November 2020 Mr. Rachit started a readymade garments business in Lalitpur Mr. Rachit invested Rs.50,00,000. b) November 2 Cash deposited into the bank Rs.30,00,000.? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© 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