january 01,2007 Mr.A started a business with cash Rs.3000,000 Bank RS.4000,000, Building Rs.3000,000,Laptop Rs.80,000, Desktop computers Rs.50,000,Fax machine Rs.100,000,Simple calculators Rs.5,000, Financial calculators Rs.10,000, Printer Rs.35,000, Scanner Rs.15000,Cars Rs.1,500.000,Suzuki Rs.800,000, Motor cycles Rs.100,000, Bicycles Rs.10,000, LCD monitors Rs.30,00, Cell phones Rs.100,000 Photocopiers or Xerox Rs.200,000 and Digital dairy Rs.2500. pass genernal journal entries
There is no question here.
To pass general journal entries, we need to record the various transactions that occurred in the business. Here are the entries for the given information:
1. Investment of cash and bank:
Debit: Cash (Rs. 3,000,000)
Debit: Bank (Rs. 4,000,000)
Credit: Mr. A’s Capital (Rs. 7,000,000)
2. Purchase of building:
Debit: Building (Rs. 3,000,000)
Credit: Cash or Bank (Rs. 3,000,000)
3. Purchase of Laptop, Desktop computers, Fax machine, Simple calculators, Financial calculators, Printer, Scanner, Cars, Suzuki, Motorcycles, Bicycles, LCD monitors, Cell phones, Photocopiers or Xerox, and Digital dairy:
Debit: respective asset accounts (as listed)
Credit: Cash or Bank (as applicable)
It is important to note that the specific accounts for these assets are not provided, so you should create asset accounts for each item based on your accounting system.
Ensure that the debit and credit sides of the journal entries are equal, maintaining the accounting equation:
Assets = Liabilities + Owner's Equity
These journal entries represent the initial transactions. Remember to consult with an accountant or use accounting software to ensure accurate record-keeping and adherence to any specific accounting standards or regulations applicable in your jurisdiction.