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Friday, 26 July 2019

Practice question 7: Prepare General journal of B.I.K.











B.I.K is sole proprietor, carrying on a trading business of plastic bottles. Following are the details of transactions for the month July 20XX.

July 20XX
1. Started business with cash, Bank, Machinery, and furniture. Rs. 70,000, 200,000, 50,000 and 25,000 respectively.
2. Purchased goods, paying by cheque Rs. 30,000.
3. Paid shop rent Rs. 25,000 by cash.
4. Bought goods on time from Mr. Rehan of Rs. 55,000.
5. Sold goods for cash Rs. 26000.
6. Returned some goods to Mr. Rehan worth Rs. 5,500.
7. Purchased goods from Mr. Farhan on time Rs. 40,000.
8. Sold goods to Mr. Kareem of Rs. 130,000.
9. Paid salary Of Rs. 15,000.
10. Owner withdrew cash Rs. 4,000 for his personal use.
Required: Prepare journal entries.

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