Question

Journalize the following transactions: 2022
March 1 Manohar Lal and Sons started a business with cash ₹ 60,000
March 2 Purchased furniture for cash ₹ 10,000
March 4 Purchased goods for cash ₹ 25,000
March 5 Bought goods from Kamlesh ₹ 15,000

Hint:

Remember: Cash coming in = Debit Cash
Cash going out = Credit Cash
Purchase of goods = Debit Purchases

Answer 1

Topic: Basic Accounting / Journal Entries 
Step 1: Understanding the Question: 
Record the business transactions of Manohar Lal and Sons in the books of original entry using the double-entry system. 
Step 2: Key Formula or Approach: 
Apply the Golden Rules of Accounting: 
1. Real Account (Cash, Furniture, Goods): Debit what comes in, Credit what goes out. 
2. Personal Account (Capital, Kamlesh): Debit the receiver, Credit the giver. 
Step 3: Detailed Explanation: 

Step 4: Final Answer: 
The journal entries accurately reflect the movement of assets and liabilities, ensuring the accounting equation remains balanced.