What is journal? Why is it prepared?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise
(A) Answer these questions.
What is journal? Why is it prepared?
2. Prepare the sample of primary entry and explain each of its content.
What are the rules for debit and credit in journal?
1.
3.
4.
If Suman received Rs.5000 as interest which account is to be debited and
credited? Justify with reasons.
State the reasons for keeping subsidiary books.
What are the subsidiary books? Explain.
State when Journal proper is prepared.
5.
6.
7.
(B) Journalize the following transactions:
1. Rajbhai started business with cash investment Rs.90,000 on 1" Mangsir 2064.
2.
Goods worth Rs.15,000 purchased from Surya Bahadur. on credit on 3 Mangsir.
3.
Goods sold of Rs. 5,000 in cash on 4th Mangsir.
House Rent Rs. 5,000 paid in cash on 7th Mangsir
4.
5. Furniture of Rs.3000 purchased on credit from Chaudhari Furniture on 10
Mangsir.
6.
Electricity charge paid Rs. 1000 on 11th Mangsir
7.
Borrowed from Pema Sherpa Rs.700 on 17th Mangsir
8.
Wages Rs.160 paid in cash on 18th Mangsir
3. Payment to Pema Sherpa Rs.700 in cash on 19th Mangsir.
f Sherna Bakery Pyt. Ltd.
Transcribed Image Text:Exercise (A) Answer these questions. What is journal? Why is it prepared? 2. Prepare the sample of primary entry and explain each of its content. What are the rules for debit and credit in journal? 1. 3. 4. If Suman received Rs.5000 as interest which account is to be debited and credited? Justify with reasons. State the reasons for keeping subsidiary books. What are the subsidiary books? Explain. State when Journal proper is prepared. 5. 6. 7. (B) Journalize the following transactions: 1. Rajbhai started business with cash investment Rs.90,000 on 1" Mangsir 2064. 2. Goods worth Rs.15,000 purchased from Surya Bahadur. on credit on 3 Mangsir. 3. Goods sold of Rs. 5,000 in cash on 4th Mangsir. House Rent Rs. 5,000 paid in cash on 7th Mangsir 4. 5. Furniture of Rs.3000 purchased on credit from Chaudhari Furniture on 10 Mangsir. 6. Electricity charge paid Rs. 1000 on 11th Mangsir 7. Borrowed from Pema Sherpa Rs.700 on 17th Mangsir 8. Wages Rs.160 paid in cash on 18th Mangsir 3. Payment to Pema Sherpa Rs.700 in cash on 19th Mangsir. f Sherna Bakery Pyt. Ltd.
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