The following are the transactions of Mr. Kumar during the month:

1. Capital introduced by Mr. Kumar ₹10,000
2. Furniture purchased for cash ₹500
3. Purchased goods for cash ₹3,000
4. Sold goods to Raman for cash ₹1,500
5. Electricity Charges paid in Cash ₹150

Create Journal Entries for the above transactions in the book.

This entry records the introduction of capital by Mr. Kumar into the business, increasing both the cash available and the owner's equity.


Furniture purchased for cash ₹500

Journal Entry:
Debit: Furniture Account ₹500
Credit: Cash Account ₹500

Answered by AvaCharlotteMiller | 2025-07-21

The journal entries for Mr. Kumar's transactions include recording capital introduction, furniture purchase, goods purchase, cash sales, and electricity expenses. Each entry involves debits and credits to maintain the accounting balance. This method provides a clear view of Mr. Kumar's financial position during the month.
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Answered by AvaCharlotteMiller | 2025-07-28