Question

Journalize (give journal entries) the following transactions in Gaurav's books for April 2017:

April 1: gaurav started business with 1000000 of which 25% amount was borrowed from wife
April 4: purchased goods from Raj worth 40000 at 20% trade discount and 1/5th amount paid in cash
April 7: Cash purchases of 25000
April 10: sold goods to Vishakha 30000 at 30% trade discount and received 30% amount in cash
April 12: deposited cash into bank 20000
April 15: uninsured goods destroyed by fire 5500
April 19: received commission 3500
April 22: Paid Raj 25600 in full settlement of Account
April 25: cash stolen from cash box 1000
April 27: received from vishakha 14500 and discount allowed 200
April 30: interest received 2400 directly added in our bank account.

Answer 1

Journal Entries in the books of Gaurav for April 2017 (Amounts in $)

Date	Account Titles and Explanations	Debit	Credit
April 1	Cash	1,000,000
	Loan from Wife		250,000
	Common Stock		750,000
	(To record business started by Gaurav)
April 4	Purchase (40,000*80%)	32,000
	Accounts Payable-Raj (Bal. fig) (32,000-6,400)		25,600
	Cash ($32,000*1/5)		6,400
	(To record purchase of goods)
April 7	Purchases	25,000
	Cash		25,000
	(To record cash purchases)
April 10	Cash ($21,000*30%)	6,300
	Accounts Receivable-Vishakha ($21,000-$6,300)	14,700
	Sales Revenue ($30,000*70%)		21,000
	(To record sales)
April 12	Bank	20,000
	Cash		20,000
	(To record cash deposited into bank)
April 15	Loss on Fire	5,500
	Purchases		5,500
	(To record loss of goods by fire)
April 19	Cash	3,500
	Commission Income		3,500
	(To record the receipt of commission)
April 22	Accounts Payable-Raj	25,600
	Cash		25,600
	(To record the cash paid to Raj)
April 25	Loss by theft	1,000
	Cash		1,000
	(To record cash stolen from cash box)
April 27	Cash	14,500
	Discount Allowed	200
	Accounts Receivable-Vishakha		14,700
	(To record cash received from Vishakha)
April 30	Bank	2,400
	Interest Income		2,400
	(To record the interest received in bank)