journal entries

A business entity enters into a lot of transactions daily in the course of its business e.g. Purchase of raw materials; sale of goods; payments of expenses like salaries, wages, commissions, fees, rent taxes; receipt of many non operating incomes like rent; interest on investments; royalty; apprenticeship premium; commissions etc. Some transactions involves a very small amount and some involves a big amount. Each transaction influences the profits of the business.In business you have to take into account all these transactions if you want to find out the results of…

rules for journalising

Simran started a new business and made some transactions on the first day which were as follow. 1. She invested $500,000 in the business. 2. She bought Building worth $200,000. 3. She bought Furniture on credt from Furnituremart ltd for $ 40.000 4.She bought raw material worth $20,000 5. She paid transportation $200. 6. She paid commission $20. She wants to record the above transactions in the Journal. As she is not having any knowledge about accounting, she does not know how to make enrties in the Journal. She does…