the transactions will appear as below in the books of Rathna Kumar. In the books of Rathna Kumar Journal entries L.F. Debit ` Credit ` Jan Cash A/c To Rathna Kumar’s capital A/c (Business commenced with capital) , , , , Only debit balances Only credit balances Assets (cash, debtors, building, furniture,etc.) Drawings Purchases Sales returns Expenses Losses Liabilities (creditors, bank overdraft, provisions, reserves, etc.) Incomes Sales Purchases returns Gains Accountancy - Furniture A/c To Cash A/c (Furniture purchased for cash) , , Purchases A/c To Cash A/c (Goods purchased for cash) , , Purchases A/c To Jeyanthi A/c (Credit purchases from Jeyanthi) , , Jeyanthi A/c To Purchases returns a/c (Goods returned to Jeyanthi) , , Cash A/c To Sales A/c (Goods are sold for cash) , , Elizabeth A/c Dr. To Sales A/c (Goods sold on credit) , , Salaries A/c Dr.
To Cash A/c (Salary paid by cash) , , Cash A/c Dr. To Commission A/c (Commission received by cash) , , Cash A/c Dr. To Elizabeth A/c (Cash received from Elizabeth) , , Ledger Cash Account Cr. J.F.
Amount J.F Amount Jan Feb To Rathnakumar’s capital A/c To Sales A/c To Commission A/c To Elizabeth A/c To Balance b/d , , , , , Jan By Furniture A/c By Purchases A/c By Salaries A/c By Balance c/d , , , , , , , , , , , Rathna Kumar’s Capital Account Cr. J.F. Amount J.F Amount Jan To Balance c/d , , Jan Feb By Cash A/c By Balance b/d , , , , , , , , Accountancy - Furniture Account Cr. J.F.
Amount J.F Amount Jan Feb To Cash A/c To Balance b/d , Jan By Balance c/d , , , , Purchases Account Cr. J.F. Amount J.F Amount Jan Feb To Cash A/c To Jayanthi A/c To Balance b/d , , Jan By Balance c/d , , , , Jeyanthi Account Cr. J.F.