50-general-journal-questions-with-solutions-1st-year-commerce

notes accounting with solved.

General Journal Practice Set with Solutions

1. Started business with cash Rs. 250,000

Particulars	Debit (Rs.)	Credit (Rs.)
Cash A/c Dr.	250,000
To Capital A/c		250,000

2. Purchased furniture for cash Rs. 30,000

Particulars	Debit (Rs.)	Credit (Rs.)
Furniture A/c Dr.	30,000
To Cash A/c		30,000

3. Bought goods for cash Rs. 20,000

Particulars	Debit (Rs.)	Credit (Rs.)
Purchases A/c Dr.	20,000
To Cash A/c		20,000

4. Sold goods for cash Rs. 15,000

Particulars	Debit (Rs.)	Credit (Rs.)
Cash A/c Dr.	15,000
To Sales A/c		15,000

5. Paid shop rent Rs. 5,000

Particulars	Debit (Rs.)	Credit (Rs.)
Rent A/c Dr.	5,000
To Cash A/c		5,000

6. Paid salaries Rs. 8,000

Particulars	Debit (Rs.)	Credit (Rs.)
Salaries A/c Dr.	8,000
To Cash A/c		8,000

7. Received commission Rs. 2,500

Particulars	Debit (Rs.)	Credit (Rs.)
Cash A/c Dr.	2,500
To Commission A/c		2,500

8. Deposited cash into bank Rs. 50,000

Particulars	Debit (Rs.)	Credit (Rs.)
Bank A/c Dr.	50,000
To Cash A/c		50,000

9. Withdrew cash for personal use Rs. 4,000

Particulars	Debit (Rs.)	Credit (Rs.)
Drawings A/c Dr.	4,000
To Cash A/c		4,000

10. Paid electricity bill Rs. 1,500

Particulars	Debit (Rs.)	Credit (Rs.)
Electricity Expense A/c Dr.	1,500
To Cash A/c		1,500

Credit Transactions Solutions

11. Purchased goods on credit from Hamza Traders Rs. 25,000

Purchases A/c Dr. 25,000
To Hamza Traders A/c 25,000

12. Sold goods on credit to Ahmed Rs. 18,000

Ahmed A/c Dr. 18,000
To Sales A/c 18,000

13. Purchased furniture on credit from Bilal & Co. Rs. 12,000

Furniture A/c Dr. 12,000
To Bilal & Co. A/c 12,000

14. Received cash from Ahmed Rs. 10,000

Cash A/c Dr. 10,000
To Ahmed A/c 10,000

15. Paid Hamza Traders Rs. 15,000

Hamza Traders A/c Dr. 15,000
To Cash A/c 15,000

16. Returned goods to Hamza Traders Rs. 2,000

Hamza Traders A/c Dr. 2,000
To Purchase Returns A/c 2,000

17. Ahmed returned goods worth Rs. 1,500

Sales Returns A/c Dr. 1,500
To Ahmed A/c 1,500

18. Allowed discount to Ahmed Rs. 500

Discount Allowed A/c Dr. 500
To Ahmed A/c 500

19. Received discount from Hamza Traders Rs. 300

Hamza Traders A/c Dr. 300
To Discount Received A/c 300

20. Purchased goods on credit from Ali Traders Rs. 10,000

Purchases A/c Dr. 10,000
To Ali Traders A/c 10,000

Golden Rules (Exam Point of View)

Personal Account

Debit the Receiver, Credit the Giver

Real Account

Debit What Comes In, Credit What Goes Out

Nominal Account

Debit Expenses and Losses, Credit Incomes and Gains

Quick Revision Table

Transaction	Debit	Credit
Capital Introduced	Cash	Capital
Cash Purchase	Purchases	Cash
Credit Purchase	Purchases	Creditor
Cash Sale	Cash	Sales
Credit Sale	Debtor	Sales
Rent Paid	Rent	Cash
Salary Paid	Salary	Cash
Commission Received	Cash	Commission
Drawings	Drawings	Cash
Cash Deposited in Bank	Bank	Cash

General Journal Practice Questions with Solutions (Set 2)

1. Started business with cash Rs. 400,000

Cash A/c Dr. Rs. 400,000
To Capital A/c Rs. 400,000

2. Purchased goods for cash Rs. 35,000

Purchases A/c Dr. Rs. 35,000
To Cash A/c Rs. 35,000

3. Purchased goods on credit from Salman Traders Rs. 22,000

Purchases A/c Dr. Rs. 22,000
To Salman Traders A/c Rs. 22,000

4. Sold goods for cash Rs. 18,000

Cash A/c Dr. Rs. 18,000
To Sales A/c Rs. 18,000

5. Sold goods on credit to Asif Rs. 15,000

Asif A/c Dr. Rs. 15,000
To Sales A/c Rs. 15,000

6. Received cash from Asif Rs. 12,000

Cash A/c Dr. Rs. 12,000
To Asif A/c Rs. 12,000

7. Paid Salman Traders Rs. 18,000

Salman Traders A/c Dr. Rs. 18,000
To Cash A/c Rs. 18,000

8. Purchased machinery for cash Rs. 50,000

Machinery A/c Dr. Rs. 50,000
To Cash A/c Rs. 50,000

9. Paid carriage inward Rs. 2,000

Carriage Inward A/c Dr. Rs. 2,000
To Cash A/c Rs. 2,000

10. Paid insurance premium Rs. 3,500

Insurance A/c Dr. Rs. 3,500
To Cash A/c Rs. 3,500

11. Received commission Rs. 4,000

Cash A/c Dr. Rs. 4,000
To Commission A/c Rs. 4,000

12. Paid wages Rs. 6,000

Wages A/c Dr. Rs. 6,000
To Cash A/c Rs. 6,000

13. Purchased office equipment on credit from Bilal & Co. Rs. 25,000

Office Equipment A/c Dr. Rs. 25,000
To Bilal & Co. A/c Rs. 25,000

14. Received rent from tenant Rs. 7,000

Cash A/c Dr. Rs. 7,000
To Rent Received A/c Rs. 7,000

15. Paid telephone expenses Rs. 1,800

Telephone Expense A/c Dr. Rs. 1,800
To Cash A/c Rs. 1,800

16. Deposited cash into bank Rs. 80,000

Bank A/c Dr. Rs. 80,000
To Cash A/c Rs. 80,000

17. Withdrew cash from bank for office use Rs. 10,000

Cash A/c Dr. Rs. 10,000
To Bank A/c Rs. 10,000

18. Owner withdrew cash for personal use Rs. 5,000

Drawings A/c Dr. Rs. 5,000
To Cash A/c Rs. 5,000

19. Goods returned by Asif Rs. 1,000

Sales Returns A/c Dr. Rs. 1,000
To Asif A/c Rs. 1,000

20. Returned goods to Salman Traders Rs. 2,500

Salman Traders A/c Dr. Rs. 2,500
To Purchase Returns A/c Rs. 2,500

Board-Style Challenge Questions (Solve Yourself)

Started business with cash Rs. 600,000.
Purchased furniture Rs. 40,000 by cheque.
Purchased goods on credit from Akram Rs. 30,000.
Sold goods on credit to Kamran Rs. 25,000.
Paid rent Rs. 8,000.
Received cash from Kamran Rs. 20,000.
Paid Akram Rs. 25,000.
Received commission Rs. 5,000.
Paid salaries Rs. 12,000.
Drew cash for personal use Rs. 7,000.

General Journal Practice Questions for 1st Year Commerce

(Principles of Accounting):

Question 1

Pass journal entries for the following transactions:

Started business with cash Rs. 100,000.
Purchased furniture for cash Rs. 20,000.
Bought goods on credit from Ali Traders Rs. 15,000.
Sold goods for cash Rs. 10,000.
Paid rent Rs. 2,000.
Received cash from a debtor Rs. 5,000.

Question 2

Journalize the following:

Deposited cash into bank Rs. 50,000.
Purchased goods for cash Rs. 12,000.
Sold goods on credit to Ahmed Rs. 8,000.
Paid salaries Rs. 3,500.
Received commission Rs. 1,500.
Withdrew cash for personal use Rs. 2,000.

Question 3

Prepare General Journal entries:

Started business with cash Rs. 200,000.
Purchased machinery on credit from Bilal & Co. Rs. 40,000.
Purchased goods for cash Rs. 25,000.
Sold goods on credit to Hamza Rs. 18,000.
Paid electricity bill Rs. 1,800.
Received cash from Hamza Rs. 10,000.

Try these yourself and send me your answers.
I can check them exactly like a Karachi Board examiner and point out any mistakes.

MCQs for Practice

Capital introduced in business is credited to:
- A) Cash Account
- B) Capital Account ✅
- C) Purchases Account
- D) Sales Account
Goods purchased for cash are recorded in:
- A) Sales Account
- B) Purchases Account ✅
- C) Capital Account
- D) Rent Account
Personal withdrawal by owner is called:
- A) Capital
- B) Sales
- C) Drawings ✅
- D) Purchases
Rent paid is:
- A) Asset
- B) Expense ✅
- C) Liability
- D) Income
Goods sold on credit create:
- A) Creditor
- B) Debtor ✅
- C) Capital
- D) Expense

Short Rule for Journal Entries

Debit what comes in, Credit what goes out.
Debit expenses and losses, Credit incomes and gains.
Debit receiver, Credit giver.

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