Mumbai Photography(Partnership) - April 2023 Transactions.

MUMBAI PHOTOGRAPHY

(Partnership)

GSTIN -  27ACKFS7411M1Z5

Address : Film City Road,  Goregaon, Mumbai - 400065, Maharashtra

Financial Year : 2023-24 (April' 2023 to March' 2024)

Assessment Year : 2024-25 (April' 2024 to March' 2025)

Select Debit and Credit Ledgers involved and pass necessary Journal Entries for the below mentioned Real Life Business Transactions.

In these below mentioned transactions, all the answers are in the following order

Step - 1

Debit and Credit Ledgers involved with mentioning type and flow of Ledger Accounts.

Step - 2

Journal Entry

Step - 3

Entry in TallyPrime

Date : 01/04/2023 (Transaction No. 1)

Mr.Akshay and Mr.Amitabh agreed to start a Photography Service Business in Mumbai with Capital Investment equally at their own premises.

a)    Land valued for ₹62,00,000/-

(Mr.Akshay's share ₹31,00,000/-, Mr.Amitabh's share ₹31,00,000/-)

b)    Building valued for ₹74,00,000/-

(Mr.Akshay's share ₹37,00,000/-, Mr.Amitabh's share ₹37,00,000/-)

c)    Cash for ₹28,00,000/-

Mr.Akshay Invested ₹14,00,000/- by Cash.

Mr.Amitabh invested ₹14,00,000/- by Cash.

Major points mentioned in 'Partnership Deed'.

Share of Profit  

  • Mr.Akshay : 50%

  • Mr.Amitabh : 50%

Interest on Capital : 12% p.a

a)    Land valued for ₹62,00,000/-

Debit Ledger : Land A/c

  • In Traditional Approach - Land A/c is under type Real Account - Comes in.

  • In Modern Approach - Land A/c is under type Asset Account - Increases.

Credit Ledger : 

Akshay Capital A/c

  • In Traditional Approach - Akshay Capital A/c is under Personal Account - Giver.

  • In Modern Approach - Akshay Capital A/c is under Capital Account - Increases.

Amitabh Capital A/c 

  • In Traditional Approach - Amitabh Capital A/c is under Personal Account - Giver.

  • In Modern Approach - Amitabh Capital A/c is under Capital Account - Increases.

Journal Entry:

Journal Entry for Capital Investment by Partners in kind

b)    Building valued for ₹74,00,000/- 

Debit Ledger : Building A/c

  • In Traditional Approach - Building A/c is under type Real Account - Comes in.

  • In Modern Approach - Building A/c is under type Asset Account - Increases.

Credit Ledger : 

Akshay Capital A/c

  • In Traditional Approach - Akshay Capital A/c is under Personal Account - Giver.

  • In Modern Approach - Akshay Capital A/c is under Capital Account - Increases.

Amitabh Capital A/c 

  • In Traditional Approach - Amitabh Capital A/c is under Personal Account - Giver.

  • In Modern Approach - Amitabh Capital A/c is under Capital Account - Increases.

Journal Entry:

Journal Entry for Capital Investment by partners in kind

c)    Cash for ₹28,00,000/- 

Debit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under type Real Account - Comes in.

  • In Modern Approach - Cash A/c is under type Asset Account - Increases.

Credit Ledger : 

Akshay Capital A/c

  • In Traditional Approach - Akshay Capital A/c is under Personal Account - Giver.

  • In Modern Approach - Akshay Capital A/c is under Capital Account - Increases.

Amitabh Capital A/c 

  • In Traditional Approach - Amitabh Capital A/c is under Personal Account - Giver.

  • In Modern Approach - Amitabh Capital A/c is under Capital Account - Increases.

Journal Entry:

Journal Entry for Capital Investment by Partners in Cash

Click here to know how to enter the above transactions in TallyPrime

Date : 02/04/2023 (Transaction No. 2)

Opened a Current Account in HDFC Bank Limited, Goregaon, Mumbai by Depositing ₹25,000/-.

Bank allotted Current Account No.00000012456

Debit Ledger : HDFC Bank CA No.12456

  • In Traditional Approach - 'HDFC Bank CA No.12456' is under type Real Account - Comes in.

  • In Modern Approach - 'HDFC Bank CA No.12456' is under type Asset Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under type Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under type Asset Account - Decreases.

Journal Entry:

Journal Entry for Cash Deposit into Bank.

Click here to know how to enter the above transactions in TallyPrime

Date : 02/04/2023 (Transaction No. 3)

₹14,200/- paid to M/s.Shivam Digital Printers as per CM No.1078 towards fixing Name Board outside office.

Debit Ledger : Advertisement Expenses A/c

  • In Traditional Approach - 'Advertisement Expenses A/c' is under type Nominal Account - Expenses.

  • In Modern Approach - 'Advertisement Expenses A/c' is under type Expenses Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under type Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under type Asset Account - Decreases.

Journal Entry:

Journal Entry for Advertisement Expenses paid by Cash

Click here to know how to enter the above transactions in TallyPrime

Date : 02/04/2023 (Transaction No. 4)

₹97,600/- paid to M/s.Diwan Furniture as per CM No.577 towards purchase of Furniture & Fixtures.

Debit Ledger : Furniture & Fixtures A/c

  • In Traditional Approach - 'Furniture & Fixtures A/c' is under type Real Account - Comes In.

  • In Modern Approach - 'Furniture & Fixtures A/c' is under type Asset Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under type Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under type Asset Account - Decreases.

Journal Entry:

Journal Entry for Purchase of Fixed Assets

Click here to know how to enter the above transactions in TallyPrime

Date : 02/04/2023 (Transaction No. 5)

Cash Deposited into HDFC Bank Current Account No.00000012456 , Goregaon, Mumbai for ₹20,00,000/-.

Debit Ledger : HDFC Bank CA No.12456

  • In Traditional Approach - 'HDFC Bank CA No.12456' is under type Real Account - Comes in.

  • In Modern Approach - 'HDFC Bank CA No.12456' is under type Asset Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under type Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under type Asset Account - Decreases.

Journal Entry:

Journal Entry for Cash Deposit into Bank

Click here to know how to enter the above transactions in TallyPrime

Date : 02/04/2023 (Transaction No. 6)

Purchased a Camera for ₹3,21,875/- from Photo World Pvt. Ltd. vide Bill/CM No.3905 and paid vide Cheque No.100301 of HDFC Bank CA No.12456.

Debit Ledger : Camera A/c

  • In Traditional Approach - 'Camera A/c' is under type Real Account - Comes in.

  • In Modern Approach - 'Camera A/c' is under type Asset Account - Increases.

Credit Ledger : HDFC Bank CA No.12456

  • In Traditional Approach - 'HDFC Bank CA No.12456' is under type Real Account - Goes Out.

  • In Modern Approach - 'HDFC Bank CA No.12456' is under type Asset Account - Decreases.

Journal Entry:

Journal Entry for Purchase of Fixed Assets, paid by Cheque

Click here to know how to enter the above transactions in TallyPrime

Date : 02/04/2023 (Transaction No. 7)

Purchased Computer for ₹98,900/- from Sigma Digital Store vide Cash Memo No.1903.

Debit Ledger : Computer A/c

  • In Traditional Approach - 'Computer A/c' is under type Real Account - Comes in.

  • In Modern Approach - 'Computer A/c' is under type Asset Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - 'Cash A/c' is under type Real Account - Goes Out.

  • In Modern Approach - 'Cash A/c' is under type Asset Account - Decreases.

Journal Entry:

Journal Entry for Purchase of Fixed Assets in Cash

Click here to know how to enter the above transactions in TallyPrime

Date : 02/04/2023 (Transaction No. 8)

Amount paid to Mr.Arjun Sekhar vide Chq No.100302 towards Electrical Fittings for ₹2,37,560/-.

Debit Ledger : Electrical Fittings A/c

  • In Traditional Approach - 'Electrical Fittings A/c' is under type Real Account - Comes in.

  • In Modern Approach - 'Electrical Fittings A/c' is under type Asset Account - Increases.

Credit Ledger : HDFC Bank CA No.12456

  • In Traditional Approach - 'HDFC Bank CA No.12456' is under type Real Account - Goes Out.

  • In Modern Approach - 'HDFC Bank CA No.12456' is under type Asset Account - Decreases.

Journal Entry:

Journal Entry for purchase of Fixed Assets, paid by Cheque.

Click here to know how to enter the above transactions in TallyPrime

Date : 02/04/2023 (Transaction No. 9)

Purchased a Printer for ₹1,87,270/- from Sigma Digital Store vide Cash Memo No.1915, paid vide Chq No.100303

Debit Ledger : Printer A/c

  • In Traditional Approach - 'Printer A/c' is under type Real Account - Comes in.

  • In Modern Approach - 'Printer A/c' is under type Asset Account - Increases.

Credit Ledger : HDFC Bank CA No.12456

  • In Traditional Approach - 'HDFC Bank CA No.12456' is under type Real Account - Goes Out.

  • In Modern Approach - 'HDFC Bank CA No.12456' is under type Asset Account - Decreases.

Journal Entry:

Journal Entry for Purchase of Fixed Assets, paid by Cheque

Click here to know how to enter the above transactions in TallyPrime



Location: Mumbai, Maharashtra, India

Comments

Post a Comment

Popular posts from this blog

Ledger Account and Account Head

Image
Meaning of Ledger Account and Account Head in Financial Accounting with example.  Ledger Account : A ledger Account is a summarized statement of transactions related to a particular Person, Asset/Liability, or Income/Expense for a particular period showing opening and closing balance. A Ledger Account is posted from the Journal Register or Journal Book,commonly in a date wise ascending order. The transaction date of Ledger Account is same as the transaction date of Journal Register. In practical,Accountants omit Recording of Journal Register and post Ledger Account directly from Primary documents like Credit Voucher,Debit Voucher,Purchase Invoice,Sales Invoice,Bank Payment Acknowledgement,Bank deposit slip or Pay-in-slip etc. to avoid more time consumption. Name and Address of the Business Organization is mentioned on the top of the Ledger Account. Below the Name and Address of Organization, Name and Address of other party Ledger Account is mentioned in case of Personal Accounts like S
Read more

Journal in Financial Accounting

Image
Meaning of Journal in Financial Accounting with Example Journal is a first Accounting Record Book,in which all the transactions of a business organization are recorded in chronological or orderly manner i.e ascending date wise order from the primary Accounting documents like Credit Voucher,Debit Voucher,Purchase Invoice,Sales Invoice,Bank Payment Acknowledgement,Bank Deposit Slip or Pay-in-Slip etc. Due to the first entry of Original transactions in Journal, this is also called the "Book of Original Entry" For recording the Journal Book or Journal Register,one has to follow/understand the below mentioned three topics. Types or Classification of Accounts - For details about types of Account click here   Debit and Credit Rule - Click here to know details.  Rules of Double Entry System of Book Keeping - For details about Rules of Double Entry System of Book Keeping click here      Sample format of Journal in Financial Accounting Journal consists of Five Columns Date : This c
Read more

Double Entry System of Book-Keeping in Financial Accounting

Image
What is Double Entry System of Book Keeping in Financial Accounting ? A simple Understanding on Definition/Explanation/Outline/meaning of Double Entry system of Book-keeping in Financial Accounting with example Double Entry System of Book-keeping in Financial Accounting is a system, which means each and every Business Transaction affects or involves at least two Account. One is Debit Account and the other is Credit Account It may be more than two Accounts in a Business Transaction If only two Accounts are found in a transaction one Account will be Debited and the other Account or opposite Account will be Credited. If more than two Accounts are found in a transaction the Debit total amount must be equal to the Credit total Amount. Each and every business transaction in Double entry system of Book-Keeping is based on Traditional Approach and Accounting Equation Approach In both the above approaches, Journal Entry for a particular business transaction is same.           a)    Traditiona
Read more