How to Pass Journal Entries

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">In accounting system&comma; each business transaction is first recorded in an accounting record called the journal&period; Since the transactions are initially recorded in a journal therefore it is also called book of original entry&period; The process in which one account is debited and other credited is called journalizing&period; The journal is a chronological &lpar;day-by-day&rpar; record of business transactions&period; Here&comma; we should note that the transactions can be directly recorded in the ledger but there are various advantages associated with the use of journal&period; For example&comma; journal helps to avoid the errors&comma; provides lot of information at one place and gives the record of business transactions for all times&period; There are various types of journals and the simplest one is general journal&period; <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<p align&equals;"justify"><strong>Problem&colon;<&sol;strong> Kramer Trading Company completed the following transactions during the month of January 2010&period; Prepare general journal entries to illustrate the effects of each of the following transactions&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 1&period;&&num;160&semi;&&num;160&semi; Started business by investing cash &dollar;30000 and Furniture &dollar;13000&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 2&period;&&num;160&semi;&&num;160&semi; Secured a loan of &dollar;70000 from the bank&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 4&period;&&num;160&semi;&&num;160&semi; Purchased a truck for &dollar;14000 paying cash &dollar;10000 <&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p align&equals;"justify">&&num;160&semi;&&num;160&semi;&&num;160&semi;&&num;160&semi;&&num;160&semi;&&num;160&semi;&&num;160&semi;&&num;160&semi;&&num;160&semi;&&num;160&semi;&&num;160&semi; and note payable for the balance&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 9&period;&&num;160&semi;&&num;160&semi; Paid rent for December &dollar;1000&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 11&period; Purchased supplies for cash &dollar;700&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 13&period; Purchased goods on credit from George for &dollar;8000&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 15&period; Return goods of &dollar;3000 to George&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 16&period; Sold goods to Vikram for &dollar;5000 on credit&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 20&period; Vikram returned goods worth &dollar;1000&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 22&period; Paid &dollar;5000 to George for the goods purchased on credit&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 23&period; Received cash from Vikram &dollar;4000&period; <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 25&period; Paid electricity expense for the month of December &dollar;1500 <&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Jan&period; 29&period; Withdraw cash for personal use &dollar;6000&period; <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<p align&equals;"center">&&num;160&semi;<strong>Kramer Trading Company<&sol;strong><&sol;p>&NewLine;<p align&equals;"center"><strong>General Journal Entries<&sol;strong><&sol;p>&NewLine;<p align&equals;"center"><strong><&sol;strong><&sol;p>&NewLine;<p align&equals;"center"><a href&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;07&sol;image10&period;png"><img title&equals;"image" style&equals;"border-top-width&colon; 0px&semi; display&colon; block&semi; border-left-width&colon; 0px&semi; float&colon; none&semi; border-bottom-width&colon; 0px&semi; margin-left&colon; auto&semi; margin-right&colon; auto&semi; border-right-width&colon; 0px" height&equals;"446" alt&equals;"image" src&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;07&sol;image&lowbar;thumb10&period;png" width&equals;"500" border&equals;"0" &sol;><&sol;a><&sol;p>&NewLine;<p align&equals;"left">&&num;160&semi;<&sol;p>&NewLine;<p> In order to see the ledger accounts for the above journal entries please <a href&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;accounting&sol;713&sol;ledger&period;html" target&equals;"&lowbar;blank" rel&equals;"noopener">click here<&sol;a>&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;