Question

1. Journalize the following transactions in the books of ABC Ltd.: -
i) Paid rent of building Rs.12000, half of which is used by the proprietor for
residential purposes.
ii) Paid fire insurance of the building in advance- Rs.1000
111) Paid life insurance premium - Rs.2000
iv) Paid income tax Rs.3000
v) Salary due to clerk- Rs.500
vi) Charge depreciation on furniture @ 10% p.a. for one month (Furniture
value- Rs.12000)
vii) Provide interest on capital(Rs.60000) @ 15% p.a. for 6 months​

Answer 1

Answer:

(i) Building's rent a/c dr 6000

   proprietor a/c dr 6000

          To Cash A/c                   12000

(ii) Fire insurance A/c dr 1000

       TO Cash a/c                      1000

(iii) Fire insurance premium A/c dr 2000

       TO Cash a/c                      2000

(iv) Income tax a/c dr 3000

        To Cash a/c          3000

(v) Salary a/c dr 500

      To cash a/c 500