Question

28. Pass journal entries for the following:

1. Interest due but not received 4000

2. salaries due to staff 25000

3. Allow interest on capital 5000

4. Charge interest on drawings 600

5. Prepaid rent paid 2000

6. Provide depreciation on furniture 500​

Answer 1

Answer:

1.) Accured intrest a/c -dr. 4000

to intrest a/c. 4000

(being intrest due but not recived)

2.) salary a/c - dr. 25000

to outstanding salary - 25000

( being salary due to staff)

3.) intrest on capital a/c - dr. 5000

to capital a/c 5000

(being allowed intrest on capital)

4.) capital a/c - dr 600

to intrest on drawing a/c - 600

( being intrest on drawing chareged)

5) prepaid rent a/c - dr. 2000

to cash a/c. 2000

( being rent paid in advance)

6) depreciation on furniture a/c- dr. 500

to furniture a/c. 500

( being depreciation charged on the furniture)