4. Journalise the following transactions of Pradeep in his books:
(1) M. Sudarshan owes * 2,850 and pays 2,775 in settlement.
() Ms Agarkar & Co. who owed 6,000 became insolvent, only 30% of the amount due is realised.
(THReceived cheque from J. Mohan 5,450. Allowed him discount * 150.
(iv) Withdrew for domestic use * 900.
(V) Issued cheque in favour of M/s Khurshid Ali & Sons on account of the purchase of a machinery of
37,500
(M) Paid to Rao & Co. 9,000 on account for 10,000.
(vii) Goods destroyed by fire (Sale Price 4,000, Cost 3,000).
Answers
Journal entries for the following transaction in the books of pradip:
1.) M. Sudarshan owes 2,850 and pays 2,775 in settlement.
Date. Accounts. Debit. Credit.
-. Cash A/c. 2775
Discount allowed. 75
Surdarshan A/c. 2850
(Being debt paid by Surdarshan by cash and remaining discount allowed settlement)
2)Ms Agarkar & Co. who owed 6,000 became insolvent, only 30% of the amount due is realised.
Date. Accounts. Debit. Credit.
-. Cash A/c. 1800
Bad debt exp A/c. 4200
Agarkar&co. 6000
(Being amount received from debtor and remaining amt recorded as bad debt exp due to insolvent)
3)Received cheque from J. Mohan 5,450. Allowed him discount 150.
Date. Accounts. Debit. Credit
-. Bank A/c. 5450
Disc. Allowed a/c. 150
J. Mohan. A/c. 5600
(Being settlement of creditor nd discount given to him)
4)Withdrew for domestic use 900.
Date. Accounts. Debit. Credit
-. Drawing A/c. 900
Cash A/c. 900
(Being drawings for domestic purpose)
5) Issued cheque in favour of M/s Khurshid Ali & Sons on account of the purchase of a machinery of 37,500.
Date. Accounts. Debit. Credit
-. Khurshid Ali & sons. 37,500
Bank A/c. 37,500
( Being paid for machinery purchase )
6)Paid to Rao & Co. 9,000 on account for 10,000.
Date. Accounts. Debit. Credit
-. Rao & co 10,000
Cash. 9000
Disc. Recieved a/c. 1000
(Being paid to creditor and discount received from him)
7)Goods destroyed by fire (Sale Price 4,000, Cost 3,000).
Date. Accounts. Debit. Credit
-. Loss due to fire A/c 3000
To purchase. 3000
( being loss arise due to fire settle in purchase account at cost amt)