Question

Attempt any three out of four:Pass journal entries: (a) income tax paid Rs.10,000. (b)Give away as Charity good s costing Rs.10,000(c) Salary paid Rs.2400, wages paid Rs.700 (d) Purchased good s from sanjiv Rs.50,000at10%TD. Enter the following transaction in simple cashbook for December 2019. 2019 Rupees Dec .1​

Answer 1

Answer:

When goods are withdrawn by the proprietor, goods are going out of the business i.e., purchases account has to credited. The journal entry for this is -

Drawings A/c Dr 10000

To Purchases A/c 10000

Instead of this entry, the incorrect entry passed was -

Drawings A/c Dr 10000

To Sales A/c 10000

Here, instead of purchase account sales account has been credited whereas drawings account has been rightly debited , so to cancel this entry and rectify it, sales account which was credited is to be debited to cancel the entry, and purchases account will be credited fro the original entry. Since drawings account is rightly debited, no change will be made regarding drawings account. The rectified journal entry thus becomes -

Sales A/c Dr 10000

To Purchases A/c 10000