Question

Cash stolen by a thief from office rupees 2400. The thief was arrested but only rupees 1800 could be recovered from him

Answer 1

A journal is the record of financial transactions of an enterprise in there accounting books.

• The given case is a case of embezzlement. The correct journal entries are -

1.  Embezzlement of cash A/c  Dr 2400

To Cash A/c 2400

( Being the cash stolen)

2. Cash A/c Dr 1800

Profit & loss A/c Dr 600

To embezzlement of cash A/c 2400

( Being the stolen amount rectified)