Question

Gave away charity of cash rs 50 and marchandising worth rs 30 journal entry

Answer 1

Answer:

Charity A/C Dr 80

To Cash A/C 50

To Purchases A/C 30

Answer 2

                                        JOURNAL ENTRY

Charity A/c           ----------dr                        80

        To cash A/c                                                50

        To Purchases A/c                                      30

( Being Charity done in cash and by giving goods.)

In this question,

• We are passing a journal entry for the cash and goods that have been given as charity.
• Charity A/c is a kind of an expense and according to the rule when the expense increases the account is debited.
• Cash is an asset account so as the asset decreases it is credited.
• Purchases is as a kind of expense and as it decreases it goes into credit side while passing the journal entry.
• The total amount of charity done is the sum of cash given and the price of merchandise that is the goods give.
• Cash is given of Rs.30 and goods costing Rs.50 so the total amount of charity done is Rs.80.

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