Illustration 3
Pass the necessary journal entries in the books of Sakthivel of Chennai for
the following transactions from the following report of transactions written by
him for April 2000.
2000
April 2 Purchased business for Rs. 2,00,000
4 Purchased machinery from Kandan Bros, Trichy for Rs. 30,000
on which they paid Rs. 300 freight on my behalf.
4 The erection charges of machinery amounted to Rs. 900 which
were paid in cash
6 A cashier has stolen Rs. 1.500 and he is absconding.
8 Goods costing Rs. 12,000 were insured for Rs. 10,000 and premium at
8% p.a was paid on them.
10 On claim being made for theft of cash, insurance company paid
Rs. 1,500.
12 Received an order from Dayalan for supply of goods worth Rs. 4,000.
13 Goods were supplied as per order of Dayalan and freight of Rs. 200 was
paid on it.
15 Goods worth Rs. 100 were distributed as samples free of charge.
20 Goods, the list price of which is Rs. 40,000; are sold to Sugumar at 10%
trade discount
Answers
Answer:
business purchase a/c dr
to cash A/c
4.machinery A/c dr
to kandan bros A/c
4 . machinery A/c dr
to cash A/c
JOURNAL ENTRIES IN THE BOOKS OF SAKTHIVEL
2 APRIL 2000
Business A/C Dr 2,00,000
To Capital A/C 2,00,000
(BEING BUSINESS PURCHASED)
4 APRIL 2000
Machinery A/C Dr 30,900
To Cash A/C 30,900
( BEING MACHINERY BOUGHT AND PAID ERRECTION CHARGES)
6 APRIL 2000
Loss by theft A/C Dr 1,500
To Cash A/C 1,500
( BEING CASH STOLEN )
8 APRIL 2000
Insurance Premium A/C Dr 800
To Bank A/C 800
(BEING PREMIUM PAID)
10 APRIL 200
Bank A/C Dr 1,500
To Insurance Company A/C 1,500
( BEING CLAIM RECIEVED)
12 APRIL 2000
Dayalan A/C Dr 4,000
To Sales A/C 4,000
( BEING SALES ORDER RECIEVED)
13 APRIL 2000
Cash A/C Dr 4,000
To Dayalan A/C 4,000
( BEING CASH RECIEVED FOR PAYMENT)
15 APRIL 2000
Free Samples A/C Dr 100
To Goods A/C 100
( BEING GOODS DISTRIBUTED AS FREE SAMPLES)
20 APRIL 2000
Cash A/C Dr 36,000
To Sales A/C 36,000
(BEING GOODS SOLD )