Question

JOURNALISE
interest on capital. 40000
interest on drawings;. 10000
depreciate building. 25000
depreciate furniture. 60000
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Answer 1

Explanation:

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1. interest on capital. 40000

Intrest on capital a/c dr 40,000

To capital a/c cr 40,000

( intrest on capital )

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1. interest on drawings;. 10000

Drawings a/c dr 10,000

To intrest on drawings 10,000

(allowed intrest on drawings)

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1. depreciate building. 25000, furniture. 60000

Depreciation a/c dr 85,000

To Building a/c 25,000

To Furniture a/c 60,000

(Depreciate furniture and building)

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