Journalise the given transactions
Answers
(1)
Cash A/c ... Dr - Rs 4,000
- To Bad Debťs. Recovered A/c - Rs 4,000
(Being bad debťs written last year recovered this year.)
(2)
Salary A/c ... Dr - Rs 7,500
- To Outstanding Salary A/c - Rs 7,500
(Being salary due.)
(3)
Pre-paid rent A/c ... Dr - Rs 2,000
- To Rent A/c - Rs 2,000
(Being paid rent in advance.)
(4)
Depreciation A/c ... Dr - Rs 500
- To Furniture A/c - Rs 500
(Being provided 10% depreciation on furniture costing Rs 5,000.)
Calculation of depreciation:
10% of Rs 5,000 = Rs 500
(5)
Interest on capital A/c ... Dr - Rs 10,000
- To Capital A/c - Rs 10,000
(Being provided 10% interest on capital amounting to Rs 1,00,000.)
Calculation of interest on capital:
10% of Rs 1,00,000 = Rs 10,000
(6)
Furniture A/c ... Dr - Rs 1,500
- To Purchases A/c - Rs 1,500
(Being goods used in making furniture.)
(7)
Drawings A/c ... Dr - Rs 100
- To Interest charged on drawings A/c - Rs 100
(Being charged interest on drawings.)
(8)
Drawings A/c ... Dr - Rs 500
- To cash A/c - Rs 500
(Being paid for the life insurance premium for the proprietor.)
(9)
Machinery A/c ... Dr - Rs 200
- To cash A/c - Rs 200
(Being amount paid in cash as wages for the instàllation of machinery.)
(10)
Loss of stock by fire A/c ... Dr - Rs 1,000
- To Purchases A/c - Rs 1,000
(Being lost uninsured goods due to fire.)
(11)
Cash A/c ... Dr - Rs 600
Bad Debťs A/c ... Dr - Rs 1,400
- To Mohan - Rs 2,000
(Being Mohan becomes insolvent and pays 30% of the cash he owed.)
(12)
Purchases A/c ... Dr - Rs 13,500
- To Rakesh - Rs 8,100
- To Cash A/c - Rs 5,130
- To Discount Received A/c - Rs 270
(Being purchased goods)
Calculation:
CP = Rs 15,000
Less: Trade Discount 10% = Rs 1,500
Purchases = Rs 15,000 - Rs 1,500 = Rs 13,500
40% paid in cash which means 60% was a credit purchase.
Cash = 40% of Rs 13,500 = Rs 5,400
Less: Cash Discount 5% = Rs 270
Paid in cash = Rs 5,130
Credit = 60% of Rs 13,500 = Rs 8,100
(Note:- Trade discount is calculated before cash discount.)