Question

Pass Journal Entries for the following transactions :

(1) Paid * 1,000 for insurance for next year.

(2) * 2,000 is to be paid for rent.

(3) Machinery cost 1,00,000. Provide depreciation @ 10%.

(4) Interest on Capital *. 2,000.

(5) Interest on Drawings 1,500.
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Answer 1

Answer:

(1) Prepaid Insurance a/c. Dr. 1000

To Cash a/c. 1000

(2) Rent a/c. Dr. 2000

To Cash a/c. 2000

(3) Depreciation a/c. Dr. 10000

To Machinery a/c. 10000

(4) Interest on capital A/c. Dr. 2000

To Capital A/c. 2000

(5). Capital A/c. Dr. 1500

To Interest on Drawings. 1500