Question

Pass journal entries for the followings. Prepare any four ledgers.
Raghu started business with cash Rs.80,000, goods Rs.40,000 and
furniture Rs.20,000.
Paid rent Rs.800, Trade expenses Rs.400 and Travelling expenses
Rs.500.
Paid into bank for opening a current account Rs.25,000.
Goods given as free sample for Rs.4,000
Mr. John becomes insolvent, a dividend of 50 paisa in a rupee
received from him against Rs.4,000
Allow interest on capital Rs.4,500
Charge depreciation @ 10% p.a. for two months on machine costing
Rs.30,000.
Goods costing Rs.1,000 given as charity, Rs.2,000 used by
proprietor for his personal use, Rs. 2,000 distributed as free samples.
Received Rs.4,000 from Suhas, which were written off as bad debt
in previous year.​

Answer 1

Explanation:

Cash Dr 80000

Goods Dr 40000

Furniture Dr 20000

To Capital 100000

Rent Dr 800

Trade Expenses Dr 400

Travelling Expenses Dr 500

To Cash 1700

Bank Dr 25000

To Cash 25000

Advertisement Dr 4000

To Cash 4000

Cash Dr 4000

Bad Debts Dr 4000

To John 8000