Question

Pass Journal entries for the follwing transactions in the books of satyam
(i) Old newpaper sold Rs. 125
Old Furniture sold Rs. 1,000
(ii) Paid for life insurance premium (Self) Rs. 1,500
(iv) Goods sold for cash to a customer for Rs. 10,000 and collected 8% Sales tax on it .
(v) Purchased goods from Amit for Rs. 6,000 and the payment was made by cheque.
(vi) Sold 1/3 rd of the above goods at a profit of 25% on cost. ​

Answer 1

Answer:

1) Cash Ac........ dr. 1125

To Old newspaper Ac 125

To Old Furniture Ac 1000

2) life insurance Premium......dr. 1500

To Cash Ac. 1500

4) Cash Ac.........dr. 10800

To sales tax. 800

To Sales Ac. 10000

5) Purchases Ac........dr. 6000

To Bank Ac. 6000

6) Cash Ac......dr. 2500

To Sales Ac. 2000

To Profit on Sales. 500