Question

(Prep. Commerce, P.U.)
4. (Journal Entries) Journalise the following transactions in the books of Sunil :
(a) Sh. Hari Dass who owes 3,000 pays 2,983 in full settlement.
(b) M/s Ashoka & co. who owe 6,000 became insolvent. Only 80% of the amount is
realised.
(c) Received cheque from Mr. Black * 9,500. Allowed him discount 140.
(d) Issued cheque in favour of Mr Khurshid Ali on account of the purchase of a
machinery for 7,500.
(e) A sum of 200 is received from Khan & co. against a debt previously written off
(1) Withdrew for domestic use ? 900.
(g) Paid Rao & co. Rs 490 in full settlement of a debt of 500.
(h) Returned goods to Vardhman spinning mills of the value of 3,500.
(i) Paid cartage on behalf of our customer Mr. Shahi50.
(1) Received interest 70 on behalf of our customer Mr. Bhushan.
(k) Purchased second-hand car valued at 8,000 from a customer, Mr. Balbir Singh, in
reduction of the amount owing by him.

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Answer 1

Answer:

received cheque from mr black Rs 9500. allowed him discount Rs 140

Answer 2

Journal Entry of Sh. Hari Dass

Explanation:-

Three Formulas that are applied to this question are:-

1. Debit what Comes in, Credit what Goes out.

2. Debit the Receiver, Credit the Giver.

3. Debit all the Expenses, Credit all the Gains.

Following is the journal entry of Sh. Hari Dass :-