Question

Prepare Journal from the transactions given below :(a) Cash paid for installation of machine ₹500(b) Goods given as charity ₹2000(c) Interest charged on capital @ 7% p.a. when total capital were ₹70000(d) Received 1,200 of a bad debts written-off last year. (e) Goods destroyed by fire ₹2000(f) Rent outstanding ₹1000. (g) Interest on drawings ₹900 (h) Sudhir Kumar who owed me ₹3000 has failed to pay the amount.He pays me a compensation of 45 paise in a rupee. (i) Commission received in advance ₹7000.​

Answer 1

Answer:

Machinery A/c   Dr  500

     To Cash A/c              500

Charity A/c  Dr     2000

     To Purchases A/c    2000

Interest on Capital A/c  Dr    4900

      To Capital A/c                          4900

Cash A/c   Dr    1200

      To Bad debts recovered A/c  1200

Loss by Fire A/c     Dr   2000

       To Purchases A/c       2000

Rent A/c      Dr     1000

       To Rent Outstanding A/c     1000

Interest A/c     Dr  900

         To Interest On drawings A/c    900

Cash A/c      Dr   1350

Bad Debts A/c   Dr  1650

       To Sudhir A/c         3000

Cash A/c    Dr    7000

     To Commission Received A/c    7000