Question

Q2:- Pass necessary journal entries for following transactions:-

1. Salary due but not paid ₹1500

2. Insurance premium paid includes ₹400 as paid for next year.

3. Paid life insurance policy premium of proprietor ₹2000 and income tax ₹1500.

4. Charge depreciation 10% on plant costing ₹40000

5. Bought goods from Amar for ₹25000 less 20% trade discount.​

Answer 1

Answer:

salary A/C.... dr. 1500

to outstanding salaries 1500

insurance premium A/C... dr. 400

to prepaid insurance premium 400

drawings.... dr. (2000+1500) 3500

to cash (2000+1500) 3500

depreciation A/C... dr. 4000

to plant A/C... 4000

purchase A/C..... dr. 20,000

to amar 20,000