Question

Que2. Journalist the following transaction: [6]
1. Goods for Rs 50,000 were destroyed by fire.
2. Goods worth Rs 18,000 were distributed as free sample and Rs 20,000 were given away as charity in cash.
3. Goods worth Rs 25,000 and cash Rs 40,000 were taken away by the proprietor for his personal use.
4. Goods worth Rs 25,000 and cash Rs 5,000 were given away as charity.
5. Cash Rs 1, 00,000 were stolen from the iron safe of the trader

Answer 1

Journal Entries

Explanation:

1. Loss of Stock by Fire A/c            ...Dr. 50,000

                 To Purchases A/c                           50,000

2. Advertisement Expenses A/c    ...Dr. 18,000

                  To Purchases A/c                            18,000

   Charity A/c                                  ...Dr. 20,000

                   To Cash A/c                                    20,000

3. Drawings A/c                              ...Dr. 65,000

                   To Cash A/c                                     40,000

                    To Purchases A/c                           25,000

4. Charity A/c                                 ...Dr. 30,000

                    To Purchases A/c                           25,000

                    To Cash A/c                                      5,000

5. Loss of Cash by Theft A/c        ...Dr. 1,00,000

                    To Cash A/c                                    1,00,000