Question

write journal entry for the following
(i) Started business with cash * 80,000 and goods *75,000
(ii) Sold goods to Shanmugam on credit for 50,000
(iii) Received cash from Shanmugam in full settlement * 49,000
(iv) Salary outstanding 3,000
(v) Goods costing 1,000 given as charity
(vi) Insurance premium paid * 3000
(vii) Out of insurance premium paid, prepaid is 500​

Answer 1

Explanation:

(I)cash a/c. dr

purchase a/c

to capital a/c

being business started

2. shanmugam a/c. dr

to sales a/c

being goods sold

3.cash a/c. Dr

to shanmugam a/c

being cash received

4.salary a/c Dr

to cash a/c

being salary has to pay

5. charity a/c Dr

to sales

being goods given

6.insurance premium a/c Dr

to cash a/c

being cash paid

7.prepaid insurance a/c Dr

to cash a/c

being cash paid