Page 131 - Office Practice and Accounting -9

Jan–9 Machinery A/c...............................Dr. 20,000
To Cash A/c 9,000
To Bank A/c 1,000
To Dinesh A/c 10,000
(Being machinery purchased from Dinesh making
partial payment.)
Jan–10 Purchase A/c...............................Dr. 5,400*
To Cash A/c 5,400
(Being goods purchased at 10% trade discount
Jan–15 Cash A/c...............................Dr. 500
To Bad Debt A/c 500
(Being bad debt recovered.)
Jan–20 Depreciation A/c..........................Dr. 2,000
To Machinery A/c 2,000
(Being depreciation on machinery charged)
Jan–21 Interest on capital A/c....................Dr. 7,500
To Capital A/c 7,500
(Being interest on capital charged)
Jan–25 Drawing A/c...............................Dr. 1,000
To Interest on Drawing A/c 1,000
(Being interest on Drawing A/c)
Jan–30 Salary A/c...............................Dr. 2000
To Salary outstanding A/c 2000
(Being salary outstanding)

* Rs. 6000 – [6000 × 10/100] = 5400. Trade discount Rs. 600 is not shown in books of account.
EXERCISE

1. Prepare journal entries from the following transactions.

i. Commenced business with cash Rs 1,00,000 and goods Rs. 10,000
ii. Purchased goods for cash Rs. 10,000 and credit Rs. 5,000

iii. Sold goods for cash Rs. 3,000 and credit Rs. 5,000
iv. Paid salaries Rs. 1000 to Dilip
v. Wages outstanding Rs. 500

vi. Goods taken by the owner for personal use Rs. 1,000
vii. Paid to creditors Rs. 3,000
viii. Machinery costing Rs. 20,000 purchased from Kamal

Office Practice and Accounting 9 127