Question

Give the journal entries corresponding to the narration given below:-

S. No.	Particulars		L.F.	Amount Dr. (₹)	Amount Cr. (₹)
(i)		Dr.
		Dr.
	To
	(Goods of the list price of ₹ 5,000 sold at 10% trade discount and 2% cash discount)
(ii)
	(The purchase of Motor Car for ₹ 80,000 and the payment of ₹ 5,000 as repairs charges on it. Entire payment is made by cheque)
(iii)	Chaturvedi’s	Dr.		5,000
	To Cash A/c
	To
	(Chaturvedi’s account settled, cash discount three percent)
(iv)	Bank A/c	Dr.
		Dr.
	To				8,400
	(70 paise per rupee received from the estate of Ashok on his insolvency)
(v)		Dr.		3,000
	To				3,000
	(For goods used by proprietor for personal use)
(vi)		Dr.		2,000
	To				2,000
	(For Rent due to landlord)

Answer 1

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Cash A/c	Dr.		4,410
	Discount Allowed A/c	Dr.		90
	To Sales A/c				4,500
	(Goods of the list price of Rs 5,000 sold at 10% trade discount and 2% cash discount)
ii)	Motor Car A/c	Dr.		85,000
	To Cash A/c				85,000
	(The purchase of Motor Car for Rs 80,000 and the payment of Rs 5,000 as repairs charges on it)
iii)	Chaturvedi’s A/c	Dr.		5,000
	To Cash A/c				4,850
	To Discount Received A/c				150
	(Chaturvedi’s account settled, cash discount three percent)
iv)	Cash A/c	Dr.		5,880
	Bad Debts A/c	Dr.		2,520
	To Ashok’s A/c				8,400
	(70 paise per rupee received from the estate of Ashok on his insolvency)
v)	Drawings A/c	Dr.		3,000
	To Purchases A/c				3,000
	(For goods used by proprietor for personal use)
vi)	Rent A/c	Dr.		2,000
	To Outstanding Rent A/c				2,000
	(For Rent due to landlord)
	TOTAL			1,07,900	1,07,900