Question

Journalise the following entries:
(i) Goods costing ₹ 500 given as charity.
(ii) Sold goods to Mayank of ₹ 1,00,000, payable 25% by cheque at the time of sale and balance after 30 days of sale.
(iii) Received ₹ 975 from Harikrishna in full settlement of his account of ₹ 1,000.
(iv) Received a first and final dividend of 60 paise in a rupee from the Official Receiver of Rajan, who owed us ₹ 1,000.
(v) Charge interest on Drawings ₹ 1,500.
(vi) Sold goods costing ₹ 40,000 to Anil for cash at a profit of 25% on cost less 20% trade discount and paid cartage ₹ 100, which is not to be charged from customer.

Answer 1

Journal
Sr. No.	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
(i)	Charity A/c	Dr.		500
	To Purchases A/c				500
	(Goods given as charity)
(ii)	Bank A/c	Dr.		25,000
	Mayank A/c	Dr.		75,000
	To Sales A/c				1,00,000
	(Goods sold partly through cheque and partly through credit)
(iii)	Cash A/c	Dr.		975
	Discount Allowed A/c	Dr.		25
	To Harikrishna A/c				1,000
	(Cash received from Harikrishna in full and final settlement)
(iv)	Cash A/c	Dr.		600
	Bad Debts A/c	Dr.		400
	To Rajan A/c				1,000
	(First and final dividend received from Rajan in full settlement of his debt)
(v)	Drawings A/c	Dr.		1,500
	To Interest on Drawings A/c				1,500
	(Interest on drawings charged)
(vi)	Cash A/c	Dr.		40,000
	To Sales A/c				40,000
	(Goods sold to Anil at 25% profit on cost and 20% Trade Discount)
	Cartage A/c	Dr.		100
	To Cash A/c				100
	(Cartage paid)