Question

Journalise the following transactions:−
1. Goods for ₹ 50,000 were destroyed by fire.
2. Goods worth ₹ 18,000 were distributed as free samples and ₹ 20,000 were given away as charity in cash.
3. Goods worth ₹ 25,000 and cash ₹ 40,000 were taken away by the proprietor for his personal use.
4. Goods worth ₹ 20,000 and cash ₹ 5,000 were given away as charity.
5. Cash ₹ 1,00,000 were stolen from the Iron Safe of the trader.

Answer 1

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Loss by Fire A/c	Dr.		50,000
	To Purchases A/c				50,000
	(Goods destroyed by fire)
2)	Advertisement Expenses A/c	Dr.		18,000
	To Purchases A/c				18,000
	(Goods distributed as free samples)
	Charity A/c	Dr.		20,000	20,000
	To Cash A/c
	(Cash given away as charity)
3)	Drawings A/c	Dr.		65,000
	To Cash A/c				40,000
	To Purchases A/c				25,000
	(Goods and cash withdrawn for personal use)
4)	Charity A/c	Dr.		25,000
	To Cash A/c				5,000
	To Purchases A/c				20,000
	(Goods and cash given away as charity)
5)	Loss by Theft A/c	Dr.		1,00,000
	To Cash A/c				1,00,000
	(Cash stolen)
	TOTAL			2,78,000	2,78,000