Question

Journalise the following transactions:
1. Purchased a Motor Car for ₹ 3,00,000 and paid ₹ 25,000 for its repair and renewal. Entire payment is made by cheque.
2. Received Rent ₹ 5,000.
3. Goods worth ₹ 20,000 were distributed as free samples.
4. Charge depreciation on Motor Car ₹ 32,500.
5. Rent due to Landlord ₹ 10,000 and Salary due to Clerks ₹ 80,000.
6. Charge interest on Capital ₹ 20,000.
7. ₹ 5,000 due from Sanjay Gupta are bad-debts.
8. Goods worth ₹ 50,000 were destroyed by fire.
9. Cash ₹ 5,000 and goods worth ₹ 20,000 were stolen by an employee.

Answer 1

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
1)	Motor Car A/c	Dr.		3,25,000
	To Bank A/c				3,25,000
	(Purchased motorcar and payment made for repair and renewal)
2)	Cash A/c	Dr.		5,000
	To Rent A/c				5,000
	(Rent received)
3)	Advertisement Expenses A/c	Dr.		20,000
	To Purchases A/c				20,000
	(Goods distributed as free samples)
4)	Depreciation A/c	Dr.		32,500
	To Motor Car A/c				32,500
	(Depreciation charged on motor car)
5)	Rent A/c	Dr.		10,000
	Salaries A/c	Dr.		80,000
	To Outstanding Expenses A/c				90,000
	(Outstanding expenses provided)
6)	Interest on Capital A/c	Dr.		20,000
	To Capital A/c				20,000
	(Interest on capital provided)
7)	Bad Debts A/c	Dr.		5,000
	To Sanjay Gupta’s A/c				5,000
	(Bad debts written-off)
8)	Loss by Fire A/c	Dr.		50,000
	To Purchases A/c				50,000
	(Goods destroyed by fire)
9)	Loss by Theft A/c	Dr.		25,000
	To Cash A/c				5,000
	To Purchases A/c				20,000
	(Cash and goods stolen by an employee)
	TOTAL			5,72,500	5,72,500