Question

Journalise the following transactions:

		₹
(i)	Shyam became insolvent. A first and final compensation of 75 paise in a rupee was received from his Official Receiver. He owed us	10,000
(ii)	Received cash for bad debts written off last year.	5,000
(iii)	Rent due to landlord.	8,000
(iv)	Salaries due to clerks.	10,000
(v)	Placed an order with Rakesh Mohan for the supply of goods of the list price of ₹ 1,00,000. In this connection, Raman paid 10% of the list price as an advance by cheque.

Answer 1

Journal
Sr. No.	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Cash A/c	Dr.		7,500
	Bad Debts A/c	Dr.		2,500
	To Shyam’s A/c				10,000
	(Insolvency of Shyam with 75 paisa in a rupee recoverable)
(ii)	Cash A/c	Dr.		5,000
	To Bad Debts Recovered A/c				5,000
	(Amount written off as bad debts recovered)
(iii)	Rent A/c	Dr.		8,000
	To Outstanding Rent A/c				8,000
	(Rent due to landlord)
(iv)	Salary A/c	Dr.		10,000
	To Outstanding Salary A/c				10,000
	(Salary due to clerk)
(v)	Advance to Rakesh Mohan A/c	Dr.		10,000
	To Bank A/c				10,000
	(Advance paid to Rakesh Mohan for a future order)