Question

Journalise the following transactions:−
(i) Sold goods to Brijesh of the list price of ₹ 10,000 at trade discount of 5%. Received full payment in cash.
(ii) Goods given away as charity ₹ 1,000.
(iii) Charge interest on capital of ₹ 5,00,000 @ 7% p.a.
(iv) Outstanding wages ₹ 3,000.
(v) ₹ 5,000 due from Sunny are now bad debts.
(vi) ₹ 50,000 cash sales (of goods costing ₹ 40,000).

Answer 1

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Cash A/c	Dr.		9,500
	To Sales A/c				9,500
	(Goods sold for cash to Brijesh)
2)	Charity A/c	Dr.		1,000
	To Purchases A/c				1,000
	(Goods given away as charity)
3)	Interest on Capital A/c	Dr.		35,000
	To Capital A/c				35,000
	(Interest on capital provided)
4)	Wages A/c	Dr.		3,000
	To Outstanding Wages A/c				3,000
	(Outstanding wages provided)
5)	Bad Debts A/c	Dr.		5,000
	To Sunny’s A/c				5,000
	(Bad debts written-off)
6)	Cash A/c	Dr.		50,000
	To Sales A/c				50,000
	(Goods sold for cash)
	TOTAL			1,03,500	1,03,500