Question

Pass Journal Entries for the following transactions:−
1. Provide depreciation on Furniture ₹ 500 and on Machinery ₹ 2,000.
2. Received cash ₹ 1,000 for bad-debts written off last year.
3. Ajay Singh was declared bankrupt. He owed ₹ 2,500 to us. Nothing could be recovered from his estate.
4. ₹ 20,000 for wages and ₹ 4,000 for salaries are outstanding.
5. Purchased furniture for ₹ 6,000 for the proprietor and paid the amount by cheque.
6. Provide 9% interest on capital amounting to ₹ 2,00,000.
7. Charge interest on drawings ₹ 1,000.

Answer 1

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1.	Depreciation A/c	Dr.		2,500
	To Furniture A/c				500
	To Machinery A/c				2,000
	(Depreciation charged on furniture and machinery)
2.	Cash A/c	Dr.		1,000
	To Bad Debts Recovered A/c				1,000
	(Bad debts recovered)
3.	Bad Debts	Dr.		2,500
	To Ajay Singh’s A/c				2,500
	(Bad debts written-off)
4.	Wages A/c	Dr.		20,000
	Salaries A/c	Dr.		4,000
	To Outstanding Wages A/c				20,000
	To Outstanding Salaries A/c				4,000
	(Wages and Salaries were outstanding)
5.	Drawings A/c	Dr.		6,000
	To Bank A/c				6,000
	(Furniture purchased for personal use)
6.	Interest on Capital A/c	Dr.		18,000
	To Capital A/c				18,000
	(Interest on capital provided)
7.	Drawings A/c	Dr.		1,000
	To Interest on Drawings A/c				1,000
	(Interest on drawings charged)
	TOTAL			55,000	55,000