Question

Prepare journal from the transactions given below:−
(a) Proprietor withdrew for private use ₹ 10,000 from bank.
(b) Goods costing ₹ 50,000 were burnt by fire.
(c) Purchased machinery for cash ₹ 1,50,000 and paid ₹ 2,000 on its installation.
(d) Charge 5% depreciation on building costing ₹ 2,00,000 and 8% depreciation on furniture costing ₹ 5,000.
(e) Prepaid salary ₹ 2,000.
(f) Kapil who owed us ₹ 20,000 becomes insolvent and nothing is received from his estate.

Answer 1

Journal In the Books of …
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Drawings A/c	Dr.		10,000
	To Bank A/c				10,000
	(Cash withdrawn from bank for personal use)
b)	Loss by Fire A/c	Dr.		50,000
	To Purchases A/c				50,000
	(Goods destroyed by fire)
c)	Machinery A/c	Dr.		1,52,000
	To Cash A/c				1,52,000
	(Purchased machinery for cash and installation charges were paid)
d)	Depreciation A/c	Dr.		10,400
	To Building A/c				10,000
	To Furniture A/c				400
	(Depreciation charged on building and furniture)
e)	Prepaid Salary A/c	Dr.		2,000
	To Salary A/c				2,000
	(Prepaid salary recorded)
f)	Bad Debts A/c	Dr.		20,000
	To Kapil’s A/c				20,000
	(Bad debts written-off)
	TOTAL			2,44,400	2,44,400