Journalise the following transactions :

2016

 

 

Rs.

May 2

Paid interest to Loan

4,000

May 3

Ramesh who owed Rs.3,000 has become insolvent. He pays 50 paise in rupee in full settlement

 

May 4

A cheque received from Ranjan deposited into bank was returned dishonored

6,300

May 5

Wood used for making office furniture

5,000

May 21

Due from Rama are bad debts

600

May 25

Purchased building and issued cheque

4,300

 

Asked by Topperlearning User | 28th Jul, 2016, 05:26: PM

Expert Answer:

  Journal Entry

Date

Particulars

 

L.F.

Dr.

Rs.

Cr.

 Rs. 

2016

May 2

 

Interest to Loan A/c                             Dr.

 

 

 

 

4,000

 

 

To Cash A/c

 

 

 

4,000

 

(Being interest payment made on loan)

 

 

 

 

May 3

Cash A/c                                               Dr.

 

 

1,500

 

 

Bad Debts A/c                                      Dr.

 

 

1,500

 

 

To Ramesh A/c

 

 

 

3,000

 

(Being 50 paise in rupee received from Ramesh out of the debt of Rs.3,000 in full settlement)

 

 

 

 

May 4

Ranjan A/c                                            Dr.

 

 

6,300

 

 

To Bank A/c

 

 

 

6,300

 

(Being the cheque deposited into bank dishonoured) 

 

 

 

 

May 5

Furniture A/c                                         Dr.

 

 

5,000

 

 

To Purchases A/c

 

 

 

5,000

 

(Being the wood used in making office furniture)

 

 

 

 

May 21

Bad Debts A/c                                      Dr.

 

 

600

 

To Rama A/c

 

 

 

600

(Being the bad debts written off )

 

 

 

 

May 25

Building A/c                                          Dr.

 

 

4,300

 

 

To Bank A/c

 

 

 

4,300

 

(Being the goods purchased and payment made through cheque)

 

 

 

 

 

Answered by  | 28th Jul, 2016, 07:26: PM