Journalise the following transactions :

2016

 

Rs.

May 2

Rent outstanding.

5,000

May 3

Received interest on loan from the debtor.  

35,000

May 4

Paid installation charges of a machine Rs.1,350 in cash.

 

May 5

Out of insurance paid this year, Rs.4,000 are related to next year.

 

May 21

Returned goods to Sita.

850

 

Asked by Topperlearning User | 28th Jul, 2016, 05:34: PM

Expert Answer:

 Journal Entry

 

Date

Particulars

 

L.F.

Dr.

Rs.

Cr.

 Rs. 

2016

May 2

 

Rent  A/c                                             Dr.

 

 

 

5,000

 

 

To Outstanding Rent A/c

 

 

 

5,000

 

(Being the outstanding rent accounted)

 

 

 

 

May 3

Cash A/c                                             Dr.

 

 

35,000

 

 

To Interest on Loan A/c

 

 

 

35,000

 

(Being interest on loan received)

 

 

 

 

 

 

 

 

 

 

May 4

Machinery  A/c                                    Dr.

 

 

1,350

 

 

To Cash A/c

 

 

 

1,350

 

(Being installation charges paid) 

 

 

 

 

 

 

 

 

 

 

May 5

Advance Insurance A/c                    Dr.

 

 

4,000

 

 

To Insurance A/c

 

 

 

4,000

 

(Being insurance prepaid for next year)

 

 

 

 

May 21

Sita  A/c                                               Dr.

 

 

850

 

 

To Purchases Return A/c

 

 

 

850

 

(Being goods returned to Sita)

 

 

 

 

 

 

Answered by  | 28th Jul, 2016, 07:34: PM