SET 4: Solved Journal Entries

SET 4: Solved Journal Entries

Q31. Capital Introduced (Cash + Asset)

Cash A/c Dr 30,000
Furniture A/c Dr 20,000
  To Capital A/c 50,000
(Being cash and furniture introduced as capital)

Q32. Rent Paid + Prepaid Rent

Rent A/c Dr 10,000
Prepaid Rent A/c Dr 2,000
  To Cash A/c 12,000
(Being rent paid, including prepaid rent)

Q33. Insurance Paid + Prepaid Insurance

Insurance Expense A/c Dr 12,000
Prepaid Insurance A/c Dr 6,000
  To Cash A/c 18,000
(Being insurance paid, including prepaid amount)

Q34. Purchase – Cash + Credit

Purchase A/c Dr 25,000
  To Cash A/c 15,000
  To Creditor A/c 10,000
(Being goods purchased partly for cash and partly on credit)

Q35. Sales – Cash + Credit

Cash A/c Dr 7,000
Debtor A/c Dr 3,000
  To Sales A/c 10,000
(Being goods sold partly for cash and partly on credit)

Q36. Outstanding Salary

Salary A/c Dr 5,000
  To Outstanding Salary A/c 5,000
(Being salary outstanding)

Q37. Accrued Interest Income

Accrued Interest A/c Dr 4,000
  To Interest Income A/c 4,000
(Being interest income accrued)

Q38. Machine Purchased – Cash + Loan

Machinery A/c Dr 20,000
  To Cash A/c 5,000
  To Bank Loan A/c 15,000
(Being machinery purchased partly for cash and partly on loan)

Q39. Bad Debts + Provision

Bad Debts A/c Dr 3,500
Profit & Loss A/c Dr 1,000
  To Provision for Bad Debts A/c 4,500
(Being bad debts written off and provision created)

Q40. Drawings by Owner

Drawings A/c Dr 6,000
  To Cash A/c 6,000
(Being cash withdrawn by owner for personal use)