SET 5: Solved Journal Entries

SET 5: Solved Journal Entries

Q41. Rent Paid with Outstanding

Rent A/c Dr 20,000
Outstanding Rent A/c Dr 4,000
  To Cash A/c 24,000
(Being rent paid and outstanding rent adjusted)

Q42. Insurance Paid with Prepaid

Insurance Expense A/c Dr 10,000
Prepaid Insurance A/c Dr 5,000
  To Cash A/c 15,000
(Being insurance paid including prepaid amount)

Q43. Machinery Purchased (Cash + Bank)

Machinery A/c Dr 40,000
  To Cash A/c 10,000
  To Bank A/c 30,000
(Being machinery purchased partly in cash and partly by cheque)

Q44. Purchase – Cash and Credit

Purchase A/c Dr 18,000
  To Cash A/c 8,000
  To Creditor A/c 10,000
(Being goods purchased partly for cash and partly on credit)

Q45. Sales – Cash and Credit

Cash A/c Dr 12,000
Debtors A/c Dr 10,000
  To Sales A/c 22,000
(Being goods sold partly for cash and partly on credit)

Q46. Accrued Interest Income

Accrued Interest A/c Dr 6,000
  To Interest Income A/c 6,000
(Being interest income accrued but not received)

Q47. Outstanding Salary

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

Q48. Bad Debts and Provision

Bad Debts A/c Dr 2,000
Profit & Loss A/c Dr 500
  To Provision for Bad Debts A/c 2,500
(Being bad debts written off and provision created)

Q49. Loss of Goods by Fire

Loss by Fire A/c Dr 12,000
  To Stock A/c 12,000
(Being goods destroyed by fire)

Q50. Drawings (Cash + Goods)

Drawings A/c Dr 12,000
  To Cash A/c 8,000
  To Purchase / Stock A/c 4,000
(Being cash and goods withdrawn by owner for personal use)