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8.14 Double Entry Book Keeping—CBSE XI

Solution: CORRECT JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)

(i) Sales Return A/c ...Dr. 2,000
To Y 2,000
(Goods returned by Y costing ` 2,000)
(ii) Drawings A/c ...Dr. 1,000
To Cash A/c 1,000
(Income tax paid)
(iii) Y ...Dr. 5,000
To Bank A/c 5,000
(Cheque received from Y dishonoured)

(iv) Cash A/c ...Dr. 1,000
To Commission A/c 800
To Commission Received in Advance A/c 200
(Commission received out of which 1/5th is received in advance)

(v) Samples A/c or Advertisement A/c ...Dr. 2,000
To Purchases A/c 2,000
(Goods distributed as samples)
(vi) Accrued Interest A/c ...Dr. 4,000
To Interest A/c 4,000
(Interest accrued)

(vii) Outstanding Salary A/c ...Dr. 12,000
To Bank A/c 12,000
(Salary outstanding was paid by giving a cheque of ` 12,000)

(viii) Lata’s Loan A/c ...Dr. 25,000
To Machinery A/c 20,000
To Profit & Loss A/c 5,000
(Lata’s loan of ` 25,000 was repaid by giving a machine of ` 20,000 in full
settlement, gain on disposal transferred to Profit & Loss A/c)

(ix) Electricity Expenses A/c ...Dr. 3,000
To Outstanding Electricity Expenses A/c 3,000
(Electricity bill remain unpaid)
(x) Kailash ...Dr. 2,000
To Purchases Return A/c 2,000
(Goods of ` 2,000 returned to Kailash)