Page 51 - ISCDEBK-XI

7.6 Double Entry Book Keeping—ISC XI

April 18 Cash A/c ...Dr. 705
To Investments A/c 705
(Being 40 shares in Bharat Ltd. sold @ ` 18 per share less brokerage ` 15)
April 20 Delivery Van A/c ...Dr. 21,000
To Bank A/c 21,000
(Being the delivery van bought for delivering goods to customers)
April 22 Charity A/c ...Dr. 501
Postage A/c ...Dr. 200
Stationery A/c ...Dr. 199
To Cash A/c 900
(Being the cash paid for charity, postage and stationery)
April 30 Interest A/c ...Dr. 1,000
To Mrs. Anita’s Loan A/c 1,000
(Being the interest payable on Mrs. Anita Loan ` 1,00,000
@ 12% p.a. for one month)
April 30 Cash A/c ...Dr. 10,000
Loss on Sale of Delivery Van A/c ...Dr. 11,000
To Delivery Van A/c 21,000
(Being the delivey van sold for cash after accident and balance of cost
written off as loss)
April 30 Cash A/c ...Dr. 3,000
Travelling Expenses A/c ...Dr. 150
To Sales A/c 3,150
(Being ` 3,000 cash received for sales from travelling salesman after
deducting his travelling expenses ` 150)
April 30 Salaries A/c ...Dr. 3,500
Rent A/c ...Dr. 1,500
To Cash A/c 5,000
(Being the payment of salaries and rent)
April 30 Cash A/c ...Dr. 10,800
To Sales A/c 10,800
(Being the sales of goods worth ` 12,000 less 10% trade discount)
Illustration 3.
Pass the Journal entry for each of the following items:
(i) Acquired running business of Rama & Co. for cash ` 40,000, by taking over the following
assets and liabilities at values stated against them.
Stock of Goods ` 25,000; Furniture ` 10,000; Debtors ` 7,000; Machinery ` 8,000; Creditors
` 22,000.
Out of ` 40,000 payable to Rama & Co., ` 10,000 were borrowed from B.
(ii) Took loan of ` 1,00,000 from M but he paid the amount after deducting interest in advance
for one year at 6% p.a.
(iii) Bought from D & Co. goods for ` 6,000 less 15% trade discount and 2% cash discount
terms and paid them half the amount in cash.
(iv) Sold to L goods worth ` 600 less 2½% cash discount and received payment by cheque.
(v) L’s cheque returned unpaid by Bank, marked ‘Insufficient Funds’.
(vi) Paid to D & Co. ` 2,500 in full settlement of their account.