Page 76 - ISCDEBK-XI

Sub-Division of Journal 11.5

Solution:
JOURNAL PROPER
Date Particulars L.F. Dr. (`) Cr. (`)
2022
March 31 Prepaid Insurance A/c ...Dr. 4,000
(i) To Insurance A/c 4,000
(Being the adjustment of prepaid insurance)
(ii) Salaries A/c ...Dr. 10,000
To Outstanding Salaries A/c 10,000
(Being the adjustment of salaries due but not paid)
(iii) Rent Received A/c (` 8,000 × 2) ...Dr. 16,000
To Rent Received in Advance A/c 16,000
(Being the adjustment of rent received in advance)
(iv) Salaries A/c ...Dr. 2,500
To Outstanding Salaries A/c 2,500
(Being the adjustment of salaries due but not paid)
(v) Interest on Loan A/c (` 25,000 × 9/12 × 8/100) ...Dr. 1,500
To Outstanding Interest A/c 1,500
(Being the adjustment of outstanding interest for 9 months)

Unsolved Questions

1. (Opening Entries). Following balances appeared in the Balance Sheet of Ram Stores on 31st March, 2022.
Pass necessary Journal entries for opening the books for the year 2021–22:

Debit Balances: Furniture ` 4,000; Machinery ` 20,000; Debtors ` 5,000; Bills Receivable ` 11,800; Cash
` 14,200.
Credit Balances: Capital ` 30,000; Bills Payable ` 15,000; Creditors ` 10,000.

2. Record the following transactions into proper subsidiary books, close the subsidiary books on
31st January, 2022 and post them into Ledger:
2022 `
Jan. 1 Purchased goods from Mahinder of the list price of
` 40,000 less Trade Discount 10%
Jan. 5 Sold goods to Moti 10,000
Jan. 6 Returned goods to Mahinder of the list price 5,000
Jan. 7 Sold goods to Shyam Singh 30,000
Jan. 8 Sold goods to Harish 12,000
Jan. 19 Sold goods to Moti 6,000
Jan. 27 Sold goods to Mahesh 8,000

GUIDE TO ANSWER

2. Total of Purchases Book—` 1,27,200; Total of Sales Book—` 43,437.50.