Page 76 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting

Notes January 26 Paid into bank 4,400.
January 28 Karim declared insolvent, a first and final dividend of 50 paise in a rupee is
received from him.
January 29 Goods worth 1,200 returned to Krishna & Co.

January 31 Interest on capital provided 822.
January 31 Goods worth 800 taken by Mr. Shiv Kumar for his personal use.
January 31 Paid salaries to staff 3,600.
January 31 Paid into bank 40,000.
January 31 Bought 200 shares in Dehradun Chemicals Ltd. at 11, per share Brokerage paid
50.
January 31 Received 11,800 from Shobhit & Co. discount allowed 200.
Solution:
Journal Proper
Date Particulars L.F. Amount Dr. Amount Cr.
( ) ( )
2008
January 01 Cash Account Dr. 31,400
Bank Account Dr. 50,800
To Capital Account 82,200
(Entry made for opening balances)
January 24 Furniture Account Dr. 1,600
To Sardar Furniture House 1,600
(Being purchase of furniture on credit from Sardar
Furniture House)
January 28 Bad Debts Account Dr. 2,000
To Karim 2,000
(On the insolvency of Karim 50 paise in a rupee
received and balance treated as bad debts)
January 31 Interest on Capital Account Dr. 822
To Capital Account 822
(Interest on capital charged)
January 31 Drawing Account Dr. 800
To purchase Account 800
(Proprietor took goods for personal use)
January 31 Capital Account Dr. 1,800
To Drawing Account 1,800
(Balance of drawing account transferred to Capital
account)
Total 89,222 89,222

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