Question No 32 Chapter No 5 - D.K Goal Class 11

Question No 32 Chapter No 5

32. Journalise the following transaction :-

1	Purchased a Motor Car for 3,00,000 and paid 25,000 for its repair and renewal. Entire payment is made by cheque.
2	Received Rent 5,000.
3	Goods worth 20,000 were distributed as free samples.
4	Charge depreciation on Motor Car 32,500
5	Rent due to Landlord 10,000 and Salary due to Clerks 80,000
6	Charge interest on Capital 20,000.
7	5,000 due from Sanjay Gupta are bad-debts
8	Goods worth 50,000 were destroyed by fire
9	Cash 5,000 and goods worth 20,000 were stolen by an employee

The solution of Question No 32 Chapter No 5: –

In the Books of Radhika Traders
Date	Particulars		L.F.	Debit	Credit
2019
1	Motor Car A/c	Dr.		3,25,000
	To Bank A/c				3,25,000
	(Being Purchased motor car and payment made for repair and renewal)

2	Cash A/c	Dr.		5,000
	To Rent A/c				5,000
	(Being Rent received)

3	Advertisement Expenses A/c	Dr.		20,000
	To Purchases A/c				20,000
	(Being Goods distributed as free samples)

4	Depreciation A/c	Dr.		32,500
	To Motor Car A/c				32,500
	(Being Depreciation charged on motor car )

5	Rent A/c	Dr.		1,000
	Salaries A/c	Dr.		80,000
	To Outstanding Expenses A/c				80,000
	(Being outstanding expenses provided)

6	Interest on Capital A/c	Dr.		20,000
	To Capital A/c				20,000
	(Being Interest on capital provided)

7	Bad Debts A/c	Dr.		5,000
	To Sanjay Gupta’s A/c				5,000
	(Being Bad debts written −off )

8	Loss by Fire A/c	Dr.		50,000
	To Purchases A/c				50,000
	(Being Goods destroyed by fire)

9	Loss by Theft A/c	Dr.		25,000
	To Cash A/c				5,000
	To Purchases A/c				20,000
	(Being Cash and goods stolen by an employee)