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Journalise the following:
(i) Cash withdrawn by the proprietor for personal use₹2,000.
(ii) Goods purchased for₹ 5,000 were taken by the proprietor for personal use.
(iii) Paid₹ 5,000 as life insurance premium of the proprietor.
(iv) Goods uninsured of 3,000 (purchase cost) were destroyed by fire.
(v) Goods costing 1,000 damaged by fire and Insurance Company accepted claim of 800 and cheque is received from the Insurance Company.
(vi) Goods costing 500 given as charity (Sales Price 600).
(vii) Sold household furniture for₹ 5,000. The proceeds were invested into business.?
Most Upvoted Answer
Journalise the following:(i) Cash withdrawn by the proprietor for pers...
Journal Entries for Various Transactions:
1. Cash withdrawn by the proprietor for personal use ₹2,000
- Drawings A/c Dr. ₹2,000
To Cash A/c ₹2,000
2. Goods purchased for ₹5,000 were taken by the proprietor for personal use
- Drawings A/c Dr. ₹5,000
To Purchases A/c ₹5,000
3. Paid ₹5,000 as life insurance premium of the proprietor
- Life Insurance Premium A/c Dr. ₹5,000
To Cash A/c ₹5,000
4. Goods uninsured of 3,000 (purchase cost) were destroyed by fire
- Loss by Fire A/c Dr. ₹3,000
To Purchases A/c ₹3,000
5. Goods costing ₹1,000 damaged by fire and Insurance Company accepted claim of ₹800 and cheque is received from the Insurance Company
- Cash A/c Dr. ₹800
To Insurance Claim A/c ₹800
6. Goods costing ₹500 given as charity (Sales Price ₹600)
- Charity A/c Dr. ₹500
To Purchases A/c ₹500
7. Sold household furniture for ₹5,000. The proceeds were invested into business
- Cash A/c Dr. ₹5,000
To Furniture A/c ₹5,000
Explanation:
- The transactions involving cash withdrawals for personal use, goods taken for personal use, insurance premium payment, and charity are recorded as drawings or expenses of the proprietor.
- For goods destroyed by fire, the loss is recorded as a loss by fire in the books of accounts.
- When goods are damaged by fire and an insurance claim is accepted, the amount received from the insurance company is recorded as income.
- The sale of household furniture and reinvestment of proceeds into the business are recorded to reflect the changes in assets and capital accounts.
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Journalise the following:(i) Cash withdrawn by the proprietor for personal use₹2,000.(ii) Goods purchased for₹ 5,000 were taken by the proprietor for personal use.(iii) Paid₹ 5,000 as life insurance premium of the proprietor.(iv) Goods uninsured of 3,000 (purchase cost) were destroyed by fire.(v) Goods costing 1,000 damaged by fire and Insurance Company accepted claim of 800 and cheque is received from the Insurance Company.(vi) Goods costing 500 given as charity (Sales Price 600).(vii) Sold household furniture for₹ 5,000. The proceeds were invested into business.?
Question Description
Journalise the following:(i) Cash withdrawn by the proprietor for personal use₹2,000.(ii) Goods purchased for₹ 5,000 were taken by the proprietor for personal use.(iii) Paid₹ 5,000 as life insurance premium of the proprietor.(iv) Goods uninsured of 3,000 (purchase cost) were destroyed by fire.(v) Goods costing 1,000 damaged by fire and Insurance Company accepted claim of 800 and cheque is received from the Insurance Company.(vi) Goods costing 500 given as charity (Sales Price 600).(vii) Sold household furniture for₹ 5,000. The proceeds were invested into business.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Journalise the following:(i) Cash withdrawn by the proprietor for personal use₹2,000.(ii) Goods purchased for₹ 5,000 were taken by the proprietor for personal use.(iii) Paid₹ 5,000 as life insurance premium of the proprietor.(iv) Goods uninsured of 3,000 (purchase cost) were destroyed by fire.(v) Goods costing 1,000 damaged by fire and Insurance Company accepted claim of 800 and cheque is received from the Insurance Company.(vi) Goods costing 500 given as charity (Sales Price 600).(vii) Sold household furniture for₹ 5,000. The proceeds were invested into business.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journalise the following:(i) Cash withdrawn by the proprietor for personal use₹2,000.(ii) Goods purchased for₹ 5,000 were taken by the proprietor for personal use.(iii) Paid₹ 5,000 as life insurance premium of the proprietor.(iv) Goods uninsured of 3,000 (purchase cost) were destroyed by fire.(v) Goods costing 1,000 damaged by fire and Insurance Company accepted claim of 800 and cheque is received from the Insurance Company.(vi) Goods costing 500 given as charity (Sales Price 600).(vii) Sold household furniture for₹ 5,000. The proceeds were invested into business.?.
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