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Journalise followings:
1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.?
1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.?
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Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber p...
Journal Entry for Construction Materials
- Transaction Details: Bricks, Cement, and Timber purchased for office building.
- Total Cost: Bricks and Cement: Rs. 1,40,000; Timber: Rs. 2,00,000.
- Payment Method: Payment made by cheque.
Journal Entry
- Date: [Insert Date]
- Debit: Office Building (Asset) Rs. 3,40,000
- Credit: Bank (Asset) Rs. 3,40,000
Explanation
- This entry reflects the purchase of construction materials used for the office building.
- Both the assets (Bricks, Cement, Timber) increase the value of the building, hence the debit to the Office Building account.
- The payment made via cheque reduces the bank balance, so it is credited.
Journal Entry for Rent Payment
- Transaction Details: Rent paid for premises.
- Total Rent: Rs. 15,000.
- Business Usage: Only 1/3 of the premises is used for business.
Journal Entry
- Date: [Insert Date]
- Debit: Rent Expense Rs. 5,000 (1/3 of Rs. 15,000)
- Debit: Drawings/Personal Account Rs. 10,000 (Non-business portion)
- Credit: Bank Rs. 15,000
Explanation
- The rent expense reflects only the portion used for business (1/3), which is Rs. 5,000.
- The non-business portion of Rs. 10,000 is considered a drawing, as it relates to personal use.
- The total rent paid affects the bank balance, hence it is credited.
By following these journal entries, accurate financial records are maintained, ensuring clarity in business transactions.
- Transaction Details: Bricks, Cement, and Timber purchased for office building.
- Total Cost: Bricks and Cement: Rs. 1,40,000; Timber: Rs. 2,00,000.
- Payment Method: Payment made by cheque.
Journal Entry
- Date: [Insert Date]
- Debit: Office Building (Asset) Rs. 3,40,000
- Credit: Bank (Asset) Rs. 3,40,000
Explanation
- This entry reflects the purchase of construction materials used for the office building.
- Both the assets (Bricks, Cement, Timber) increase the value of the building, hence the debit to the Office Building account.
- The payment made via cheque reduces the bank balance, so it is credited.
Journal Entry for Rent Payment
- Transaction Details: Rent paid for premises.
- Total Rent: Rs. 15,000.
- Business Usage: Only 1/3 of the premises is used for business.
Journal Entry
- Date: [Insert Date]
- Debit: Rent Expense Rs. 5,000 (1/3 of Rs. 15,000)
- Debit: Drawings/Personal Account Rs. 10,000 (Non-business portion)
- Credit: Bank Rs. 15,000
Explanation
- The rent expense reflects only the portion used for business (1/3), which is Rs. 5,000.
- The non-business portion of Rs. 10,000 is considered a drawing, as it relates to personal use.
- The total rent paid affects the bank balance, hence it is credited.
By following these journal entries, accurate financial records are maintained, ensuring clarity in business transactions.
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Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.?
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Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.?.
Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.?.
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Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.?, a detailed solution for Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.? has been provided alongside types of Journalise followings:1. Bricks, Cement etc. for 1,40,000 and Timber purchased Rs.2,00,000 and used for office building. Payment made by cheque. 2. Paid Rent for Rs. 15,000, only 1/3 part of premises used for business.? theory, EduRev gives you an
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