User Account

All Pages

journal entries, Accounting Basics

Assignment Help:
on april-1,2005,raghu started a business of selling steel pipes and angles.he invested cash of Rs.50,00,000 & opened a current a/c with bank for Rs.20,00,000.He took loan from ICICI Bank of Rs.40,00,000 for 5yrs.@10%p.a.For this purposee he purchased machinery of Rs.13,00,000 ; land of Rs.20,00,000 & furniture of Rs.10,00,000.He withderw goods worth Rs.4,00,000 for personal use.he hired a worker& agreed to pay him Rs.50,000/month.he purchased an insurance of goods amounting to Rs.8,00,000. He purchased iron rods fro RAM & CO. worth Rs.5,00,000 on credit basis.On apr-12,goods worth Rs.2,00,000 were returned to him. On may-30,he sold steel pipes to Gupta & CO. worth Rs.6,00,000 on credit basis. On june-30,he sold steel angles worth Rs.10,00,000 to Kumar & CO.who settled his payment as 25% cash,15% cheque and drew a bill of remaining balance for 3 months.On july-4,steel pipes worth Rs.50,000 were returned by GUPTA & CO. On sept-4,he purchased iron rods worth Rs.2,50,000 from KHANNA & CO. who drew a bill for 6 monts on him which he duly accepted. He sold steel rods worth Rs.2,00,000 to SHARMA & CO. on march-2 and received half amount immediately and the remaining half was payable after 3 months.He sold steel rods to RAKESH & CO. worth Rs. 8,00,000 on 4th march. On march-15,it was found that SHARMA & CO. become insolvent and 50 paise in a rupee was received from his estate.On july-6,office & administrative expenses worth Rs.20,000 and selling & distribution expenses worth Rs.50,000 were paid. Advertising expenses worth Rs.1,00,000 were paid on 3-aug. On 9-oct,loss due to theft was Rs.5,00,000 & insurance CO. paid it. Rs.3,00,000 were paid to RAM & CO. on 17-oct. On dec-16, Rs.5,50,000 were received from GUPTA & CO. On 12-feb-2006,machinery repair expenses were of rs.70,000. On 31-march, wages amounting to Rs.4,50,000 ; electricity bills amounting to Rs.3,00,000 ; heating & lighting expenses amounting to Rs.2,25,000 ; telefone charges of Rs.80,000 ; carriage and freight of Rs.1,20,000 and miscll.expenses of Rs.96,000 were paid. closing stock was valued @ Rs.6,00,000.Depreciation on machinery and furniture is to be provided @ 10% p.a. Wages amounting to Rs.1,50,000 are outstanding.Manager is entitled it commission of 7% on net profit. Interest on drawings is to be charged @ 2%p.a. Interest on capital @5%p.a. is to be provided.

Related Discussions:- journal entries

Show recording changes in dividends, Q. Show Recording changes in dividends...

Q. Show Recording changes in dividends? Recording changes in dividends ever since dividends decrease retained earnings increases appear on the left side of the Dividends accoun

Advantages and disadvantages of fifo, Advantages and disadvantages of FIFO ...

Advantages and disadvantages of FIFO The FIFO method has four main advantages (a) it is easy to apply (b) the assumed flow of costs corresponds with the normal physical flow o

Consistency in accounting principle, Q. Consistency in accounting principle...

Q. Consistency in accounting principle? Consistency necessitates that a company use the same accounting principles and reporting practices through time. Consistency makes possi

As part of their divorce agreement, As part of their divorce agreement , Ha...

As part of their divorce agreement , Harry transfers to Mary, his former spouse, GM stock with a market value of 30000, Harry had $20000 invested in the stock. How does this transf

Accounting Information Systems, ABC Insurance Company offers individual aut...

ABC Insurance Company offers individual auto and home insurance servicing the East Coast. The company''s home office is located in Albany, New York. However, ABC Insurance Company

Demonstrate perpetual inventory procedure, Q. Illustrate perpetual inventor...

Q. Illustrate perpetual inventory procedure? Data from Exhibit serves like the basis for some of the entries. You would debit the Merchandise Inventory account to record the en

What is comprehensive income and revenues, Q. What is Comprehensive income ...

Q. What is Comprehensive income and Revenues? Comprehensive income is the alter in equity of a business enterprise during a period from transactions and other events and circ

Stocks, Please help journalize: -On January 1, 2017 Harmony issued 1,500 sh...

Please help journalize: -On January 1, 2017 Harmony issued 1,500 shares of $22 par, 8% preferred stock for $43,700. -On January 1, 2017 Harmony also issued 2,000 shares of common s

Describe the accounting procedures, Q. Describe the accounting procedures? ...

Q. Describe the accounting procedures? The demand for college professors differ greatly by discipline. In fields such like Fine Arts, English, Philosophy and Psychology there i

Prepare the journal entry, Assume that the following are independent situat...

Assume that the following are independent situations recently reported in the Wall Street Journal. 1. National Electric 8% bonds, maturing January 28, 2013, were issued at 112.16.

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd