In the Books of Kanishk Credit Si no. Particulars 1 Charu's A/C (WN1) To Sales Alc L.F. Debit 1,36,000 Dr. 1,36,000 (Sold goods to Charu) 2 Dr. 85,000 Bank A/C (WN2) A/C To Sales A/C AC 85,000 (Sold goods to Arun) 3 Dr. 8,400 Insurance A/C To Bank A/C 8,400 Paid insurance premium through cheque) Dr. 2,800 Prepaid Insurance A/C To Insurance A/C 12,800 (Paid four months advanced Insurance premium) TOTAL 2,32,200 2,32,200 Working notes 1: Evaluation of amount of goods sold to Charu Cost = 1,20,000 916 Add: Profit @ 33% % on 1,20,000 = 40,0001,60,000 Less: Trade Discount @ 15% on 1,60,000 = 24,0001,36,000 Working notes 2: Evaluation of amount of goods sold to Arun Cost = 80,000 Add: Profit @ 25% on 80,000 = 20,0001,00,000 Less: Trade Discount @ 15% = 15,00085,000 Solution 25 Record journal book 2017 Particulars March 4 10 15 18 Purchased building for 1,50,000 and incurred expenses of 10,000 on its purchase Satish who owed us 720,000 is declared insolvent and 60 paise per is received from his estate Paid 500 for repairing the office furniture Proprietor withdrew for his personal use cash 35,000 and goods worth 2,000 Purchased the following items for business. Iron Safe 15,000; Filing Cabinet 5,000; Computer * 12,000; Postage 200 and Stationery 150 Paid electricity charges 7 1,600 Charge depreciation on Machinery @ 10% for one year (Machinery 75,000) Outstanding wages at the end of the year 6,000 20 28 31 31