L.F. Debit Credit Journal Books SI Particulars no. a) Drawings Alc To Bank A/C Dr. 10,000 10,000 , (Withdrew cash for personal use from bank) Dr. 50,000 b) Loss by Fire A/C To Purchases A/C 50,000 (Destroyed goods by fire) Dr. c) Machinery A/C To Cash A/C TA 1,52,000 1,52,000 (Machinery purchased for cash and paid installation charges) q15 Dr. 10,400 d) Depreciation A/C To Building A/C 10,000 To Furniture A/C (Charged depreciation on furniture and building) 400 Dr. 2,000 e) Prepaid Salary A/C To Salary A/C / 2,000 (Salary paid) f) Dr. 20,000 Bad Debts A/C To Kapil's A/C 20,000 (Written-off Bad debts) TOTAL 2,44,400 2,44,400 Solution 23 Record Navin Gupta & Sons Journal Entries 1. Out of Insurance premium paid this year, 715,000 is related to next year. 2. Credit purchases from Ram & Co. for 50,000. Cash discount will be received at 5% on payment of bill within 10 days. . 3. Cash paid to Ram & Co. and discount availed of. 4. Paid Income Tax 720,000 by cheque. 5. Goods costing * 2,00,000 sold for cash at a profit of 10%. 6. Purchased iron safe for 2,00,000 filing cabinet for 50,000 and Computer for 1,00,000