Q1. Pass necessary journal entries:

Ram Shawls Sold to Gupta Shawls 100 shawls @ 200 per shawl on 4th January, 2020. Trade

Discount 25% and Cash Discount 5%, if full payment is made within 14 days. Gupta

Shawls sent 50% of the payment on 14th January, 2020 and balance payment on

10th February, 2020.

Shyam became insolvent. Compensation of 75 paise in a rupee was received from his Official Receiver. He owed us Rs. 10,000.

Received commission of Rs. 20,000 by cheque , half of which is in advance.

Out of the rent paid this year Rs. 5,000 is for the next year.

Goods stolen by an employee ( sale price Rs. 2,000; Cost Rs. 1,500)

Goods costing Rs 1,000 damaged by fire and insurance company accepted claim of Rs. 800 and cheque is received from the insurance company.

Sold household furniture of proprietor for Rs 5,000. The proceeds were invested into business.

Brick, cement etc. for Rs 1,50,000 and timber for Rs 2,00,000 purchase for the renovation of building. Payment was made by cheque.

Sold goods costing Rs 20,000 to Sunil at a profit of 20% on sales less 20% trade discount and paid cartage Rs 150 ( to be charged from customer)

Paid Life insurance premium of Rs 15,000.

Goods sold for cash Rs 7,000 and half of the sale proceeds deposited in the bank.

Rs 8,000 due from Ramesh is not recoverable.

Placed an order with Rakesh for supply of goods of the list price of Rs 1,00,000 . In this connection Ramesh paid 10% of the list price as an advance by cheque.

Goods lost in transit Rs 2,000.

Purchase is second hand machinery for rupees 18,000. Paid repairing charges on the same machinery Rs. 2,500