(xi) On payment of expenses by cheque Expenses Alc Dr. To Bank A/c On recovery of interest by bank Interest Alc Dr. To Bank A/C (xii) (xiii) On giving interest on deposits by bank Bank A/C Dr. To Interest Alc On collecting bank charges by bank for services rendered by them Bank Charges A/C Dr. To Bank A/C (xiv) b8 Illustration 15: Pass journal entries for the following transactions: 2016 July 1 Opened a bank account with the State Bank of India 75,000. July 2 Purchased goods from Manmohan of list price? 40,000 at a trade discount of 10% and cash discount of 2%. Paid 60% amount immediately by cheque. July 4 Sold goods to Sushil 20,000. July 5 Withdrew 2000 for personal use and 3000 for official use. July 8 Cheque received from Sushil 20,000. July 10 Sushil's cheque deposited into bank. July 12 Purchased a Horse for business and paid by cheque 15,000. July 15 Deposited into bank20,000. July 17 Purchased goods from Sunil 40,000. July 19 Sold goods to Ramnath 30,000. July 20 Received a cheque of 28000 from Ramnath in full settlement of his account which was deposited into bank on the same day, July 23 Purchased a machinery for cash 40,000 and paid 3000 wages for its installation. Goods for 2000 were also used from business on its installation, July 24 Bought Stationery and paid by cheque 1000. July 27 Received an order of 20,000 from Radhey shyam for supply of goods and received 15,000 as an advance together with order. July 28 Goods worth 20,000 supplied to Radhey shyam against the order. July 29 Proprietor introduced additional cash in business 360,000. July 30 Bank collected the amount for its service 500. July 31 Paid salary *80,000 and rent 5000 by cheque