Subject: Accountancy, asked on 3/1/17

Q. Prepare the journal form the following :
Mr. A started business of trading in electronic items with an initial capital of 15,00,000 . out of the said 15,00,000 he paid 11,00,000 towards purchase of goods from a supplier who comes from Delhi. He further spent 2,00,000 on furnishing the shop and 15,000 for purchase of furniture of shop. He opened a checking bank account by depositing 30,000 he spent 40,000 for getting pamphlets printed and distributed . He sold goods for 7,00,000 in cash and 3,10,000 on credit. Goods costing 20,000 were returned by customers .He further invested 5,00,000 in his business. He purchased more goods costing 8,00,000 out of which purchases of 2,00,000 were on credit. One day, a fire broke out in the shop and stock of 50,000 was completely destroyed . A received an insurance claim of 30,000 . He drew cash 3000 from bank for office use. He sold goods for 3,00,000 and allowed trade discount of 15,000. A paid salary to his employee 44,000 during the year. He insured the goods and paid insurance premium of 10,000 . A withdrew cash 70,000 and goods 2,000 for personal use during the year. He paid electric charge 50,000 during the year. H paid rent 2,75,000 to S.Sharma during the year. Some cash by embezzled by employee 3,000. He received an order form Mr. S of 1,000 and received 500 as advance along with the order . He paid for miscellaneous expenses for newspaper, tea etc 10,000 during the year. He paid 10,000 for telephone expenses and 5,000 for entertainment expenses . Goods costing 1,000 were donated to NGO during the year.

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