give jornal entries
1. bricks worth 100000 purchased for the construction of building.
2. 1800 was stolen from the sfe vault of the firm.
3. paid cash to mrs. dewan on behalf of mr. dewan 1980.
4. purcased houses for cash 96500

Dear Student,
Good attempt Kriya. However, for the above question, entry 3 and 4 would be as follows:
(iii) Mr. Dewan Dr.   1,980  
              To Cash A/c       1,980
  (Amount paid to Mrs. Dewan on behalf of Mr. Dewan)        
           
(iv) Building A/c* Dr.   96,500  
              To Cash       96,500
  (Houses purchased)        

* Since there are other entries related to construction and building, it is assumed that person is running business related to construction of buildings. So, purchse of houses would be regarded as a normal business expenditure. However, a note on the assumption is required to be given.

Also, we request you to post limited queries (only important once) during these peak days of examinations. There are lakhs of students like you who need our help. Your cooperation would be highly appreciated.

  • 0
1. building a/c dr. 100000
          to cash a/c      100000
(being  bricks purchased for the construction of building)
2.loss by theft a/c dr. 1800
             to cash a/c      1800
(being cash syolen)
3.cash a/c dr. 1980
       to dewan a/c 1980
(being cash paid)
4.a. building a/c dr. 96500
           to cash a/c     96500
(being houses purchased)
note:this entry if it is not a personal expense.
b.drawings a/c dr. 96500
         to cash a/c     96500
(being houses purchased)
note:this entry is for houses purchased for the proprietor
  • 5
What are you looking for?