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Interest on capital and introduced capital 11 return

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(Interest on capital and introduced capital)11Return Inward (4,000 + 2,000)6,000Account Receivable4,000Cash2,000(Sales return by credit and cash customers)17Depreciation Expense_ Machinery (5,000 + 4,000)9,000Accumulated Depreciation_ Machinery5,000Machinery4,000(Depreciation recording by cost and WDM)24Drawing500Charity1,000Purchases (500 + 1,000)1,500(Goods withdrawn and give as charity)29Interest Expenses (1,000 + 1,500)2,500Interest Payable1,000Cash1,500(Interest Liability and portion paid)TotalRs. 35,000Rs. 35,000
Financial AccountingWork Book Foundation Level124Accounting CycleUnit 5Problem # 5.11:Record the following economic events in the book of prime entry for Star business for year 2010Feb 2.Merchandise return to supplier Rs. 5,000 so reduces liability and return to cash vendor of Rs. 3,000(20 Minutes)5. Replenished inventory for Rs. 6,000 cash and paid Insurance expenses Rs. 50012.Interest on drawing charged Rs. 8,00016.Receive cash from Mr. Farooq Rs. 6,000 and sold merchandise to Mr. Zamir by cash Rs. 3,00023.Received dividend on securities by bank of Rs. 1,500 and sold marketable securities of Rs, 8,000 by cash27.Sales goods for Rs. 30,000 (cost 20,000)General JournalDateAccount Title and ExplanationsRefAmount (Rs.)DebitCredit2010Jan2Account Payable5,000Cash3,000Purchase Return(Goods return to credit and cash customers)8,0005Inventory6,000Insurance Expense500Cash6,500(Bought inventory and paid expenses)12Owner Equity8,000Interest on Drawing8,000(Interest on drawing is recorded)16Cash (6,000 + 3,000)9,000Account Receivable_ Farooq6,000Sales3,000(Receivable realized and cash sales)23Bank1,500Cash8,000Dividend1,500Marketable Securities8,000(Dividend received and securities sold)27Cash30,000Inventory20,000Profit and Loss10,000(Sold inventory and earned profit)TotalRs. 71,000Rs. 71,000
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Balance Sheet, Revenue, Double entry bookkeeping system

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