Interest on capital and introduced capital 11 return

(Interest on capital and introduced capital)
11
Return Inward (4,000 + 2,000) 6,000
Account Receivable 4,000
Cash 2,000
(Sales return by credit and cash customers)
17
Depreciation Expense_ Machinery (5,000 + 4,000) 9,000
Accumulated Depreciation_ Machinery 5,000
Machinery 4,000
(Depreciation recording by cost and WDM)
24 Drawing 500
Charity 1,000
Purchases (500 + 1,000) 1,500
(Goods withdrawn and give as charity)
29 Interest Expenses (1,000 + 1,500) 2,500
Interest Payable 1,000
Cash 1,500
(Interest Liability and portion paid)
Total Rs. 35,000 Rs. 35,000

Financial Accounting
Work Book Foundation Level
124
Accounting Cycle
Unit 5
Problem # 5.11: Record the following economic events in the book of prime entry for Star business for year 2010
Feb 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. 500
12. Interest on drawing charged Rs. 8,000
16. Receive cash from Mr. Farooq Rs. 6,000 and sold merchandise to Mr. Zamir by cash Rs. 3,000
23. Received dividend on securities by bank of Rs. 1,500 and sold marketable securities of Rs, 8,000 by cash
27. Sales goods for Rs. 30,000 (cost 20,000)
General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2010
Jan 2
Account Payable 5,000
Cash 3,000
Purchase Return
(Goods return to credit and cash customers)
8,000
5 Inventory 6,000
Insurance Expense 500
Cash 6,500
(Bought inventory and paid expenses)
12 Owner Equity 8,000
Interest on Drawing 8,000
(Interest on drawing is recorded)
16
Cash (6,000 + 3,000) 9,000
Account Receivable_ Farooq 6,000
Sales 3,000
(Receivable realized and cash sales)
23
Bank 1,500
Cash 8,000
Dividend 1,500
Marketable Securities 8,000
(Dividend received and securities sold)
27 Cash 30,000
Inventory 20,000
Profit and Loss 10,000
(Sold inventory and earned profit)
Total Rs. 71,000 Rs. 71,000