Page 53 - DEBK-XI(2020)

9.4 Double Entry Book Keeping — CBSE XI

Total b/f 39,000 39,000
Jan. 21 Bank A/c ...Dr. 3 500
To Cash A/c 2 500
(Being the cash sent to bank)
Jan. 24 Municipal Taxes A/c ...Dr. 17 100
To Cash A/c 2 100
(Being the amount paid as tax)
Jan. 25 Bank A/c ...Dr. 3 10,000
To Loan from Urania Ltd. A/c 9 10,000
(Being the amount borrowed from Urania Ltd.)
Jan. 27 Cash A/c ...Dr. 2 20
To Sundry Receipts A/c 18 20
(Being the income derived by sale of old newspapers)
Jan. 28 Advertisement A/c ...Dr. 19 100
To Cash A/c 2 100
(Being the advertisements paid for as per bill No. .... dated....)
Jan. 31 Rent A/c ...Dr. 20 150
To Bank A/c 3 150
(Being the amount paid as rent by cheque No. ....)
Jan. 31 Salaries A/c ...Dr. 22 300
To Cash A/c 2 300
(Being the salaries paid for the month)
Jan. 31 Drawings A/c ...Dr. 1 250
To Bank A/c 3 250
(Being the amount drawn out of bank by the proprietor for personal use)
Jan. 31 Cash A/c ...Dr. 2 500
Bad Debts A/c ...Dr. 21 500
To Narain Bros. 7 1,000
(Being half the sum due from Narain Bros. received in cash and the other
half written off as being irrecoverable)
Jan. 31 Cash A/c ...Dr. 2 150
To Bad Debts Recovered A/c 21 150
(Being the sum previously written off as bad debt, now recovered — it is a gain.)
Grand Total 51,570 51,570

Notes:
1. Entries in the ‘Folio’ column are imaginary.
2. Narain Bros. is debited with the full amount due; Bank credited with ` 950 because the previous debit
had to be cancelled; Discount Allowed Account credited (because the discount allowed previously will
be written back).
Ledger
Dr. CAPITAL ACCOUNT Cr.
Date Particulars J.F. ` Date Particulars J.F. `
2020 2020
Jan. 31 To Balance c/d 19,000 Jan. 1 By Balance b/d 11 19,000
19,000 19,000
Feb. 1 By Balance b/d 19,000