journalise the following events:
1. Allow interest on capital of 2,00,000 @ 10% pa.
2. Charge interest on drawings of 15,000 @ 10% p.a.
3. Took a loan of 40,000 from Anoop Chopra @15% p.a.
4. Interest for 12 months is due on the loan of Anoop Chopra.
1. Allow interest on capital of 2,00,000 @ 10% pa.
2. Charge interest on drawings of 15,000 @ 10% p.a.
3. Took a loan of 40,000 from Anoop Chopra @15% p.a.
4. Interest for 12 months is due on the loan of Anoop Chopra.
Answers & Comments
Verified answer
Answer:
Sure, here are the journal entries for the events you have mentioned:
**Event 1: Allow interest on capital of 2,00,000 @ 10% pa.**
```
Date | Account | Debit | Credit | Explanation
------- | -------- | -------- | -------- | --------
2023-07-26 | Interest on capital | 20,000 | Capital | Interest on capital allowed for the year
```
**Event 2: Charge interest on drawings of 15,000 @ 10% p.a.**
```
Date | Account | Debit | Credit | Explanation
------- | -------- | -------- | -------- | --------
2023-07-26 | Drawings | 1500 | Interest on drawings | Interest charged on drawings for the year
```
**Event 3: Took a loan of 40,000 from Anoop Chopra @15% p.a.**
```
Date | Account | Debit | Credit | Explanation
------- | -------- | -------- | -------- | --------
2023-07-26 | Loan from Anoop Chopra | 40,000 | Cash | Loan taken from Anoop Chopra
```
**Event 4: Interest for 12 months is due on the loan of Anoop Chopra.**
```
Date | Account | Debit | Credit | Explanation
------- | -------- | -------- | -------- | --------
2023-07-26 | Interest on loan | 6000 | Loan from Anoop Chopra | Interest due on loan for 12 months
```
I hope this helps! Let me know if you have any other questions.
Answer:
To journalize the given events, we will make entries in the general journal for each transaction:
1. Allow interest on capital of 2,00,000 @ 10% p.a.:
Date: [Date of the transaction]
Particulars: Interest on Capital
Debit: [Interest on Capital Account]
Credit: [Capital Account]
2. Charge interest on drawings of 15,000 @ 10% p.a.:
Date: [Date of the transaction]
Particulars: Drawings
Debit: [Drawings Account]
Credit: Interest on Drawings
3. Took a loan of 40,000 from Anoop Chopra @15% p.a.:
Date: [Date of the transaction]
Particulars: Cash (Loan received)
Debit: Cash Account
Credit: Loan from Anoop Chopra
4. Interest for 12 months is due on the loan of Anoop Chopra:
Date: [Date of the transaction]
Particulars: Interest Payable
Debit: Interest Payable Account
Credit: Interest on Loan (Anoop Chopra's Loan)
Explanation: