How journal entries are made or how to prepare journal entries?

Banking & FinanceFinanceFinance Management

Solution

The solution is as follows −

                    Journal entries

DateParticularsDrCr
1-1-2000Lease account
To Bank account
(Being purchase of lease)
250000250000

Depreciation fund policy account
To Bank account
(Being the annual premium paid)
4500045000
31-12-2000Profit and loss account
To depreciation fund account
(Being annual depreciation charge)
4500045000
1-1-2001Depreciation fund policy account
To bank account
(Being annual premium paid)
4500045000
31-12-2001Profit and loss account
To Depreciation fund account
4500045000
1-1-2002Depreciation fund policy account
To bank account
(Being annual premium paid)
4500045000
31-12-2002Profit and loss account
To Depreciation fund account
(Being annual depreciation charged)
4500045000

Bank account
To Depreciation fund policy A/c
(Being policy money realized on maturity)
250000250000

Depreciation fund policy account
To Depreciation fund account
(Being profit transferred to fund)
115000115000

Depreciation fund account
To old lease account
(Being closure of fund account)
250000250000
raja
Published on 29-Sep-2020 13:40:46
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