Transactions of Asset: Write Journal entry for the following transactions in the books of Shri Laxman Chandera.

1. A machine purchased by cheque ₹,20,000 and paid for installation ₹500 in cash.

2. Furniture of 3,000 purchased from Kaveri Furniture and carriage paid in Cash 50.

3. 50 shares of Maha Laxma Mill purchased at 100 per share and brokerage 20 paise per share, paid by cheque.

4. For Furniture of 5,000 goods given of 4,000.

5. An old machine of  6,000 sold for 5,000.

6. Land purchased  50,000 and incurred 2,000 for documentation and legal charges. Payment is made in cash.

Solution:

Journal Entry

In the books of Shri Laxman Chandera. 

Date	Particulars	L.F	Debit ₹	Credit ₹
1	Machine A/c            Dr.           To Bank A/c            To Cash A/c  [Being purchased machinery and paid by cheque and ₹500 paid in cash for installation]		20,500	20,000  500
2	Furniture A/c           Dr.             To Kaveri A/c             To Cash A/c  [Being purchased furniture from Kaveri and paid ₹50 in cash for carriage]		3,050	3,000  50
3	Shares of Maha Laxmi Mill   A/c             Dr.            To Bank A/c  [Being 50 shares of Maha Laxmi Mill purchased at ₹100 per share and paid brokerage in cash for 20 paise]		5,010	5,010
4	Furniture A/c        Dr.            To Purchase A/c  [Being purchased furniture and given goods]		4,000	4,000
5	Cash A/c                     Dr.  Loss A/c          Dr.              To Machine A/c  [Being Old machine sold]		5,000  1,000	6,000
6	Land A/c                        Dr.               To Cash A/c  [Being purchased land and paid legal charges in cash]		52,000	52,000
			90,560	90,560