6. Charging to assets A/c date particulars LF debit credit Assets a/c Dr To cash/ bank ( for purchasing assets) Depreciation a/c Dr To Assets A/c ( for changing depreciation) P&L a/c Dr To Depreciation ( for closing Deprecation) Cash/ Bank a/c Dr To Asset a/c Assets A/c Dr To P&L a/c (Transfer of profit) P&L a/c Dr To assts (transfer of Loss)

7. Creating provision for depreciation date particulars LF Debit Credit

8. Creating provision for depreciation date particulars LF Debit Credit Assets A/c Dr To cash ( for purchasing assets) Depreciation A/c Dr To provision for depreciation (for charging depreciation) Asset disposal A/c Dr To Assets ( for selling assets at original cost) Provision for depreciation A/c Dr To assets disposal A/c ( transfer of accumulated depreciation) Cash/ Bank a/c Dr To assets disposal a/c

9. Creating provision for depreciation date particulars LF Debit Credit Assets disposal A/c Dr To P&L a/c ( in case of profit) P&L a/c Dr To assets disposal A/c ( in case of loss)

14. problem Calculate depreciation on Machine A and B for the year 2010-11 Purchase price Erection cost Residual value Expected life in years Date of purchase Machine A 100000 10000 15000 10 1/10/2010 Machine B 50000 5000 7000 5 1/1/2011

26. In the books of A date particulars LF Debit Credit 1/4/2011 2/4/2011 2/6/2011 B a/c debit To sales a/c Bills receivable a/c Debit To B a/c ( on raising the Bill) Bank A/c Debit To bills receivable A/c ( on receiving payment) 10000 10000 10000 10000 10000 10000

27. In the books of B date particulars LF Debit Credit 1/4/2011 2/4/2011 2/6/2011 Purchase A/c Debit To A A/c A a/c Debit To Bills Payable ( on accepting the Bill) Bills Payable A/c Debit To Bank A/c ( on making the payment) 10000 10000 10000 10000 10000 10000

28. Discounting with the bank date particulars LF Debit Credit Bank A/c Debit Discount on Bills a/c Debit To Bills receivable

29. Endorsing the bill in favour of a third party date particulars LF Debit Credit C A/c Debit To Bills receivable a/c ( on endorsement) Bank A/c Debit To C A/c ( on receipt of payment)

30. Dishonor of bill date particulars LF Debit Credit B A/c Debit To bills receivable A/c If a had discounted the bill or endorsed the bill B A/c Debit To Bank/ To C A/c

31. Noting charges date particulars LF Debit Credit B a/c Debit to cash ( if paid by A) B A/c Debit To Bank ( if discounted by the bank) B A/c Debit To C A/c ( if endorsed to C and C pays for it)

32. Insolvency date particulars LF Debit Credit B A/c Debit To Bills receivable/ Bank/ C Bank a/c Debit Bad debts A/c Debit To B A/c ( the amount not received is treated as bad debts)

33. problem

34. journal date particulars LF Debit Credit