Start Illustrations (journal entry )

Now start illustration -1,

With out illustrations accounting is incomplete totally . then now I start here illustrations :

1.purchased a motorcycle for his son for rs 45000 out of business cash.

2. Paid life insurance of proprietor rs 1100.

3. Personal income tax paid rs 2000 by owner from business cash.


Given above transaction same entry made as follow :

Drawing  a/c.        Dr.          48100
To cash a/c.                                        48100

4.paid rent for the home by cheque rs 6400.

Drawing a/c.      Dr.       6400
To bank a/c.                              6400.