Pass a journal entry in each of the following cases: (i) A running business was purchased by Arjun with the following assets and liabilities: Bank -…

In the books of Arjun Journal Entries Particulars Dr. (₹) Cr. (₹) (i) Cash A/c 70,000 Land A/c 1,40,000 Furniture A/c 35,000 Stock A/c 70,000 To Creditors 35,000 To Bank overdraft 70,000 To Capital A/c 2,10,000 (Being commencement of business by Arjun by taking over a running business). (ii) Harpreet's A/c 3,13,600 To Sales A/c 2,80,000 To Output IGST A/c 33,600 (Being goods sold to Harpreet at trade discount of 20% and charged IGST @12%) (iii) Advertisement Expenses A/c 35,000 To Purchases A/c 35,000 (Being goods distributed as free sample) (iv) Sales Return A/c 1,12,000 Output IGST A/c 13,440 To Harpreet A/c 1,25,440 (Being goods returned by Harpreet and output IGST charged at the time of sales now reversed) (v) Cash A/c 8,400 Bad Debts A/c 12,600 To Sandeep 21,000 (Being Sandeep become insolvent)