Final answer:
To pass the necessary journal entries in the books of Narender for the month of March 2006, you would need to record the transactions using appropriate accounts and amounts. The entries would include exchanging old machinery for new machinery, paying rent and electricity bill, recording loss by theft, paying wages, accruing interest, giving away goods by charity, and personal use of goods by the proprietor.
Step-by-step explanation:
i) An old machinery appearing in books exchanged for a new machinery of Rs. 5,000 -
Old Machinery A/C Dr. 5000
To Machinery A/C 5000
ii) Issued a cheque for Rs. 1,000 in favour of landlord for a rent for the month of March -
Rent A/C Dr. 1000
To Bank A/C 1000
iii) Paid electricity bill of Rs. 450 by cheque -
Electricity Bill A/C Dr. 450
To Bank A/C 450
iv) The goods destroyed by theft Rs. 3,000 -
Loss by Theft A/C Dr. 3000
To Goods A/C 3000
v) Paid wages for the installation of machinery Rs. 5,000 -
Installation Wages A/C Dr. 5000
To Bank A/C 5000
vi) Accrued interest Rs. 1100 -
Accrued Interest A/C Dr. 1100
To Interest A/C 1100
vii) Goods worth Rs. 4,000 given away by way of charity -
Charity A/C Dr. 4000
To Goods A/C 4000
viii) Goods taken by Proprietor worth Rs. 10,000 for personal use -
Drawings A/C Dr. 10000
To Goods A/C 10000