Question

1. The following transactions are taken from the books of Mr. Abraham
i) Identify the debit and credit entry for each transaction and record it in the
appropriate column.
Transactions
Accounts to be debited Accounts to be credited
Started business with cash $ 50000
Deposited cash into bank $ 35000
Bought machinery from Kagiso $ 8000
Purchase furniture for cash $ 1000
Sold old furniture to Maria $ 200
Bought motor car and paid by cheque $ 9000
Sold old machinery for cash $ 3000
Sold furniture and received a cheque $ 800
​

Answer 1

started business with cash$50000

ans, cash a/c -debit

capital a/c -credit

deposited cash into bank $35000

ans,bank A/c-debit

cash a/c -credit

bought machinery from kagiso $8000

ans,machinery a/c -debit

kagiso a/c -credit

sold old furniture to mariya$200

ans, mariya a/c -debit

furniture a/c -credit

bought motar cat and paid by cheque$9000

ans, motar car a/c -debit

bank a/c -credit

sold old machinery for cash $3000

ans, cash a/c -debit

machinery a/c-credit

sold furniture and received a cheque$800

ans, bank a/c -debit

furniture a/c -credit