Question

2. To which account, the following transactions will be debited and credited
in the books of Rita? Describe with reasons.
(a) Brought personal furniture of Rs.20,000 in the business.
(b) Obtain loan of Rs. 30,000 from wife.
(c) Withdraw Rs. 22,000 from bank.​

Answer 1

Explanation:

(a). Furniture Ac Dr

To Rita capital Ac

(being personal furniture brought in business)

(B) Bank Ac Dr

To loan from wife

(being loan borrowed from wife)

(c). Cash Ac. Dr

To Bank Ac

(being cash withdrawal from bank)