Question

3. write journal entries for the following transactions and explain accounting
treatment based on equations
(a)commencef business which capital of Rs. 50.000
(b) Rs.20,000 deposited with the bank and opened account.
(c) Goods of Rs. 35,000 sold for Rs. 55,000 to Trisha.
(d) Goods worth Rs. 5,000 returned by Trisha​

Answer 1

Answer:

a. Cash. Dr 50000

To capital Cr 50000

(Being Business started with capital.)

b. Bank. Dr 20000

To Cash Cr. 20000

(Being opened a Bank account with depositing cash.)

c. Trisha. Dr 55000

To Sales Cr 35000

To profit on good sold Cr 20000

(Being Goods sold to Trisha)

d. Sales return Dr 5000

To Trisha Cr 5000

( Being Goods returned by Trisha)