Question

4 Explain the dual effect of following transactions.

(1) Purchased furniture of ` 1,000

(2) Goods of ` 6,000 sold to Hitendra​

Answer 1

Answer:

1. Furniture account Dr. 1,000

To cash. 1,000

(Being furniture purchased for cash)

2. Hitendra account Dr. 6,000

To sales. 6,000

( Being goods sold on credit)

Answer 2

Answer:

Explanation:

1. Furniture account Dr.

1

1,000

To cash. (Being furniture purchased for cash)

2. Hitendra account Dr.

To sales.

6,000

(Being goods sold on credit)

6,000

1,000