(5) To which account, the following transactions will be debited and credited in the
of Ganesh? Describe with reason.
(1) 75,000 brought in cash and commenced business.
(2) Incurred Puja expenses of 2000,
(3) Brought personal furniture of * 10,000,
(4) Deposited * 30,000 to the State Bank of India.
(5) Obtained loan of * 30,000 from wife.
(6) Purchase is made of * 20,000 and amount is paid by cheque.
(7) Sales is made of 42,000 and amount is received by cheque.
(8) Withdrawn 22,000 from Bank.
(9) 2000 paid Insurance premium by cheque
Answers
Explanation:
1. Cash A/c Dr. (Dr. what comes in)
To Ganesh's Capital A/c (Cr. the giver)
2. Puja Expenses (or Sundry Expenses) A/c Dr. (Dr. all expenses)
To Cash A/c (Cr. what goes out)
3. Ganesh's Capital A/c Dr. (Dr. the receiver)
To Cash A/c (Cr. what goes out)
4. Bank A/c (SBI) Dr. (Dr. the receiver)
To Cash A/c (Cr. what goes out)
5. Cash A/c Dr. (Dr. what comes in)
To Loan from Wife A/c (Cr. the giver)
6. Purchases A/c Dr. (Dr. all expenses)
To Bank A/c (Cr. the giver)
7. Bank A/c Dr. (Dr. the receiver)
To Sales A/x (Cr. all incomes)
8. Cash A/c Dr. (Dr. what comes in)
To Bank A/c (Cr. the giver)
9. Insurance Premium A/c Dr.
To Bank A/c (Cr. the giver)
If it is life insurance premium of proprietor
Ganesh's Capital A/c Dr.
To Bank A/c