Question

A started business with cash 70000,with machine 50000,purchased goods on credit 32000,payment made to creditors in full settlement 30400,interest on drawings 600, depreciation on machinery 5000

Answer 1

Answer:

cash a/c....dr 70000

machine a/c....dr 50000

    to capitals a/c 120000

Purchase a/c ....dr 32000

  to creditors a/c.... 32000

purchase a/c...dr 32000

  to cash a/c  30400

  to discount a/c 1600

Explanation: