Analyse the following transactions according to the modern approach and.
state the accounts to be debited or credited.
a. Purchased goods from
Shyam on credit 50,000
b. Sold goods to Mahesh on credit 10,000
c. Borrowed from Rohan 20,000
d. Received cash from Mahesh 5,000
e. Interest allowed by bank 3,000
f. Paid installment of loan 5,000
Answers
Answer:
(ii) Purchased goods for cash ₹ 20,000 and on credit ₹ 30,000. (iii) Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20%.
Answer:
Explanation:
a. Purchases a\c Dr 50,000
to shyam a\c 50,000
b. Mahesh a\c Dr 10,000
to Sales a\c 10,000
c. Cash/Bank a\c Dr 20,000
to Roshan a\c 20,000
d. Cash a\c Dr 5,000
to Mahesh a\c 5,000
e. Bank a\c Dr 3,000
to Interest a\c 3,000
f. Loan a\c Dr 5,000
to bank a\c 5,000
Analysis:
Purchases - expense - increase - Dr
Shyam - creditor - Cr
Mahesh - Debtor - DR
Sales - Income - increase - Cr
Cash - Assert - increase - Dr