Question

April & cash 600,000 , cash Michael started business with . at Bank of Americe 700,000 furniture_200,000 worth 250,000 by April & Purchased Plant le Machinery cheque ) April 25 Purchased goods from ABC Ltd worth 800,ooo @ 10%. trade discount discount to May 5. Cash takes 1000 ooo @ 5% trade XYZ Traders "lay 15. Deposited cash with Bank of America 500,000 June 5 Paid ABC Ltd 300,000 in cash. E June 10 Received commission 75,000 by cheque
cash purchased 250000 make the subsidary book fit this transaction



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Answer 1

Explanation:

Solution

(i) (a) Purchases A/c Dr.40,000 and Vinod Cr.40,000

(b) Vinod Dr.16,000 and Bank Cr.15,680; Discount Cr.320.

(ii) (a) Mohan Dr.80,000 and Sales Cr.80,000.

(b) Bank Dr.39,200; Discount Dr.800 and Mohan Cr.40,000.

(iii) Drawings Dr.2,000 and Bank Cr.2,