Question

Arvind began his business on January 1, 2007. Enter the following transactions in his cash book. Jan 1 Commenced business with 30,000 Opened a current account with Indian bank 25,000 Purchased goods for cash 3,000 Cash sales 2500 Paid for advertising 120 Received cash from Prabhakar 3000 Paid cash to Chandran and Co 1000 Paid cash for furniture and fittings 1200

Answer 1

Answer:

1 jan 2007

cash a/c dr 30000

indian bank a/c dr  25000

                   to capital a/c 30000

purchased a/c 3000

to cash a/c              3000

cash a/c dr 2500

advertising a/c 120

to sales a/c          2380

cash a/c dr 3000

to parbhakar a/c  3000

chandan a/c dr 1000

to cash a/c                1000

furniture fitting a/c dr 1200

to cash a/c                      1200

Explanation: