Question

Carriages charges for raising 10000

Answer 1

Carriage Charges A/C Dr  Rs 10,000

   To Cash A/C Rs.10,000

(being carriage inwards charges incurred)

Answer 2

The transaction affects two e accounts..

carriage account (carriage paid), cash account (paid by cash)

carriage account is a nominal account (All incomes gains losses expenses come under nominal account; carriage paid is an expense)

Cash account is a real account( all assets and Liabilities come under Real account; cash is an asset)

The Three golden rules of accounting are...

Personal account - Debit the receiver ,credit the giver

Nominal account - Debit All expenses and losses, credit All incomes and gains

Real account - Debit what comes in, credit what goes out

in contention with the above rules..

carriage t account should be debited (its an expense)

Cash account should be credited (cash is going out)



So the Journal Entry will be..

carriage account Dr 10000


To cash a/c 10000

(Being carriage charges paid)