Question

commenced business with cash 100000 , furniture 20000,opened current account with SBI 50000 , purchase securities for 30000, sold securities for400000, received cash divident on securities 20000.(effect of transactions on assets, liabilities and capital)​

Answer 1

Answer:

Cash A/c Dr 100000 -----------

Furniture A/c Dr 200000----------

To capital A/c ----------- 300000

(being business commenced with cash and furniture)

Cash A/c Dr 50000 --------------

To Bank A/c ---------- 50000

(being account opened with SBI)

Security A/c Dr 30000 ------------

To Cash A/c ---------- 30000

(being securities purchased)

Cash A/c Dr 400000 --------

To sales A/c ----------- 400000

(being security sold)

Cash A/c Dr 20000 ----------

To Security A/c ---------- 20000

(being cash received dividend on securities)

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