Question

Commenced business with cash Rs120000 and goods worth Rs 80000
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Answer 1

Answer:

Explanation:

Cash A/C ….. . . . . dr

Furniture A/C. .. . .dr

Machinery A/C . ….dr

To Capital A/C

How,

Step 1 : Read the QUESTION and Interpret the transaction:

According to this question, The owner of business invest cash, Furniture and Machine in his Business,

Step 2 : find “A/c's" from above transaction,*

From the above transaction there are four accounts,

First is “CASH A/c”

Second is “FFURNITURE A/c”

Third is “MACHINERY A/c”

Fourth is “CAPITAL A/c” ( we know that Capital A/c represent the Owner of business

Step 3 :classify the A/c in “Personal, Real or Nominal”,