Question

Commenced business with cash TZS 50,000,000 2. Purchased goods for cash TZS 20,000,000 and on credit TZS 30,000,000 3. Sold goods for cash TZS. 40,000,000 costing TZS 30,000,000 4. Rent paid TZS 500,000 5. Bought furniture TZS 5,000,000 on credit 6. Bought refrigerator for personal use TZS 5,000,000

Answer 1

1.Cash A/c ...Dr. 50,000,000

To Capital A/c 50,000,000

2.Purchases A/c ...Dr 50,000,000

To cash A/c 20,000,000

To credit A/c 20,000,000