Question

from the following transaction name and classify the account indicating debits and credits 1) bought plant on credit from Banerjee and co. 2) bought furniture by cash 3) returned part of the plant to Banerjee co. due to some defects ​

Answer 1

Answer:

Explanation:

1.bought plant on credit from Banerjee and co.

Plant a/c   dr.

   To Banerjee and co.

(being plant is purchased on credit)

2.bought furniture by cash

Furniture a/c dr.

  To Cash a/c

(being furniture is purchased on cash)

3.returned part of the plant to Banerjee co. due to some defects ​

  Banerjee and co. a/c dr.

           To Plant a/c

(being plant is returned to Banerjee and co. due to some defects in machine)

NOTE:  From the above transactions all assets are debited and all assets are real a/c`s and if assets go out then we credit those assets .

Personal accounts i.e Banerjee and co. is credited as credit the receiver.