Question

From the following transactions, state the nature of accounts and state which account
will be debited and which account will be credited:
₹
1. Mohan started business with cash
5,00,000
2. Purchased goods for cash
1,00,000
3. Sold goods for cash
1,50,000
4. Received interest from Ram in cash
500
5. Sold goods to Ashok
60,000
6. Purchased furniture for cash
50,000
7. Paid wages
20,000​

Answer 1

Answer:

Cash a/c ...Dr.

To Capital a/c

Purchases a/c ... Dr.

To cash a/c

Cash a/c ... Dr.

To Sales a/c

Interest Recd.a/c ...Dr.

To Interest Receivable a/c

Ashok ...Dr.

To Sales a/c

Furniture a/c ....dr.

to cash a/c

wages a/c ....dr.

to cash a/c