Question

give a suitable example of transaction affecting more than two items. class 11 accountancy

Answer 1

Explanation:

cash a/c dr....... 100

disc. allowed a/c dr....50

to machinery a/c. 150

Answer 2

Answer:

Each & every transaction has two effects. For example, if someone transacts a purchase of a drink from local store, he pays cash to the shopkeeper and in return, he gets a bottle of drink. This simple transaction has two effects from the perspective of both, the buyer and as well as the seller. The buyer's cash balance would decrease by the amount of cost of purchase while on the other hand he will acquire a bottle of drink. Conversely, the seller will be one drink short though his cash balance would increase by the price of drink.

Hope it helps..!