Question

Harish started business with cash 18000 purchased goods for cash 5000and on credit 2000. Sold goods for cash 4000(coasting 2400. Rent paid 1000and rent outstanding 200.

Answer 1

Cash a c Dr.
To capital a c

Purchases a c Dr.
To cash a c

Purchases a c Dr.
To creditors a c

Cash a c Dr. 4000
To sales a c. 2400
To profit on sale of goods. 1600

Rent a c Dr.
To cash a c

Rent outstanding a c Dr.
To cash a c