Question

(I) Started business with cash Rs 1,00,000 (2) Paid rent in advance Rs 3,000 (3) Purchased goods for cash Rs 50,000 (4) Sold goods for cash Rs 80,000 costing Rs 40,000 (5) Paid salary in cash Rs 4,500 and salary outstanding Rs 1,000 (6) Bought motor cycle for personal use Rs 30,000

Answer 1

cash a/ c Dr to capital a/ c

Answer 2

Cash ac dr.  To capital ac Rent ac dr.   To cash ac Purchases ac dr.  To cash ac Cash ac dr.  To sales ac To profit ac Salary ac dr.  To cash ac Motor cycle ac dr.  To cash ac