Question

i. Write journal entries for the following transactions and explain

accounting treatments based on equation:

1. Borrowed a loan of Rs 35000 from a friend Shripal.

2. Sold goods of 20000 for Rs 26000 to jaydeep.

3. Received commission of 3000 in cash.​

Answer 1

Answer:

1

cash a/c -----dr

to loan account

2

cash 26000

To profit. 6000

To jaydeep 20000

3

cash 3000

To commission. 3000