Question

identify the two aspects of the following transactions a)Purchased machinery by cheque Rs.10000. b)paid salary Rs.500. c)received cash from sudeep Rs.1000

Answer 1

Answer:

A) machinery account. Dr.by 10000

To bank A/c

B) salary account Dr. by 500

To cash A/c

c) CASH ACCOUNT DR. BY 1000

TO SUDEEP A/C

Answer 2

ANSWER :

• a) Purchased machinery by cheque Rs. 10000.

❖ The two aspects of this transaction are :-

• [1] Machinery A/C

• [2] Bank A/C

❖ The journal entry for this transaction will be :-

$: \mapsto : \: \: \sf{ \large{Machinery \: \: A/C \: \: Dr. \: \: \: \: Rs. \: 10000}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \sf{ \large{To \: \: Bank \: \: A/C \: \: \: \: \: \: \:\: \: \: \: \: Rs. \: 10000}} \\ \\ \bold{ \large{[Being \: \: machinery \: \: puchased \: \: by \: \: cheque ]}}$

• b) Paid salary Rs. 500.

❖ The two aspects of this transaction are :-

• [1] Salary A/C

• [2] Cash A/C

❖ The journal entry for this transaction will be :-

$: \mapsto : \: \: \sf{ \large{Salary \: \: A/C \: \: Dr. \: \: Rs. \: 500}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \sf{ \large{To \: \: Cash \: \: A/C \: \: \: \: \: \: \: \: \: \: \: \: Rs. \: 500}} \\ \\ \bold{ \large{[Being \: \: salary \: \: paid]}} \: \: \:$

• c) Received cash from Sudeep Rs. 1000.

❖ The two aspects of this transaction are :-

• [1] Cash A/C

• [2] Sudeep

❖ The journal entry for this transaction will be :-

$: \mapsto: \: \: \sf{ \large{Cash \: \: A/C \: \: Dr. \: \: Rs. \: 1000}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \: \: \: \: \: \: \: \: \: \: \: \sf{ \large{To \: \: Sudeep \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: Rs. \: 1000}} \\ \\ \bold{ \large{[Being \: \: cash \: \: received \: \: from \: \: Sudeep]}}$

MORE TO KNOW :

➮ Double entry system states that every transaction has two fold aspects and the effects of these two fold aspects are opposite in nature. If one aspect or an account receives a benefit, there must be another aspect or an account to impart that benefit.

• ➛ For a transaction, the account which receives the benefit, is recorded on the left hand side or debit side in accounting. Again, the other account of the transaction, which impart the benefit, is recorded on the right hand side or credit side in accounting.

• ➛ Under the Double entry system, for each transaction, the debit amount must be equal to the credit amount.