Question

Identity the two elements effected by the following transactions.
Also state which element is to be debited and which element is to
be credited based on the principles of debit and credit.
i. Started business with cash 50,000 in cash.
ji. Bought goods from A & Co. for 10,000
ii. Bought Goods for Cash 5,000
iv. Bought Goods from B & Co. for cash 6,000
v. Purchased Goods from C & Co. on credit 8,000
vi. Sold goods worth 8,000 to P
vii. Sold goods for cash 10,000
viii. Sold goods to Q for cash 4,000
ix. Sold goods to R on credit 8,000
X. Returned goods to A & Co. 2,000
xi. Goods returned from P 1,000
xii. Goods taken by the proprietor for personal use 1,000
xiii. Bought furniture 10,000
​

Answer 1

Answer:

(i) Cash A/C Dr. 50000

To Capital A/C 50000

(ii) Purchases A/C Dr. 10000

To A & Co. A/C 10000

(iii) Purchases A/C Dr. 5000

To Cash A/C 5000

(iv) Purchases A/C Dr. 6000

To Cash A/C 6000

(v) Purchases A/C Dr. 8000

To C & Co. A/C 8000

(vi) P's A/C Dr. 8000

To Sales A/C 8000

(vii) Cash A/C Dr. 10000

To Sales A/C 10000

(viii) Q's A/C Dr. 4000

To Sales A/C 4000

(ix) R's A/C Dr. 8000

To sales A/C 8000

(x) A & Co. A/C Dr. 2000

To Purchase return A/C 2000

(xi) Sales return A/C Dr. 1000

To P's A/C 1000

(xii) Drawings A/C Dr. 1000

To Purchases A/C 1000

(xiii) Furniture A/C Dr. 10000

To Cash A/C 10000

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