Question

ILLUSTRATION 2.

Classify the following accounts according to the Traditional Approach and Modern Approach: Purchase AC (iii) Sales A/C

(0) Cash A/C

(iv) Rent Received A/C (vii) Prepaid Salary

(x) Bank Overdraft

(ü)

(v) Sales Return A/c

(vii) Bad debts

(xi) Purchase Return

(vi) Bank Loan

(ix) Bad debts Recovered​

Answer 1

I tell you follow me

Explanation:

1 .purchase a/c Dr . to cash a/c

2. cash a/c Dr . to sale a/c.

3.

4.cash a/Dr . to rent a/c.