Question

PART A Q I A. State the types of two accounts involved in the following transaction [10 Marks] 1. Commenced business with cash Rs 70000 2. Deposited cash in Bank of India Rs 10000 3. Withdrew cash from Bank of India for Office use Rs 5500. 4. Purchased goods for cash Rs 5000 5. Purchased goods on credit from Kiran Stores Rs 6000. 6. Sold Goods for Cash Rs 3000. 7. Sold Goods to Rohini Rs 9000. 8. Received Dividend Rs 4500. 9. Paid Audit Fees Rs 1000. 10. Received Commission Rs 500.​

Answer 1

Answer:

Explanation:

                                  First account involved           Second Account involved

1.                                    Cash                                     Capital

2.                                   Bank                                      Cash

3.                                    Cash                                     Bank

4.                                    Purchase                              Cash

5.                                   Purchase                                M/s Kiran Stores

6.                                   Cash                                        Sales

7.                                    Rohini's                                   Sales

8.                                    Bank                                       Income-Dividend

                                      Dividends are received in cheques

9.                                   Expenditure- Audit Fee          cash/Bank

10.                                   Cash/Bank                              Income-Commission