Question

plzzzz solve this question ......

Answer 1

1) sold of goods on credit.
--> it will decrease the stock and increase the debtors.

2) creditors were paid ₹10000
-->it will decrease cash and decrease the liabilities (creditors paid off) as well.

3)conversion of debentures into shares
--> Being issuance of shares and redemption of debentures, this transaction would increase in Capital (Shares) and decrease in Liabilities (Debentures).

4)Bills payable issued to creditors
-->This will reduce one liability (Creditors) on the one hand and increase another liability (Bills Payable) on the other hand.

5) interest on capital
--> Being an expense of the business, this will reduce the capital by the amount of interest and on the other hand interest on capital would be added to the capital of the proprietor.

Answer 2

)increase in one asset , decrease in another asset 

           purchase of machinery in cash 

2)Decrease in asset ,decrease in another liability 

       payment made to creditors 

3)Decrease in liability , increase in owners's equity 

          Conversion of debentures into shares . 

4)Increase in one liability , decrease in another liability

               Bills payable issued to creditor

5)increase in capital ,decrease in capital

            Charging interest on drawings