Accountancy, asked by devamnsurendra, 2 months ago

Q. Journalise the following transactions in the books of Mantri:

2011 June 1 - Commenced business with Cash Rs. 1,20,000. Goods Rs. 60,000 and Furniture Rs. 65,000.​

Answers

Answered by Abirajchettri
3

Cash A/C Dr 120000

Goods A/C Dr 60000

Furniture A/C Dr 65000

To Capital A/C 245000

(Being business commenced with cash, goods and furniture)

Explanation:

Why debited ?

Because as we know, if assets increase we have to debit it since Cash, goods and furniture are increasing we debited it.

Why credited ?

Vice versa, liability increase we have to credit it. Capital has been increased we are crediting it.

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