Question

Q- Monu had the following transactions
1. Started business with cash - 100000
2. Deposit cash into bank - 60000
3. Bought a machine by raising a bank loan -50000
4. Bought goods for cash 20000 and on credit - 40000
5. Goods bought for cash was sold to amit - 25000
6. Amit returned goods worth - 5000
7. Amit settled his account by paying - 19500
8. Paid instalment of bank loan 20000 and paid interest by cheque 2000
9. Charge 10% deprection on machine
Use accounting equation to show effect of above transaction

Answer 1

Explanation:

1.cash is increase and capital increase

2.Bank increase and cash decrease

3.Bank loan and liability increase , and bank loan decrease + macinery

Answer 2

A journal entry records a business transaction for an organization in accounting.

Explanation:

Journal entries form the building blocks of the double-entry accounting method that has been used for centuries of financial record keeping. They make it possible to track what a business has used its resources for, and where those resources come from.

A journal entry consists of these components:

• Transaction Date.
• Account numbers along with the names of the affected accounts, where relevant.
• Amount to be deposited and debited.
• A description of the transaction.

Refer to the Attachment for Journal Entries.