Question

Q. To which account, the following transactions will be debited and credited in books of
vinit describe with reasons.
(1) RS 5000 brought in cash and started business.
(2) Bank account opened by depositing RS 30,000.
(3) Goods returned by Jatin of RS 1500.
(4) Goods destroyed by RS 200.​

Answer 1

Answer:

1) cash ac dr5000

to capital ac 5000

(being capital introduced)

reason because i vinet business Debit what comes in is cash and credit the giver is business but instead of business man we write capital

2) bank ac dr30000

to cash ac 30000

(being account opened in bank)

reason is debit the receiver is bank and what goes out of vinet business is cash so it is credit

3) sales return ac dr1500

to jatin 1500

( being return inward)

reason when item that has been sold is return we write sales return which is always debit because goods are coming back to vinet and credit the giver is jatin

4) loss by destroy ac dr200

to purchase ac 200

( being goods destroyed)

reason loss is always debit and when goods are going out for other reasons not for purchase and sales then instead of goods we write purchase always.