Question

Q3. From the following transactions, determine the accounts affected, classify them and state whether it is to be debited or credited. Rs. a Purchased typewriter for cash                     10,000 b Purchased furniture form R & Co. on credit  55,000 c Interest received                                             5,00 d Paid wages                                                     1,000 e Received cash from ‘A’                                    15,00 f Additional capital introduced in to the business 5,00,000 g Paid cash to ‘B’                                                    2,000 h Paid carriage                                                        5,00 i Purchased goods from F & Co. on credit     10,000 j Sold goods for cash                                     2,000

Answer 1

a. purchase of an asset
purchase a/c       dr.
     to cash a/c
b. furniture being purchased on credit
furniture a/c     dr.
    to r and co.
c. interest received ( income) credit all income and gains
cash a/c     dr.
   to interest a/c
d. wages paid - debit all expenses and losses
wages a/c     dr.
   to cash a/c
e. received from A - debit what comes in
cash a/c   dr.
    to A a/c
f. capital introduced
cash a/c   dr.
   to capital a/c
g. paid cash to B - debit the receiver
B a/c    dr.
to cash a/c
h. paid carriage
carriage a/c    dr.
to cash a/c
i. purchase foods on credit
purchase a/c     dr.
    to F and co.
j. sales - credit what goes out
cash a/c     dr.
    to sales a/c