Question

Question 7.
Analyse the following transactions, state the nature of accounts and state which account will be debited and which account credited:

Answer 1

Journal entries for every transaction with the nature of account is given.

Explanation:

(i) Cash A/c Dr 300000

     To Capital A/c 300000

Cash is real account and capital is a representative personal account.

(ii) Furniture A/c Dr. 75000

          To cash A/c       75000

Both the accounts are the real accounts

(iii) Purchase A/c Dr. 55000

           To Cash A/c     55000

Purchase account is a nominal account and cash account is a real account.

(iv) Cash A/c Dr. 35000

         To Sales A/c    35000

Cash account is a real account Sales account is a nominal account

(v) Om A/c Dr. 60000

    To Sales A/c 60000

Om account is a personal account and sales account is a nominal account.

(vi) Bank A/c Dr. 70000

   To Cash A/c       70000

Bank account is personal account and cash account is real account

(vii) No entry would be made for receiving a cheque.

(viii) Bank A/c Dr 20000

         To Om A/c     20000

Bank and om both are personal account

(ix) Cash A/c Dr. 100000

        To Sohan A/c 100000

Cash is real account and sohan is personal account.

(x) Furniture A/c Dr. 50000

       To Haryana Safe A/c 50000

Furniture is real account and Haryana safe is personal account.

(xi) Interest on Loan A/c Dr. 10000

                To Loan A/c            10000

Interest of loan is a nominal account and Loan account is personal account.

(xii) Rent A/c Dr. 4000

        To Bank A/c 4000

Rent is a nominal account and Bank is personal account.

(xiii) Salary A/c Dr. 14000

         To Cash A/c 14000

Salary is personal representative account and cash is real account.

(xiv) Drawing A/c Dr. 5000

          To Cash A/c       5000

Drawing account is personal account and cash account is real account.

Answer 2

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