Question

Ram mohan started business with case

Answer 1

Answer:

Given Transactions :-

• Ram Mohan started business with cash.

To Find :-

• Journalise the following transactions.

Solution :-

Transactions :

◕ Ram Mohan started business with cash.

Here, the two accounts will be Cash A/c and Capital A/c.

Cash A/c - Real A/c - What comes in - Dr.

Capital A/c - Personal A/c - Giver - Cr.

➲ Cash A/c . . . . . . . . . Dr.

➲ To Capital A/c

Narration :-

(Being business started by Ram Mohan with cash)

EXTRA INFORMATION :-

❒ Golden Rules :

❶ Personal Accounts :-

➵ Debit - Receiver

➵ Credit - Giver

❷ Real Accounts :-

➵ Debit - What comes in

➵ Credit - What goes out

❸ Nominal Accounts :-

➵ Debit - Expenses, Loss

➵ Credit - Income, Gain

❹ Valuation Accounts :-

➵ Debit - When account to be decreased

➵ Credit - When account to be increased