Question

show the effects of the following transactions on the accounting information:
1. Ram started business with cash 50,000
2. purchased good on credit 4000
3. purchase good for cash 1,000 4. purchase furniture for cash 500
5. withdrawal for private use 700
6. paid rent 200
7. received interest 100
8.sold goods on credit(cost₹500) 700
9. paid to creditor 400
10. paid salaries 200
ask fast it's urgent and give proper answer not un necessary​

Answer 1

1. Cash account - - - - Dr. 50,000

• To capital account - - - - Cr. 50,000

(being the capital invested).

2. Purchases account - - - Dr. 4000

• To creditor account - - - - Cr. 4000

(being goods purchased on credit).

3. Purchase account - - - - Dr. 1000

• To cash account - - - - Cr. 1000

(being goods purchased for cash).

4. Furniture account - - - - Dr. 500

• To cash account - - - - Cr. 500

(being furniture purchased for cash).

5. Drawing account - - - Dr. 700

• To cash account - - - - Cr. 700

(being cash withdrawn for personal use).

6. Rent account - - - - Dr. 200

• To cash account - - - - Cr. 200

(being rent paid for cash).

7. Bank Account - - - Dr. 100

• To interest received account - - -Cr. 100

(being interest received).

8. Bank account - - - Dr. 500

Profit account - - - - Dr. 200

• To sales account - - - Cr. 700

(being goods sold for credit with profit).

9. Creditor account - - - Dr. 400

• To bank account - - - Cr. 400

(being cash paid to creditors).

10. Salaries account - - - Dr. 200

• To bank account - - - Cr. 200

(being salaries paid).