Started business with cash rs 120000 ... purchased a typewriter for cash for 8000 for office use.. purchased goods for 50000 for cash ... Purchased goods for 40000 on credit... Goods costing 60000 sold for 80000 on credit ..paid for rent 1500 nd for salaries 2000... received 800 for commission ... Withdrew for private use 5000 in cash
Answers
Cash a /c. Dr.
To capital a/c
Typewriter a/c. Dr.
To cash a/c
Purchases a/c. Dr.
To cash a/c
Purchases a/c. Dr.
To creditors a/c
Cash a/c. Dr.
To profit on sale of goods
To name of person a/c
Rent a/c Dr
Salary a/c Dr
To cash a c
Cash a c Dr.
To commission a c
DRAWINGS a/c. Dr.
To cash a c
Answer and Explanation:
Date Account Title and explanation Debit Credit
Cash a/c. Dr. 120,000
To capital a/c 120,000
(Being business start with cash)
Typewriter a/c. Dr. 8,000
To cash a/c 8,000
(Being purchase of typewriter)
Purchases a/c. Dr. 50,000
To cash a/c 50,000
(Being goods purchase for business with cash)
Purchases a/c. Dr. 40,000
To creditors a/c 40,000
(Being goods purchase for business with credit)
Cash a/c. Dr. 80,000
To profit on sale of goods 20,000
To person a/c 60,000
(Being goods sold)
Rent a/c Dr 1,500
Salary a/c Dr 2,000
To cash a/c 3,500
(Being salary and rent paid)
Cash a/c Dr. 800
To commission a/c 800
(Being commission received )
Drawing a/c. Dr. 5,000
To cash a/c 5,000
(Cash withdrawal)