Question

transaction of ms/vipin trader are given below shows the effect on assessment a.bussiness Started with cash 125000
b.purchased good for ca sh 50000
c. purchase furniture from RK furniture on credit 10000
d.sold good to Parul traders cost ing 7000vide bill no 5674
e. paid cartage
f. cash paid rk furniture in full settlement cah sales costing 10000
h .rent received
ui.cash withdrew for personal use.
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Answer 1

Explanation:

a.Cash A/c Dr. 125000

To Capital A/c 125000

( being business started with cash )

b.Purchase A/c Dr. 50000

To Cash A/c 50000

(being goods purchased for cash)

c.Furniture A/c Dr. 10000

To RK furniture A/c 10000

( being furniture purchased from RK furniture on credit)