Question

Write down the journal entries for the following transaction and explain the accounting effect on
the basis of accounting equation
1- Brought 80,000 cash and 20,000 furniture and started the business.
2- Salary of Rs 5000 paid to Mahesh.
3- Goods of Rs 60,000 purchased from Singham.
Natasha​

Answer 1

Answer:

1 cashA/c .........dr. 80000

furniture A/c......dr 20000

to capital A/c. 100000

( being business started with cash , furniture)

2 salary A/c......dr 5000

to cash A/c 5000

(being paid salary)

3 purchase A/c ..........dr60000

to singham A/c 60000

( being purchase furniture)

Answer 2

Answer:

cash a/c dr 80000

furniture a/c dr 20000

To capital a/c 100000

salary a/c dr 50000

To mahesh 50000

purchase a/c dr 60000

To Singham 60000

Explanation:

as per latest cbse guidelines a/c shouldn't be written in front of any party . eg : mahesh.