Accountancy, asked by pawarsahil044, 4 months ago

Write journal entries for the following transaction and explain accounung
treatment based on equation.
a. A has brought cash 20000 and furniture of 10000 to commence business.
b. Salary outstanding is 1000.
c. Goods of 6000 purchased for cash.
d. Receivable dividend 2000. ​

Answers

Answered by rithuvarshini2020
2

Answer:

a. Cash a/c dr 20,000

Furniture/c dr 10,000

To A's capital a/c 30,000

b. Salary a/c dr 1,000

To outstanding salary a/c 1,000

c. Purchases a/c dr 6,000

To cash a/c 6,000

d. Cash a/c dr 2,000

To dividend a/c 2,000

Explanation:

a. cash and furniture comes in so it is debited

capital is a liability for the business so it is credited being liability has cr. balance

b. salary is an expence so dr.

salary outstanding is a liability so cr.

c. purchases is an expense so dr.

cash goes out during purchase so cr.

d. cash comes in when we receive dividend so dr.

dividend is income so cr.

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