Question

Write journal entries for the following transactions and explain accounting treatments based on

equation.

1. Brought Rs.50,000 and commenced business.

2. Furniture purchased for Rs. 10,000.

3. Goods for Rs.12,000 purchased in cash.​

Answer 1

Answer:

1. Cash A/c                          50000

      to Capital A/c               50000

being business commenced

2. Furniture A/c                   10000

      to cash A/c                   10000

being furniture purchased

3. Purchase A/c                   12000

      to cash A/c                    12000

being goods purchased

Explanation: