Analyse the Following Transactions and Find Out Debit or Credit
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ANALYSE THE FOLLOWING TRANSACTIONS AND FIND OUT DEBIT OR CREDIT
FOLLOWING TRADITIONAL RULES:
Exercise: 1
1) Gopal commenced business with cash;
2) Purchased furniture;
3) Purchased goods from Madura on credit.
4) Purchased goods for cash.
5) Sold goods to Narayana on credit.
6) Sold goods for cash.
7) Paid wages.
8) Received commission.
9) Took loan from Allahabad Bank
10) Paid Madura on account.
11) Received from Narayana on account.
12) Deposited cash into bank;
13) Withdrew cash for personal use;
14) Paid interest on Bank loan.
15) Withdraw money from bank.
Solution:
Sr.no. Accounts Involved Classification of Accounts Rules of Debit & Credit
1 Cash A/c Real Debit-What comes in
Capital A/c Personal Credit-The Giver
2 Furniture A/c Real Debit-What comes in
Cash A/c Real Credit-What goes out
3 Purchase A/c Real Debit-What comes in
Madura A/c Personal Credit-The Giver
4 Purchase A/c Real Debit-What comes in
Cash A/c Real Credit-What goes out
5 Narayana A/c Personal Debit-What comes in
Sales A/c Real Credit-What goes out
6 Cash A/c Real Debit-What comes in
Sales A/c Real Credit-What goes out
7 Wages A/c Nominal Debit-All Expenses & Losses
Cash A/c Real Credit-What goes out
8 Cash A/c Real Debit-What comes in
Commission A/c Nominal Credit-All Incomes & Gains
9 Cash A/c Real Debit-What comes in
Bank Loan A/c Personal Credit-The Giver
10 Madura A/c Personal Debit-The Receiver
Cash A/c Real Credit-What goes out
11 Cash A/c Real Debit-What comes in
Narayana A/c Personal Credit-The Giver
12 Bank A/c Personal Debit-The Receiver
Cash A/c Real Credit-What goes out
13 Drawings A/c Personal Debit-The Receiver
Cash A/c Real Credit-What goes out
14 Interest on loan A/c Nominal Debit-All Expenses & Losses
Cash A/c Real Credit-What goes out
15 Cash A/c Real Debit-What comes in
Bank A/c Personal Credit-The Giver
Exercise: 2
Journalize the following transactions in the books of Nichi Software.
Rs.
1. 1-4-2001 Started business with cash 45,000
2. 1-4-2001 Paid into Bank 25,000
3. 2-4-2001 Goods purchased for cash 15,000
4. 3-4-2001 Purchase of Furniture and payment made by cheque 5,000
5. 5-4-2001 Sold goods for cash 6,000
6. 8-4-2001 Sold goods to Arvind 4,000
7. 10-4-2001 Goods purchased from Bharath 7,000
8. 12-4-2001 Goods returned to Bharath 1,000
9. 15-4-2001 Sold goods to Chanchan for Cash 2,500
10. 18-4-2001 Cash received from Aravind Rs. 3,960 and discount allowed to him Rs.
40
11. 21-4-2001 Withdrawn from bank for private use 1,000
12. 22-4-2001 Withdrew from bank for use in the business 5,000
13. 25-4-2001 Paid telephone bill 400
14. 28-4-2001 Cash paid to Bharath in full settlement of his account 5,940
15. 30-4-2001 Paid for Rent Rs. 1,000; Salaries Rs. 2,500 and Stationery Rs. 200.
Solution:
Books of Niche Software
JOURNAL
Date Particulars L.F. Amount Amount
Dr. Cr.
01-04-2009 By Cash A/c Dr. 45000
To Capital A/c Cr. 45000
(Being capital introduced)
01-04-2009 By
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