Essay About Purchase A And Following Transactions

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
Cash A/c
Debit-What comes in
Capital A/c
Personal
Credit-The Giver
Furniture A/c
Debit-What comes in
Cash A/c
Credit-What goes out
Purchase A/c
Debit-What comes in
Madura A/c
Personal
Credit-The Giver
Purchase A/c
Debit-What comes in
Cash A/c
Credit-What goes out
Narayana A/c
Personal
Debit-What comes in
Sales A/c
Credit-What goes out
Cash A/c
Debit-What comes in
Sales A/c
Credit-What goes out
Wages A/c
Nominal
Debit-All Expenses & Losses
Cash A/c
Credit-What goes out
Cash A/c
Debit-What comes in
Commission A/c
Nominal
Credit-All Incomes & Gains
Cash A/c
Debit-What comes in
Bank Loan A/c
Personal
Credit-The Giver
Madura A/c
Personal
Debit-The Receiver
Cash A/c
Credit-What goes out
Cash A/c
Debit-What comes in
Narayana A/c
Personal
Credit-The Giver
Bank A/c
Personal
Debit-The Receiver
Cash A/c
Credit-What goes out
Drawings A/c
Personal
Debit-The Receiver
Cash A/c
Credit-What goes out
Interest on loan A/c
Nominal
Debit-All Expenses & Losses
Cash A/c
Credit-What goes out
Cash A/c
Debit-What comes in
Bank A/c
Personal
Credit-The Giver
Exercise: 2
Journalize the following transactions in the books of Nichi Software.
1-4-2001 Started business with cash
45,000
1-4-2001 Paid into Bank
25,000
2-4-2001 Goods purchased for cash
15,000
3-4-2001 Purchase of Furniture and payment made by cheque
5,000
5-4-2001 Sold goods for cash
6,000
8-4-2001 Sold goods to Arvind
4,000
10-4-2001 Goods purchased from Bharath
7,000
12-4-2001 Goods returned to Bharath
1,000
15-4-2001 Sold goods to Chanchan for Cash
2,500
18-4-2001
Cash received from Aravind Rs. 3,960 and discount allowed to him Rs.
21-4-2001 Withdrawn from bank for private use
1,000
22-4-2001 Withdrew from bank for use in the business
5,000
25-4-2001 Paid telephone bill
28-4-2001 Cash paid to Bharath in full settlement of his account
5,940
30-4-2001 Paid for Rent Rs. 1,000; Salaries Rs. 2,500 and Stationery Rs. 200.
Solution:
Books of Niche Software
JOURNAL
Particulars
Amount
Amount
01-04-2009
By Cash A/c Dr.
45000
To Capital A/c Cr.
45000
(Being capital introduced)
01-04-2009