Question

State the title of the accounts affected, type of account and the account to be debited and account to be credited :
1. Bhanu commenced business with cash 1,00,000
2. Purchased goods on credit from Ramesh 40,000
3. Sold goods for cash 30,000
4. Paid salaries 3,000
5. Furniture purchased for cash 10,000
6. Borrowed from bank 50,000
7. Sold goods to Sarita 10,000
8. Cash paid to Ramesh on account 20,000
9. Rent paid 1,500

Answer 1

1.Cash account and capital account, Asserts and Liabilities , Assert increase and capital increase.
2.Purchase account and Ramesh account. Expenses and liabilities , Expenses and Liabilities increases.
3.Cash account and sales account. Asserts and Revenues, Asserts and Revenues increases
4.Salaries account and cash account, Expense and Asset , Expenses increases Assets decreases.
5.Furniture account and Bank, Liability and Asset, Liabilites increases Asset
6.Loan account and Bank , Liability and Asset, Liabilities increases Asset decreases
7 Sarita account and Sales account, Asset and Revenue, Assets decreases Revenue decreases
8. Ramesh account and Cash, liabilities and Assets, Liabilities decreases Assets increases .
9.Rent account and Cash account , Expense and Assets, Expenses increases Assets decreases.