An example is also given in Sr. No. 1 for referenceand guidance. Sr. No Transact
ID: 2447643 • Letter: A
Question
An example is also given in Sr. No. 1 for referenceand guidance.
Sr. No
Transactions
Account to be Debited
Account to be Credited
Increase or decrease (affect on accountsdue to transactions)
1
Mr. A invested in business Rs.50,000
Cash
Mr. A’s Capital
Increase in asset
Increase in Owner’s Equity
2
Purchased furniture for cash Rs.15,000 for office use
?
?
?
3
Paid salaries of Rs.4,000 to office staff
?
?
?
4
Received commission on sale of goods worth Rs.1,000
?
?
?
5
Received cash of Rs.1,000 from Mr.Bilal who owed him Rs. 2,000for last 30 days on account of goods sold.
?
?
?
Sr. No
Transactions
Account to be Debited
Account to be Credited
Increase or decrease (affect on accountsdue to transactions)
1
Mr. A invested in business Rs.50,000
Cash
Mr. A’s Capital
Increase in asset
Increase in Owner’s Equity
2
Purchased furniture for cash Rs.15,000 for office use
?
?
?
3
Paid salaries of Rs.4,000 to office staff
?
?
?
4
Received commission on sale of goods worth Rs.1,000
?
?
?
5
Received cash of Rs.1,000 from Mr.Bilal who owed him Rs. 2,000for last 30 days on account of goods sold.
?
?
?
Explanation / Answer
2 Debit Furniture & Fixtures credit cash increase and decrease of asset 3. Debit Salary Expense credit cash increase expensesdecrease asset 4. debit cash credit income increase asset increaseincome/equity 5. debit cash credit accounts receivable increaseand decrease of asset
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