Question

Analyse the following transactions , state the nature of accounts and state which account will be debited and which account credited:
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S.No	Particulars	₹
(i)	Lal started business with cash	3,00,000
(ii)	Purchased furniture for cash from Shanti Furniture House	75,000
(iii)	Purchase goods for cash	55,000
(iv)	Sold goods for cash to Pal	35,000
(v)	Sold goods to Om on credit	60,000
(vi)	Deposited cash in bank for opening an account	70,000
(vii)	Received a cheque from Om	20,000
(viii)	Deposited Om's cheque the next day
(ix)	Borrowed from Sohan	1,00,000
(x)	Purchased furniture from Haryana safe	50,000
(xi)	Paid interest on loan	10,000
(xii)	Paid rent by cheque	4,000
(xiii)	Paid salary to staff	14,000
(xiv)	Witrhdrew cash for personal use	5,000

Answer 1

Transactions	Nature of Account
Lal started business with cash	Cash A/c- Debit Capital A/c- Credit
Purchased furniture for cash from Shanti Furniture House	Furniture A/c- Debit Cash A/c- Credit
Purchased goods for cash	Purchases A/c- Debit Cash A/c- Credit
Sold goods for cash to Pal	Cash A/c- Debit Sales A/c- Credit
Sold goods to Om on credit	Om A/c- Debit Sales A/c- Credit
Deposited cash in bank for opening an account	Bank A/c- Debit Cash A/c- Credit
Received a cheque from Om	Cheques in Hand A/c- Debit Om A/c- Credit
Deposited Om’s cheque the next day	Bank A/c- Debit Cheques in Hand A/c- Credit
Borrowed from Sohan	Cash A/c- Debit Loan from Sohan A/c- Credit
Purchased furniture from Haryana Safe	Furniture A/c- Debit Haryana Safe A/c- Credit
Paid interest on loan	Interest on Loan A/c- Debit Cash A/c- Credit
Paid rent by cheque	Rent A/c- Debit Bank A/c- Credit
Paid salary to staff	Salary A/c- Debit Cash A/c- Credit
Withdrew cash for personal use	Drawings A/c- Debit Cash A/c- Credit