Question

From the following transactions, state the nature of account and state which account will be debited and which account credited:

		₹
(i)	Manu started business with cash	1,00,000
(ii)	He purchased furniture for business	20,000
(iii)	Purchase goods on credit from Anshul	6,000
(iv)	Paid to his creditor, Anshul	2,000
(v)	Paid salary to his clerk	1,000
(vi)	Paid rent	500
(vii)	Received interest	200

Answer 1

Transactions	Nature of Account
Manu started business with cash	Cash A/c- Debit Capital A/c- Credit
He purchased furniture for business	Furniture A/c- Debit Cash A/c- Credit
Purchased goods on credit from Anshul	Purchases A/c- Debit Creditor A/c- Credit
Paid to his creditor, Anshul	Creditor A/c- Debit Cash A/c- Credit
Paid salary to his clerk	Salary A/c- Debit Cash A/c- Credit
Paid rent	Rent A/c- Debit Cash A/c- Credit
Received interest	Cash A/c- Debit Interest A/c- Credit