From the following transactions, state the nature of accounts and state the accounts which will be debited and credited:
1. Ganesh started business with Cash ₹ 2,00,000.
2. Purchased goods for Cash ₹ 60,000.
3. Sold goods for cash ₹ 75,000.
4. Purchased goods from Nakul on Credit for ₹ 80,000.
5. Sold goods to Bhushan on Credit for ₹ 50,000.
6. Paid Cash to Nakul ₹ 20,000.
7. Received Cash from Bhushan ₹ 10,000.
8. Paid salary ₹ 20,000.

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Solution

Transactions

Nature of Account

Ganesh started business with cash Cash A/c- Debit (Asset)
Capital A/c- Credit (Liability)

Purchased goods for cash
Purchases- Debit (Expense)
Cash A/c- Credit (Asset)

Sold goods for cash
Cash A/c- Debit (Asset)
Sales A/c- Credit (Revenue)

Purchased goods from Nakul on credit Purchases A/c- Debit (Expense)
Nakul A/c- Credit (Liability)

Sold goods to Bhushan on credit
Bhushan A/c- Debit (Asset)
Sales A/c- Credit (Revenue)

Paid cash to Nakul Nakul A/c- Debit (Liability)
Cash A/c- Credit (Asset)

Received Cash from Bhushan Cash A/c- Debit (Asset)
Bhushan A/c- Credit (Asset)

Paid salary Salary A/c- Debit (Expense)
Cash A/c- Credit (Asset)

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Transactions	Nature of Account
Ganesh started business with cash	Cash A/c- Debit (Asset) Capital A/c- Credit (Liability)
Purchased goods for cash	Purchases- Debit (Expense) Cash A/c- Credit (Asset)
Sold goods for cash	Cash A/c- Debit (Asset) Sales A/c- Credit (Revenue)
Purchased goods from Nakul on credit	Purchases A/c- Debit (Expense) Nakul A/c- Credit (Liability)
Sold goods to Bhushan on credit	Bhushan A/c- Debit (Asset) Sales A/c- Credit (Revenue)
Paid cash to Nakul	Nakul A/c- Debit (Liability) Cash A/c- Credit (Asset)
Received Cash from Bhushan	Cash A/c- Debit (Asset) Bhushan A/c- Credit (Asset)
Paid salary	Salary A/c- Debit (Expense) Cash A/c- Credit (Asset)