Question

Put the following on the proper side of Cash Account, Debtors's Account and Creditor's Account:-

		(₹)
(a)	Sold goods to Shankar on Credit	50,000
(b)	Sold goods to Ghanshyam for Cash	30,000
(c)	Purchased goods from Mohan on Credit	25,000
(d)	Received from Shankar	29,000
(e)	Shankar returned goods	1,000
(f)	Sold goods to Shankar for Cash	5,000
(g)	Returned goods to Mohan	2,000
(h)	Paid Rent	4,000

Answer 1

(I) Increase in Cash (being an asset) will be shown on the debit side and decrease in cash will be recorded on the credit side of the Cash Account.

Cash Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Record increase in Cash on this side-			Record decrease in Cash on this side-
(b) Sold goods for cash		30,000	(h) Paid rent	4,000
(d) Received from Shankar		29,000
(f) Sold goods for cash		5,000
Total		64,000	Total	4,000
			Balance	60,000
		64,000		64,000

(II) Increase in Debtors (being an asset) will be shown on the debit side and decrease in them will be recorded on the credit side of the Debtors Account.

Shankar’s (Debtor) Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Record increase in Debtors on this side-			Record decrease in Debtors on this side-
(a) Sold goods to Shankar on credit		50,000	(d) Shankar paid	29,000
			(e) Shankar returned goods	1,000
Total		50,000	Total	30,000
			Balance	20,000
		50,000		50,000

(III) Increase in Creditors (being a liability) will be shown on the credit side and decrease in the creditors will be recorded on the debit side of the Creditors Account.

Mohan’s (Creditor) Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Record decrease in Creditors on this side-			Record increase in Creditors on this side-
(g) Returned goods to Mohan		2,000	(c) Purchased goods fromMohan on credit	25,000
Total		2,000	Total	25,000
Balance		23,000
		25,000		25,000