Answer to Question #268725 in Accounting for abhi

Question

Mr. Akbar provides you with the following information-(all the transactions are separate and independent of each other)  Started business with cash Rs150000  Purchased goods for cash Rs 25000  Sold goods to C on credit Rs 20000  Paid salary for cash Rs15000  Deposited cash into the bank account Rs100000.

a. Identify the accounts being affected in the monetary transaction and Identify the type of accounts identified - real, personal or nominal

Answer 1

Solution:

a.). i.). Started business with cash Rs15,000:

Accounts affected are: Capital account and Cash account:

Dr. Capital Account                                 150,000

                Cr. Cash Account                                                   150,000

Capital account – Personal account

Cash account – Real account

 

ii.). Purchased goods for cash R25,000:

Accounts affected are: Purchase’s account and Cash account:

Dr. Purchases Account                               25,000

               Cr. Cash Account                                                       25,000

Purchases account – Nominal account

Cash account – Real account

 

iii.). Sold goods to C on credit Rs 20000:

Accounts affected are sales account and accounts receivable account:

Dr. Accounts receivable account                20,000

             Cr. Sales account                                                          20,000

Accounts receivable account – Real account

Sales account – Nominal account

 

iv.).  Paid salary for cash Rs15000:

Accounts affected are salary account and cash account:

Dr. Salary account                                      15,000

             Cr. Cash account                                                                15,000

Salary account – Nominal account.

Cash account – Real account

 

v.).  Deposited cash into the bank account Rs100000:

Accounts affected are cash account and bank account:

Dr. Bank account                                  100,000

              Cr. Cash account                                                                100,000

Bank account – Real account

Cash account – Real account