Accounting Transactions Exercises III

Accounting Transactions Exercises

TRANSACTIONS EXERCISES:

Transactions Question:

David started business with cash.
William purchased furniture from David to cash.
William paid for furniture to David.
David sold the machine to William for cash.
David received cash for sale.
William bought goods from David on credit.
Sold furniture to William by David on credit.
Cash deposit into Bank by David.
Withdraw cash from debit by William.
Withdraw cash from the Bank for personal uses.
Spent cash by David for office use.
William purchased fixed assets for business use to cash.
Paid to business promotion.
Paid interest.
Received rent as a cash.
Paid cash for furniture.
Paid wages.
Paid advertisement.
Received deduction as a Tax.
Paid cash for purchase.

Transactions Answers:

Cash a/c Dr.

to Capital a/c Cr.

Furniture a/c Dr.

to Cash a/c Cr.

Furniture a/c Dr.

to Cash a/c Cr.

Machine a/c Dr.

to Cash a/c Cr.

Cash a/c Dr.

to Sales a/c Cr.

Purchase a/c Dr.

to David a/c Cr.

William A/c Dr.

to Furniture a/c Cr.

Bank a/c Dr.

to David a/c Cr.

Cash a/c Dr.

to William a/c Cr.

Cash a/c Dr.

to Drawing a/c Cr.

Cash a/c Dr.

to David a/c Cr.

Purchase a/c Dr.

to Capital a/c Cr.

Cash a/c Dr.

to Direct expenses Cr.

Interest a/c Dr.

to Cash a/c Cr.

Rent a/c Dr.

to Cash a/c Cr.

Furniture a/c Dr.

to cash a/c Cr.

Wages a/c Dr.

to Cash a/c Cr.

Advertisement a/c Dr.

to Cash a/c Cr.

Deduction a/c Dr.

to Tax a/c Cr.

Purchase a/c Dr.

to Cash a/c Cr.

Real Account

Comments

LIABILITY | EXPENSE

LIABILITY: These liability are those liability which have to pay by the proprietor for long time or sort time. Liability are two type: Current Liability These liability are those liability which have to pay by the proprietor for soft term to own business out sides investors, shares holders, soft term loan or creditors, etc. Fixed Liability These liability are those liability which have to pay by the proprietor for long term to own business, partners, debenture or long term loan. EXPENSE: These expenses are those expenses which have to spend by the proprietor for business activities. These are two type: Direct expenses: These expenses are those expenses which have to spend by the proprietor directly. For examples: Carriage - in & out word Fright Transport Tax Fuel Wages Posts and stamp Rent, etc. Indirect expenses These expenses are those expenses which have to spend by the proprietor indirectly for business purpose. For examples: full-width Advertisement Books & Stati...

INCOME | CREDITOR | DEBTOR

INCOME These income are those income which have to receive for selling goods and services. Type of income: Direct Income These income are those income which have to receive to supplier for direct selling to cash. For example Sales for cash Assets for cash Service for cash, etc. Indirect Income These income are those income which have to receive indirectly. For example Discount receive Interest receive Commission Bonus Gift, etc. full-width Creditor: A person who takes the cash and gives the goods. Debtor: A person who gives the cash and receive the goods.

ACCOUNTS | PERSONAL ACCOUNT | IMPERSONAL ACCOUNT

Classification of accounts ACCOUNTS It is a way or method to maintain the all business daily transactions as a record for maintaining its all balance in which include company expanses and income, profit and loss, purchase and sales, etc. That is knows as account. Types of accounts: Personal Account: These account are those account in which the transaction shall be maintained in between two person to company, one person one bank or one company one company. Rules: Cr. - Credit Account Dr. - Debit Account. Debit the receiver always Dr. Credit the given always Cr. Examples: Ram sold goods to Mohan. Mohan a/c Dr. Ram a/c Cr. Mohan purchase goods from Ram. Mohan a/c Dr. Ram a/c Cr. Mohan purchase furniture from Ram. Mohan a/c Dr. Ram a/c Cr. Mohan sold goods to Mohan. Mohan a/c Dr. Ram a/c Cr. full-width Impersonal Account: These are two type: Real account Nominal account Real account: These account are those account which have to maintain as the transaction in which we can know tha...

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