Entries
Ajay purchased goods on credit from Varun $ 200
How will Ajay record this?
Purchases Account DR
Varun Account CR
paid a credit supplier $2100 by cheque?
Effect on Asset & liabilities?
Bank Asset Decreases
Supplier Liability Decreases
Purchased goods $200 from Mr. C. Half payment made through cash and half by cheque?
Purchases DR
Cash CR
Bank CR
Bought machinery $4000 and paid by cheque?
Effect on asset & liability?
Machinery Asset increases
Bank Asset Decreases
Ram paid a cheque of $975 to Kumar in full settlement of his debt $1000.How will Kumar record this?
Bank Dr. 975
Discount Allowed DR 25
Ram CR 1000
Cash Sales $ 1960?
Effect on asset & liability?
Cash Asset increases
Liability-No effect
Sold goods $2500 to Mr. Z by allowing a 2% CD?
Cash DR 2450
Discount Allowed DR 50
Sales CR 2500
Paid for taxi fare?
Effect on asset & liability?
Cash Asset Decreases
Liability no effect
Receipts from the sale of motor vehicle?
Cash DR
Motor Vehicle CR
Obtained a loan, $10000 from AB finance?
Effect on Asset and liabilities?
Bank Asset increases
AB loan liabilities increases