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(a) Capital a/c ↓ Person ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] (b) A & Co. a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] (c) Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out ] (d) Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out ] (e) C & Co. a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] (f) P a/c ↓ Person ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (g) Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (h) Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (i) R a/c ↓ Person ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (j) A & Co. a/c ↓ Organisation ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (k) P a/c ↓ Person ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] (l) Drawings a/c ↓ Person ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (m) Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] Furniture a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what goes out] (n) Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] Machinery a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what goes out] (o) Intel & Co. a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] Computer a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] (p) Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (q) Goods a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out ]

No.

Problems & Solutions

02.

Identity the two elements effected by the following trasactions. Also state which element is debited and which element is credited. Cash paid into bank Rs. 50,000 Paid cash A & Co. Rs. 10,000 Paid to A & Co. by cheque Rs. 5,000 Cash received from P Rs. 8,000 Cheque received from Q Rs. 10,000 Paid to Intel & Co. by cheque Rs. 10,000 Withdrew from bank Rs. 2,000 Withdrew from bank for office use Rs. 3,000 Withdrew from bank for personal use Rs. 2,000 Cash taken by proprietor for personal use Rs. 1,000 Bought furniture and paid by cheque Rs.5,000

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(a) Bank a/c ↓ Organisation ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (b) A & Co. a/c ↓ Organisation ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (c) A & Co. a/c ↓ Organisation ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Bank a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [credit the benefit giver] (d) Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] P a/c ↓ Person ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] (e) Bank a/c ↓ Organisation ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Q a/c ↓ Person ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] (f) Intel & Co. a/c ↓ Organisation ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Bank a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [credit the benefit giver] (g) Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Bank a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] (h) Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Bank a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] (i) Drawings a/c ↓ Person ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Bank a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [credit the benefit giver] (j) Drawings a/c ↓ Person ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver ] Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (k) Furniture a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Bank a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver]

No.

Problems & Solutions

03.

Identity the two elements effected by the following trasactions. Also state which element is debited and which element is credited. Paid wages Rs. 4,000 paid rent by cheque Rs. 6,000 Paid salary to Mr. X Rs. 2,000 Purchased stationery from KJ & Co. and paid by cheque Rs. 500 Received interest Rs. 5,000 Received commission by cheque Rs. 3,000 Rent received from Mr.LM Rs. 1,000 Interest received from Mr.TJ by cheque Rs. 2,000

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(a) Wages a/c ↓ Expenditure ↓ Nominal a/c ↓ Expenditure ↓ Debit [Debit all expenses and losses] Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (b) Rent a/c ↓ Expenditure ↓ Nominal a/c ↓ Expenditure ↓ Debit [Debit all expenses and losses] Bank a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] (c) Salary a/c ↓ Expenditure ↓ Nominal a/c ↓ Expenditure ↓ Debit [Debit all expenses and losses] Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Going out ↓ Credit [Credit what goes out] (d) Stationery a/c ↓ Expenditure ↓ Nominal a/c ↓ Expenditure ↓ Debit [Debit all expenses and losses] Bank a/c ↓ Organisation ↓ Personal a/c ↓ Giving benefit ↓ Credit [Credit the benefit giver] (e) Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Interest a/c ↓ Income ↓ Nominal a/c ↓ Income ↓ Credit [Credit all incomes and gains] (f) Bank a/c ↓ Organisation ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver] Commission a/c ↓ Income ↓ Nominal a/c ↓ Income ↓ Credit [Credit all incomes and gains] (g) Cash a/c ↓ Tangible aspect/Asset ↓ Real a/c ↓ Coming in ↓ Debit [Debit what comes in] Rent a/c ↓ Income ↓ Nominal a/c ↓ Income ↓ Credit [Credit all incomes and gains] (h) Bank a/c ↓ Organisation ↓ Personal a/c ↓ Taking benefit ↓ Debit [Debit the benefit receiver] Interest a/c ↓ Income ↓ Nominal a/c ↓ Income ↓ Credit [Credit all incomes and gains]

Author Credit : The Edifier