1. Analyze the following transaction under traditional approach. 18.1.2011 Received a cheque from a customer, Sanjay at 5 p.m. Rs.20,000 19.1.2011 Paid Ramu by cheque Rs.1,50,000 20.1.2011 Paid salary Rs. 30,000 20.1.2011 Paid rent by cheque Rs. 8,000 21.1.2011 Goods withdrawn for personal use Rs. 5,000 25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000 26.1.2011 Received an advance from customers Rs. 3,00,000 31.1.2011 Paid interest on loan Rs. 5,000 31.1.2011 Paid instalment of loan Rs. 25,000 31.1.2011 Interest allowed by bank Rs. 8,000 Analysis of transaction –with accounts involved-nature of account-affects and debit/credit
Solution:-
Sl. No. | Accounts Involved | Nature of account
|
Affects
|
Debit/ Credit
|
1 | Cash a/c
Sanjay a/c |
Real
Personal |
Cash (cheque) is coming in
Sanjay is the giver |
Debit
Credit |
2 | Ram’s a/c
Bank a/c |
Personal
Personal |
Ram is the receiver
Bank is the giver |
Debit
Credit |