Scribd
Upload
16 views7 pages

Module 1 - Exercise 2

Uploaded by

architspersonal.2005
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
16 views7 pages

Module 1 - Exercise 2

Uploaded by

architspersonal.2005
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 7

1

10

11
12

13

14

15
Exercise - Part 2
In Exercise 1, you identified the two accounts and types of
accounts. Now you try to record the transactions by entering
which account to be debited and which account has to be
credited. Note for each transaction, there is one debit account
and one credit account. The first one is example.

Ashok invested Rs. 10 lakhs to start a business venture.

The company borrowed Rs. 50 lakhs from Indian Bank

Purchased Machines for Rs. 15 lakhs by paying cash

Purchased Raw Materials and Component from Regal & Co.for Rs. 20 lakhs on credit
(See the Notes at the end before entering the transaction)

Paid salary to workers Rs. 3 lakhs

Paid Rs. 2 lakhs for maintenance of machine

Paid Electricity and expenses Rs. 4 lakhs

Sold Goods for Rs. 20 lakhs to Keshav & Co against cash

Sold Goods for Rs. 18 lakhs to Jain & Co on credit

Interest of Rs. 1 lakh paid to bank

Sales commission of Rs. 2 lakhs paid to Meha Agencies


Depreciation for the machine for the period Rs. 1 lakh

Received Rs. 12 lakhs from Jain & Co

Paid Rs. 8 lakhs to Regal & Co from whom Raw material was purchased on credit.

Raw materials and components are consumed in full


Tips: Transfer Raw Material from assets to expenses

Note: In Transaction 4, you are buying Raw Material and it is asset at that point
In transaction 15, you are consuming the Raw Material and here you need to move the asset
To differentiate the two, use "Raw Materials Inventory" for Asset and "Raw Material Consump
Personal/
Account
Real/Nomi Debit/Credit
Name
nal

Account 1 Cash & Bank Real Debit Rs. 10 lakhs


Account 2 Capital Personal Credir Rs. 10 lakhs

Account 1 Cash & Bank Real Debit 50 lacs


Account 2 Indian Bank Loan Personal credit 50 lacs

Account 1 Cash & Bank Real credit 15 lacs


Account 2 Machine Real debit 15 lacs

Account 1 Regal & Co Personal credit 20 lacs


Account 2 Raw Material Real debit 20 lacs

Account 1 Cash & Bank Real credit 3 lacs


Account 2 Salary Nominal debit 3 lacs

Account 1 Cash & Bank Real credit 2 lacs


Account 2 Maintenance Nominal debit 2 lacs

Account 1 Cash & Bank Real crdit 4 lacs


Account 2 Electricity Nomainal debit 4 lacs

Account 1 Keshav & Co Personal credit 20 lacs


Account 2 Sales Nominal debit 20 lacs

Account 1 Jain & Co. Personal debit 18 lacs


Account 2 Sales Nominal credit 18 lacs

Account 1 Cash & Bank Real credit 1 lac


Account 2 Interest Nominal debit 1 lac

Account 1 Cash & Bank Real credit 2 lacs


Account 2 Commission Real debit 2 lacs
Account 1 Depreciation Nominal debit 1 lac
Account 2 Machine Real credit 1 lac

Account 1 Jain & Co. Personal credit 12lacs


Account 2 Cash & Bank Real debit 12 lacs

Account 1 Regal & Co Personal debit 8 lacs


Account 2 Cash & Bank Real credit 8 lacs

Raw Material
Nomianl debit
Account 1 Consumption
Account 2 Raw Material Real credit

move the asset to expenses.


terial Consumption" for Expense
Relevant Rule

Debit What Comes In


Credit the Giver

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy