Question

From the following Transactions, state the nature of account and state which account will be debited and which account credited:
(i) Manu started business with cash – Rs. 1,00,000
(ii) He purchased furniture for business – Rs. 20,000
(iii) Purchase goods on credit from Anshul – Rs. 6,000
(iv) Paid to his creditor, Anshul – Rs. 2,000
(v) Paid salary to his clerk – Rs. 1,000
(vi) Paid Rent – Rs. 500
(vii) Received Interest – Rs. 200

Answer 1

(i) Manu started business with cash – Rs. 1,00,000
(ii) He purchased furniture for business – Rs. 20,000
(iii) Purchase goods on credit from Anshul – Rs. 6,000
(iv) Paid to his creditor, Anshul – Rs. 2,000
(v) Paid salary to his clerk – Rs. 1,000
(vi) Paid Rent – Rs. 500
(vii) Received Interest – Rs. 200