Recording of Transactions

Account to be creditd for - Paid Salary $1,000

• Cash

• Salary

• Bank

Account to be credited for - Commenced business with cash $5,000

• Cash

• Bank

• Capital

Account to be debited for - Purchased goods on account $1,000

• Cash

• Goods

• Purchases

• Bank

Account to be credited for - Sold goods on account/credit

• Cash

• Sales

• Trade Receivables

• Bank

Account to be credited for - Purchased goods on account $2,000

• Cash

• Purchases

• Trade Payables

• Trade Receivables

Account to be debited for - Goods returned by the credit customer $500

• Trade Receivables

• Cash

• Sales Return (Return Inward)

• Purchase Return (Return Outward)

Cash A/c. Dr. $5,000

(a)   A/c $5,000

(Commenced business with cash)

___________ A/c. Dr. $3000

Sales A/c. $3,000

(Sold goods on account)

• Trade Receivables

• Cash

• Bank

• Capital

____________ A/c. Dr. $500

Trade Receivables A/c. $500

(goods returned by the credit customer)

• Cash

• Bank

• Sales Return

• Purchase Return

_____________ A/c Dr. $6,000

Cash A/c $6,000

(Mr. Mohan, a furniture merchant,

purchased furniture for cash)

• Purchases

• Furniture

• Bank

• Capital