Question

Prepare a chart showing Analysis of the following transactions in a Tabular form according to the Traditional Approach:

1. Rajasaheb started the business with cash of ₹ 85,000.

2. Goods Purchased for cash ₹ 5,000.

3. Sold goods on credit worth ₹ 6,000 to Ramesh.

4. Cash deposited into Bank of Maharashtra ₹ 12,000.

5. Interest received ₹ 700 from Radhika.

6. Paid Rent ₹ 2,000 to the landlord.

7. Bought goods on credit from Birajmohan ₹ 7,000.

8. Withdrew cash from bank ₹ 1,000 for office use.

9. Purchased computer ₹ 9,000 for cash.

10. Paid Mobile bill (office) ₹ 500.

11. Sold old Mobile ₹ 2,000.

12. Received Rent ₹ 1,000 from the tenant.

Answer 1

Table showing analysis of the transactions is given below (Traditional Approach):

Sr. No.	Transactions	Two Aspects/ Effects	Accounts Involved	Categories	Rules Applied	Account to be Debited	Account to be Credited
(1)	Rajasaheb started the business with cash of ₹ 85,000.	Cash comes in	Cash A/c	Real A/c	Debit what comes in	Cash A/c	.............
		Proprietor is giver	Capital A/c	Personal A/c	Credit the giver	.............	Capital A/c
(2)	Goods Purchased for cash ₹ 5,000.	Purchase is an expense	Purchase A/c	Nomial A/c	Debit the expense	Purchase A/c	.............
		Cash goes out	Cash A/c	Real A/c	Credit what goes out	.............	Cash A/c
(3)	Sold goods on credit worth ₹ 6,000 to Ramesh.	Ramesh is receiver	Ramesh's A/c	Personal A/c	Debit the receiver	Ramesh A/c	.............
		Sales is an income	Sales A/c	Nomianal A/c	Credit the income	.............	Sales A/c
(4)	Cash deposited into Bank of Maharashtra ₹ 12,000	Bank of Maharashtra is receiver	Bank of Maharashtra A/c	Personal A/c	Debit the receiver	Bank of Maharashtra A/c	.............
		Cash goes out	Cash A/c	Real A/c	Credit what goes out	.............	Cash A/c
(5)	Interest received ₹ 700 from Radhika	Cash comes in	Cash A/c	Real A/c	Debit what comes in	Cash A/c	.............
		Interest is an income	Interest A/c	Nomianal A/c	Credit the income	.............	Interest A/c
(6)	Paid Rent ₹ 2,000 to the landlord	Rent is an expense	Rent A/c	Nomianal A/c	Debit the expense	Rent A/c	.............
		Cash goes out	Cash A/c	Real A/c	Cash goes out	.............	Cash A/c
(7)	Bought goods on credit from Birajmohan ₹ 7,000.	Purchase is an expense	Purchases A/c	Nomianal A/c	Debit the expense	Purchases A/c	.............
		Birajmohan is giver	Birajmohan A/c	Personal A/c	Credit the giver	.............	Birajmohan A/c
(8)	Withdrew cash from bank ₹ 1,000 for office use.	Cash comes in	Cash A/c	Real A/c	Debit what comes in	Cash A/c	.............
		Bank is the giver	Bank A/c	Personal A/c	Credit the giver	.............	Bank A/c
(9)	Purchased computer ₹ 9,000 for cash.	Computer comes in	Computer A/c	Real A/c	Debit what comes in	Computer A/c	.............
		Cash goes out	Cash A/c	Real A/c	Credit what goes out	.............	Cash A/c
(10)	Paid Mobile bill (office) ₹ 500.	Mobile bill is an expense	Mobile Expense A/c	Nomianal A/c	Debit the expense	Mobile Expense A/c	.............
		Cash goes out	Cash A/c	Real A/c	Credit what goes out	.............	Cash A/c
(11)	Sold old Mobile ₹ 2,000.	Cash comes in	Cash A/c	Real A/c	Debit what comes in	Cash A/c	.............
		Mobile an asset goes out	Mobile A/c	Real A/c	Credit what goes out	.............	Mobile A/c
(12)	Received Rent ₹ 1,000 from the tenant.	Cash comes in	Cash A/c	Real A/c	Debit what comes in	Cash A/c	.............
		Rent is an income	Rent A/c	Nomianal A/c	Credit the income	.............	Rent A/c