To which account, the following transactions will be debited and credited in the books of Ganesh? Describe with reason.

1. ₹75,000 brought in cash and commenced business. 

2. Incurred Puja expenses of ₹2,000. 

3. Brought personal furniture of ₹10,000. 

4. Deposited ₹30,000 to State Bank of India. 

5. Obtained loan of ₹30,000 from wife. 

6. Purchase is made of ₹20,000 and amount is paid by cheque. 

7. Sales is made of ₹42,000 and amount is received by cheque. 

8. Withdrawn ₹22,000 from Bank. 

9. ₹2,000 paid Insurance premium by cheque. 

10. ₹3,500 received for brokerage. 

11. Goods of ₹12,000 sold to Dani. Amount received by cheque. 

12. Goods of ₹8,000 purchased from Dipak. Amount paid by cheque. 

13. Withdrawn ₹2,500 from business for personal use. 

14. Withdrawn goods of ₹1,500 from business for personal use.   

15. Dividend received ₹2,000 through cheque. Cheque deposited with bank. 

16. Bank has credited ₹200 of interest. 

17. Bank has debited ₹100 of bank charges. 

18. Wages paid ₹300. 

19. Paid loan interest of ₹350. 

20. Machine purchased of ₹12,000. 

Solution: 

Sr. No.	Transaction	Dr.  Benefit receiver person	Dr.   Goods/Asset comes in	Dr.   In case of Expense/ Loss	Cr.   Benefit giver   person	Cr.   Goods/ Asset goes out	Cr.   In case of Income/gain
1	₹75,000 brought in cash and commenced business.		Debit to Cash A/c		Credit to Capital A/c
2	Incurred Puja expenses of ₹2,000.			Debit to Puja expenses A/c		Credit to Cash A/c
3	Brought personal furniture of ₹10,000.		Debit to Furniture A/c		Credit to Capital A/c
4	Deposited ₹30,000 to State Bank of India.		Debit to State Bank of India A/c			Credit to Cash A/c
5	Obtained loan of ₹30,000 from wife.		Debit to cash A/c		Credit to Wife Loan A/c
6	Purchase is made of ₹20,000 and amount is paid by cheque		Debit to   Purchase A/c			Credit to Bank A/c
7	Sales is made of ₹42,000 and amount is received by cheque.		Debit to Bank A/c			Credit Sales A/c
8	Withdrawn ₹22,000 from Bank.	Debit to Drawings A/c				Credit to Cash A/c
9	₹2,000 paid Insurance premium by cheque.		Debit to Insurance premium A/c			Credit to Bank A/c
10	₹3,500 received for brokerage.		Debit to Cash A/c				Credit to Brokerage A/c

 

11	Goods of ₹12,000 sold to Dani. Amount received by cheque.		Debit to Bank A/c			Credit to Sales A/c
12	Goods of ₹8,000 purchased from Dipak. Amount paid by cheque.		Debit to   Purchase  A/c			Credit to Bank A/c
13	Withdrawn ₹2,500 from business for personal use.	Debit to Drawings A/c			Credit to Cash A/c
14	Withdrawn goods of ₹1,500 from business for personal use	Debit to Drawings A/c			Credit to Goods A/c
15	Dividend received ₹2,000 through cheque. Cheque deposited with bank.		Debit to Bank A/c				Credit to Dividend A/c
16	Bank has credited ₹200 of interest.		Debit to cash A/c				Credit to interest A/c
17	Bank has debited ₹100 of bank charges.			Debit to Bank charges		Credit to cash A/c
18	Wages paid ₹300.			Debit to Wages A/c		Credit to cash A/c
19	Paid loan interest of ₹350.			Debit to Interest loan A/c		Credit to Cash A/c
20	Machine purchased of ₹12,000.		Debit to purchase A/c			Credit to cash A/c

 

 

To which account, the following transactions will be debited and credited in the books of Ganesh? Describe with reason.