Business Accounting

BUSINESS ACCOUNTING

TABLE OF CONTENTS
QUESTION- 1.................................................................................................................................1
QUESTION- 2.................................................................................................................................1
QUESTION- 3.................................................................................................................................4
QUESTION- 4.................................................................................................................................5
QUESTION- 5.................................................................................................................................7
QUESTION- 6.................................................................................................................................7
QUESTION- 7.................................................................................................................................8
QUESTION- 8.................................................................................................................................9
QUESTION- 9...............................................................................................................................10
QUESTION- 10.............................................................................................................................11
REFERENCES..............................................................................................................................12

QUESTION- 1
i) Double entry equation- Assets= Liability+ Capital
S. No Assets Liabilities Capital
€ € €
(a) 20000 0 20000
(b) 15000 5000 10000
(c) 16400 7550 8850
(d) 14100 3850 10250
(e) 25380 18430 6950
ii) Dual aspect of transactions
(a) Bank account shall be debited with 8000 and simultaneously the capital account shall be
credited with the same amount recording the dual aspect of the transactions.
(b) Computer is the asset account shall be debited with 4000 and on the other hand the bank
account shall be credited with 4000. This completes the double entry in the books.
(c) Bank account shall be debited and the loan account which is the liability for the business shall
be credited by 3000 in the accounts of the company.
(d) Van account being the asset shall be debited and the bank account is reduced by 6000 so it
shall be credited. This satisfies the bookkeeping equation of accounts (Abdusalomova, 2017).
(e) Cash account shall be debited by 250 and cancelling the A Abela the receivable account shall
be credited in the books of accounts.
QUESTION- 2
Ledger accounts
Bank Account
Date
Particular
s J.F. Amount Date
Particular
s J.F. Amount
01/01/21
To Capital
account 25000 02/01/21
By Rent
account 2000
31/01/21
By balance
c/d 23000
25000 25000
01/02/21
To balance
b/d 23000
1

Capital Account
Date
Particular
s J.F. Amount Date
Particular
s J.F. Amount
31/01/21
To balance
c/d 25000 01/01/21
By Bank
account 25000
25000 25000
01/02/21
By balance
b/d 25000
Rent Account
Date
Particular
s J.F. Amount Date
Particular
s J.F. Amount
02/01/21
To Bank
account 2000 31/01/21
By Profit
and loss
account 2000
2000 2000
Purchase Account
Date
Particular
s J.F. Amount Date
Particular
s J.F. Amount
03/01/21
To Linda
account 5000
05/01/21
To Payable
account 3000 31/01/21
By Profit
and loss
account 8000
8000 8000
Linda Account
Date
Particular
s J.F. Amount Date
Particular
s J.F. Amount
30/01/21
To
Purchase
return
account 2000 03/01/21
By
Purchase
account 5000
31/01/21
To balance
c/d 3000
2