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By Y P Singh

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Extra resources for Accounting and Financial Management for I. T. Professionals

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26,800 12,800 Purchase A/c Dr. Cr. ) Date March 3 To Cash A/c 14,000 March 8 To Chowdhry and Co. ) 27,100 27,100 Sales A/c Dr. Cr. T. Professionals Return Inward A/c Dr. Cr. ) 100 Return Outward A/c Dr. Cr. ) Date 1,100 March 25 Particulars March 29 By Chowdhry and Co. ) 1,000 100 1,100 1,100 1,100 Investment A/c Dr. Date Cr. ) 3,000 March 28 By Cash A/c 1,300 100 March 30 By balance b/d 1,800 Loss A/c 3,100 To balance b/d 1,800 3,100 Machinery and Furniture A/c Dr. Cr. ) 15,000 15,000 Book-Keeping 45 Raghvendra A/c (Sundry Debtor) Dr.

F. stands for Ledger Folio. The transactions entered in journal are later on posted to the ledger. This is given for easy reference. 3. A/c stands for account. 4. g. cash sales, cash purchase, salary paid etc. are cash transactions whereas cash received through owner and bank by way of loan, are credit transactions as owner providing capital and bank providing loans, are creditors and hence according to Rule 1 stated above personal A/c need to be opened. In case of owner’s contribution ‘Capital A/c’ whereas in case of bank ‘Loan A/c’ in the name of bank, should be opened.

100 To Return Outward A/c 100 (being goods purchased from Bhuwan returned) March 30 Rent A/c …Dr 1,000 To Bank A/c (being rent paid to landlord for April) March 30 Salary A/c …Dr. 1,000 1,500 To Cash A/c 1,500 (Being salary paid to staff) March 30 Cash A/c …Dr. 1,900 Travelling Expenses A/c. Dr. 100 To Sales A/c 2,000 (being cash received from travelling salesman after deduction the expenses) Note: Return inward and return outward is also termed as sales return and purchase return respectively.

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