listed are recorded in the journal: · Part 3

Capital A/c , , (Business started with cash) Bank A/c , , To Cash A/c , , (Cash deposited into the bank) Total c/f , , , , Total c/f , , , , (iii) Plant and Machinery A/c . , To Cash A/c To Creditors A/c , , (Purchase of plant and machinery by paying Rs. , cash and balance on a later date) (iv) Purchases A/c , To Cash A/c , To Creditors A/c , (Bought goods for cash as well as on credit) (v) Creditor’s A/c , , To Bank A/c , , (Payment made to the supplier of plant and machinery) (vi) Cash A/c , To Sales A/c , (Sold goods on profit) (vii) Drawings A/c , To Cash A/c , (Withdrew cash for personal use) (viii) Insurance A/c , To Bank A/c , (Paid insurance by cheque) (ix) Salary A/c , To Outstanding salary A/c , (Salary outstanding ) (x) Furniture A/c To Cash A/c (Furniture purchased for cash) Total , , , , Test Your Understanding - II State the title of the accounts affected, type of account and the account to be debited and account to be credited : Rs . Bhanu commenced business with cash , , . Purchased goods on credit from Ramesh , . Sold goods for cash . Paid salaries , . Furniture purchased for cash Statement showing the effect of various transaction on accounting equation (Figures in rupees) No. Bank Stock Fur- Plant and Total Non-trade Trade Total niture Machinery Creditors Creditors , , , , , , , , , , , , , , , , ( , , ) , , , , , , -- -- , , , , , , ( , ) , , , , , , , , , , , , , , , , , , , , , ( , ) , , , , , , , , , , , , , , , , , , ( , , ) ( , , ) ( , , ) ( , , ) , , , , , , , , , , , , ( , ) , , , , , , , , , , , , , , ( , ) ( , ) ( , ) ( , ) , , , , , , , , , , , , , , ( , ) ( , ) ( , ) ( , ) , , , , , , , , , , , , , , , ( , ) , , , , , , , , , , , , , , ,