i want to know if the transactions are bought machinery for rs50,000, payment made to xyz store by rs10,000 by cheque, purchased office furniture on credit for rs15,000, rs1,000 receieved as a rent for the portion of office building rented out and paid salaries of rs40,000 by cheque.so what are its accounts involved cash or capital? what are its applications debit or credit? and what are its reason increase in asset or increase in owner equity?

Question

i want to know if the transactions are bought machinery for rs50,000, payment made to xyz store by rs10,000 by cheque, purchased office furniture on credit for rs15,000, rs1,000 receieved as a rent for the portion of office building rented out and paid salaries of rs40,000 by cheque.so what are its accounts involved cash or capital? what are its applications debit or credit? and what are its reason increase in asset or increase in owner equity?

plz do answer i need it immediately

Answer 1

To determine the accounts involved in the transactions and whether they affect cash or capital, we'll need to analyze each transaction separately:

1. Bought machinery for Rs50,000:
- Account involved: Machinery (Asset)
- Application: Debit (Increase in asset)
- Reason: Increase in asset, as machinery is acquired

2. Payment made to XYZ Store by Rs10,000 by cheque:
- Accounts involved: Cash (Asset) and XYZ Store (Expense)
- Application: Credit (Decrease in cash)
- Reason: Decrease in cash, as it is paid to an external entity (XYZ Store).

3. Purchased office furniture on credit for Rs15,000:
- Accounts involved: Office Furniture (Asset) and Accounts Payable (Liability)
- Application: Debit (Increase in asset) and Credit (Increase in liability)
- Reason: Increase in asset (office furniture) and increase in liability (accounts payable) as it's purchased on credit.

4. Rs1,000 received as rent for the portion of the office building rented out:
- Accounts involved: Cash (Asset) and Rental Income (Revenue)
- Application: Debit (Increase in cash)
- Reason: Increase in cash, as rent is received for letting out a portion of the office building.

5. Paid salaries of Rs40,000 by cheque:
- Accounts involved: Salaries Expense (Expense) and Cash (Asset)
- Application: Credit (Decrease in cash)
- Reason: Decrease in cash, as salaries are paid to employees.

Based on the transactions mentioned, the accounts involved include Cash, Capital, Machinery, XYZ Store, Office Furniture, Accounts Payable, Rental Income, and Salaries Expense.
The applications include both debit and credit, depending on the nature of the transaction.
The reasons include an increase in assets (e.g., machinery, office furniture), and either decrease in cash or an increase in owner's equity (e.g., rental income, salaries expense).