Question
Why are some accounting systems called double accounting systems?
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Answer
Some accounting systems are called double accounting systems because under this system there are two aspects of every transaction, i.e., every transaction has dual effect.
Every transaction affects two accounts simultaneously, that is represented by debiting one account and crediting the other account. It is based on the fact that if there is receiver, there should be a giver.
Every transaction affects two accounts simultaneously, that is represented by debiting one account and crediting the other account. It is based on the fact that if there is receiver, there should be a giver.
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Similar questions
Record the following transaction in the Purchases Book of Modern Furniture House, New Delhi assuming CGST @ 6% and SGST @ 6% and post it into Ledger:
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2017
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Nov. 3
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Purchased goods from Sachdeva Furniture Store, New Delhi :
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50 Chairs @ ₹ 2,000 each
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5 Tables @ ₹ 10,000 each
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Nov. 10
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Purchased furniture from Mahadeva & Co., Jaipur (Rajasthan) valued ₹ 2,00,000, less $12\frac{1}{2}\%$ Trade Discount
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Nov. 18
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Purchased furniture from Fashion Furniture House, Chandigarh of the list price of ₹ 2,50,000, less 15%
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Nov. 20
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Purchased from India Furniture House, New Delhi:
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100 Chairs @ ₹ 1,800 each
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Nov. 25
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Purchased from Mohan Lal & Sons furniture of the value of ₹ 20,000 for cash
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Briefly explain the statement ‘wrongly debited by the bank’ with the help of an example.
Enter the following transactions in a Double Column Cash Book and Journal Proper and post them into Ledger∶
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May 1
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Balance of Cash in Hand ₹ 12,400; Bank Overdraft ₹ 36,000
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May 3
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Direct deposit by Mr. Ganesh in our bank account ₹ 10,000. Discount allowed ₹ 200
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May 5
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Issued a cheque of ₹ 7,700 to Mr. Suresh in full settlement of his account of ₹ 8,000
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May 6
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Received a cheque from X for ₹ 12,000. Discount allowed ₹ 500. This cheque was deposited into bank on 7th May
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May 8
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Received Cash ₹ 22,000 and cheque of ₹ 8,000 for cash sale
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May 12
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Cash sale ₹ 70,000 of which ₹ 55,000 banked
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May 15
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Cheque received on 8th May endorsed to Mr. Sunil. Discount received ₹ 150
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May 20
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Discounted a B/R of ₹ 10,000 at 1% through bank
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May 24
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Cheque received from X dishonoured, Bank debits ₹ 20 in respect of bank charges
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May 25
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Purchased goods for ₹ 50,000 at a trade discount of 10%. Payment was made in cash
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May 26
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Withdrew from bank ₹ 10,000 for office use and ₹ 2,000 for personal use
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May 31
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Interest debited by Bank ₹ 4,500
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Distinguish between debtors and creditors.
On which side will the increase in the following accounts be recorded? Also mention the nature of account:
- Furniture
- Wages paid
- Rent Received
- Cash
- Proprietor's Account
- Debtor
- Prepaid Insurance
- Outstanding Salary.
Give difference between Book-keeping and Accounting on the basis of stage, special skills and nature of job.
What is Accounting Cycle?
Put the following on the proper side of Cash Account, Debtors's Account and Creditor's Account:
| (₹) | ||
| a. | Sold goods to Shankar on Credit | 50,000 |
| b. | Sold goods to Ghanshyam for Cash | 30,000 |
| c. | Purchased goods from Mohan on Credit | 25,000 |
| d. | Received from Shankar | 29,000 |
| e. | Shankar returned goods | 1,000 |
| f. | Sold goods to Shankar for Cash | 5,000 |
| g. | Returned goods to Mohan | 2,000 |
| h. | Paid Rent | 4,000 |
Complete the following Accounting Equation by filling the missing ammount:
Journalise the following transactions in the Journal of M/s. Gupta Brothers (Prop. Shri R. K. Gupta), Delhi and post them to the Ledger:
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2019
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₹
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March 1
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Started business with cash
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2,00,000
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March 2
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Opened bank account with SBI
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80,000
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March 4
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Goods purchased from Raj, Jaipur (Rajasthan)
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22,000
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March 5
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Goods purchased for cash
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30,000
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March 8
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Goods sold to Naman, Delhi
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12,000
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March 10
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Cash paid to Raj
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22,000
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March 15
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Cash received from Naman
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11,700
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Discount allowed
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300
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March 16
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Paid wages
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200
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March 18
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Furniture purchased for office use
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5,000
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March 20
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Withdrawn from bank for personal use
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4,000
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March 22
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Issued cheque for rent
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3,000
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March 23
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Goods taken for household purpose. These goods were purchased from Raj
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2,000
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March 24
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Drawn cash from bank for office use
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6,000
|
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March 26
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Commission received
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1,000
|
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March 27
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Bank charges
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300
|
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March 28
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Cheque issued for life insurance premium of Proprietor
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3,000
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March 29
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Paid salary
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10,000
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March 30
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Cash sales
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20,000
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