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Information Source of information

Payment of salaries to employees
Loss by fire
Depreciation of non-current assets
Sales of Goods to ABC brothers on credit
basis.
Question No 1.
Transaction.
It is an accounting event because it brings
financial change to the books of records
company or organization and
Salaries is debited as expense, and cash is
credited for paying of that expense.
Transaction
The loss by fire can be shown as accounting
event because the damage could assign
monetary value and recorded.
The concerned asset damaged would be
credited and liabilities would be debited
Transaction
Because depreciation is treated as cost which
reduces the assets value, reduces net income
and earnings.
Asset value is credited with the amount equal to
depreciation and Depreciation expense is
debited.
Transaction
Accounts Receivables account is Debited, and
the sales account is credited.
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Information Source of information
Good purchased amounting Rs. 30,000 on Transaction.
account. Goods Acc Debited
Accounts Payables Credited
Goods purchased on Rs 15000 on cash basis Transaction
Goods Acc Debited
Cash Credited
Rs 10,000 paid to creditors Transaction
Accounts Payable Debited
Cash Credited
Sold goods to customer for Rs.20,000 on Transaction
credit Accounts Receivable Debited
Goods Acc Credited
Sold goods to customer for Rs.27,000 on Transaction
cash basis Cash Acc Debited
Goods Acc Credited
Cash collected from customers Rs 5,000. Transaction:
Cash Acc Debited
Accounts Receivable Credited
Question 2:

Debtors and Creditors Account

Debtors Creditors
Previous Rs. 35,000 Rs.45,000
Balance on 1st
Nov
7th Nov Add 30,000
9th Nov On cash basis
15th Nov Less Rs 10,000
24th Nov Add Rs 20,000
26th Nov On cash basis
28th Nov Less Rs 5,000
Net Balance at Rs 50,000 Rs 65,000
the End Of Nov

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Information Source of information