done

Illustration 1.
State the nature of account (Personal, Real or Nominal) and show which account will be debited
and which account will be credited:
(i) Rent paid (ii) Rent received (iii) Interest received
(iv) Machinery purchased (v) Building sold (vi) Goods purchased
(vii) Discount allowed (viii) Capital introduced (ix) Goods sold

Solution:
Accounts Nature of Accounts Debited/Credited

(i) Rent Paid A/c Nominal Debited

(ii) Rent Received A/c Nominal Credited
(iii) Interest Received A/c Nominal Credited
(iv) Machinery A/c Real Debited
(v) Building A/c Real Credited
(vi) Purchases A/c Nominal Debited
(vii) Discount Allowed A/c Nominal Debited
(viii) Capital A/c Personal Credited
(ix) Sales A/c Nominal Credited

Illustration 2.
Pass Journal entries for the following transactions:
(i) Withdrawn goods costing ` 5,000 for personal use.
(ii) Goods costing ` 500 given as charity.
(iii) A cheque for ` 5,000 received from Rajib was deposited into bank, returned dishonoured.

Solution: In the Books of ...

JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)

(i) Drawings A/c ...Dr. 5,000

To Purchases A/c 5,000
(Being the goods withdrawn for personal use)

(ii) Charity A/c ...Dr. 500

To Purchases A/c 500
(Being the goods given as charity)

(iii) Rajib ...Dr. 5,000

To Bank A/c 5,000
(Being the cheque deposited into bank, returned dishonoured)