ACCOUNT TITLE/EXPLANATION DEBIT CREDIT

1 Cash 200,000
Goods 120,000
Machine 80,000
Sashi, Capital 400,000
To record initial investment.

2 Purchases 50,000
Cash 50,000
To record purchases of goods.

3 Cash 25,000
Sales 25,000
Cost of Goods Sold 20,000
Goods 20,000
To record sales of goods.

4 Purchases 70,000
Accounts Payable 70,000
To record purchases of goods.

5 Accounts Payable 69,000

Cash 69,000
To record payment of accounts payable.

6 Accounts Receivable 60,000

Sales 60,000
To record sales of goods.

7 Cash 58,000
Sales Discount 2,000
Accounts Receivable 60,000
To record collection of accounts.

8 Salaries Expense 40,000

Cash 40,000
To record payment of salaries.

9 Rent Expense 4,000

Cash 4,000
To record payment of rent.

10 Insurance Expense 1,000

Prepaid Insurance 1,000
To record payment of prepaid insurance.

11 Cash
Commision

12 Drawings 30,000
 Cash 30,000
To record drawings.

13 Cash 2,000
Capital 2,000
To record intereston capital invested.
831,000 831,000