Mgt 101 – Financial Accounting \ Solved Current GDB # 2021
Question Description:
TOPIC TO BE TESTED:
• Rules of debit and credit
LEARNING OBJECTIVES:
• To understand the application of rules of debit and credit in accounting
GDB:
Solution:
| Transitions | Particular account | Nature Debit or Credit | Applied Rule of Debit and credit |
| Investment of cash for Rs. 350,000 is made in business by the owner. | Cash a/c | Debit | Increase in asset |
| Purchased goods of Rs. 600,000 on account. | Creditors a/c | Credit | Increase in Liability |
| Received commission of Rs. 10,000 | Commission a/c | Credit | Increase in income |
| Sold goods of Rs. 200,000 on credit basis | Debtors a/c | Debit | Increase in asset |
| Goods returned from customers for Rs. 15,000. | Sales return a/c | Debit | Decrease in income |
Required:
You are required to mention the nature of given accounts (either debit or credit) and the rules of debit and credit to be applied as per modern classification of accounts, for all accounts mentioned against each transaction. Red highlighted transaction is given as a sample for understanding to attempt the other missing particulars of given transactions.
Note: Partial correct treatment in any transaction has NO marks so be careful while providing the answers. Moreover, be concise and avoid unnecessary details to attempt the given questions.
Important Instructions:
- Your discussion must be based on logical facts.
- Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
- Obnoxious or ignoble answer should be strictly avoided.
- Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.
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