GDB 1 Solution MGT101 Financial Accounting Spring 2021

 GDB 1 Solution MGT101 Financial Accounting Spring 2021

GDB:

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	?	?
Received commission of Rs. 10,000	Commission a/c	?	?
Sold goods of Rs. 200,000 on credit basis	Debtors a/c	?	?
Goods returned from customers for Rs. 15,000.	Sales return a/c	?	?

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.

Solution

Nature Debit or Credit	Applied Rule of Debit and credit
Debit	Increase in asset
Credit	Increase in Liability
Credit	Increase in Income
Debit	Increase in Asset
Credit	Increase in Income