You are required to give (a) Journal Entries, (b) Nature of Account (whether Asset, Liability, Capital, Expense or Revenue), (c) Direction of change (Increase of Decrease), and (d) Appropriate rule for recording the change for the following transactions:
Nitin invested Rs. 50,000 cash and Rs. 5,00,000 by cheque to start a business.
2. He deposited Rs. 5,000 out of cash in the bank.
3. Purchased goods for Rs. 5,000 against cash.
4. Pruchased a building and paid Rs. 2,50,000 by cheque.
5. Purchased goods from M/s. Hari & Co. for Rs. 1,00,000
6. Sold goods for cash Rs. 50,000.
7. Sold goods on credit to M/s Ramesh & Co, Rs. 25,000.
8. M/s. Ramesh & Co. returned goods of Rs. 5,000, being defective.
9. Goods returned to M/s. Hari & Co. at cost price, i.e., Rs. 4,000.
10. Paid salary to staff by cheque Rs. 15,000.
11. Paid rent for the residence of Nitin Rs. 10,000 by cheque.
12. Paid electricity charges for the month Rs. 1,000 in cash.
13. Paid telephone charges Rs. 500 in cash.
14. Bought office furniture for Rs. 25,000 against cheque.
15. Paid M/s. Hari & Co. on account Rs. 50,000 by cheque.
16. Received from M/s. Ramesh & Co. Rs. 15,000 by cheque.
17. Paid advance Rs. 20,000 by cheque to M/s. Abhi & Sons.
18. Received advance of Rs. 30,000 by cheque from M/s Ajay & Co.
19. Paid Rs. 1,000 for stationery.
20. Nitin withdrew Rs. 10,000 for household expenses out of cash.