Transactions:

1. Mr. Raj Started his business with Rs. 250000/- by cash

2. Purchase a machinery worth Rs. 75000/- by cash.

3. Depreciated Rs. 10000 on machinery.

4. Purchase a land & buildings worth Rs. 150000 by cash.

5. Appreciated Rs. 25000 on land & buildings

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Identify the ledger Rajcapital Cash a/c

Classify the ledger Personal a/c Real a/c

Apply Rules Credit the giver Debit what comes in

Cash a/c Dr

Rajcapital a/c Cr

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Identify the ledger Machinery Cash a/c

Classify the ledger Real a/c Real a/c

Apply Rules Debit what comes in Credit what goes out

Machinery a/c Dr

Cash a/c Cr

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Identify the ledger Machinery Depreciation

Classify the ledger Real a/c Nominal a/c

Apply Rules Credit what goes out Debit all expenses and Loss

Depreciation a/c Dr

Machinery a/c Cr

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Identify the ledger Land & Buildings Cash a/c

Classify the ledger Real a/c Real a/c

Apply Rules Debit what comes in Credit what goes out

Land and Buildings a/c Dr

Cash a/c Cr

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Identify the ledger Land & buildings Appreciation a/c

Classify the ledger Real a/c Nominal a/c

Apply Rules           Debit what comes in Credit all incomes & Gain

Land & Buildings a/c Dr

Appreciation a/c Cr

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Mr. Powel Started a business with 2.5 Million in the SBI Bank.

Bought office furniture by cheque Rs. 150000/-

Bought machinery for Rs. 750000/- on credit from planners ltd

Bought a motor van paying by cheque Rs. 600000/-

Sold some of the office furniture (Defective) to Walker & sons for Rs. 60000/- credit

Paid part of the amount owing to planners ltd Rs. 350000/- by SBI Cheque

Received the amount due from Walkers & sons Rs. 60000/- in cash

Bought more machinery by SBI cheque Rs. 28000/-

Paid Salaries Rs. 12000/- Office Secretary.