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Two Effects of Financial Transactions

The document outlines the two effects of transactions related to purchases, sales, expenses, incomes, owner transactions, and loans. It provides examples of various transactions such as purchases, sales, expenses, and capital contributions. The document serves as a guide for understanding the financial implications of different types of transactions in a business context.

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ibrahimshaikh198080
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17 views8 pages

Two Effects of Financial Transactions

The document outlines the two effects of transactions related to purchases, sales, expenses, incomes, owner transactions, and loans. It provides examples of various transactions such as purchases, sales, expenses, and capital contributions. The document serves as a guide for understanding the financial implications of different types of transactions in a business context.

Uploaded by

ibrahimshaikh198080
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

TWO-EFFECTS OF THE TRANSACTIONS

Topics:

 Purchase – Sales
 Expenses & Incomes
 Transactions of owner
 Bank transactions
Loan
Special transactions
TWO-EFFECTS OF THE TRANSACTIONS

PURCHASE / SALES

GOODS ASSETS

2) Cash/bank
1) Purchase / Sales 1) Name of asset
Or
Name (credit)
TWO-EFFECTS OF THE TRANSACTIONS

EXPENSES / INCOMES

EXPENSE INCOME

2) Cash/bank
1) Name of EXPENSE 1) Name of INCOME
Or
Name (credit)
PRACTICE
1. Furniture purchased of rs. 30,000 from shreeji furniture mart.
2. Goods of Rs. 5500 sold to Amit, amount received by cheque.
3. Electricity bill of Rs. 1500 paid through GPAY.
4. Purchased goods worth Rs. 12000 from bharat traders.
5. Cheque of Rs. 5000 received from bhartiben for goods sold.
6. Rent received of Rs. 2,000 from Munaf.
7. Brokerage receivable of Rs. 3100 from Satish.
8. An accountant is hired in company with salary of Rs. 25,000 .
9. Salary paid to accountant by GPAY Rs. 25,000.
10. Interest of Rs. 50 received in bank account.
11. Purchased stationery of Rs. 1100 from Lucky stationery.
12. An order of Rs. 10,000 is received to supply goods from rohan stores.
13. Goods dispatched as per order to rohan stores.
TWO-EFFECTS OF THE TRANSACTIONS

OWNER

CAPITAL DRAWINGS

2) Cash/bank
1) CAPITAL 1) DRAWINGS
or
Name of asset
TWO-EFFECTS OF THE TRANSACTIONS
LOAN

Borrowed/ Lent

1) CASH / BANK 2) NAME OF PERSON /


COMPANY
(E.g: SBI bank’s loan)
PRACTICE
1. Started business by bringing cash of Rs. 20,000
2. A machinery of Rs. 12,000 bought by owner in the business.
3. Owner has withdrawn Rs. 3000 from business for personal use.
4. Goods of Rs. 5,000 sold to Amit and amount will be received after few days.
5. A furniture of Rs. 10,000 is decided to buy on credit from Raja Furniture.
6. Rent of Rs. 5,000 paid through cheque.
7. A mobile of Rs. 25,000 purchased for owner & amount is paid by cheque.
8. Personal medical bill of Rs. 800 paid in cash.
9. A loan of Rs. 40,000 taken from HDFC bank.
10. Dividend of Rs. 1000 received in bank account.
11. Owner has deposited his personal Rs. 10,000 in business bank Account.
12. Rs. 12,000 lent to lokesh as loan of 2 years.
13. School fees of son Rs. 5,000 paid.
14. As per decision, furniture is bought.

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