My Cart
Your Cart 0

    Your cart is empty.

  • Total (Amount) ₹0.00
NCERT · Class 11 · Accountancy

Chapter 3: Recording of Transactions – 1

Practice each question, then open the answer or worked solution.

Read chapter PDFDownload PDF

Numerical Answers for NCERT Solution for Class 11 Accountancy Chapter 3 – Recording of Transactions – 1

22 questions
Q1Written answer

Prepare accounting equation on the basis of the following:

(a) Harsha started business with cash Rs 2, 00,000

(b) Purchased goods from Naman for cash Rs 40,000

(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000

(d) Bought furniture on credit Rs 7,000

Show solutionHide solution
Worked solution

The solution is as follows:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Debtors + Furniture Creditors
(a) Increase in cash 2,00,000 =
Increase in capital 2,00,000
2,00,000 = NIL + 2,00,000
(b) Increase in stock 40,000
Decrease in cash (40,000)
1,60,000 + 40,000 = NIL + 2,00,000
(c) Increase in debtors 12,000
Decrease in stock (10,000)
Profit 2,000
1,60,000 + 30,000 + 12,000 = NIL 2,02,000
(d) Increase in furniture 7,000
Increase in creditors 7,000
1,60,000 + 30,000 + 12,000 + 7,000 = 7,000 + 2,02,000
Q2Written answer

Prepare accounting equation from the following:

    Rs
(a) Kunal started business with cash 2,50,000
(b) He purchased furniture for cash 35,000
(c) He paid commission  2,000
(d) He purchases goods on credit 40,000
(e) He sold goods (costing Rs 20,000) for cash 26,000
Show solutionHide solution
Worked solution

The solution is as follows:

S.No. Explanation Assets   Liabilities + Capital
Cash + Furniture + Stock = Creditors
(a) Increase in cash 2,50,000
Increase in capital 2,50,000
2,50,000 = NIL + 2,50,000
(b) Increase in furniture 35,000
Decrease in cash (35,000)
2,15,000 + 35,000 = NIL + 2,50,000
(c) Decrease in capital (Expense) (2,000)
Decrease in cash (2,000)
2,13,000 + 35,000 = NIL + 2,48,000
(d) Increase in stock 40,000
Increase in creditors 40,000
2,13,000 + 35,000 + 40,000 = 40,000 + 2,48,000
(e) Increase in cash 26,000
Decrease in stock (20,000)
Increase in capital (Profit) 6,000
2,39,000 + 35,000 + 20,000 = 40,000 + 2,54,000
Q3Written answer

Mohit has the following transactions, prepare accounting equation:

 

    Rs
(a) Business started with cash 1,75,000
(b) Purchased goods from Rohit  50,000
(c) Sales goods on credit to Manish (Costing Rs 17,500) 20,000
(d) Purchased furniture for office use 10,000
(e) Cash paid to Rohit in full settlement 48,500
(f) Cash received from Manish 20,000
(g) Rent paid 1,000
(h) Cash withdrawn for personal use 3,000
Show solutionHide solution
Worked solution

The solution is as follows:

S.No. Explanation Assets   Liabilities + Capital
Cash + Stock + Debtors Furniture = Creditors
(a) Increase in cash 1,75,000
Increase in capital 1,75,000
1,75,000 = NIL + 1,75,000
(b) Increase in stock 50,000
Increase in creditors (Rohit) = 50,000 + 1,75,000
1,75,000 + 50,000 = 50,000 + 1,75,000
(c) Increase in debtors (Manish) 20,000
Decrease in stock (17,500)
Increase in capital (Profit) 2,500
1,75,000 + 32,500 + 20,000 = 50,000 + 1,77,500
(d) Increase in furniture 10,000
Decrease in cash (10,000)
1,65,000 + 32,500 + 20,000 + 10,000 = 50,000 + 1,77,500
(e) Decrease in creditors (Rohit) (50,000)
Decrease in dash (48,500)
Increase in capital

(Discount received)

 1,500
1,16,500 + 32,500 + 20,000 + 10,000 = NIL + 1,79,000
(f) Increase in cash 20,000
Decrease in debtors (Manish) (20,000)
1,36,500 + 32,500 + NIL + 10,000 = NIL + 1,79,000
(g) Decrease in capital (Expense) (1,000)
Decrease in cash 1,000
1,35,500 + 32,500 + NIL + 10,000 = NIL + 1,78,000
(h) Decrease in capital (Drawings) (3,000)
Decrease in cash (3,000)
1,32,500 + 32,500 + NIL + 10,000 = NIL + 1,75,000
Q4Written answer

Rohit has the following transactions:

    Rs
(a) Commenced business with cash 1,50,000
(b) Purchased machinery on credit  40,000
(c) Purchased goods for cash  20,000
(d) Purchased car for personal use  80,000
(e) Paid to creditors in full settlement 38,000
(f) Sold goods for cash costing Rs 5,000 4,500
(g) Paid rent  1,000
(h) Commission received in advance 2,000

 

Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital.

 

 

Show solutionHide solution
Worked solution

The solution is as follows:

S.No. Explanation Assets Liabilities + Capital
Cash + Machinery + Stock = Creditors + Unaccrued Income
(a) Increase in cash 1,50,000
Increase in capital 1,50,000
1,50,000 = NIL + 1,50,000
(b) Increase in machinery 40,000
Increase in creditors = 40,000
1,50,000 + 40,000 = 40,000 + 1,50,000
(c) Increase in stock 20,000
Decrease in cash (20,000)
1,30,000 + 40,000 + 20,000 = 40,000 + 1,50,000
(d) Decrease in cash (80,000)
Decrease in capital (Drawings) (80,000)
50,000 + 40,000 + 20,000 = 40,000 + 70,000
(e) Decrease in creditors (40,000)
Decrease in cash (38,000)
Increase in capital

(Discount received)

 2,000
12,000 + 40,000 + 20,000 = NIL + 72,000
(f) Increase in cash 4,500
Decrease in stock (5,000)
Decrease in capital (Loss) (500)
16,500 + 40,000 + 15,000 = NIL + 71,500
(g) Decrease in cash (1,000)
Decrease in capital (Expense) (1,000)
15,500 + 40,000 + 15,000 = NIL + 70,500
(h) Increase in cash 2,000
Increase in unaccrued income = 2,000
17,500 + 40,000 + 15,000 = NIL + 2,000 + 70,500
Q5Written answer

Use accounting equation to show the effect of the following transactions of M/s Royal Traders:

    Rs
(a) Started business with cash 1,20,000
(b) Purchased goods for cash  10,000
(c) Rent received 5,000
(d) Salary outstanding 2,000
(e) Prepaid Insurance 1,000
(f) Received interest  700
(g) Sold goods for cash (costing Rs 5,000)  7,000
(h) Goods destroyed by fire  500
Show solutionHide solution
Worked solution
S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Prepaid Expenses Outstanding Expenses
(a) Increase in cash 1,20,000
Increase in capital 1,20,000
1,20,000 = NIL + 1,20,000
(b) Increase in stock 10,000
Increase in cash (10,000) =
1,10,000 + 10,000 = NIL + 1,20,000
(c) Increase in cash 5,000
Increase in capital (Profit) 5,000
1,15,000 + 10,000 = NIL + 1,25,000
(d) Increase in outstanding expenses = 2,000
Decrease in capital (Expense) (2,000)
1,15,000 + 10,000 = 2,000 + 1,23,000
(e) Increase in prepaid expenses 1,000
Decrease in cash (1,000)
1,14,000 + 10,000 + 1,000 = 2,000 + 1,23,000
(f) Increase in cash 700
Increase in capital (Profit) 700
1,14,700 + 10,000 + 1,000 = 2,000 + 1,23,700
(g) Increase in cash 7,000
Decrease in stock (5,000)
Increase in capital (Profit) 2,000
1,21,700 + 5,000 + 1,000 = 2,000 + 1,25,700
(h) Decrease in stock (500)
Decrease in capital (Loss) = (500)
1,21,700 + 4,500 + 1,000 = 2,000 + 1,25,200
Q6Written answer

Show the accounting equation on the basis of the following transaction:

     
(a) Udit started business with: Rs
  (i) Cash 5,00,000
  (ii) Goods 1,00,000
(b) Purchased building for cash 2,00,000
(c) Purchased goods from Himani  50,000
(d) Sold goods to Ashu (Cost Rs 25,000)  36,000
(e) Paid insurance premium  3,000
(f) Rent outstanding  5,000
(g) Depreciation on building  8,000
(h) Cash withdrawn for personal use  20,000
(i) Rent received in advance  5,000
(j) Cash paid to Himani on account  20,000
(k) Cash received from Ashu  30,000
Show solutionHide solution
Worked solution

The solution is as follows:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Building + Debtors Creditors + Outstanding Expenses + Unaccrued Income    
(a) Increase in cash 5,00,000
Increase in stock 1,00,000
Increase in capital 6,00,000
5,00,000 + 1,00,000 = NIL + 6,00,000
(b) Increase in building 2,00,000
Decrease in cash (2,00,000) =
3,00,000 + 1,00,000 + 2,00,000 = NIL + 6,00,000
(c) Increase in stock 50,000
Increase in creditors = 50,000
3,00,000 + 1,50,000 + 2,00,000 = 50,000 + 6,00,000
(d) Increase in debtors  36,000
Decrease in stock (25,000)
Increase in capital (Profit) 11,000
3,00,000 + 1,25,000 + 2,00,000 +  36,000 = 50,000 + 6,11,000
(e) Decrease in cash (3,000)
Decrease in capital (Expense) (3,000)
2,97,000 + 1,25,000 + 2,00,000 + 36,000 = 50,000 + + 6,08,000
(f) Decrease in capital (Expense) 5,000
Increase in liabilities (5,000)
2,97,000 + 1,25,000 + 2,00,000 + 36,000 = 50,000 + 5,000 + 6,03,000
(g) Decrease in building (8,000)
Decrease in capital (8,000)
2,97,000 + 1,25,000 + 1,92,000 + 36,000 = 50,000 + 5,000 + 5,95,000
(h) Decrease in cash (20,000)
Decrease in capital (20,000)
2,97,000 + 1,25,000 + 1,92,000 + 36,000 = 50,000 + 5,000 + 5,75,000
(i) Increase in cash 5,000
Increase in liability 5,000
2,82,000 + 1,25,000 + 1,92,000 + 36,000 = 50,000 + 5,000 + 5,000 + 5,75,000
(j) Decrease in creditors (20,000)
Decrease in cash (20,000)
2,62,000 + 1,25,000 + 1,92,000 + 36,000 = 30,000 + 5,000 + 5,000 + 5,75,000
(k) Increase in cash 30,000
Decrease in debtors (30,000)
2,92,000 + 1,25,000 + 1,92,000 + 6,000 = 30,000 + 5,000 + 5,000 + 5,75,000
Q7Written answer

Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:

    Rs
(a) Started business with cash 1,20,000
(b) Rent received 10,000
(c) Invested in shares 50,000
(d) Received dividend 5,000
(e) Purchase goods on credit from Ragani 35,000
(f) Paid cash for household Expenses 7,000
(g) Sold goods for cash (costing Rs 10,000) 14,000
(h)

(i)

 Cash paid to Ragani

Deposited into bank

 35,000

20,000

 

Show solutionHide solution
Worked solution

The solution is as follows:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Investment + Bank Creditors
(a)  Increase in cash 1,20,000
 Increase in capital 1,20,000
1,20,000 + = NIL + 1,20,000
(b)  Increase in cash 10,000
 Increase in capital (Income) = 10,000
1,30,000 = NIL + 1,30,000
(c)  Decrease in investment 50,000
 Decrease in cash (50,000) =
80,000 + 50,000 = NIL + 1,30,000
(d)  Increase in cash 5,000
 Increase in capital (Income) 5,000
85,000 + 50,000 = NIL + 1,35,000
(e)  Increase in stock 35,000
 Increase in creditor (Ragani) 35,000
85,000 + 35,000 + 50,000 = 35,000 + 1,35,000
(f)  Decrease in capital (7,000)
 Decrease in cash  (7,000)
78,000 + 35,000 + 50,000 = 35,000 + 1,28,000
(g)  Increase in cash 14,000
 Decrease in stock (10,000)
 Increase in capital (Profit) 4,000
92,000 + 25,000 + 50,000 = 35,000 + 1,32,000
(h)  Decrease in creditors (Ragani) (35,000)
 Decrease in cash (35,000)
57,000 + 25,000 + 50,000 = NIL + 1,32,000
(i)  Decrease in cash (20,000)
 Increase in bank 20,000
37,000 + 25,000 + 50,000 + 20,000 = NIL + 1,32,000
Q8Written answer

Show the effect of following transaction on the accounting equation:

    Rs
(a) Manoj started business with  
  (i) Cash 2,30,000
  (ii) Goods 1,00,000
  (iii) Building 2,00,000
(b) He purchased goods for cash 50,000
(c) He sold goods(costing Rs 20,000) 35,000
(d) He purchased goods from Rahul 55,000
(e) He sold goods to Varun (Costing Rs 52,000) 60,000
(f) He paid cash to Rahul in full settlement 53,000
(g) Salary paid by him 20,000
(h) Received cash from Varun in full settlement 59,000
(i) Rent outstanding 3,000
(j) Prepaid Insurance 2,000
(k) Commission received by him 13,000
(l) Amount withdrawn by him for personal use 20,000
(m) Depreciation charge on building 10,000
(n) Fresh capital invested 50,000
(o) Purchased goods from Rakhi 6,000

 

Show solutionHide solution
Worked solution

The solution is as follows:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Building + Debtors + Prepaid Expenses Creditors + Outstanding Expenses    
(a) Increase in cash, stock and building 2,30,000 + 1,00,000 + 2,00,000
Increase in capital 5,30,000
2,30,000 + 1,00,000 + 2,00,000 = + 5,30,000
(b) Increase in stock 50,000
Decrease in cash (50,000)
1,80,000 + 1,50,000 + 2,00,000 = + 5,30,000
(c) Increase in cash 35,000
Decrease in stock (20,000)
increase in capital (Profit) 15,000
2,15,000 + 1,30,000 + 2,00,000 + 5,45,000
(d) Increase in stock 55,000
Increase in creditors = 55,000
2,15,000 + 1,85,000 + 2,00,000 = 55,000 + 5,45,000
(e) Increase in debtors 60,000
Decrease in stock (52,000)
Increase in capital (Profit) 8,000
2,15,000 + 1,33,000 + 2,00,000 + 60,000 = 55,000 + 5,53,000
(f) Decrease in creditors = (55,000)
Decrease in cash (53,000)
Increase in capital (Discount received) 2,000
1,62,000 + 1,33,000 + 2,00,000 + 60,000 = NIL + 5,55,000
(g) Decrease in cash (20,000)
Decrease in capital (20,000)
1,42,000 + 1,33,000 + 2,00,000 + 60,000 = NIL + 5,35,000
(h) Increase in cash 59,000
Decrease in capital (Discount allowed) (1,000)
Decrease in debtors 60,000
2,01,000 + 1,33,000 + 2,00,000 + NIL = NIL + + 5,34,000
(i) Increase in outstanding Expenses 3,000
decrease in capital (Expense) (3,000)
2,01,000 + 1,33,000 + 2,00,000 + NIL = NIL + 3,000 + 5,31,000
(j) Decrease in prepaid expenses 2,000
Decrease in cash (2,000)
1,99,000 + 1,33,000 + 2,00,000 + NIL 2,000 = NIL + 3,000 + 5,31,000
(k) Increase in cash 13,000
increase in capital (Income) 13,000
2,12,000 + 1,33,000 + 2,00,000 + NIL + 2,000 = NIL + 3,000 + 5,44,000
(l) Decrease in capital (20,000)
Decrease in cash (20,000)
1,92,000 + 1,33,000 + 1,90,000 + NIL + 2,000 = NIL + 3,000 + 5,24,000
(m) Decrease in capital (10,000)
Decrease in building (10,000)
1,92,000 + 1,33,000 + 1,90,000 + NIL + 2,000 = NIL + 3,000 + 5,14,000
(n) Increase in cash 50,000
Increase in capital 50,000
2,42,000 + 1,33,000 + 1,90,000 + NIL + 2,000 = NIL + 3,000 + 5,64,000
(o) Increase in stock 10,000
Increase in creditors 10,000
2,42,000 + 1,43,000 + 1,90,000 + NIL + 2,000 = 10,000 + 3,000 + 5,64,000
Q9Written answer

Transactions of M/s. Vipin Traders are given below.

Show the effects on Assets, Liabilities and Capital with the help of the accounting Equation.

    Rs
(a) Business started with cash 1,25,000
(b) Purchased goods for cash 50,000
(c) Purchase furniture from R.K. Furniture 10,000
(d) Sold goods to Parul Traders (costing Rs 7,000 vide bill no. 5674) 9,000
(e) Paid cartage 100
(f) Cash Paid to R.K. furniture in full settlement 9,700
(g) Cash sales (costing Rs 10,000) 12,000
(h) Rent received 4,000
(i) Cash withdrawn for personal use 3,000

 

Show solutionHide solution
Worked solution

The solution is as follows:

S.No. Explanation Assets = Liabilities + Capital
Cash + Stock + Furniture + Debtors Creditors
(a) Increase in cash 1,25,000
Increase in capital 1,25,000
1,25,000 + = NIL + 1,25,000
(b) Increase in stock 50,000
Decrease in cash (50,000) =
75,000 + 50,000 = NIL + 1,25,000
(c) Increase in furniture 10,000 =
Increase in creditors = 10,000
75,000 + 50,000 + 10,000 = 10,000 + 1,25,000
(d) Increase in debtors 9,000
Decrease in stock (7,000)
Increase in capital (Profit) 2,000
75,000 + 43,000 + 10,000 + 9,000 = 10,000 + 1,27,000
(e) Decrease in capital (Cartage Expenses) (100)
Decrease in cash (100)
74,900 + 43,000 + 10,000 + 9,000 = 10,000 + 1,26,900
(f) Decrease in creditors = (10,000)
Decrease in cash (9,700)
Increase in capital (Discount-received) 300
65,200 + 43,000 + 10,000 + 9,000 = NIL + 1,27,200
(g) Increase in cash 12,000
Decrease in stock (10,000)
Increase in capital (Profit) 2,000
77,200 + 33,000 + 10,000 + 9,000 = NIL + 1,29,200
(h) Increase in cash 4,000
Increase in capital (Income) 4,000
81,200 + 33,000 + 10,000 + 9,000 = NIL + 1,33,200
(i) Decrease in capital (3,000)
Decrease in cash (3,000)
78,200 + 33,000 + 10,000 + 9,000 = NIL + 1,30,200
Q10Written answer

Bobby opened a consulting firm and completed these transactions during November, 2014

Invested ₹ 4,00,000 cash and office equipment with ₹ 1,50,000 in a business called Bobbie Consulting.

Purchased land and a small office building. The land was worth ₹ 1,50,000 and the building worth ₹ 3,50,000. The purchase price was paid with ₹ 2,00,000 cash and a long-term note payable for ₹ 8,00,000

Purchased office supplies on credit for ₹ 12,000

Bobbie transferred title of motor car to the business. The motor car was worth ₹ 90,000.

Purchased for ₹ 30,000 additional office equipment on credit.

Paid ₹ 7,500 salary to the office manager.

Provided services to a client and collected ₹ 30,000

Paid ₹ 4,000 for the month’s utilities.

Paid supplier created in transaction c.

Purchase new office equipment by paying ₹ 93,000 cash and trading in old equipment with a recorded cost of ₹ 7,000

Completed services of a client for ₹ 26,000. This amount is to be paid within 30 days.

Received ₹ 19,000 payment from the client created in transaction k.

Bobby withdrew ₹ 20,000 from the business.

Analyse the above stated transactions and open the following T-accounts:

Cash, client, office supplies, motor car, building, land, long term payables, capital, withdrawals, salary, expense and utilities expense.

Show solutionHide solution
Worked solution
  1. Invested ₹ 4, 00,000 cash and office equipment with ₹ 1, 50,000 in a business called Bobbie Consulting.
Dr Cash Account Cr
4,00,000
Dr Office Equipment Account Cr
1,50,000
Dr Capital Account Cr
4,00,000
1,50,000
  1. Purchased land and a small office building. The land was worth ₹ 1, 50,000 and the building was worth ₹ 3, 50,000. The purchase price was paid with ₹ 2, 00,000 cash and a long term note payable for ₹ 8, 00,000

Analysis of Transaction: The land purchased is an asset. An increase in the asset has to be debited.

Dr Land Account Cr
1,50,000
  1. Similarly, the purchase of the building increases the asset and hence should be debited.
Dr Building Account Cr
3,50,000
  1. For purchasing the above two assets, another asset, i.e. cash, is spent and hence decreased. And a decrease in the asset should be credited.
Dr Cash Account Cr
4,00,000 2,00,000
  1. At the same time, there is a long-term note payable for ₹ 8,00,000. This is a liability. An increase in liability should be credited.
Dr Long-term payable Account Cr
8,00,000
  1. Purchased office supplies on credit for ₹ 12,000 Analysis of transaction: Purchase of office supplies is an expense, and hence an increase in the expenses should be debited.
Dr Office Supplies Account Cr
12,000
  1. For purchasing the office supplies, a liability is created. Hence the accounts payable will be increased, and an increased liability should be credited.
Dr Accounts payable Cr
12,000
  1. Bobbie transferred the title of the motor car to the business. The motor car was worth ₹ 90,000. Analysis of the transaction: Motor car will be an asset, and hence an increase in the asset should be debited.
Dr Motor car account Cr
90,000
  1. Transferring the title of the motor car will increase the capital. An increase in capital should be credited.
Dr Capital Account Cr
4,00,000

1,50,000

90,000
  1. Purchased for ₹ 30,000 additional office equipment on credit. Analysis of the transaction: Office equipment is an asset, and hence an increase in the asset will be debited.
Dr Office Equipment Account Cr
1,50,000

30,000
  1. This office equipment is purchased on credit, so the liability of the accounts payable account will be increased. An increase in liability should be credited.
Dr Accounts payable Cr
12,000

30,000
  1. Paid ₹ 7,500 salary to the office manager.Analysis of the transaction: Salary is an expense, and hence an increase in the expense should be debited.
Dr Salary Account Cr
7,500
  1. Payment of salary will reduce the cash. A decrease in the cash asset should be credited.
Dr Cash Account Cr
4,00,000 2,00,000

7,500
  1. Provided services to a client and collected ₹ 30,000Analysis of the transaction: Providing services for cash should be debited to the cash account.
Dr Cash Account Cr
4,00,000

30,000

 2,00,000

7,500
  1. This should be credited to the capital account.
Dr Capital Account Cr
4,00,000

1,50,000

90,000

30,000
  1. Paid ₹ 4,000 for the month’s utilities.Analysis of the transaction: Monthly utilities are an expense, and hence an increase in the expense should be debited.
Dr Expenses Account Cr
4,000
  1. On the other hand, the payment of the expenses will reduce the cash. And hence a decrease in the cash asset should be credited.
Dr Cash Account Cr
4,00,000

30,000

 2,00,000

7,500

4,000
  1. Paid supplier created in transaction c.Analysis of the transaction: There is a decrease in the liability, and hence it should be debited.
Dr Accounts payable Cr
12,000 12,000

30,000
  1. As this liability is paid out through cash, it’ll reduce the cash asset. A decrease in the cash asset should be credited.
Dr Cash Account Cr
4,00,000

30,000

 2,00,000

7,500

4,000

12,000
  1. Purchase new office equipment by paying ₹ 93,000 cash and trading in old equipment with a recorded cost of ₹ 7,000Analysis of the transaction: Buying the new office equipment will increase the assets and hence should be debited.
Dr Office Equipment Account Cr
1,50,000

30,000

93,000
  1. However, for buying this office equipment, the old equipment of ₹ 7,000 is traded out. Thus there is a decrease in the asset, and hence it should be credited.
Dr Office Equipment Account Cr
1,50,000

30,000

93,000

 7,000

Also, the rest of the amount, i.e., 93,000 – 7,000 = 86,000, is paid out in cash. Thus there is a decrease in the cash asset, and hence it should be credited.

Dr Cash Account Cr
4,00,000

30,000

 2,00,000

7,500

4,000

12,000

86,000
  1. Completed services of a client for ₹ 26,000. This amount is to be paid within 30 days. Analysis of the transaction: Completion of services has created revenue.
Dr Accounts Receivable Cr
26,000
  1. As this is a sale, the sales account should be credited.
Dr Sales Account Cr
26,000
  1. Received ₹ 19,000 payment from the client created in transaction k. Analysis of the transaction: There is revenue and hence should be credited.
Dr Accounts Receivable Cr
26,000 19,000

This is bringing in cash, and hence the cash account should be debited.

Dr Cash Account Cr
4,00,000

30,000

19,000

 2,00,000

7,500

4,000

12,000

86,000

Bobby withdrew ₹ 20,000 from the business.

Analysis of the transaction: There is a withdrawal, and hence the drawings account, i.e. expenses, should be debited.

Dr Drawings Account Cr
20,000

The drawings will reduce the cash, and hence the cash asset should be credited.

Dr Cash Account Cr
4,00,000

30,000

19,000

 2,00,000

7,500

4,000

12,000

86,000

20,000