Page 28 - debkxi

6.4 Double Entry Book Keeping—CBSE XI

(ii) Reasons when the following are credited:
(a) Pushkar’s Capital A/c: At the time when Pushkar introduces cash or assets into his
business as capital.
(b) Machinery A/c: At the time when machinery is sold or discarded.
(c) Commission A/c: At the time when commission is earned.
(d) Bank A/c: At the time when cash is withdrawn or a cheque issued or a Bill Payable
is presented for payment.

Unsolved Questions

1. Following is the list of various accounts. Find out which are Asset, Liability, Capital,
Revenue or Expense Account:
(i) Machinery (ii) Bank (iii) Sales
(iv) Purchases (v) Unsold Stock (vi) Bank Overdraft
(vii) Ram (Customer) (viii) Cash (ix) Interest Received
(x) Mohan (Proprietor)
[Ans.: Asset—(i), (ii), (v), (vii), (viii); Liability—(vi); Capital—(x);
Revenue—(iii), (ix); Expense—(iv).]

2. You are given a number of accounts below. State which of them will show a debit balance
and which a credit balance:
(i) Carriage (ii) Machinery (iii) Sales
(iv) Cash (v) Ram (Customer) (vi) Sales Return
(vii) Purchases (viii) Bad Debts (ix) Discount Allowed
(x) Rent (xi) Commission Received (xii) Capital
(xiii) Repairs (xiv) Purchases Return
[Ans.: (iii), (xi), (xii), and (xiv) will show Credit Balance.
Rest of them will have Debit Balance.]
3. Put the following transactions on the proper side of an Interest Account:
(i) Interest earned ` 2,000 (ii) Interest paid ` 1,000 (iii) Interest due ` 500.
[Ans.: (i)—Credit; (ii)—Debit; (iii)—Debit.]