Analyse the following transactions, using the Modern approach Traditional approach for classification of accounts a Sudhir - Accountancy - Introduction to Accounting

Question

Analyse the following transactions, using the Modern
approach & Traditional approach for classification of
accounts
a Sudhir started business with cash Rs 10,00,000
b Borrowed from Amit Rs 2,00,000
c Purchased furniture for Rs 40,000 in cash from Jagdeep Furniture
House
d Purchased furniture from R K Furniture Mart for Rs 80,000
e Purchased goods for cash Rs 30,000
f Purchased goods from Rahul Rs 60,000
g Sold goods for cash to Manu Rs 50,000
h Sold goods to Ravi on credit Rs 60,000
i Cash received from Ravi Rs 40,000
j Cash paid to Rahul Rs 20,000

Neha Arora · Accepted Answer

Dear Student,

Transactions

Nature of Account
(Modern)

Sudhir
started business with cash
Cash
A/c- Asset
Capital A/c-
Capital

Borrowed
from Amit
Cash
A/c- Asset
Loan A/c-
Liability

Purchased furniture in
cash

Furniture A/c-
Asset
Cash A/c-
Asset

Purchased furniture from RK Furniture
Mart

Furniture A/c-
Asset
RK Furniture A/c-
Liability

Purchased goods for
cash

Purchases A/c-
Expense
Cash A/c-
Asset

Purchased goods from
Rahul

Purchases A/c-
Expense
Rahul A/c-
Liability

Sold
goods for cash
Cash
A/c- Asset
Sales A/c-
Revenue

Sold
goods to Ravi
Ravi
A/c- Asset
Sales A/c-
Revenue

Cash
received from Ravi
Cash
A/c- Asset
Ravi A/c-
Asset

Cash
paid to Rahul
Rahul
A/c- Liability
Cash A/c-
Asset

Transactions

Nature of Account
(Traditional)

Sudhir
started business with cash
Cash
A/c- Real A/c
Capital A/c- Personal
A/c

Borrowed
from Amit
Cash
A/c- Real A/c
Loan A/c- Personal
A/c

Purchased furniture in
cash

Furniture A/c- Real
A/c
Cash A/c- Real
A/c

Purchased furniture from RK Furniture
Mart

Furniture A/c- Real
A/c
RK Furniture A/c- Personal
A/c

Purchased goods for
cash

Purchases A/c- Nominal
A/c
Cash A/c- Real
A/c

Purchased goods from
Rahul

Purchases A/c- Nominal
A/c
Rahul A/c- Personal
A/c

Sold
goods for cash
Cash
A/c- Real A/c
Sales A/c-
Nominal

Sold
goods to Ravi
Ravi
A/c- Personal A/c
Sales A/c- Nominal
A/c

Cash
received from Ravi
Cash
A/c- Real A/c
Ravi A/c- Personal
A/c

Cash
paid to Rahul
Rahul
A/c- Personal A/c
Cash A/c- Real
A/c

Transactions	Nature of Account (Modern)
Sudhir started business with cash	Cash A/c- Asset Capital A/c- Capital
Borrowed from Amit	Cash A/c- Asset Loan A/c- Liability
Purchased furniture in cash	Furniture A/c- Asset Cash A/c- Asset
Purchased furniture from RK Furniture Mart	Furniture A/c- Asset RK Furniture A/c- Liability
Purchased goods for cash	Purchases A/c- Expense Cash A/c- Asset
Purchased goods from Rahul	Purchases A/c- Expense Rahul A/c- Liability
Sold goods for cash	Cash A/c- Asset Sales A/c- Revenue
Sold goods to Ravi	Ravi A/c- Asset Sales A/c- Revenue
Cash received from Ravi	Cash A/c- Asset Ravi A/c- Asset
Cash paid to Rahul	Rahul A/c- Liability Cash A/c- Asset

Transactions	Nature of Account (Traditional)
Sudhir started business with cash	Cash A/c- Real A/c Capital A/c- Personal A/c
Borrowed from Amit	Cash A/c- Real A/c Loan A/c- Personal A/c
Purchased furniture in cash	Furniture A/c- Real A/c Cash A/c- Real A/c
Purchased furniture from RK Furniture Mart	Furniture A/c- Real A/c RK Furniture A/c- Personal A/c
Purchased goods for cash	Purchases A/c- Nominal A/c Cash A/c- Real A/c
Purchased goods from Rahul	Purchases A/c- Nominal A/c Rahul A/c- Personal A/c
Sold goods for cash	Cash A/c- Real A/c Sales A/c- Nominal
Sold goods to Ravi	Ravi A/c- Personal A/c Sales A/c- Nominal A/c
Cash received from Ravi	Cash A/c- Real A/c Ravi A/c- Personal A/c
Cash paid to Rahul	Rahul A/c- Personal A/c Cash A/c- Real A/c