ACCOUNTING TRANCTIONIN

THE BOOKS OF SANDWICH OUTLET

Prepared by:

Vishal bhatnagar

• You have just started a sandwich outlet in our campus with a capital of Rs. 40,000.You buy necessary vending machine hire a person to maintain the shop, make and sell 20 cheese grilled sandwiches. Maintain all necessary books of accounting and make appropriate entries to the same.

PROBLEM:

ASSUMPTION :

Started a business with Rs. 40,000 Bought furniture of Rs. 5,000 Bought machinery of RS. 5,000 Rent paid of Rs. 10,000 Bought ingredient of Rs. 1,000 Equipment purchased of RS. 5,000 Sales of sandwiches of Rs. 2,000

Started a business with Rs. 40,000

SOLUTION:

SN.

PARTICULAR LF. DEBIT CREDIT

1. Cash a/c Dr.

To capital a/c

40,000

40,000

2. Vending machine a/c Dr.

To cash/creditor a/c

------

------

3. Cash a/c Dr.

To Sales a/c

------

------

MODERN APPROACH

Assets Debit Credit

Liabilities Credit Debit

Capital Credit Debit

RevenueRevenue

Expenses

Credit

Debit

Debit

Credit

Cash a/c Dr.

To Capital a/c

40,000

40,000

Asset is increasing therefore cash is debited.

Capital is increasing therefore credited.

2. Vending machine a/c Dr.

To cash/creditor a/c

------

------

Vending machine is asset and hence asset is increasing therefore vending machine is debited

Liability is increasing therefore creditor is credited.

3. Cash a/c Dr.

To Sales a/c

------

------

Cash is asset and cash is increasing therefore cash is debited.

Sales is revenue and sales is increasing therefore sales is credited.

Particular amount Particular Amount

To capital a/c

To sales a/c

40,000 By machine -------

LEDGER BOOKS

Particular Amount Particular Amount

By cash 40,000

CASH a/c

CAPITAL a/c

MACHINE A/C:

Particular Amount Particular Amount

To cash a/c --------

SALES A/C:

Particular Amount Particular Amount

Cash a/c ---------

THANK YOU

ANY QUERY ?