Question

Transaction
Account to be debited
Account to be credited

Sold goods for cash



Bought goods on credit from Jagi



The owner took goods for his own use



Returned goods to Jagi



Sold goods on credit to Julie



Paid wages to employees



Bought a motor vehicle and paid by cheque



Required:
Complete the table with suitable account titles.

Answer 1

Transaction | Account to be debited | Account to be credited
----------------------------------------------------------------------------------------------------------------------
Sold goods for cash | Cash | Sales
Bought goods on credit from Jagi | Purchases | Accounts Payable
The owner took goods for his own use | Drawings | Inventory
Returned goods to Jagi | Accounts Payable | Purchases Returns
Sold goods on credit to Julie | Accounts Receivable | Sales
Paid wages to employees | Wages Expense | Cash
Bought a motor vehicle and paid by cheque | Motor Vehicle | Cash