State the title of the accounts affected, type of account and the account to be debited and account to be credited:
- Bhanu commenced business with cash ₹ 1,00,000.
- Purchased goods on credit from Ramesh ₹ 40,000.
- Sold goods for cash ₹ 30,000.
- Paid salaries ₹ 3,000.
- Furniture purchased for cash ₹ 10,000.
Accounts Affected: Cash Account and Capital Account. Type: Cash Account is a Real Account; Capital Account is a Personal Account. Debit: Cash Account. Credit: Capital Account.
Accounts Affected: Purchases Account and Ramesh's Account. Type: Purchases Account is a Nominal Account; Ramesh's Account is a Personal Account. Debit: Purchases Account. Credit: Ramesh's Account.
Accounts Affected: Cash Account and Sales Account. Type: Cash Account is a Real Account; Sales Account is a Nominal Account. Debit: Cash Account. Credit: Sales Account.
Accounts Affected: Salaries Account and Cash Account. Type: Salaries Account is a Nominal Account; Cash Account is a Real Account. Debit: Salaries Account. Credit: Cash Account.
Accounts Affected: Furniture Account and Cash Account. Type: Furniture Account is a Real Account; Cash Account is a Real Account. Debit: Furniture Account. Credit: Cash Account.
Explanation
The rules of debit and credit are based on the classification of accounts into Personal, Real, and Nominal. For Real accounts (assets), debit what comes in and credit what goes out. For Personal accounts, debit the receiver and credit the giver. For Nominal accounts (expenses and incomes), debit all expenses and losses, credit all incomes and gains. In transaction 1, cash comes in (debit) and owner is the giver of capital (credit). In transaction 2, purchases is an expense (debit) and Ramesh is the giver of goods on credit (credit). In transaction 3, cash comes in (debit) and sales is an income (credit). In transaction 4, salaries is an expense (debit) and cash goes out (credit). In transaction 5, furniture comes in (debit) and cash goes out (credit).