Unit-3 Basic Accounting Terms and Concepts

This unit explains some of the terms which are commonly used in accounting and also the basic concepts underlying the accounting system.

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Show the dual effect of the following business transaction on assets and  liabilities of a business unit.

a)Purchased goods for cash for Rs. 500. 

b)  Purchased goods on credit for Rs. 800 .

c)  Paid Rs. 300 to a creditor.

d)  Received Rs. 500 from a debtor.

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Learning Pundits Content Team

Written on Apr 17, 2019 3:27:08 PM

a) Stock increases and cash decreases.

b) Stock increases and creditors increases. 

c) Cash increases and creditors decreases.

d) Cash increases and debtors decreases.