1. Identify the nature for each account (Dr - Cr) given in the below transactions: Transactions...

 

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1. Identify the nature for each account (Dr - Cr) given in the below transactions: Transactions Debit Account Credit Account Owner invests cash in the business as a capital. 2 Pays insurance in advance for six months by bank. Pays secretary's salary in cash. Purchases office supplies on account. 5 Pays electricity bill cash. Sells goods, and received the amount by bank. Purchases delivery track on account. 3. 4 6. 8. Sells some goods & deposited into bank account. 9 Pays for petrol for motor vehicle & pays by cheque. 10 Receives rent from tenant cash. Q2: Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account. Debit or Credit I An increase in Accounts Receivable. 2 A decrease in Accounts Payable. 3 A decrease in Owner's Capital. 4 An increase in Service Revenue. 5 An increase in Salary & Wages Expense. 6 An increase in Prepaid Insurance Expense. 1. Identify the nature for each account (Dr - Cr) given in the below transactions: Transactions Debit Account Credit Account Owner invests cash in the business as a capital. 2 Pays insurance in advance for six months by bank. Pays secretary's salary in cash. Purchases office supplies on account. 5 Pays electricity bill cash. Sells goods, and received the amount by bank. Purchases delivery track on account. 3. 4 6. 8. Sells some goods & deposited into bank account. 9 Pays for petrol for motor vehicle & pays by cheque. 10 Receives rent from tenant cash. Q2: Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account. Debit or Credit I An increase in Accounts Receivable. 2 A decrease in Accounts Payable. 3 A decrease in Owner's Capital. 4 An increase in Service Revenue. 5 An increase in Salary & Wages Expense. 6 An increase in Prepaid Insurance Expense.

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Answer 1 Nature of Each Account Sr No Particulars Debit Credit 1 Invest cash in capital by ow... View the full answer