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Classification of accounts refers to the process of categorizing financial transactions into different groups based on their nature, purpose, and characteristics. These categories are important because they help businesses to organize their financial data and gain valuable insights into their financial health. Various categories of accounts are used in accounting to group financial transactions based …

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Double-entry system and single-entry system are two distinct methods of bookkeeping used by businesses to record their financial transactions. The primary difference between these two methods is the way transactions are recorded and the level of detail provided. The single-entry system is a straightforward bookkeeping method that records financial transactions in a single account. This …

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Based on the information given, the following transactions should be recorded in the books of Mr. Mukesh Rana’s ready made garments business: a) Purchased a typewriter for Rs. 6,000 for office use:Debit: Office Equipment A/C – Rs. 6,000Credit: Cash/Bank A/C – Rs. 6,000 b) Sold old domestic furniture for Rs. 500:Debit: Cash/Bank A/C – Rs. …

Mr. Mukesh Rana carries on ready made garments business. A few transactions are given below. Identify the transactions to be recorded in the books of his business. a) Purchased a typewriter for Rs. 6,000 for ofice use. b) Sold old domestic furniture for Rs. 500. c) Purchased cloth for garments for Rs. 10,000. d) A shirt worth Rs. 250 is taken home for his son. e) Appointed Satish as an assistant in the shop. Read More »