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Modern Approach
1) Following are few examples to see whether we have understood the above rules:
1. A started business with cash 80,000
2. Purchased goods on cash 20,000
3. Purchased goods on credit (X) 15,000
4. Purchased furniture (Cash) 5,000
5. Paid rent 500
6. Paid salaries 2,000
7. Deposited in bank 20,000
8. Paid X by cheque 10,000
9. Withdrawn money for private use 2,000
10. Paid telephone bills by cheque 1,000

Solution

Statement of Analysis (Modern Approach)

S No. Particulars Type of Nature Increase/Decrease Debit (Rs.) Credit (Rs.)

Account
1. Cash Assets Debit Increase 80,000 ------
Capital Capital Credit Increase ------ 80,000
2. Good/Stock Expenses Debit Increase 20,000 ------
Cash Assets Debit Decrease ------ 20,000
3. Goods/Stock Expenses Debit Increase 15,000 ------
Mr. X (Creditor) Liabilities Credit Increase ------ 15,000
4. Furniture Assets Debit Increase 5,000 ------
Cash Assets Debit Decrease ------ 5,000
5. Rent Expenses Debit Increase 500 ------
Cash Assets Debit Decrease ------ 500
6. Salaries Expenses Debit Increase 2,000 ------
Cash Assets Debit Decrease ------ 2,000
7. Bank Balance Assets Debit Increase 20,000 ------
Cash Assets Debit Decrease ------ 20,000
8. Mr. X (Creditor) Liabilities Credit Decrease 10,000 ------
Bank Balance Assets Debit Decrease ------ 10,000
9. Capital Capital Credit Decrease 2,000 ------
Cash Assets Debit Decrease ------ 2,000
10. Telephone Bill Expenses Debit Increase 1,000 ------
Bank Balance Assets Debit Decrease ------ 1,000

Himanshu Dalania 9268216826

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Himanshu Dalania 9268216826

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Himanshu Dalania 9268216826