Reference no: EM132560102

Question 1: From the following transactions, you are required to identify the account (s) to be debited and credited and make the journal entry in the specified format. Please note that if journal entry is not required, write 'no journal entry required'

Date                  Transaction

March 1 You invested Rs12,000 cash in your sole proprietorship, which you call XX products
March 2 XX acquired Rs18,000 inventory (Gloves) for cash
March 3 XX acquired Rs16,000 inventory on account
March 4 XX acquired equipment for Rs30000 in exchange for a Rs10000 cash down payment and a Rs20000 promissory note
March 5 A large retail store, which you had hoped would be a big customer, discontinued operation.
March 6 You take XX's inventory worth Rs1200 home for family.
March 7 Inventory that costs Rs600 in transaction on March 2 were of the wrong style. XX retuned them and obtained a full cash refund.
March 8 Inventory that costs Rs1600 in transaction on March 3 were of the wrong colour. XX retuned them and obtained inventory of the correct colour in exchange.
March 9 Inventory that cost Rs1000 in transaction on March 3 had an unacceptable quality. XX returned them and obtained full credit on account.
March 10 XX paid Rs2000 on a promissory note.
March 10 You use your personal cash savings of Rs10000 to acquire some equipment for XX. You consider this to be an additional investment in your business.
March 11 XX paid Rs6000 on account payable.
March 12 XX exchange equipment that costs Rs8000 in transaction on March 4 with another wholesaler. However, the equipment received, which is almost new, is smaller and is worth only Rs3000. Therefore, the wholesaler also pays Rs5000 in cash.