Head of Accounts DebitCreditAssetsIncreaseDecreaseLiabilities DecreaseIncreaseExpense(I.S)IncreaseDecreaseEquityDecreaseIncreaseRevenue(I.S)DecreaseIncreaseAssets (Debit)Purchased Furniture for cash Rs.25000DebitCreditFurniture 25000Cash25000Sold Furniture for cash Rs.25000

DebitCreditCash 25000Furniture25000

Sold Furniture on account/On Credit/To customer/Mr. Saad Rs.25000DebitCreditAcct Receivable 25000Furniture25000Received/Collection from Customer/Mr. Saad Rs 25000DebitCreditCash 25000Acct Receivable25000

Liabilities (Cr)Purchased Furniture on account/On Credit/To Supplier/Vendor/Mr. Saad Rs.25000DebitCreditFurniture 25000Acct payable (Liabilities)25000

Paid to Vendor/Supplier/Mr. Saad Rs 25000DebitCreditAcct payable 25000Cash25000Expense (Dr)Paid Rent Expense for the month Rs.3000DebitCreditRent Expense 25000Cash25000

Paid Rent Expense for the month by Cheque Rs.3000DebitCreditRent Expense 25000Bank 25000

Equity (Cr)Capital (Cr) Investment Drawing (Dr) Withdrew for personal useProprietor/Mr Zia invested/ Commenced/Established/Started a Business with cash investment Rs.10000DebitCreditCash 25000Capital25000

Withdrew cash from business by proprietor for personal/private use Rs.10000DebitCreditDrawing 25000Cash25000Revenue (Cr)Received/ Collected cash for service income Rs.5000DebitCreditCash 5000Service Income 5000

Assets Current Assets Cash Bank Acct Receivable Merchandise Inventory Supplies Prepaid Expenses Fixed Assets Furniture MachineryDepreciation Expense

Equipment Building Land (Depletion, Natural Resources) Liabilities

Acct Payable Notes Payable Bank Loan Salaries Payable Unearned income Interest Payable

Expense

Rent Expense Salaries Expense Insurance Expense Advertisement Expense Interest Expense Taxes Expense Bank Charges

Revenue /Income

Sales Sales Return Sales Discount Service Income Commission Income Consultant Income Fees Income Rent Income Ticketing Income

Cost of Goods Sold Cost of Goods Sold Purchase Discount Purchase return

Income Statement = Sales- Cost of Goods Sold = Gross Profit- Operating Expense = Net Profit/Loss