b5 2. 3. i. Those items which are purchased for the purpose of sale at a fixed profit are kept in the category of goods. For example, Businessman of furniture when purchases furniture purchase account is opened in books because for him furniture is treated as goods. When a businessman who owns a medical store purchases furniture, furniture account is opened because for him furniture is not goods, but an asset for him. For the purpose of making entries related to goods in books of account, goods can be classified in following five parts- 1. Purchases account 2. Purchases return account 3. Sales account 4. Sales return account 5. Stock account (i) Opening Stock Account (ii) Closing Stock Account While determining cash or credit transaction the following points should be considered: If with the receipt or payment name of the purchaser or seller is given then it is treated as cash transaction. For example, Goods purchased for cash from Ashish. ii. If in any transaction the name of seller and purchaser are written along with the word sold or purchased but nothing is clear about cash or credit then it will be treated as credit. For example, Goods purchased from Ashish. iii. If in any transaction name of the purchaser or seller is not given and only goods purchased or goods sold are given then it is treated as cash transaction. For example, Goods purchased. iv. In case of Nominal account, name of the person is given along with the receipt or payment then it is treated as cash transaction and personal account will not be opened. For example, Rent paid to Ajay. 4. While passing entries in the journal a line is drawn at the end of every page in the column of particulars and amount. In the column of particulars the word Total c/f (Total Carried Forward) is written which means total is carried forward. In both the columns of amount sum total of that page is written. On the next page, first of all in the column of particulars Total b/f (Total brought forward) word is written which means total has been brought forward. In both the columns of amount, sum total of the previous page is written. When all the entries are completed then in the column of particulars Grand Total word is written and Debit and Credit columns are totalled. This process of making total is known as Casting. Illustration 10: Prem Prakash has started a new business. Prepare the analytical table of the following transactions for November, 2016 and state which Accounts will be affected by each transaction. Also state with rules that which account will be debited and which account will be credited