Question

0.27. Show the accounting equation on the basis of following transactions :
(i) Commenced business with Cash 20,000; Goods 50,000 and Furniture 30,000.
(ii) Purchased goods from Gopal on Credit 40,000.
(iii) Sold goods for Cash 40,000 (Costing 30.000).
(iv) Sold goods to Ram on Credit 65,000 (Costing 50,000).
(v) Withdrew for personal use goods costing 25,000.
(vi) Purchased typewriter for personal use of the proprietor 20,000.
(vii) Purchased chairs for office use for Cash 10,000.​

Answer 1

Answer:

i) Cash A/c Dr 20000.00

  Furniture A/c Dr 30000.00

   To Capital A/c             50000.00

(Being Commenced business with Cash 20,000; Goods 50,000 and Furniture 30,000.

ii) Purchase A/c Dr 40000.00

    TO Gopal's A/c       40000.00

(being Purchased goods from Gopal on Credit 40,000

iii) Cash A/c Dr 40000.00

    To sales A/c        40000.00

(Being Sold goods to Ram on Credit 65,000 (Costing 50,000).

iv) Ram A/c Dr 65000.00

        To sales a/c      65000.00

(Being Sold goods to Ram on Credit 65,000 (Costing 50,000).)

v)Drawings A/c Dr 25000.00

      To Purchase A/c      25000.00

(Being withdrew for personal use goods costing 25,000.)

vi)   Drawings A/c Dr 20000.00

       To Cash A/c           20000.00

(being Purchased typewriter for personal use of the proprietor 20,000.

vii) Furniture A/c Dr 10000.00

            To Cash A/c              10000.00

(Being Purchased chairs for office use for Cash 10,000.​)

         

Explanation: