Question

1,000.] 2. 6. What will be the effect of the following on the Accounting Equation? (i) Harish started business with cash 1,80,000.
(ii) Purchased goods for cash 60,000 and on credit 30,000.
(iii) Sold goods for cash 40,000; costing 24,000.
(iv) Rent paid 5,000; and rent outstanding 2,000.
(v) Sold goods on credit 50,000 (costing 38,000).
(vi) Salary paid in advance 3,000.​

Answer 1

Explanation:

Assets = liabilities + capital

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)1800018000

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000180002)

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000180002)−5000+7000=2000 +18000

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000180002)−5000+7000=2000 +1800013000+7000=2000 +18000

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000180002)−5000+7000=2000 +1800013000+7000=2000 +180003)

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000180002)−5000+7000=2000 +1800013000+7000=2000 +180003)4000−2400 1600

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000180002)−5000+7000=2000 +1800013000+7000=2000 +180003)4000−2400 160014000+4600=2000 +19,600

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000180002)−5000+7000=2000 +1800013000+7000=2000 +180003)4000−2400 160014000+4600=2000 +19,6004)

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000180002)−5000+7000=2000 +1800013000+7000=2000 +180003)4000−2400 160014000+4600=2000 +19,6004)−1000=200 −1200

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000180002)−5000+7000=2000 +1800013000+7000=2000 +180003)4000−2400 160014000+4600=2000 +19,6004)−1000=200 −120016000+4600=2000 200+18400