Question

1. Machinery costing Rs. 50000 sold for 40000 in cash 2. Sold goods to Mr X Rs. 40000 at a trade discount of 10% received half amount on the same date. 3. Purchased goods from Mr Y on cash basis for Rs. 20000 at a discount 5% 4. Rent outstanding Rs. 5000 5. Advance commission received Rs. 3000​

Answer 1

Answer:

Question 1:

Prepare Accounting Equation from the following:-

 

 

(₹)

1.  

Sandeep started business with Cash

1,00,000

2. Purchased furniture for cash 5,000

3. Purchased goods for cash 20,000

4. Purchased goods on credit 36,000

5. Paid for rent 700

6.  

Goods costing ₹ 40,000 sold at a profit of 20% for cash

 

ANSWER:

ACCOUNTING EQUATION

S. No. Transaction Assets = Liabilities + Capital

Cash + Furniture + Stock = Creditors    

(i) Sandeep started business with cash 1,00,000             + 1,00,000

   1,00,000         =   + 1,00,000

(ii) Purchased furniture for cash –5,000   +5,000            

   95,000 + 5,000     =   + 1,00,000

(iii) Purchased goods for cash –20,000       +20,000        

   75,000 + 5,000 + 20,000 =   + 1,00,000

(iv) Purchased goods on credit         +36,000   +36,000    

   75,000 + 5,000 + 56,000 = 36,000 + 1,00,000

(v) Rent paid -700               –700

   74,300 + 5,000 + 56,000 = 36,000 + 99,300

(vi) Goods costing Rs 40,000 sold at a profit of 20% for cash +48,000       -40,000       +8,000

   1,22,300 + 5,000 + 16,000 = 36,000 + 1,07,300

                     

Working Note:

WN1 Calculation of Sale Price

Explanation: