10. Prepare an Accounting Equation from the following information provided: (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 ₹ 2,00 (v) Purchased a Motor-cycle for personal use ₹ 20,000.
Answers
Explanation:
Assets = liabilities + capital
Cash+stock = credirors + o/s rent +capital
1)
18000
18000
2)
−5000+7000=2000 +18000
13000+7000=2000 +18000
3)
4000−2400 1600
14000+4600=2000 +19,600
4)
−1000=200 −1200
16000+4600=2000 200+18400
Explanation:
Mr. Manishis the General Manager of a transport
company drawing a basic salary of Rs. 15,000 per
month. He is also receiving D.A. (60% forming part
of salary) Rs. 10,000 per month and entertainment
allowance of Rs.1,500 per month. He is provided
by the company with a car having engine cubic
capacity of 1.8 litres for is personal and official
use, but running and maintenance expenses for the
same are borne by the assessee himself. He is in
receipt of bonus equivalent to 2 month's basic salary.
He also owns two house properties in Meerut,
the details of which are given below:
House 1 House 2
Nature
Self occupied Let out
Municipal value (Rs.) 45,000 65,000
Annual rent (Rs.)
Nil 78,000
Municipal tax paid (Rs.) 3,000 6,000
Interest on taken for
construction of house (Rs.) 12,500 21,300
During the previous year he contributed Rs.
36,000 to Recognised Provided Fund, Rs. 25,000
as Life Insurance premium and Rs. 4,000 as medi-
claim insurance premium.
Compute the total income of Mr. Manish.