Question

13. Show an Accounting Equation for the following transactions (0) D. Mahapatra commenced business with cash 50,000 and 1,00,000 by cheque; goods 60,000; machinery 1,00,000 and furniture 50,000. (it) 1/3rd of the above goods sold at a profit of 10% on cost and half of the payment is received in cash. (iii) Depreciation on machinery provided @ 10% (iv) Cash withdrawn for personal use 10,000 (v) Interest on drawings charged @ 5%. (vi) Goods sold to Gupta for 10,000 and received a Bill Receivable for the same amount for 3 months. (uit) Received 10,000 from Gupta against the Bills Receivable on its maturity​

Answer 1

Explanation:

1)Cash a/c dr 50000

Bank a/c dr 100000 Purchase a/c dr 60000

Machinery a/c dr 100000

Furniture a/c Dr 50000

2) cash a/c dr 11000

credit a/c Dr 11000

To profit a/c 2000

To sales a/c 20000

3) Depreciation a/c dr 10000

To machinery a/c 10000

4) Drawings a/c Dr 10000

To Bank a/c 10000

5) Drawings a/c Dr 500

To interest on drawings 500

6) Bills receivable a/c Dr 10000

To sales a/c 10000

7) cash a/c Dr 10000

To Bills receivable a/c 10000