24. Mr. Bapu started a business with cash 1,60,000. In respect of his business, following transactions were
recorded :
(0) Purchased goods on credit 35,600.
(ii) Paid wages * 3,000.
(iii) Withdrew for personal use *22,400.
(iv) Paid to creditors in full settlement 35,000.
(v) Purchased furniture for 3,600.
(vi) Interest charges paid 16,000.
Show an Accounting Equation on the basis of above transactions.
Answers
Explanation:
1) asset side cash (+175000) and capital(+175000)
2)asset side stock (+50000)and liability side creditor (+50000)
3) assets side stock (-17500), debtors (+20000) and capital(+2500)
4) asset side furniture(+10000) ,cash (-10000)
5)asset side cash (-48500) and liability side (-50000)and capital(+1500)
6) cash (+20000) ,debtor (-20000)
7) cash (-1000)and capital(-1000)
8)cash (-3000) and capital (-3000)
Answer:
Drawings are the amounts taken by the owner of a business for his personal use in anticipation of profit. Drawings are usually made in the form of cash, but there could be other assets or goods withdrawn by the owner for his personal use.
Journal Entry will be:-
Drawing A/c Dr.
To Bank A/c.
Explanation:
Drawings are the amounts taken by the owner of a business for his personal use in anticipation of profit. Drawings are usually made in the form of cash, but there could be other assets or goods withdrawn by the owner for his personal use.
Journal Entry will be:-
Drawing A/c Dr.
To Bank A/c.