Question

27. Show the accounting equation on the basis of following transactions :
(i) Commenced business with Cash 20,000; Goods 50,000 and Furniture 30,000.
(ii) Purchased goods from Gopal on Credit 40,000.
(iii) Sold goods for Cash 40,000 (Costing 30,000).
(iv) Sold goods to Ram on Credit 65,000 (Costing 50,000).
(v) Withdrew for personal use goods costing 5,000.
(vi) Purchased typewriter for personal use of the proprietor 20,000.
(vii) Purchased chairs for office use for Cash 10,000.​

Answer 1

Answer:

1 ) add cash 20000, add stock 50000 add furniture 30000 and add capital 100000

2) add cerditor 40000 and add stock 40000

3) cash add 40000 and subtract stock 30000 and add capital (profit) 10000)

4) 50000 subtract from stock 65000 add in cerditor and 15000 add in capital (profit)

5) subtract 5000 from capital and cash

6) subtract from cash and capital 20000

7) 10000 subtract fro cash and capital