Question

4. Prepare accounting equation from the following:
(i) Started business with cash Rs. 18,750 and goods Rs. 6,250.
(ii) Paid for Rent Rs. 500.
(iii) Bought goods for cash Rs, 7,500 and on credit for Rs. 11,000.
(iv) Good costing Rs. 12,500 sold at a profit of 25% of which Rs. 6,875 received in cash.
(v) Purchased a luna for personal use Rs. 5,000.
[Ans. Cash Rs. 12,625; Stock Rs. 12,250, Debtors Rs. 8,750; Creditors Rs. 11,000; Capi- tal Rs. 22,625]​

Answer 1

Answer:

Ans. Cash Rs. 12,625; Stock Rs. 12,250, Debtors Rs. 8,750; Creditors Rs. 11,000; Capi- tal Rs. 22,625]

Answer 2

Explanation:

cash stock debtors creditors capital

18750 6250 0 0 29000

(-500) 0 0 0 (-500)

=18250 =6250 =0 =0 =28500

(-7500) 18500 0 11000 0

=10750 =24750 =0 =11000 =28500

+6875 (-12500) 8750 0 (profit 3125)+

+3125

=20750 =12250 =8750 =11000 =31625

(-5000) 0 0 0 (-5000)

=15750 =12250 =8750 =11000 =26625

working note :

sp= 12500

p=25%

amt rec.=6875

12500×25%= 3125

12500+3125=15625

15625-6875=8750

8750 debtor.