Question

4
Prepare an Accounting Equation from the following information of Akshita :
1.
The following balances appeared in the books of Akshita :
Cash
80,000
Cash at Bank
20,000
Stock
30,000
Machinery
20,000
Outstanding salary
10,000
Prepaid insurance
*1,000
2.
Sold goods costing * 5,000 on credit to Manish for
Alamy
Allowing
Received
from Manish after receiving a cash discount of * 300
which was 5% of the amount due from him.
3.
4.
Paid cash 5,000 for outstanding salary.​

Answer 1

Answer:

(i) Commenced business with cash Rs 50,000, cheque Rs 1,00,000, goods Rs 30,000 and Furniture Rs 20,000

(ii) Car, a personal asset of the proprietor, was sold for Rs 1,00,000 against cheque which he deposited in his saving account.

(iii) An amount of Rs 50,000 was transferred from his saving account to the firm’s Bank Account.

(iv) A new car was purchased for Rs 6,00,000 for office use. It was paid by taking a loan from a bank of Rs 5,00,000 and balance by the issue of cheque from the firm’s Bank Account.

(v) Sold goods to Ajay on credit costing Rs 4,000 for Rs 5,000.

(vi) Sold goods for cash costing Rs 12,000 for 16,000.

(vii) Purchased goods for cash Rs 40,000

(viii) Purchased goods for credit Rs 20,000

(ix) Paid rent Rs 3,000 including Rs 2,000 in advance.

(x) Paid salary Rs 2,000

(xi) Sold goods costing Rs 8,000 for 10,000.

(xii) Salaries outstanding Rs 1,000

(xiii) Charge depreciation on furniture Rs 500.

The solution of Question No 29 Chapter No 5: –