4. Rohit has the following transactions :
(a) Commenced business with cash
Rs.1.50.000
(b) Purchased machinery on credit
Rs. 40.000
(c) Purchased goods for cash
Rs. 20.000
(d) Purchased car for personal use
Rs. 80.000
(e) Paid to creditors in full settlement
Rs. 38.000
(1) Sold goods for cash costing Rs. 5.000
Rs. 4,500
(g) Paid rent
Rs. 1.000
(h) Commission received in advance
Rs. 2,000
Prepare the Accounting Equation to show the effect of the above transactions
on the assets, liabilities and capital.
(Ans: Assets = Cash Rs. 17,500 + Machine Rs. 40.000 + Goods Rs. 15.000
= Rs. 72,500: Liabilities = Commission Rs. 2,000 + Capital Rs. 70,500
= Rs. 72,500)
Answers
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