5. Prepare an Accounting Equation from the following transactions-
Commenced business with cash * 80,000 and goods * 15,000
(ii) Purchased goods for cash * 30,000 and credit * 20,000
(iii) Goods costing 50,000 were sold for 60,000
(iv) Withdrew cash for personal use 10,000
(v) Salary outstanding * 3,000
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Answer:
S. No.
Transactions
Assets
=
Liabilities
+
Capital
Cash
(Rs)
+
Bank
(Rs)
+
Stock
(Rs)
=
Creditors
(Rs)
(Rs)
(i)
Started business with cash
45,000
=
45,000
45,000
=
45,000
(ii)
Opened a Bank Account with a deposit
– 4,500
+
4,500
=
40,500
+
4,500
=
45,000
(iii)
Bought goods from M/s. Sun & Co.
11,200
=
11,200
40,500
+
4,500
+
11,200
=
11,200
+
45,000
Total Assets
=
Cash + Bank + Stock
=
40,500 + 4,500 + 11,200
=
Rs
56,200
Liabilities
=
11,200
Capital
=
45,000
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