Question

6
30. Sunil is a businessman of cloth. Following are the particulars for his accounting year 2018-19 Prepare
accounting equation from them:
i He commenced business with 90,000 cash.
He purchased goods and furniture in cash of Rs. 40,000 and 20,000 respectively
He sold goods of 25,000 for 26,000 on credit.
iv. He spent Rs. 2,000 on advertisement and gave Rs.800 commission to his sales agent.
He made a drawing of Rs. 5,000 cash for his personal use.
vi He purchased goods of 30,000 on credit.
V.​

Answer 1

Answer:

Question 1:

Prepare Accounting Equation from the following:-

(₹)

1.

Sandeep started business with Cash

1,00,000

2. Purchased furniture for cash 5,000

3. Purchased goods for cash 20,000

4. Purchased goods on credit 36,000

5. Paid for rent 700

6.

Goods costing ₹ 40,000 sold at a profit of 20% for cash

ANSWER:

ACCOUNTING EQUATION

S. No. Transaction Assets = Liabilities + Capital

Cash + Furniture + Stock = Creditors

(i) Sandeep started business with cash 1,00,000 + 1,00,000

1,00,000 = + 1,00,000

(ii) Purchased furniture for cash –5,000 +5,000

95,000 + 5,000 = + 1,00,000

(iii) Purchased goods for cash –20,000 +20,000

75,000 + 5,000 + 20,000 = + 1,00,000

(iv) Purchased goods on credit +36,000 +36,000

75,000 + 5,000 + 56,000 = 36,000 + 1,00,000

(v) Rent paid -700 –700

74,300 + 5,000 + 56,000 = 36,000 + 99,300

(vi) Goods costing Rs 40,000 sold at a profit of 20% for cash +48,000 -40,000 +8,000

1,22,300 + 5,000 + 16,000 = 36,000 + 1,07,300.