7. Prepare accounting equation from the following transactions
a Started business with cash of Rs. 1,00,000
b. Bought from Navin Traders Rs. 50,000
c. Returned goods to Navin Traders Rs. 5,000
d. Cash received from Navin Traders Rs. 43,000 in full settlement,
e. Opened Bank Account with Rs. 5,000
f. Withdrawn from Bank Rs. 2,000 for office use
Answers
Answer:
Step-by-step explanation: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
Page No 5.17:
Question 2:
Show the Accounting Equation for the following transactions:
₹
(i) Gopinath started business with cash 25,000
(ii) Purchased goods from Shyam 10,000
(iii) Sold goods to Sohan costing ₹ 1,800 1,500
(iv) Gopinath withdrew from business 5,000
ANSWER:
S. No
Transactions
Assets
=
Liabilities
+
Capital
Cash
(Rs)
+
Stock
(Rs)
+
Debtors
(Rs)
Creditors
(Rs)
(Rs)
(i)
Gopinath Started business with
25,000
=
25,000
25,000
=
25,000
(ii)
Purchased goods from Shyam
10,000
10,000
25,000
+
10,000
=
10,000
+
25,000
(iii)
Sold goods to Sohan
– 1,800
+
1,500
=
– 300
25,000
+
8,200
+
1,500
=
10,000
+
24,700
(iv)
Gopinath withdrew from business
–5,000
=
– 5,000
20,000
+
8,200
+
1,500
=
10,000
+
19,700
Assets
=
20,000 + 8,200 + 1,500
=
Rs
29,700
Liabilities
=
Rs
10,000
Capital
=
Rs
19,700
Page No 5.18:
Question 3:
Show the effect of the following transactions on the Accounting Equation:
(i) Started business with cash ₹ 50,000.
(ii) Salaries paid ₹ 2,000.
(iii) Wages Outstanding ₹ 200.
(iv) Interest due but not paid ₹ 100.
(v) Rent paid in advance ₹ 150.
ANSWER:
S. No.
Transactions
Assets
=
Liabilities
+
Capital
Cash
(Rs)
+
Advances Expenses
(Rs)
=
Outstanding Expenses
(Rs)
(Rs)
(i)
Started business with Cash
50,000
=
50,000
50,000
=
50,000
(ii)
Salaries paid
– 2,000
=
– 2,000
(expenses)
48,000
=
48,000
(iii)
Wages Outstanding
=
200
+
– 200
(expenses)
4,800
=
200
47,800
(iv)
Interest due but not paid
=
100
+
– 100
(expenses)
48,000
=
300
+
47,700
(v)
Rent paid in advance
– 150
+
150
=
47,850
+
150
=
300
+
47,700
Assets
=
47,850 + 150
=
Rs
48,000
Liabilities
=
Rs
300
Capital
=
Rs
47,700