Question

7.
Show the effect of the following transactions on Assets, Liabilities and
Capital through accounting equation:
(a) Started business with cash
Rs. 1,20,000
(b) Rent received
Rs. 10,000
(c) Invested in shares
Rs. 50,000
(d) Received dividend
Rs. 5,000
(e) Purchase goods on credit from Ragani
Rs. 35,000
(f) Paid cash for house hold Expenses
Rs. 7,000
(g) Sold goods for cash (costing Rs.10,000)
Rs. 14,000
(h) Cash paid to Ragani
Rs. 35,000
(i) Deposited into bank
Rs. 20,000​

Answer 1

Answer:

Cash a/c. dr. 120000. To capital a/c 120000. cash a/c. dr. 10000. To rent a/c. 10000. cash a/c. dr. 50000. To shares a/c. 50000. cash a/c. dr. 5000. To dividend a/c. 5000. Purchase a/c dr. 35000. To Ragini a/c. 35000. Household expen.a/c dr. 7000. To cash a/c. 7000 Cash a/c. dr. 10000 p/l. a/c dr. 4000 To sales. a/c. 14000. cash a/c. dr. 35000. To Ragini a/c. 35000. Bank a/c. dr. 20000. To cash a/c 20000

Answer 2

Answer:

Transaction

No. Assets = Liabilities Capital Total

Cash Stock of Goods Debtors Furniture Total

1. Harsha started business with cash ₹ 2,00,000

2,00,000 2,00,000

2,00,000 – – – 2,00,000 = – 2,00,000 2,00,000

2. Purchased goods from Naman for cash ₹ 40,000

(40,000) 40,000

1,60,000 40,000 – – 2,00,000 = – 2,00,000 2,00,000

3. Sold goods to Bhanu costing ₹ 10,000/- ₹ 12,000

(10,000) 12,000 2,000

1,60,000 30,000 12,000 – 2,02,000 = – 2,02,000 2,02,000

4. Bought furniture on credit ₹ 7,000

7,000 7,000

1,60,000 30,000 12,000 7,000 2,09,000 = 7,000 2,02,000 2,09,000

Total 2,09,000 = 2,09,000