Question

7. Use Accounting Equation to show the effect of following transactions on assets, liabilities and capital and also show in the Balance Sheet. ₹ Commenced Business with cash 1,00,000 (ii) Bought goods for cash 15,000 (iii) Bought furniture on credit 8,000 (iv) Sold goods for cash (cost 10,000) 15.000​

Answer 1

Answer:

your answer is iii

Explanation:

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Answer 2

Explanation:

question:-

Use Accounting Equation to show the effect of following transactions on assets, liabilities and capital and also show in the Balance Sheet. ₹ Commenced Business with cash 1,00,000 (ii) Bought goods for cash 15,000 (iii) Bought furniture on credit 8,000 (iv) Sold goods for cash (cost 10,000) 15.000

Sol.

S. No. Transaction Assets = Liabilities + Capital

Cash + Stock + Debtors = Creditors

(i) Started business with cash +2,00,000 +2,00,000

2,00,000 = 2,00,000

(ii) Purchased Goods for Cash Rs 60,000 and on credit Rs 1,50,000 –60,000 +2,10,000 +1,50,000

+1,40,000 + 2,10,000 = 1,50,000 + 2,00,000

(iii) Sold goods for cash costing Rs 40,000 at a profit of 20% and on credit Rs 72,000 at a profit of 25% +48,000 –1,12,000 +90,000 +26,000 (Profit)

+1,88,000 + 98,000 + 90,000 = 1,50,000 + 2,26,000

(iv) Rent paid –5,000 –5,000 (Expenses)

+1,83,000 + 98,000 + 90,000 = 1,50,000 + 2,21,000

Working Note:

WN1 Calculation of Selling Price of Goods Sold

Total Cost of Goods Sold = 40,000 + 72,000 = Rs 1,12,000

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