Accountancy chapter 5 question no 16
Answers
Explanation:
Questions 16.
Show an Accounting Equation on the basis of the following transactions:
i. D. Mahapatra commenced business with cash Rs.1,50,000; goods Rs.60,000; machinery Rs.1,00,000 and furniture Rs.50,000.
ii. 1/3rd of the above goods sold at a profit of 10% on cost and half of the payment is received in cash.
iii. Depreciation on machinery provided @10%.
iv. Cash withdrawn for personal use 10,000.
v. Interest on drawings charged @5%.
vi. Goods sold to Gupta for Rs.10,000 and received a Bill Receivable for the same amount for 3 months.
vii. Received Rs.10,000 from Gupta against the Bills Receivable on its maturity.
[Hints:
1. Opening Capital Rs.3,60,000 = Cash Rs.1,50,000 + Stock Rs.60,000 + Machinery Rs.1,00,000 + Furniture Rs.50,000
2. Liabilities: Nil]
