Question

Answered

1. Prepare the Accounting Equation for the year ended on 31st March 2015 on the basisof the following information:
1 Mr.X Started business with Cash Rs. 1,50,000, Furniture Rs. 50,000, Goods Stock Rs.
30,000 & Machinery Rs. 2,00,000.
2. He sold goods Costing Rs. 25,000 at a profit 20% above cost & half of the payment
received in Cash and received a bill for the remaining balance.
3. He paid salary Rs. 10,000, commission Rs. 2000 & Commission Still outstanding Rs.
1,000.
4. He purchased goods from Ram of Rs. 25,000.
5. Deprecate Machinery at 20 % p.a. & Furniture at 10 % p.a.
6. He paid Insurance Rs. 12,000 p.a. (from 1st Oct to 30th Sept every year)
7. He withdrew Rs. 10,000 for personal use.
8. He paid to Ram Rs. 23,500 in full settlement of his account.
9. He received cash on the maturity of Bill.
10. Interest on Capital is to be credited at 5% p.a.​

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Answer 1

Answer:

1. It will increase cash, furniture, stock and machinery account and capital will increase by total of all accounts above

2.

Answer 2

Explanation:

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