Question

Business started with cash Rs 1,00,000
Purchased office furniture for office use Rs 10,000
Cash withdrawn for personal use Rs 20,000
Commission received in advance Rs 8,000
Rent paid Rs 12,000
Sold goods for cash Rs 10,000​

Answer 1

Answer:

S. No. Transaction Assets = Liabilities + Capital

Cash + Furniture + Stock = Creditors

(i) Sandeep started business with cash 1,00,000 + 1,00,000

1,00,000 = + 1,00,000

(ii) Purchased furniture for cash –5,000 +5,000

95,000 + 5,000 = + 1,00,000

(iii) Purchased goods for cash –20,000 +20,000

75,000 + 5,000 + 20,000 = + 1,00,000

(iv) Purchased goods on credit +36,000 +36,000

75,000 + 5,000 + 56,000 = 36,000 + 1,00,000

(v) Rent paid -700 –700

74,300 + 5,000 + 56,000 = 36,000 + 99,300

(vi) Goods costing Rs 40,000 sold at a profit of 20% for cash +48,000 -40,000 +8,000

1,22,300 + 5,000 + 16,000 = 36,000 + 1,07,300

Working Note:

WN1 Calculation of Sale Price

Answer 2

Answer:

cash a/c dr. 100000

to capital a/c. 100000

furniture a/c dr. 10000

to cash a/c 10000

drawings a/c dr.20000

to cash a/c. 20000

commission a/c dr.8000

to commission received in advance a/c. 8000

rent a/c dr.12000

to cash a/c. 12000

cash a/c dr.10000

to sales a/c. 10000