Question

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14. Raghunath had the following transactons in an accounting year:
(i) Commenced business with cash 50,000.
(ii) Paid into bank * 10,000.
(iii) Purchased goods for cash 20,000 and credit 30,000.
(iv) Sold goods for cash 40,000 costing * 30,000.
(U) Rent paid 500.
(vi) Rent outstanding 100.
(vii) Bought furniture 5,000 on credit.
(viii) Bought refrigerator for personal use 5,000.
(ix) Purchased motorcycle for cash 20,000.
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Answer 1

Answer:

Raghunath had the following transactions in an accounting year: (i) Commenced business with cash Rs. 50,000. (ii) Paid in to bank Rs. 10,000. (iii) Purchased goods for Cash Rs. 20,000 and Credit Rs.30,000. (iv) Sold goods for Cash Rs. 40,000 Costing Rs. 30,000. (v) Rent paid Rs. 500. (vi) Rent Outstanding Rs. 100. (vii) Bought furniture Rs.5,000 on credit. (viii) Bought refrigerator for personal use Rs. 5,000. (ix) Purchased motorcycle for cash Rs. 20,000. Create an Accounting Equations to show the effect of the above transaction on his assets, liabilities and capital and also show his final Balance Sheet