Question

Capital Rs. 51,000)
4. Ramesh had the following transactions. Use accounting equation to show their effect
on his assets, liabilities and capital.
(i) Ramesh brought Rs.1,35,000 in cash to start business.
(ii) purchased securities for cash Rs. 67,500
(iii) purchased an office building for Rs. 1,35,000 paying Rs. 45,000 in cash and the
balance through a loan arranged.
(iv) sold securities costing Rs.9,000 for Rs. 13,500
(v) purchased machinery for cash Rs. 25,200
(vi) rent received in cash Rs. 32,400
(vii) paid cash Rs. 4,500 for loan and Rs.2,700 for interest, of which Rs. 700 is
prepaid.
(viii) office building expenses paid in cash Rs. 2,700
(ix) dividend on securities received in cash Rs. 1,800.​

Answer 1

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Answer 2

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