Question

CLASS XI Form an accounting equation for the following transactions. A. Started business with cash 50000 and goods 21000. B. Purchased machine for cash 10000 C. Rent received 5000. D. Sold one third of above goods at 5% profit. E. Received half payment in cash for goods sold. F. Salary outstanding 1500 G. Withdrew goods worth 2000 for private use. H. Electricity bill paid 1000. 1. 1. Charge interest on drawings @ 2%. j. Deposited all remaining cash in bank.​

Answer 1

Answer:

Explanation:

A.     CASH A/C DR           50,000.00

        PURCHASE A/C DR 21,000.00

           TO CAPITAL A/C          71,000.00

(BEING STARTED BUSINESS IN CASH AND GOODS0

B.     MACHINE A/C DR    10,000.00

            TO CASH A/C          10,000.00

(BEING PURCHASED MACHINERY IN CASH)

C.   CASH A/C DR      5,000.00

           TO INCOME A/C (RENT)      5,000.00

(BEING RENT RECEIVED IN CASH)

D.  DEBTORS'S A/C DR   7,350.00

         TO SALES A/C          7,350.00

(BEING CREDIT SALES )

E.    CASH A/C DR   3,675.00

           TO DEBTORS A/C      3,675.00

(BEING CASH RECEIVED FROM DEBTORS)

F.  SALARY A/C DR   1,500.00

        TO OUTSTANDING SALARY A/C    1,500.00

(BEING SALARY DUE)

G.  DRAWINGS A/C DR  2,000.00

         TO SALES A/C             2,000.00

(BEING GOOD DRAWN FOR PERSONAL USE)

H.  ELECTRICITY A/C DR 1,000.00

         TO CASH A/C                 1,000.00

(BEING ELECTRICITY BILL PAID)

1.    DRAWINGS A/C DR     40.00

          TO INTEREST A/C         40.00

(BEING INTEREST DUE ON DRAWINGS @ 2%)