Question

Collect/Design/download and explain the source documents related to each of the following
transactions. Also, explain the meaning of source documents.
 Prepare an Accounting Equation for the same along with Balance Sheet.
 Explain the contents/elements of Accounting Equation.

Date Transactions

Amount (in
Rs.)

Jan1
Started business with Cash:
Stock:
Bank:

5,00,000
2,50,000
30,000
Jan2 Salary paid for the month of December,2019 vide Salary Sheet No.29 5,000
Jan 4 Sold goods to Wahi & Co. on credit 4,500
Jan 5
Bought Furniture from Modern Furniture for cash vide Cash Memo
No.1230 7,500
Jan 7
Received cash from Wahi & Co. on account vide cash Receipt no.520
and returned goods worth Rs.2,000 2,500
Jan9 Purchased goods from M/s Eufora vide Bill No. 912 4,700
Jan10
Returned goods to M/s Eufora worth Rs. 1200 vide Debit Note no.
235 and paid the balance in cash vide cash memo no.229 .
Jan11 Withdrew cash for personal use by Cheque number 51003 22,500
Jan13 Sold Old Typewriter for cash vide cash receipt No.314 500
Jan 15 Furniture purchased on credit vide Debit Note no.278 4,000
Jan 18 Paid for Conveyance 700
Jan 20 Sold goods to M/s Raj& Co for cash vide Cash memo no. 230 8,500
Jan 22 Deposited cash in bank vide Payment Slip No. 344 3,500
i will mark you brainliest please answer me and get full stars please help me i shall be highly obliged.

Answer 1

Important Accounting Formulas

Assets = Liabilities + Equity

CurrentAssetsCurrentLiabilities=CurrentRatio

Income – Expenses = Net Income

Beginning inventory value + Purchases of inventory – Ending inventory value = Cost of goods sold

Sales – Cost of goods sold = Gross profit

GrossProfitSales=GrossProfitMargin

FixedcostsSalespriceperunit−Variablecostperunit=BreakEvenPoint

Salespriceperunit×Break−evenpointinunits=BreakevenpointinRupees

Inventoryturnoverratio=CostofGoodsSoldInventory

AccountsReceivableTurnoverRatio=SalesoncreditAccountsReceivable

TotalAssetTurnover=SalesTotalAssets

DebttoEquityRatio=Debt–equityratio=TotalLiabilitiesShareholder′sEquity

Quickratio=CurrentAssets−InventoryCurrentLiabilities

CurrentRatio=CurrentAssetsCurrentLiabilities

ReturnonAssets=NetIncomeAverageTotalAssets

ReturnonEquity=NetIncomeAverageShareholder′sEquity

Beginning balance + net income – net losses – dividends = ending balance