Considering the following transaction prepare an accounting
equation:-
a) Started business with Cash and Rs.10,00,000 and Goods
Rs.50,000
b) Bought goods from Varun for Rs.25,000.
c) Goods costing Rs.50,000 sold at a profit of 20%
d) Rent paid Rs.20,000 and Outstanding Rs. 45,000.
e) Paid to Varun Rs.9,800 and discount received Rs.100.
f) Paid Insurance Rs.20,000 including Rs.4,000 for next year.
Answers
Answer:
a) started business with cash and rs. 10,00,000 and goods rs. 50,000
here
capital a/c 10,50,000
cash a/c 10,00,000
stock a/c 50,000
b) Bought goods from Varun for Rs. 25,000
cash a/c (10,00,000 -25,000) = Rs. 9,75,000
stock a/c (50,000 + 25,000) = 75,000
c) Goods costing Rs.50,000 sold at a profit of 20%
stock a/c (75,000 - 50,000) = 25,000
Cash a/c = 9,75,000 + 50,000 + 20% of 50,000
= 9,75,000 + 50,000 + 10,000
=10,35,000
Capital a/c = 10,50,000 + 20% of 50,000
= 10,50,000 + 10,000
=10,60,000
d) Rent paid Rs.20,000 and outstanding Rs.45,000
Rent paid : cash a/c = 10,35,000 -20,000
= 10,15,000
Rent outstanding : 45,000
Capital : (10,60,000 - (45,000 + 20,000))
= 10,60,000 - 65,000
= 9,95,000