Question

create an accounting equation on the basis of the following transactions and show the balance sheet:

(1) started business with cash Rs. 2,50,000.
(2) purchased a building from Rohan paid by raising a loan from SBI Rs.5,00,000.
(3) paid interest on loan Rs.10,000 and Installment of Rs.1,00,000.
(4) purchased goods from Sohan on credit Rs.50,000.
(5) goods returned to sohan costing Rs.10,000.
(6) sold goods costing Rs.20,000 for Rs.25,000 on credit to suresh.
(7) took goods of Rs.5,000 from business for personal use.
(8) Accured interest Rs.2,500.
(9) commission received in advance Rs.10,000.
(10)cash received from suresh Rs.10,000.

Answer 1

                       assets                                                             =liabilities+capital
                       cash      +building+stock+debtors+AI
           1)           250000  +500000                                         =250000+500000
            3)      (110000)                                                       =(10000)+(100000)
New equation 140000+500000                                             =240000+400000
         4)                                         +50000                                          =+50000
New equation 140000+500000+50000             =240000+400000+50000
        5)                                       (10000)             =                          (10000)
New equation 140000+500000+40000              =240000+400000+40000
        6)                                        (20000)+25000=+5000
New equation 140000+500000+20000+25000=245000+400000+40000
        7)                                        (5000)               =(5000)
New equation  140000+500000+15000+25000    =240000+400000+40000
        8)                                                               +2500  =+2500
N E                 140000+5L+15000+25000+2500=  242500+4L+40000
      9)              +10000                                          =    +10000
N E                 150000+5L+15000+25000+2500   =242500+4L+40000+10000
          10)          +10000                  (10000)
NE                   160000+5L+15000+15000+2500=242500+4L+40000+10000
note-----NE-new equation
              L--lac

Answer 2

Building A/c Dr

To bank A/c

Explanation:bcoz purchase building from Rohan then we write building in dr

Then paid by loan then we write bank bcoz loan also issue by bank