Question

Discuss and analyze the following transactions for X Ltd, using the concept of

accounting equation (Assets, Liabilities and Equities).

1. Purchased Furniture for Rs675000


2. Capital Introduced by the business Owner by depositing 12 Lakhs in the bank account.

3. Goods purchased on credit from Aman Enterprises for Rs1050004. Goods sold on credit for Rs 400000. The cost of the goods sold was Rs 300000.


5. Purchased goods from Sneha Enterprises for Rs 600000 and made the payment from the

business's bank account​

Answer 1

Explanation:

Identify the 'Accounting Concepts' involved in the following:

a) Production Manager of the company is interested to reflect the good industrial relations in the

accounts.

b) Machine is recorded at cost (Rs. 50,000) while the market value is Rs. 45,000.

c) Accounts are prepared at the end of every year.

d) Same accounting methods are used year after year.