Question

further, purchased goods from Ram costing Rs.4000.​

Answer 1

Answer:

Prepare Accounting Equation from the following:-

(₹)

1.

Sandeep started business with Cash

1,00,000

2. Purchased furniture for cash 5,000

3. Purchased goods for cash 20,000

4. Purchased goods on credit 36,000

5. Paid for rent 700

6.

Goods costing ₹ 40,000 sold at a profit of 20% for cash

ANSWER:

ACCOUNTING EQUATION

S. No. Transaction Assets = Liabilities + Capital

Cash + Furniture + Stock = Creditors

(i) Sandeep started business with cash 1,00,000 + 1,00,000

1,00,000 = + 1,00,000

(ii) Purchased furniture for cash –5,000 +5,000

95,000 + 5,000 = + 1,00,000

(iii) Purchased goods for cash –20,000 +20,000

75,000 + 5,000 + 20,000 = + 1,00,000

(iv) Purchased goods on credit +36,000 +36,000

75,000 + 5,000 + 56,000 = 36,000 + 1,00,000

(v) Rent paid -700 –700

74,300 + 5,000 + 56,000 = 36,000 + 99,300

(vi) Goods costing Rs 40,000 sold at a profit of 20% for cash +48,000 -40,000 +8,000

1,22,300 + 5,000 + 16,000 = 36,000 + 1,07,300