Give the accounting equation for the following transactions:
1. Mr. Vaibhav started business with Cash Rupees 1,00,000.
2. Purchased goods on credit from Rita Stores Rupees 9,000.
3. Purchase Laptop for office use Rupees 10,000.
4. Sold goods to Rina on credit Rupees 12,000.
5. Received Interest ` 2,500 6. Paid Telephone bill Rupees 1,300.
Answers
Answer:
Ans
Accounting Equation
DATE ASSETS LIABILITIES + EQUITY
Month Cash Accounts Receivable Merchandise Inventory Equipment Accounts Payable Common Stock+ Retained Earnings
1) $1,00,000.00 $1,00,000.00
2) $9,000.00 $9,000.00
3) $10,000.00 $10,000.00
4) $12,000.00 $12,000.00
5) $2,500.00 $2,500.00
6) $(1,300.00) $(1,300.00)
Total $1,01,200.00 $12,000.00 $9,000.00 $10,000.00 $19,000.00 $1,00,000.00 $13,200.00
Total Assets $1,32,200.00 Total Liabilities and Equity $1,32,200.00
Explanation:
Explanation:
1. cash a/c dr 1,00,000
to capital a/c 1,00,000
(being buisness started by cash)
2. purchases a/c dr 9,000
to rita stores a/c 9,000
(being goods purchased on credit)
3. office equipment a/c dr 10,000
to cash a/c 10,000
( being Laptop purchased for office use)
4.Rina a/c dr 12,000
to sales a/c 12,000
( being goods sold to rina at credit)
5. cash a/c dr 2,500
to interest received a/c 2,500
(being interest received)
6. telephone bill a/c dr 1,300
to cash a/c 1,300
(being telephone bill paid)