how to write in accounting equation , this is the question
1.insurance premium paid₹3000
Answers
Explanation:
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
Working Note:
WN1 Calculation of Sale Price
Page No 6.25:
Question 2(A):
Show the Accounting Equation on the basis of the following and present a balance sheet on the last new equation balances:
(₹)
(i)
Manu started business with cash
50,000
(ii) Bought furniture for 500
(iii) Purchased goods on credit 4,000
(iv) Sold goods on cash (cost ₹ 500) for 700
(v) Received rent 200
(vi) Purchased goods for cash 1,000
(vii) Withdrew for personal use 700
(viii) Paid to creditors 400
(ix)
Paid for salaries
200
ANSWER:
ACCOUNTING EQUATION
S. No. Transaction Assets = Liabilities + Capital
Cash + Furniture + Stock = Creditors
(i) Manu started business with cash +50,000 +50,000
50,000 = + 50,000
(ii) Purchased Furniture –500 +500
49,500 + 500 + 50,000
(iii) Purchased goods on credit +4,000 +4,000
49,500 + 500 + 4,000 = 4,000 + 50,000
(iv) Sold goods costing Rs