Question

in the besis
dy Prepare an accounting equation
the following transactions :-
(1) Started business with each Rs 80,000 and
stock Rs 30,000
(1) Credit
Credit purchase
purchese of goods & 20,000 from m/s itd.
6. Payment made to creditors full settlement
R1,000
(u) Purchase of machinery for Rs. 1, 20,000 out of
which go, doo peid in cash
(o) Depreciation on
Machinery Rs 10,000
.​

Answer 1

Answer:

. 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

Explanation:

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