Question

Mohan had the following transactions in an accounting year:

(i) Commenced business with cash Rs. 1,50,000.

(ii) Paid into bank Rs. 1,00,000.

(iii) Purchased goods for cash Rs. 25,000 and credit Rs. 30,000.

(iv) Sold goods for cash Rs. 50,000 costing Rs. 30,000.

(v) Rent paid Rs. 15,000.

(vi) Rent outstanding Rs. 1,000.

(vii) Bought furniture for Rs. 15,000 out of which 5,000 paid in cash.

(viii) Bought refrigerator for personal use Rs. 10,000.

(ix) Purchased second hand Car for Rs. 50,000 paid by cheque.

Create an Accounting Equation to show the effect of the above and also show

his Balance Sheet​

Answer 1

Explanation:

1.cash acc Dr

To capital acc

2 bank ACC Dr.

To cash acc

3.purcahses acc Dr 80,000

To cash acc 50,000

To creditors acc 30,000

4.cash acc dr 30,000

profit on sale acc Dr 20000

To sales acc 50,000

5.rent paid acc dr

To cash a cc

6.Rent acc Dr

To outstanding rent acc

7.purchases acc Dr 15000

To cash acc 5000

To cr acc 10,000

8. No entry

9.car acc Dr

To bank acc