Question

Mr. X commenced his business on 1st April, 2008 by introducing capital of Rs. 50,000. During the year, following transactions had taken placeAmount Rs. (a) Bought Machine for cash. ` 20,000 (b) Purchased goods for 24,000 (c) Sold goods (costing Rs. 9,500) to Om for cash. 20,000 (d) Purchased goods from Azhar. 14,000 (e) Introduced additional capital. 16,000 (f) Commission received in advance. 2,000 (g) Paid to Creditors Rs. 10,500 in full settlement. (h) Bought Computer for his personal use. 10,000 (i) Rent paid for the year. 10,000 (j) Payment for stationery 400 (k) Sold goods (costing Rs 12,000) for Rs 16,000. Out of which Rs. 2,000 received in cash


​Show the above transactions in accounting equations.

Answer 1

Particulars Assets Total (Assets) = Liabilities Total (Liabilities) + Capital Total (Liabilities + Capital)
Cash Machine Debtor Stock Liabilities
Started Business 50,000 50,000 - 50,000 50,000

a) Bought Machine for cash. ` 20,000 (20,000) 20,000 - - -

(b) Purchased goods for 24,000 (24,000) 24,000 - - -

(c) Sold goods (costing Rs. 9,500) to Om for cash. 20,000 20,000 (9,500) 10,500 - 10,500 10,500

(d) Purchased goods from Azhar. 14,000 14,000 14,000 14,000 14,000 14,000

(e) Introduced additional capital. 16,000 16,000 16,000 - 16,000 16,000

(f) Commission received in advance. 2,000 2,000 2,000 2,000 2,000 2,000

(g) Paid to Creditors Rs. 10,500 in full settlement. (10,500) (10,500) (14,000) (14,000) 3,500 (10,500)

(h) Bought Computer for his personal use. 10,000 (10,000) (10,000) - (10,000) (10,000)

(i) Rent paid for the year. 10,000 (10,000) (10,000) - (10,000) (10,000)

(j) Payment for stationery 400 (400) (400) - (400) (400)

(k) Sold goods (costing Rs 12,000) for Rs 16,000. Out of which Rs. 2,000 received in cash 2,000 14,000 (12,000) 4,000 - 4,000 4,000


Total 65,600 = 2,000 + 63,600 = 65,600



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