Prepare Accounting Equation for the following transactions:- a) Started Business with Cash Rs.1,00,000 and Bank Balance Rs.2,50,000. b) Purchased Goods from Rahul for Rs.25,000 and paid him 60% immediately. c) Sold Goods costing Rs.15,000 at a profit of Rs.20,000 to Ramesh. d) Security Deposit paid to Landlord Rs.50,000 by cheque. Also paid him Rent of Rs.20,000 in Cash.
Answers
Given: a) Started business with cash 1,00,000 and bank balance 2,50,000
b) goods purchased from Rahul for Rs. 25000 and paid him 60% immediately.
c) Sold goods costing Rs. 15000 at a profit of RS. 20,000 to Ramesh
d) Security deposit paid to Landlord Rs. 50,000 by cheque & Rent paid Rs. 20,000
To Find: pass the journal entry.
Solution:
Particulars Amount Amount
Bank A/c Dr. 350000
To, Capital A/C 350000
purchased A/C Dr. 25000
To, cash A/C 15000
To, Rahul A/C 10000
Ramesh A/C Dr. 15000
P/L A/C Dr. 5000
To, Sales A/C 20000
security deposit A/C Dr. 50000
Rent A/C Dr. 20000
To, Bank A/C 70000
Note:Note: In a simple term, a journal entry is recording the transactions in Double Entry form that is recording in two aspects - Debit or credit.