Question

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

Answer 1

Answer: Accounting equation :------------

 Total Assets = Total Liabilities + Capital

345000 = 335000 + 10000

345000 = 345000

Total assets = closing stock + cash in hand + cash at bank + security deposit

                   =  10000 + 100000 + 185000 + 50000

                  = 345000

Liability = creditor  = 10000

closing capital = capital introduced + profit - expanses paid

                        = 350000 + 5000 - 20000

                       =  335000

Explanation: