Prepare accounting equation from the following :- 1. Commence business wieh Cash ₹ 1,00,000 ; Goods ₹ 60,000;Furniture ₹ 50,000 2. 1/3 of above goods sold at a profit of ₹2,000 to Manoj 3. Loan taken from bank for purchase office building ₹ 80,000 4. Depreciate furniture by ₹ 1,000 5. Cash received from Manoj ₹21,500 in full settlement. 6. Rent paid ₹1,200 and unpaid Rent ₹ 800 7. Commission received in advance ₹3,000 8. Interest on capital ₹2,000
Answers
Answer:
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.
Answer:
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