Prepare Accounting Equation from the following: i. Started business with cash Rs.1,00,000 and Goods Rs.20,000. ii. Sold goods worth Rs.10,000 for cash Rs.12,000. iii. Purchased furniture on credit for Rs.30,000.
Answers
Answer:
Explanation:
Prepare Accounting Equation from the following: i. Started business with cash Rs.1,00,000 and Goods Rs.20,000. ii. Sold goods worth Rs.10,000 for cash Rs.12,000. iii. Purchased furniture on credit for Rs.30,000.
Accounting equation
CASH +STOCK+FURNITURE = CREDITOR +CAPITA
Bussiness commenced 100000 + 20000 = 120000
goods sold 12000 (10000) = + 2000
Furniture purchased 30000 = 30000
Total 112000 + 10000 + 30000 = 30000 + 122000
Given:-
(i) started business with cash Rs 1,00,000 and goods Rs 20,000.
(ii) sold goods for rupees 10,000 for cash Rs 12,000.
(iii) purchased furniture on credit for rupees 30,000.
To find:-
prepare accounting equation from this about points.
Solution:-
Accounting equation
Assets = Liberties + Capital
apital=> Cash + Stock + Furniture = Creditors
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Assets = Liberties+Capital
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Cash + Stock + Furniture = Creditors
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(i)1,00,000+20,000 = 1,20,000
(capital)
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1,00,000+20,000 = 1,20,000
(ii) 12,000 - 10,000 = + 2,000
(capital)
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1,12,000+ 10,000 = 1,22,000
(iii) +30,000=30,000
(furniture) (liberties)
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1,12,000+10,000+30,000=30,000+1,22,000
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Assets= Cash + Stock + Furniture
=Rs. 1,12,000+Rs. 10,000+Rs. 30,000
= Rs. 1,52,000
Liberties = Rs. 30,000
Capital= Rs. 1,22,000