prepare accounting equation on the basis of following
1. harsha started business with cash 2,00,000.
purchased goods from naman for cash 40,000.
3.solds goods to bhanu costing 10,000,12,000. 4.bought furniture on credit 7,000 .prepare balance sheet equations
Answers
Answer:
Transaction
No. Assets = Liabilities Capital Total
Cash Stock of Goods Debtors Furniture Total
1. Harsha started business with cash ₹ 2,00,000
2,00,000 2,00,000
2,00,000 – – – 2,00,000 = – 2,00,000 2,00,000
2. Purchased goods from Naman for cash ₹ 40,000
(40,000) 40,000
1,60,000 40,000 – – 2,00,000 = – 2,00,000 2,00,000
3. Sold goods to Bhanu costing ₹ 10,000/- ₹ 12,000
(10,000) 12,000 2,000
1,60,000 30,000 12,000 – 2,02,000 = – 2,02,000 2,02,000
4. Bought furniture on credit ₹ 7,000
7,000 7,000
1,60,000 30,000 12,000 7,000 2,09,000 = 7,000 2,02,000 2,09,000
Total 2,09,000 = 2,09,000
Thus we’ve Assets = Cash ₹ 1,60,000 + Goods ₹ 30,000 + Debtors ₹ 12,000 + Furniture ₹ 7,000 = ₹ 2,09,000
Liabilities = Creditors ₹ 7,000
Capital = ₹ 2,02,000
Assets ₹ 2,09,000 = Liabilities ₹ 7,000 + Capital ₹ 2,02,000
Answer:
Balance sheet equations:
The balance sheet shows the overall assets of the business as well as how those assets are financed—either via debt or equity. It is also known as a statement of financial situation or a statement of net worth. The fundamental formula Assets = Liabilities + Equity serves as the foundation for the balance sheet.
Explanation:
Transaction
No. Assets = Liabilities Capital Total
Cash Stock of Goods Debtors Furniture Total
1. Harsha started the business with cash of ₹ 2,00,000
2,00,000 2,00,000
2,00,000 – – – 2,00,000 = – 2,00,000 2,00,000
2. Purchased goods from Naman for cash ₹ 40,000
(40,000) 40,000
1,60,000 40,000 – – 2,00,000 = – 2,00,000 2,00,000
3. Sold goods to Bhanu costing ₹ 10,000/- ₹ 12,000
(10,000) 12,000 2,000
1,60,000 30,000 12,000 – 2,02,000 = – 2,02,000 2,02,000
4. Bought furniture on credit ₹ 7,000
7,000 7,000
1,60,000 30,000 12,000 7,000 2,09,000 = 7,000 2,02,000 2,09,000
Total 2,09,000 = 2,09,000
Thus we’ve Assets = Cash ₹ 1,60,000 + Goods ₹ 30,000 + Debtors ₹ 12,000 + Furniture ₹ 7,000 = ₹ 2,09,000
Liabilities = Creditors ₹ 7,000
Capital = ₹ 2,02,000
Assets ₹ 2,09,000 = Liabilities ₹ 7,000 + Capital ₹ 2,02,000