Question

Prepare the Accounting Equation on the basis of the following:

1. Rakesh commenced business with cash. Rs 1,50,000

2. Furniture purchased for cash . Rs 20,000

3. Purchased goods from Mahesh on credit. Rs 25,000

4. Sold goods (costing Rs 10,000) to Mohan for cash. Rs 14,000

5. Additional Capital introduced. Rs 20,000

6. Commission received in advance. Rs 2,000

7. Paid to creditor (Mahesh) in full settlement. Rs 22,500

8. Sold goods (costing Rs 15,000) for Rs18,000 out of which Rs 5,000 received in

cash.

9. Depreciation on furniture provided @ 10%.​

Answer 1

Answer:

Page No 6.26:

Question 3:

Prepare Accounting Equation from the following:

(a) Started business with Cash ₹ 2,00,000.

(b) Purchased goods for Cash ₹ 60,000 and on Credit ₹ 1,50,000.

(c) Sold goods for Cash costing ₹ 40,000 at a profit of 20% and on Credit costing ₹ 72,000 at a profit of 25%.

(d) Paid for Rent ₹ 5,000.

ANSWER:

ACCOUNTING EQUATION

S. No. Transaction Assets = Liabilities + Capital

Cash + Stock + Debtors = Creditors

(i) Started business with cash +2,00,000 +2,00,000

2,00,000 = 2,00,000

(ii) Purchased Goods for Cash Rs 60,000 and on credit Rs 1,50,000 –60,000 +2,10,000 +1,50,000

+1,40,000 + 2,10,000 = 1,50,000 + 2,00,000

(iii) Sold goods for cash costing Rs 40,000 at a profit of 20% and on credit Rs 72,000 at a profit of 25% +48,000 –1,12,000 +90,000 +26,000 (Profit)

+1,88,000 + 98,000 + 90,000 = 1,50,000 + 2,26,000

(iv) Rent paid –5,000 –5,000 (Expenses)

+1,83,000 + 98,000 + 90,000 = 1,50,000 + 2,21,000