Question

Prepare the following transactions in the form of Accounting Equation: (6)

1 Manoj started business with cash Rs. 90,000

2 Purchased goods for Rs. 30,000 in cash and Rs. 5,000 on credit

3 sold goods for Rs. 7,000 in cash and Rs. 10,000 on credit.

4 Interest due but not received Rs. 1,000

5 purchased cycle for his son Rs. 2,000

6 Goods costing Rs. 4,000 sales price Rs. 5000 given as charity​

Answer 1

Answer:

S. No. 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