Q2) Show the accounting equation on the basis of the following transactions: a) Shri Ganesh commenced business with cash Rs.35,000, goods Rs.8,000 and furniture Rs.7,000. b) Bought furniture from M/s Mohan Furnitures on credit for Rs.3,000. c) Purchased goods from Sohan for cash Rs.35,000. d) Sold goods to Shyam for cash Rs.40,000(costing Rs.30,000). e) Bought goods from Ramesh Rs.30,000. f) Sold goods to Shyam costing Rs.30,000 for Rs.50,000. g) Received Rs.49,500 from Shyam in full settlement. h) Paid Rs.29,700 to Ramesh in full settlement. i) Paid half the amount owed to M/s Mohan. j) Withdrew Rs.1,000 for personal use. k) Withdrew goods for personal use(cost Rs.500, sale price Rs.600). l) Purchased household goods for Rs.15,000 giving Rs.5,000 in cash and the balance through a loan. m) Paid cash Rs.500 for loan and Rs.300 for interest. n) Goods destroyed by fire (cost Rs.500, sale price Rs.600) o) Paid salary Rs.500 and salary outstanding Rs.100. p) Paid rent in advance Rs.2,000. q) Accrued interest Rs 500. r) Commission received in advance Rs 1,000. s) Charged depreciation of Rs 400 on furniture.
Answers
Answer:
assets = liabilities + Capital
50000+12000+9500+0+2000+500 = 1500+0+9500+100+1000 + 61900
Explanation:
given data
Shri Ganesh cash = Rs 35000, goods = Rs 8000, furniture = Rs 7000
Bought from Mohan credit = Rs 3000
Purchased from Sohan cash = Rs 35000
Sold to Shyam cash = Rs 40000 (costing Rs 30000)
Bought from Ramesh Rs 30000
sold to shyam cost = 30000 for 50000
receive from shyam = Rs 49500
paid to ramesh = Rs 29700
Paid to Mohan = half amount
Withdrew = Rs 1000
Withdrew goods cost = Rs 500 sale price Rs 600
Purchased goods = Rs 15000 give cash = Rs 5000
Paid loan cash = Rs 500
interest paid = Rs 300
destroyed in fire cost = Rs 500, sale price = Rs 600
salary paid = Rs 500
salary outstanding = Rs 100
rent paid = Rs 2000
Accrued interest = Rs 500
Commission received in advance = Rs 1000
depreciation = Rs 400
to find out
accounting equation
solution
we know that
assets = liabilities + Capital
so
total assets is = Cash + Stock
+ Furniture+ Shyam + Rent paid + Accrued Interest .......................1
and
liabilities = Mohan + Ramesh + Loan + Salary
+ Commission .....................2
put here all the value in transaction and we get accounting equation as given below in attach file
assets = liabilities + Capital
50000+12000+9500+0+2000+500 = 1500+0+9500+100+1000 + 61900
Explanation:
Assets=Liability+ Capital
