Question 16.
Show an Accounting Equation for the following transactions:
(i) D. Mahapatra commenced business with cash of ₹ 50,000 and ₹ 1,00,000 by cheque; goods ₹ 60,000; machinery ₹ 1,00,000 and furniture ₹ 50,000.
(ii) 1/3 rd of above goods sold at a profit of 10% on cost, and half of the payment is received in cash.
(iii) Depreciation on machinery provided @ 10%.
(iv) Cash withdrawn for personal use ₹ 10,000.
(v) Interest on drawings charged @ 5%.
(vi) Goods Sold to Gupta for ₹ 10,000 and received a Bill Receivable for the same amount for 3 months.
(vii) Received ₹ 10,000 from Gupta against the Bill Receivable on its maturity.
Answers
Answer:
Explanation:
(i) D. Mahapatra commenced business with cash of ₹ 50,000 and ₹ 1,00,000 by cheque; goods ₹ 60,000; machinery ₹ 1,00,000 and furniture ₹ 50,000.
= Transaction+cash+bank+stock+ machinery+furniture+debtor+bills receivables = capital
Started business = 50000 + 100000+ 60000 +100000+ 50000 = 360000
(ii) 1/3 rd of above goods sold at a profit of 10% on cost, and half of the payment is received in cash.
Cash + (stock ) + Debtors = profit
11000 + (20000)+ 11000 = 2000
Capital = 360000 + profit = 362000
(iii) Depreciation on machinery provided @ 10%.
machinery = 10000
Capital = 362000 - 10000= 352000
(iv) Cash withdrawn for personal use ₹ 10,000.
Capital + (withdraw cash )
352000 - 10000 = 342000
(v) Interest on drawings charged @ 5%.
Interest 500
capital +(500) +500= 342000
(vi) Goods Sold to Gupta for ₹ 10,000 and received a Bill Receivable for the same amount for 3 months.
Capital + (stock ) + Bills receivable
342000 + (10000) + 10000
342000
(vii) Received ₹ 10,000 from Gupta against the Bill Receivable on its maturity.
Capital + cash +( Bills receivable)
342000 + 10000 + 10000
=342000
Explanation:
accounting equation
class -11
ques-15 of ts Grewal 2021 edition
