Question

Question 28.
Show an Accounting Equation on the basis of the following transactions:

Answer 1

do I need to make a journal here?? let me know soon so that I can edit my answer

Answer 2

  In the Books of Sunil

Journal entries:-

i) Cash A/c             Dr. Rs.1,50,000

   To Capital A/c            Rs.1,50,000

(Being Capital introduced into business)

ii) Bank A/c             Dr. Rs.25,000

      To Cash A/c              Rs.25,000

(Being cash transferred to Bank account)

iii) Bank A/c              Dr. Rs.50,000

          To Sunil A/c               Rs.50,000

(Being Sunil's personal car sold and amount transferred to Bank A/c)

iv) Building/Furniture A/c      Dr.Rs.1,00,000

            To Cash/Bank A/c                      Rs.1,00,000

(Being Building and Furniture purchased)

v) Purchase A/c        Dr. Rs.50,000

        To Ram A/c or Creditor A/c               Rs.50,000

(Being Goods purchased from Ram on credit)

vi) Cartage A/c         Dr. Rs.500

          To Cash A/c           Rs.500

(Being Cartage paid)

vii) Debtors A/c or Shyam A/c         Dr. Rs.9,000

            To Sales A/c                                      Rs.9,000

(Being goods sold to Shyam on credit)

 You can also pass an entry to show reduction in goods when sold to the debtors like this:   Sales A/c          Dr. Rs.6,000

                                        Goods A/c          Rs.6,000

                                  (Being goods reduced due to sale)

But I will suggest you to just pass the first one if the question doesn't ask you to prepare Goods A/c.

viii) Cash A/c           Dr. Rs.1,000

          Tenants A/c           Rs.1,000

(Being rent received from tenants)

ix) Cash A/c        Dr. Rs.1,500

           To Security Deposit A/c    Rs.1,500

(Being Security deposit received)

Security deposit is a liability for us as it will be returned in the future,therefore,it will be credited whereas Cash account will be debited.

x)  Stationary A/c    Dr. Rs.100

               To Cash A/c    Rs.100

(Being stationary purchased for cash)

xi) Investment in Shares A/c    Dr.  Rs.50,000

        To Cash A/c                                         Rs. 50,000

(Being Investment in shares made against cash)

xii) Cash A/c          Dr. Rs.200

       To Interest A/c         Rs.200

(Being interest received in cash)

xiii) Cash A/c          Dr. Rs.25,000

           To Capital A/c     Rs.25,000

(Being fresh capital introduced)

xiv) Abnormal Loss A/c     Dr. Rs.500

           To Goods A/c                      Rs.500

(Being Goods destroyed by fire,being an abnormal loss)

or,

       Abnormal Loss A/c   Dr. Rs.500

            To Purchases A/c           Rs.500

(Being Goods destroyed in fire)