Question 29.
Draw an Accounting Equation on the basis of the following transactions:
(i) Commenced business with cash ₹ 50,000, cheque ₹ 1,00,000, goods ₹ 30,000 and furniture ₹ 20,000.
(ii) Car, personal asset of the proprietor, was sold for ₹ 1,00,000 against cheque which he deposited in his Savings Account.
(iii) An amount of ₹ 50,000 was transferred from his Savings Account to the firm’s Bank Account.
(iv) A new car was purchased for ₹ 6,00,000 for office use. It was paid by taking loan from Bank of ₹ 5,00,000 and balance by issue of cheque from firm’s Bank Account.
(v) Sold goods to Ajay on credit costing ₹ 4,000 for ₹ 5,000.
(vi) Sold goods for cash costing ₹ 12,000 for ₹ 16,000.
(vii) Purchased good for cash ₹ 40,000.
(viii) Purchased goods on credit for ₹ 20,000.
(ix) Paid rent ₹ 3,000 including ₹ 2,000 in advance.
(x) Paid salaries ₹ 2,000.
(xi) Sold goods costing ₹ 8,000 for ₹ 10,000.
(xii) Salaries outstanding ₹ 1,000.
(xiii) Charge depreciation on furniture ₹ 500.
Answers
Answer:
Explanation:
THIS IS GENERAL ENTRY IN BUSINESS ACCOUNT
Column1 Column2 Column3 Column4
NO PARITICULAR DR AMOUNT CR AMOUNT
1 CAPITAL A/C DR 200000
TO CASH A/C 50000
TO BANK A/C 100000
TO GOODS A/C 30000
TO FURNITURE A/C 20000
(BEING BUSINESS STARING)
2 BANK A/C DR 100000
TO CAR & PERSONAL ASSET A/C 100000
( BEING CASR & PERSONAL ASSET SOLD FOR BUSINESS)
3 PERSONAL A/C DR 50000
TO BANK A/C 50000
(BEING AMOUNT TRANSFFERD TO PERSONAL A/C)
4 MOTOR CAR A/C DR 600000
TO LOAN A/C 500000
TO CASH A/C 100000
(BAEING CAR PURCHASED FOR OFFICE USE)
5 TO AJAY A/C DR 5000
TO SALES A/C 5000
(BEING MATERIAL SOLD TO AJAY)
6 CASH A/C DR 16000
TO SALES A/C 16000
(BEING MATERIAL SOLD ON CASH)
7 PURCHASE A/C DR 40000
TO GOODS A/C 40000
(BEING GOODS PURCHASE ON CASH)
8 PURCHASE A/C DR 20000
TO GOODS A/C 20000
(BEING GOODS PURCHASE ON CREDIT)
9 RENT A/C DR 3000
TO BANK A/C 3000
(BEING SALIRY PAID)
10 CASH A/C DR 3000
RENT A/C 3000
(BEING RENT PAID WITH ADVANCE)
11 BANK A/C DR 10000
TO SALES A/C 10000
(BEING MATERIAL SOLD ON CASH)
12 SALARY A/C DR 1000
TO SALARY O/S A/C 1000
(BEING SALARY O/S)
13 DEPRICISION A/C DR 500
TO MACHINARY A/C 500
(BEING DEPRECISION CHARGE ON MACHINARY)
1048500 1048500