Question

SHORT ANSWER TYPE QUESTIONS
Problem 1
Develop the Accounting Equation on the basis of following transactions :
(i) Mukesh started business with cash
*5,00,000
(ii) Purchased furniture for cash
₹
5,000
(B.S.E.B., Sr., 2008)
Solution​

Answer 1

Answer:

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Answer 2

Answer:

assets=liabilities +capital

50,000+12000+9500+0+2000+500=

1500+0+9500+100+1000+61900

Explanation:

Given data

Shri Ganesh cash=Rs 35000 ,Goods=Rs 8000 ,Furniture =Rs 700

Bought from Mohan credit=Rs 3000

Purchase 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

received 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 500

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 +rent paid+ accured interest ..................1

and

liabilities =Mohan+rameh+loan+ salary + comission............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.