Show an Accounting Equation on the basis of the following transactions:
(1) Sunil started business with cash
(ii) Opened a Bank Account by depositing 25,000 out of cash
(iii) He sold his personal car for 50,000 and deposited the amount
in the firm's Bank Account
(iv) He purchased a building and furniture for
(0) He purchased goods from Ram on credit
(vi) He paid cartage
(vii) He sold to Shyam on credit goods costing * 6,000 for
(viii) Received rent from tenants
(ix) Received security deposit from tenants
(x) Purchased stationery for cash
(xi) Invested in shares (personal)
(xii) Received interest in cash
(xiii) Introduced fresh capital
(xiv) Goods destroyed by fire
Answers
Answer:
Explanation:
S. No. Assets Liabilities
Capital Cash +Bank +Furn.+Stock +Debt. +Crdt. +Sec.
(i) +1,50,000 +1,50,000
1,50,000 +1,50,000
(ii) -25,000 +25,000
1,25,000 +25,000 +1,50,000
(iii) +50,000 50,000
1,25,000 +75,000 +2,00,000
(iv) -1,00,000 +1,00,000
25,000 +75,000 +1,00,000 +2,00,000
(v) +50,000 +50,000
25,000 +75,000 +1,00,000 +50,000 +50,000 +2,00,000
(vi) -500 -500
24,500 +75,000 +1,00,000 +50,000 +50,000 +1,99,500
(vii) -6,000 +9,000 +3,000
24,500 +75,000 +1,00,000 +44,000 +9,000 +50,000 +2,02,500
(viii) +1,000 +1,000
25,500 +75,000 +1,00,000 +44,000 +9,000 +50,000 +2,03,500
(ix) +1,500 +1,500
27,000 +75,000 +1,00,000 +44,000 +9,000 +50,000 +1,500 +2,03,500
(x) -100 -100
26,900 +75,000 +1,00,000 +44,000 +9,000 +50,000 +1,500 +2,03,400
(xi) -50,000 -50,000
26,900 +25,000 +1,00,000 +44,000 +9,000 +50,000 +1,500 +1,53,400
(xii) +200 +200
27,100 +25,000 +1,00,000 +44,000 +9,000 +50,000 +1,500 +1,53,600
(xiii) +25,000 +25,000
52,100 +25,000 +1,00,000 +44,000 +9,000 +50,000 +1,500 +1,78,600
(xiv) -500 -500
52,100 +25,000 +1,00,000 +43,500 +9,000 +50,000 +1,500 +1,78,100
Assets = Cash 52,100 + Bank 25000 + Furniture 100000 + Stock 43500 + Debtors 9000 = 2,29,600/-
Liabilities: – Creditors 50,000 + Security 1,500 = 51,500/-
Capital = 1,78,100/-
Liabilities +Capital
51,500 + 1,78,100= 2,
29,600/-