Question

Show an Accounting Equation on the basis of the following transactions: ₹ (i) Sunil started business with cash 1,50,000 (ii) Opened a Bank Account by depositing * 25,000 out of cash (ii) 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 1,00,000 (0) He purchased goods from Ram on credit 50,000 (ui) He paid cartage 500 (vii) He sold to Shyam on credit goods costing * 6,000 for 9,000 (vii) Received rent from tenants 1,000 (ix) Received security deposit from tenants 1,500 (x) Purchased stationery for cash 100 (xi) Invested in shares (personal) 50,000 (xii) Received interest in cash 200 (xiii) Introduced fresh capital 25,000 (xiv) Goods destroyed by fire 500
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Answer 1

Answer:

Assets =  Liabilities + Capital

Explanation:

1. Started business : Cash(1,50000) = L(0)+ Capital(150000)

2. opened bankacc:   Cash(125000)+ bank(25000) = L(0) +C(150000)

3. Sold personal car for 50000 and deposited the amount in firms bank account means additional capital of 50000 is introduced

Cash will increase by another 50000 and capital will increase by another 50000

Cash(125000+50000) + Bank(25000)= liablities(0)+ Caapital(150000+50000)