Question

Show the accounting equation on the basis of the following transactions.

a) Started business with Cash Rs. 1,10,000, Goods Rs. 30,000 and Furniture

Rs.10,000.

b) Purchased goods for Cash Rs. 20,000 and Credit Rs. 25,000.

c) Goods costing Rs. 48,000 sold at a profit of 33 ⅓ % .Three fourth payment was

received in cash.

d) Goods costing Rs.20,000 sold at a loss of 5% out of which 12,000 received in cash.

e) Paid rent Rs. 2,000 rent outstanding Rs. 1,000.

f) Withdrew Rs. 5,000 for personal use.

g) Interest on capital provided Rs.2,000.

h) Commission received Rs. 10,000 out of which 1/4th relates to the next year.

i) Depreciate furniture @10% per annum for 3 months.

j) Good worth Rs. 2,000 destroyed by fire.

k) Paid Rs.24,000 to creditors in full settlement.

l) Paid security deposit to Landlord Rs. 2,000.

m) Sold goods costing Rs. 5,000 at Rs. 8,000 and received a Bill Receivable for the

same.

n) Cash received against Bill receivable on Maturity.

o) Received cash from debtors and a discount allowed @10%.​

Answer 1

Answer:

1. Cash Account Dr

Goods Accounts Dr

To Capital A/C

2. Purchase A/C Dr

To Cash

To Credit

e. Rent Account Dr

To Cash A/C