Show the accounting equation on the basis of the following transactions. a. Started the business with Cash ₹.80, 000; Goods ₹.30,000; Furniture ₹.40,000. b. Purchased goods on credit from Nidhi, ₹.15,000 and on cash from Meera ₹.10,000. c. Bought a refrigerator for personal use ₹.5,000. d. Goods costing ₹.6,000 sold at the loss of 10% out of which ₹.2,000 received in cash. e. Received cash from debtors ₹.3,200 in full settlement. f. Sold goods for cash ₹.5,000. g. Introduced fresh capital ₹.1,00,000. h. Rent outstanding ₹.5,000. i. Accrued interest ₹.10,000
Answers
a.
Cash account Dr... 80,000
Purchases account Dr... 30,000
Furniture account Dr... 40,000
To Capital account 1,50,000
(Being started Business)
b.
Purchases account Dr.. .. 25000
To Nidhi Account 15000
Cash account... 10000
c.
No Entry for personal transactions, only to be entered when brought money from business.
d.
Cash account Dr... 2000
Loss on sales account Dr.... 600
Customer account Dr...... 3400
To sales Account 6000
e.
Cash account Dr.... 3200
Loss on Debtors account Dr.. 200
Customer account 3400
f.
Cash account Dr... 5000
To sales account 5000
g.
Cash account Dr... 100000
To capital account. 100000
h.
Rent account Dr.. 5000
To outstanding Rent account. 5000
i.
Accrued interest account Dr.. 10000
To interest account 10000
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