Question

Show the Accounting Equation on the basis of the following transactions and prepare the Balance Sheet at last.
a) Shri Ganesh commenced business with Cash ` 35,000, Goods ` 8,000, Furniture ` 7,000. b) Bought furniture from M/s. Mohan Furniture on credit for ` 3,000.
c) Purchased goods from Sohan for cash ` 35,000.
d) Sold goods to Shyam for cash ` 40,000 (costing ` 30,000).
e) Bought goods from Ramesh for ` 30,000.
f) Sold goods to Shyam costing ` 30,000 for ` 50,000.
g) Received ` 49,500 from Shyam in full settlement.
h) Paid ` 29,700 to Ramesh in full settlement.
i) Paid half the amount owed to M/s. Mohan.
j) Withdrew ` 1,000 for personal use.
k) Withdrew goods for personal use (Cost ` 500, Sale Price ` 600).
l) Purchased household goods for ` 15,000 giving ` 5,000 in cash and the balance through a loan.
m) Paid cash `

Answer 1

a) cash a/c dr. 35000
goods a/c dr. 8000
furniture a/c dr. 7000
TO capital a/c. 50000


b) purchase a/c dr. 3000
to Mohan a/c. 3000

c) purchase a/c dr. 35000
to cash a/c. 35000

d) cash a/c dr. 40000
to cash a/c. 40000

e) purchase a/c dr. 30000
to Ramesh a/c. 30000

f)