Show the effect of following transactions on the accounting equation:
a) Kiran commenced business with cash 1,00,000 and bank balance 60.000
(ii) Salary paid by cheque 18,000,
Gin), Salary due but not paid 12,000.
Interest paid for next year by cheque 16,000,
(v) Rent received 15,000.
(viRent due but not received * 7,000.
vii) Commission received in advance for next year 10,000,
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Answer:
1. Cash a/c Dr 100000
Bank a/c Dr 60000
To Capital a/c 160000
Being business commenced with cash and bank balance
2. Salary a/c Dr.18000
To Bank a/c 18000
Being salary paid by Chq
3. Salary a/c Dr 12000
To salary payable 12000
Being salary due not paid
4. Interest paid in adv a/c Dr 16000
To Bank 16000
Being int paid in advance
5. Cash/Bank Dr 15000
To Rent 15000
Being rent received either in cash or by chq
6. Rent receivable a/c Dr 7000
To Rent 7000
Being rent due but not received
7. Cash / Bank a/c Dr 10000
To Commission recd in adv 1000
Explanation:
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