Question

Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:





Rs

(a)

Started business with cash

1,20,000

(b)

Rent received

10,000

(c)

Invested in shares

50,000

(d)

Received dividend

5,000

(e)

Purchase goods on credit from Ragani

35,000

(f)

Paid cash for house hold Expenses

7,000

(g)

Sold goods for cash (costing Rs 10,000)

14,000

(h)

(i)

Cash paid to Ragani

Deposited into bank

35,000

20,000

Answer 1

1.Assets =120000
Capital =120000

2.assets=10000

3.Assets =50000

4.Assets =5000