Question

Show the effect of the following transactions on the assets, liabilities and capital of Mr. Abhay

Kumar:

a) He started business with a cash of Rs. 50000.

b) He purchased goods for cash for Rs. 15000.

c) Purchased goods on credit from Mr. Mohan Lal for Rs. 12000.

d) Sold goods for cash costing Rs. 7000 for Rs. 9000.

e) Withdrew Rs. 1500 from business in cash to pay for his private expenses.

f) Electricity bills paid for Rs. 200.

g) He sold goods on credit costing Rs. 6000 to Mr. Surendra for Rs. 7000.

h) Rent outstanding for Rs. 4000.

i) He borrowed Rs. 5000 from Mr. Lalit.

j) Purchased good for cash Rs. 2000.​

Answer 1

Answer:

a. capital

b. assets

c. liability

d. assets

e.assets

f. assets

g.assets

h.assets

I.liability

j. assets