started business with cash 150000 furniture rupees 80000 stock 50,000 paid into Bank 25000 purchased goods 60000 out of 60% into cash sold goods to Himesh (costing 28000) for 30000 rent paid 5000 prepaid insurance 2000 bought typewriter 15000 bought refrigerator for personal use 20000
Answers
Explanation:
ACCOUNTING EQUATION
S. No. Transaction Assets = Liabilities + Capital
Cash + Typewriter + Stock + Debtors = Creditors
(i) Started business with cash +1,20,000 + 1,20,000
1,20,000 = 1,20,000
(ii) Purchased typewriter for office use –8,000 + 8,000
1,12,000 + 8,000 = 1,20,000
(iii) Purchased goods for cash –50,000 +50,000
62,000 + 8,000 + 50,000 = 1,20,000
(iv) Purchased goods on credit +40,000 40,000
62,000 + 8,000 + 90,000 = 40,000 + 1,20,000
(v) Goods costing Rs 60,000 sold for Rs 80,000 on credit –60,000 +80,000 +20,000 (Profit)
62,000 + 8,000 + 30,000 + 80,000 = 40,000 + 1,40,000
(vi) Paid rent Rs 1,500 and salaries Rs 2,000 –3,500 –3,500 (Expenses)
58,500 + 8,000 + 30,000 + 80,000 = 40,000 + 1,36,500
(vii) Commission received +800 +800 (Income)
59,300 + 8,000 + 30,000 + 80,000 = 40,000 + 1,37,300
(viii) Withdrew cash for private use –5,000 –5,000 (Drawings)
54,300 + 8,000 + 30,000 + 80,000 = 40,000 + 1,32,300