the following transactions were made during the first month of single proprietor's buseniss operation
1. Mr.Y started a grocery store.He invested P200,000 as initial investment.
2. He registered his business paying P 1500 for registration
3. he paid P20,000 for rent store applicable for one year
4.He incurred and paid P25,000 for the repair of the grocery store
5. he purchased mechandise for sale amounting to P300,000 paying P200,000 with the balance to be paid 60 days
6. He paid P2,000 for the transportation of the merchandise purchased
7. He hired a sales lady for a contract P5,000 per month salary
8. He sold P100,000 worth of mechandise for P160,000 for cash
9. He sold P20000 worth of mechandise for P35,000 on credit
10. he paid business taxes and licenses amounting to P5,000 on credit
11. he paid P3,000 electricity expense during the month
12. he paid the salary of his saleslady
13. he paid 50% of his obligation to his supplier
required:
1. determine what accounting element is affected by the business transactions including their amounts.
2. how much is the total assets,liabilities, and owner's equality at the end of the month.
Answers
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Step-by-step explanation:
Section to which the given problem relates: Section 48(a).
Decision
The deficiency works out at Rs. 15,000 (i.e. Rs. 65,000 - Rs. 50,000).Such deficiency must be shared by X, Y and the estate of Z in their profit sharing ratio.
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