Question

TUU JUILLOU
CUPLUS.GJUUL
Show an Accounting Equation on the basis of the following transactions:
(i) D. Mahapatra commenced business with cash Rs.1,50,000; goods Rs.60,000; machinery Rs.1,00,000 and furniture
Rs.50,000.
(ii) 1/3rd of the above goods sold at a profit of 10% on cost and half of the payment is received in cash.
(iii) Depreciation on machinery provided @ 10%.
(iv) Cash withdrawn for personal use Rs.10.000.
(v) Interest on drawings charged @ 5%.
(vi) Goods sold to Gupta for Rs.10,000 and received a Bill Receivable for the same amount for 3 months.
(vii) Received Rs.10,000 from Gupta against the Bills Receivable on its maturity.
[Assets: Cash Rs.1,61,000 + Stock (goods) Rs.30,000 + Machinery Rs.90,000 + Furniture Rs.50,000 + Debtors Rs.11,000 =
Capital Rs.3,42,000]
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Answer 1

Answer:

Cash A/c. Dr. 1,00,000

Goods A/c. Dr. 60,000

Machinery A/c. Dr. 1,00,000

Furniture A/c. Dr. 50,000

To Capital A/c. 3,10,000

(Being business started)

Cash A/c. Dr. 11,000

Debtor's A/c Dr. 11,000

To Sales A/c. 20,000

To P/L A/c. 2,000

(Being goods sold)

Depreciation A/c. Dr. 10,000

To Machinery A/c. 10,000

(Being depreciation provided)

Drawing A/c. Dr. 10,000

To Cash A/c. 10,000

(Being cash withdrawn)

Drawing A/c. Dr. 500

To Interest A/c. 500

(Being interest charged on drawings)