Draw an Accounting Equation from the following Commenced business with cash 50,000, cheque 1,00,000, goods ? 30,000 - furniture ? 20.000. (ii) Car, personal asset of the proprietor, was sold for ? 1,00,000 against cheque which t deposited in his Savings Account. (ii) An amount of 50,000 was transferred from his Savings Account to the firm's Bank Account. A new car was purchased for ? 6.00,000 for office use. It was paid by taking loan from Bank of 5,00,000 and balance by issue of cheque from firm's Bank Account. un Sold goods to Ajay on credit costing ? 4,000 for ? 5.000. (t Sold goods for cash costing 12.000 for ? 16,000. (en) Purchased goods for cash ? 40,000. ( Purchased goods on credit for t 20.000. (Ix) Pand rent ? 3.000 including ? 2.000 in advance. x Paid salaries 2,000. (x) Sold goods costing ? 8,000 for ? 10,000. (x) Salaries outstanding ? 1,000. Lxi) Charge depreciation on furniture ? 500. |ANsets: ? 7,73,500 Liabilities: 5,21,000 + Capital: 2,62,500

Draw an Accounting Equation from the following Commenced business with cash 50,000, cheque 1,00,000, goods ? 30,000 - furniture ? 20.000. (ii) Car, personal asset of the proprietor, was sold for ? 1,00,000 against cheque which t deposited in his Savings Account. (ii) An amount of 50,000 was transferred from his Savings Account to the firm's Bank Account. A new car was purchased for ? 6.00,000 for office use. It was paid by taking loan from Bank of 5,00,000 and balance by issue of cheque from firm's Bank Account. un Sold goods to Ajay on credit costing ? 4,000 for ? 5.000. (t Sold goods for cash costing 12.000 for ? 16,000. (en) Purchased goods for cash ? 40,000. ( Purchased goods on credit for t 20.000. (Ix) Pand rent ? 3.000 including ? 2.000 in advance. x Paid salaries 2,000. (x) Sold goods costing ? 8,000 for ? 10,000. (x) Salaries outstanding ? 1,000. Lxi) Charge depreciation on furniture ? 500. |ANsets: ? 7,73,500 Liabilities: 5,21,000 + Capital: 2,62,500

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Description: Draw an Accounting Equation from the following transactions:) Commenced business with cash ? 50,000, cheque 1,00,000, goods ? 30,000 a-,furniture ? 20.000.(ti) Car, personal asset of the proprietor, was sold for ? 1,00,000 against cheque which hdepo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Draw an Accounting Equation from the following transactions:
) Commenced business with cash ? 50,000, cheque 1,00,000, goods ? 30,000 a-,
furniture ? 20.000.
(ti) Car, personal asset of the proprietor, was sold for ? 1,00,000 against cheque which h
deposited in his Savings Account.
(ii) An amount of 50,000 was transferred from his Savings Account to the firm's Bank
Account.
A new car was purchased for ? 6.00,000 for office use. It was paid by taking loan from-
Bank of 5,00,000 and balance by issue of cheque from firm's Bank Account.
un Sold goods to Ajay on credit costing ? 4,000 for ? 5.000.
(tn Sold goods for cash costing ? 12.000 for ? 16.000.
(en Purchased goods for cash ? 40,000.
(U Purchased goods on credit for ? 20,000,
(ux) Paid rent ? 3.000 including ? 2.000 in advance.
cx) Paid salaries ? 2,000.
(xi Sold goods costing ? 8.000 for ? 10.000.
(x) Salarirs outstanding ? 1.000.
xit) Charge depreciation on furniture ? 500.
|Assets: ? 7,73,500 = Liabilities: ? 5,21,000 + Capital: 2,52,500
Hìnt: In transaction (xii), furniture will be reduced by 7 500 and capital will also be
reduced hy ? 500 because of loss due to depreciation.

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