Q.3.Consider the below mentioned transactions for showing the accounting equation:                                                                                                                                                                                                                    Contribution of furniture worth Rs. 20,000; goods for Rs. 30,000, and cash Rs. 50,000 for commencing the firm. Depreciation of Rs. 500 to be charged towards furniture. Credit purchases of goods for amount Rs. 20,000. Credit sales of goods to Ranvijay for Rs. 5,000 which costed Rs. 4,000. Rs. 3,000 paid as rent wherein Rs. 2,000 was prepaid/advance rent. Cash spent on purchasing goods for Rs. 40,000. Cash sales of goods for Rs. 16,000, the cost of which was Rs. 12,000. Salaries paid to the employees worth Rs. 2,000 Outstanding salary amount to Rs. 1,000. Sold goods for Rs. 10,000 wherein the cost of the goods sold was Rs. 8,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Q.3.Consider the below mentioned transactions for showing the accounting equation:                                                                                                    

                                                                                                              

  1. Contribution of furniture worth Rs. 20,000; goods for Rs. 30,000, and cash Rs. 50,000 for commencing the firm.
  2. Depreciation of Rs. 500 to be charged towards furniture.
  3. Credit purchases of goods for amount Rs. 20,000.
  4. Credit sales of goods to Ranvijay for Rs. 5,000 which costed Rs. 4,000.
  5. Rs. 3,000 paid as rent wherein Rs. 2,000 was prepaid/advance rent.
  6. Cash spent on purchasing goods for Rs. 40,000.
  7. Cash sales of goods for Rs. 16,000, the cost of which was Rs. 12,000.
  8. Salaries paid to the employees worth Rs. 2,000
  9. Outstanding salary amount to Rs. 1,000.
  10. Sold goods for Rs. 10,000 wherein the cost of the goods sold was Rs. 8,000.    
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