Analyse the effect of each transaction and prove that the accounting equation (A = L + C) always remains balanced.
(i) Introduced Rs. 4,00,000 as cash and Rs. 25,000 by stock.
(ii) Purchased plant for Rs. 1,50,000 by paying Rs. 7,500 in cash and balance at a later date.
(iii) Deposited Rs. 3,00,000 into the bank.
(iv) Purchased office furniture for Rs. 50,000 and made payment by cheque.
(v) Purchased goods worth Rs. 40,000 for cash and for Rs. 17,500 on credit.
(vi) Goods amounting to 22,500 was sold for Rs. 30,000 on cash basis
(vii) Goods costing to Rs. 40,000 was sold for Rs. 62,500 on credit basis.
(viii) Cheque issued to the supplier of goods worth Rs. 17,500.
(ix) Cheque Received from customer amounting to Rs. 37,500.
(x) Withdrawn by the owner for personal use Rs. 12,500.

Open in App

Solution

Assets = Rs. 5,97,500, Liabilities Rs. 1,42,500 and Capital = Rs. 4,55,000.

Suggest Corrections

Similar questions

Prove that the accounting equation is satisfied in all the following transactions of Sudhir.
(i) Started business with cash Rs. 1,00,000 and goods Rs. 40,000.
(ii) Bought goods on cash Rs. 30,000 and on credit for Rs. 20,000
(iii) Goods costing Rs. 48,000 sold at a profit of $33 \frac{1}{3}$ to Pranav. Half the payment received in cash.
(iv) Purchased furniture for office use Rs. 12,000 and for household use Rs. 8,000.
(v) Received cash from Pranav (customer) Rs. 25,500 and allowed him a discount Rs. 500.
(vi) Creditors of Rs. 5,000 accepted Rs. 4,000 and allowed a discount of Rs. 1,000.

Prepare a simple cash book from the following information:

2011 Jan.
1.	Mr. Ashvin started business with cash Rs 95,000.
3.	Purchased furniture for office use Rs 17,500.
4.	Purchased goods worth Rs 11,000.
7.	Purchased machinery for Rs 15,000.
10.	Sold goods of Rs 14,300 to Sanket Traders for cash.
13.	Received from Suyash Rs 9,000.
15.	Withdrew Rs 2,500 from business for personal use.
19.	Borrowed loan from Mr. Trilok Rs 40,000.
22.	Purchased goods of Rs 14,000 at 5% trade discount.
26.	Paid salary to staff Rs 18,000.
29.	Paid carriage on goods purchased Rs 1,400.
30.	Paid electricity bill Rs 4,980.
31	Deposited into bank Rs 7,000.

From the following transactions prepare necessary ledger accounts and balance them.

2011 Jan.	1	Sachin started Business with Cash Rs 10,000 and Machinery Rs 15,000
	1	Purchased goods for cash Rs 3,000.
	3	Sold goods for cash Rs 4,000.
	5	Purchased furniture on credit from Poona Traders Rs 7,000.
	8	Purchased goods on credit from Mr. Dilip Rs 2,000 at 10% T.D.
	10	Sold goods on credit to Mr. Mahendra Rs 8,000 at 12.5% T.D.
	15	Paid Rent Rs 600.
	28	Withdraw cash for personal use Rs 1,000.
	20	Paid cash to Mr. Dilip Rs 1,800.
	25	Received cash from Mr. Mahendra Rs 6,800.
	31	Paid to Miss Sunita Rs 400 for salaries

Journalise the following transactions in the books of Mr. Arun.

2010 Sept.	1	Commenced business with Cash 75,000 and Goods Rs 20,000 and Furniture Rs 30,000.
	2	Opened a current account in Bank of India by depositing Rs 50,000.
	5	Purchased stationery of Rs 200.
	6	Goods purchased from Nisha Rs 15,000.
	9	Gave a cheque for Rs 15,000 to Nisha.
	11	Sold goods to Minakshi of Rs 20,000.
	14	Received a cheque for Rs 19,500 from our debtor. Minakshi in full settlement of her account.
	16	Gave loan to Sanjay by cheque Rs 10,000 at 12% interest p.a.
	19	Bought Laptop of Rs 36,000 in exchange of goods from Pande & Co. Goods of Rs 40,000 were given at 10% Trade Discount.
	22	Purchased Printer of Rs 10,000, paying half the amount in cash from H.P.Ltd.
	28	Uninsured goods worth Rs 700 destroyed by fire.
	29	Paid office Rent Rs 2,000 to landlord.
	30	Paid for Travelling expenses Rs 5,000.

Join BYJU'S Learning Program