CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Develop an Accounting Equation from the following transactions:
(i) Mohan commenced business with cash 50,000
(ii) Purchased goods for cash 30,000
(iii) Purchased goods on credit 20,000
(iv) Sold goods (costing 10,000) for 12,000
(v) Bought furniture on credit 2,000
(vi)
(vii)
Paid cash to a creditor
Salary paid
15,000
1,000

Open in App
Solution

S. No.

Transaction

Assets

=

Liabilities

+

Capital

Cash

(Rs)

+

Stock

(Rs)

+

Furniture

(Rs)

=

Creditors

(Rs)

(Rs)

(i)

Mohan commenced business with cash

50,000

=

50,000

50,000

=

50,000

(ii)

Purchased goods for cash

– 30,000

+

30,000

=

20,000

+

30,000

=

50,000

(iii)

Purchased goods on credit

20,000

=

20,000

20,000

+

50,000

=

20,000

+

50,000

(iv)

Sold goods costing Rs 10,000 for Rs 12,000

12,000

+

– 10,000

=

2,000

(profit)

32,000

+

40,000

=

20,000

+

52,000

(v)

Bought furniture on credit

2,000

=

2,000

32,000

+

40,000

+

2,000

=

22,000

+

52,000

(vi)

Paid cash to a creditor

– 15,000

=

– 15,000

17,000

+

40,000

+

2,000

=

7,000

+

52,000

(vii)

Salary Paid

– 1,000

=

– 1,000 (expenses)

16,000

+

40,000

+

2,000

=

7,000

+

51,000

Assets

=

16,000 + 40,000 + 2,000

=

Rs

58,000

Liabilities

=

Rs

7,000

Capital

=

Rs

51,000


flag
Suggest Corrections
thumbs-up
96
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Honorarium
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon