Mohit has the following transactions, prepare accounting equation:
Rs
(a)
Business started with cash
1,75,000
(b)
Purchased goods from Rohit
50,000
(c)
Sales goods on credit to Manish (Costing Rs 17,500)
20,000
(d)
Purchased furniture for office use
10,000
(e)
Cash paid to Rohit in full settlement
48,500
(f)
Cash received from Manish
20,000
(g)
Rent paid
1,000
(h)
Cash withdrew for personal use
3,000
Mohit has the following transactions, prepare accounting equation:
|
|
|
Rs |
|
(a) |
Business started with cash |
1,75,000 |
|
(b) |
Purchased goods from Rohit |
50,000 |
|
(c) |
Sales goods on credit to Manish (Costing Rs 17,500) |
20,000 |
|
(d) |
Purchased furniture for office use |
10,000 |
|
(e) |
Cash paid to Rohit in full settlement |
48,500 |
|
(f) |
Cash received from Manish |
20,000 |
|
(g) |
Rent paid |
1,000 |
|
(h) |
Cash withdrew for personal use |
3,000 |
S.No.
Explanation
Assets
Liabilities
+
Capital
Cash
+
Stock
+
Debtors
Furniture
=
Creditors
(a)
Increase in cash
1,75,000
Increase in capital
1,75,000
1,75,000
=
NIL
+
1,75,000
(b)
Increase in stock
50,000
Increase in creditors (Rohit)
=
50,000
+
1,75,000
1,75,000
+
50,000
=
50,000
+
1,75,000
(c)
Increase in debtors (Manish)
20,000
Decrease in stock
(17,500)
Increase in capital (Profit)
2,500
1,75,000
+
32,500
+
20,000
=
50,000
+
1,77,500
(d)
Increase in furniture
10,000
Decrease in cash
(10,000)
1,65,000
+
32,500
+
20,000
+
10,000
=
50,000
+
1,77,500
(e)
Decrease in creditors (Rohit)
(50,000)
Decrease in dash
(48,500)
Increase in capital
(Discount received)
1,500
1,16,500
+
32,500
+
20,000
+
10,000
=
NIL
+
1,79,000
(f)
Increase in cash
20,000
Decrease in debtors (Manish)
(20,000)
1,36,500
+
32,500
+
NIL
+
10,000
=
NIL
+
1,79,000
(g)
Decrease in capital (Expense)
(1,000)
Decrease in cash
1,000
1,35,500
+
32,500
+
NIL
+
10,000
=
NIL
+
1,78,000
(h)
Decrease in capital (Drawings)
(3,000)
Decrease in cash
(3,000)
1,32,500
+
32,500
+
NIL
+
10,000
=
NIL
+
1,75,000
|
S.No. |
Explanation |
Assets |
|
Liabilities |
+ |
Capital |
||||||
|
Cash |
+ |
Stock |
+ |
Debtors |
|
Furniture |
= |
Creditors |
||||
|
(a) |
Increase in cash |
1,75,000 |
|
|||||||||
|
Increase in capital |
|
|
|
|
|
|
|
|
|
|
1,75,000 |
|
|
|
1,75,000 |
= |
NIL |
+ |
1,75,000 |
|||||||
|
(b) |
Increase in stock |
50,000 |
|
|||||||||
|
Increase in creditors (Rohit) |
|
|
|
|
|
|
|
= |
50,000 |
+ |
1,75,000 |
|
|
|
1,75,000 |
+ |
50,000 |
= |
50,000 |
+ |
1,75,000 |
|||||
|
(c) |
Increase in debtors (Manish) |
20,000 |
|
|||||||||
|
Decrease in stock |
(17,500) |
|
||||||||||
|
Increase in capital (Profit) |
|
|
|
|
|
|
|
|
2,500 |
|||
|
|
1,75,000 |
+ |
32,500 |
+ |
20,000 |
= |
50,000 |
+ |
1,77,500 |
|||
|
(d) |
Increase in furniture |
10,000 |
|
|||||||||
|
Decrease in cash |
(10,000) |
|
|
|
|
|
|
|
|
|||
|
1,65,000 |
+ |
32,500 |
+ |
20,000 |
+ |
10,000 |
= |
50,000 |
+ |
1,77,500 |
||
|
(e) |
Decrease in creditors (Rohit) |
|
(50,000) |
|
||||||||
|
Decrease in dash |
(48,500) |
|
||||||||||
|
Increase in capital (Discount received) |
|
|
|
|
|
|
|
|
1,500 |
|||
|
1,16,500 |
+ |
32,500 |
+ |
20,000 |
+ |
10,000 |
= |
NIL |
+ |
1,79,000 |
||
|
(f) |
Increase in cash |
20,000 |
|
|||||||||
|
Decrease in debtors (Manish) |
(20,000) |
|
|
|||||||||
|
1,36,500 |
+ |
32,500 |
+ |
NIL |
+ |
10,000 |
= |
NIL |
+ |
1,79,000 |
||
|
(g) |
Decrease in capital (Expense) |
|
(1,000) |
|||||||||
|
Decrease in cash |
1,000 |
|
|
|
|
|
|
|
|
|||
|
1,35,500 |
+ |
32,500 |
+ |
NIL |
+ |
10,000 |
= |
NIL |
+ |
1,78,000 |
||
|
(h) |
Decrease in capital (Drawings) |
|
(3,000) |
|||||||||
|
Decrease in cash |
(3,000) |
|
|
|
|
|
|
|
|
|||
|
1,32,500 |
+ |
32,500 |
+ |
NIL |
+ |
10,000 |
= |
NIL |
+ |
1,75,000 |
||
