Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:
Rs
(a)
Started business with cash
1,20,000
(b)
Rent received
10,000
(c)
Invested in shares
50,000
(d)
Received dividend
5,000
(e)
Purchase goods on credit from Ragani
35,000
(f)
Paid cash for house hold Expenses
7,000
(g)
Sold goods for cash (costing Rs 10,000)
14,000
(h)
(i)
Cash paid to Ragani
Deposited into bank
35,000
20,000
Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:
|
|
|
Rs |
|
(a) |
Started business with cash |
1,20,000 |
|
(b) |
Rent received |
10,000 |
|
(c) |
Invested in shares |
50,000 |
|
(d) |
Received dividend |
5,000 |
|
(e) |
Purchase goods on credit from Ragani |
35,000 |
|
(f) |
Paid cash for house hold Expenses |
7,000 |
|
(g) |
Sold goods for cash (costing Rs 10,000) |
14,000 |
|
(h) (i) |
Cash paid to Ragani Deposited into bank |
35,000 20,000 |
S.No.
Explanation
Assets
=
Liabilities
+
Capital
Cash
+
Stock
+
Investment
+
Bank
Creditors
(a)
Increase in cash
1,20,000
Increase in capital
1,20,000
1,20,000
+
=
NIL
+
1,20,000
(b)
Increase in cash
10,000
Increase in capital (Income)
=
10,000
1,30,000
=
NIL
+
1,30,000
(c)
Decrease in investment
50,000
Decrease in cash
(50,000)
=
80,000
+
50,000
=
NIL
+
1,30,000
(d)
Increase in cash
5,000
Increase in capital (Income)
5,000
85,000
+
50,000
=
NIL
+
1,35,000
(e)
Increase in stock
35,000
Increase in creditor (Ragani)
35,000
85,000
+
35,000
+
50,000
=
35,000
+
1,35,000
(f)
Decrease in capital
(7,000)
Decrease in cash
(7,000)
78,000
+
35,000
+
50,000
=
35,000
+
1,28,000
(g)
Increase in cash
14,000
Decrease in stock
(10,000)
Increase in capital (Profit)
4,000
92,000
+
25,000
+
50,000
=
35,000
+
1,32,000
(h)
Decrease in creditors (Ragani)
(35,000)
Decrease in cash
(35,000)
57,000
+
25,000
+
50,000
=
NIL
+
1,32,000
(i)
Decrease in cash
(20,000)
Increase in bank
20,000
37,000
+
25,000
+
50,000
+
20,000
=
NIL
+
1,32,000
|
S.No. |
Explanation |
Assets |
= |
Liabilities |
+ |
Capital |
||||||
|
Cash |
+ |
Stock |
+ |
Investment |
+ |
Bank |
|
Creditors |
|
|
||
|
(a) |
Increase in cash |
1,20,000 |
|
|||||||||
|
Increase in capital |
|
|
|
|
|
|
|
|
|
|
1,20,000 |
|
|
|
|
1,20,000 |
+ |
= |
NIL |
+ |
1,20,000 |
|||||
|
(b) |
Increase in cash |
10,000 |
|
|||||||||
|
Increase in capital (Income) |
|
|
|
|
|
|
|
= |
|
|
10,000 |
|
|
|
1,30,000 |
= |
NIL |
+ |
1,30,000 |
|||||||
|
(c) |
Decrease in investment |
50,000 |
|
|||||||||
|
Decrease in cash |
(50,000) |
= |
|
|||||||||
|
|
80,000 |
+ |
|
|
50,000 |
|
|
= |
NIL |
+ |
1,30,000 |
|
|
(d) |
Increase in cash |
5,000 |
|
|||||||||
|
Increase in capital (Income) |
5,000 |
|||||||||||
|
85,000 |
+ |
|
|
50,000 |
|
|
= |
NIL |
+ |
1,35,000 |
||
|
(e) |
Increase in stock |
|
35,000 |
|
||||||||
|
Increase in creditor (Ragani) |
|
35,000 |
|
|||||||||
|
85,000 |
+ |
35,000 |
+ |
50,000 |
|
|
= |
35,000 |
+ |
1,35,000 |
||
|
(f) |
Decrease in capital |
|
(7,000) |
|||||||||
|
Decrease in cash |
(7,000) |
|
||||||||||
|
78,000 |
+ |
35,000 |
+ |
50,000 |
|
|
= |
35,000 |
+ |
1,28,000 |
||
|
(g) |
Increase in cash |
14,000 |
|
|||||||||
|
Decrease in stock |
|
(10,000) |
|
|||||||||
|
Increase in capital (Profit) |
|
4,000 |
||||||||||
|
92,000 |
+ |
25,000 |
+ |
50,000 |
|
|
= |
35,000 |
+ |
1,32,000 |
||
|
(h) |
Decrease in creditors (Ragani) |
|
(35,000) |
|
||||||||
|
Decrease in cash |
(35,000) |
|
||||||||||
|
57,000 |
+ |
25,000 |
+ |
50,000 |
|
|
= |
NIL |
+ |
1,32,000 |
||
|
(i) |
Decrease in cash |
(20,000) |
|
|||||||||
|
Increase in bank |
|
|
|
|
|
20,000 |
|
|
|
|
||
|
|
37,000 |
+ |
25,000 |
+ |
50,000 |
+ |
20,000 |
= |
NIL |
+ |
1,32,000 |
|
