Transactions of M/s. Vipin Traders are given below.
Show the effects on Assets, Liabilities and Capital with the help of accounting Equation.
Rs
(a)
Business started with cash
1,25,000
(b)
Purchased goods for cash
50,000
(c)
Purchase furniture from R.K. Furniture
10,000
(d)
Sold goods to Parul Traders (costing Rs 7,000 vide bill no. 5674)
9,000
(e)
Paid cartage
100
(f)
Cash Paid to R.K. furniture in full settlement
9,700
(g)
Cash sales (costing Rs 10,000)
12,000
(h)
Rent received
4,000
(i)
Cash withdrew for personal use
3,000
Transactions of M/s. Vipin Traders are given below.
Show the effects on Assets, Liabilities and Capital with the help of accounting Equation.
|
|
|
Rs |
|
(a) |
Business started with cash |
1,25,000 |
|
(b) |
Purchased goods for cash |
50,000 |
|
(c) |
Purchase furniture from R.K. Furniture |
10,000 |
|
(d) |
Sold goods to Parul Traders (costing Rs 7,000 vide bill no. 5674) |
9,000 |
|
(e) |
Paid cartage |
100 |
|
(f) |
Cash Paid to R.K. furniture in full settlement |
9,700 |
|
(g) |
Cash sales (costing Rs 10,000) |
12,000 |
|
(h) |
Rent received |
4,000 |
|
(i) |
Cash withdrew for personal use |
3,000 |
S.No.
Explanation
Assets
=
Liabilities
+
Capital
Cash
+
Stock
+
Furniture
+
Debtors
Creditors
(a)
Increase in cash
1,25,000
Increase in capital
1,25,000
1,25,000
+
=
NIL
+
1,25,000
(b)
Increase in stock
50,000
Decrease in cash
(50,000)
=
75,000
+
50,000
=
NIL
+
1,25,000
(c)
Increase in furniture
10,000
=
Increase in creditors
=
10,000
75,000
+
50,000
+
10,000
=
10,000
+
1,25,000
(d)
Increase in debtors
9,000
Decrease in stock
(7,000)
Increase in capital (Profit)
2,000
75,000
+
43,000
+
10,000
+
9,000
=
10,000
+
1,27,000
(e)
Decrease in capital (Cartage Expenses)
(100)
Decrease in cash
(100)
74,900
+
43,000
+
10,000
+
9,000
=
10,000
+
1,26,900
(f)
Decrease in creditors
=
(10,000)
Decrease in cash
(9,700)
Increase in capital (Discount-received)
300
65,200
+
43,000
+
10,000
+
9,000
=
NIL
+
1,27,200
(g)
Increase in cash
12,000
Decrease in stock
(10,000)
Increase in capital (Profit)
2,000
77,200
+
33,000
+
10,000
+
9,000
=
NIL
+
1,29,200
(h)
Increase in cash
4,000
Increase in capital (Income)
4,000
81,200
+
33,000
+
10,000
+
9,000
=
NIL
+
1,33,200
(i)
Decrease in capital
(3,000)
Decrease in cash
(3,000)
78,200
+
33,000
+
10,000
+
9,000
=
NIL
+
1,30,200
|
S.No. |
Explanation |
Assets |
= |
Liabilities |
+ |
Capital |
||||||
|
Cash |
+ |
Stock |
+ |
Furniture |
+ |
Debtors |
Creditors |
|
|
|||
|
(a) |
Increase in cash |
1,25,000 |
|
|||||||||
|
Increase in capital |
|
|
|
|
|
|
|
|
|
1,25,000 |
||
|
|
1,25,000 |
+ |
= |
NIL |
+ |
1,25,000 |
||||||
|
(b) |
Increase in stock |
50,000 |
|
|||||||||
|
Decrease in cash |
(50,000) |
|
|
|
|
|
|
= |
|
|
|
|
|
|
75,000 |
+ |
50,000 |
= |
NIL |
+ |
1,25,000 |
|||||
|
(c) |
Increase in furniture |
10,000 |
= |
|
||||||||
|
Increase in creditors |
= |
10,000 |
|
|||||||||
|
|
75,000 |
+ |
50,000 |
+ |
10,000 |
|
|
= |
10,000 |
+ |
1,25,000 |
|
|
(d) |
Increase in debtors |
9,000 |
|
|||||||||
|
Decrease in stock |
(7,000) |
|
||||||||||
|
Increase in capital (Profit) |
|
2,000 |
||||||||||
|
75,000 |
+ |
43,000 |
+ |
10,000 |
+ |
9,000 |
= |
10,000 |
+ |
1,27,000 |
||
|
(e) |
Decrease in capital (Cartage Expenses) |
|
(100) | |||||||||
|
Decrease in cash |
(100) |
|
||||||||||
|
74,900 |
+ |
43,000 |
+ |
10,000 |
+ |
9,000 |
= |
10,000 |
+ |
1,26,900 |
||
|
(f) |
Decrease in creditors |
|
= |
(10,000) |
|
|||||||
|
Decrease in cash |
(9,700) |
|
||||||||||
|
Increase in capital (Discount-received) |
|
300 |
||||||||||
|
65,200 |
+ |
43,000 |
+ |
10,000 |
+ |
9,000 |
= |
NIL |
+ |
1,27,200 |
||
|
(g) |
Increase in cash |
12,000 |
|
|||||||||
|
Decrease in stock |
|
(10,000) |
|
|||||||||
|
Increase in capital (Profit) |
|
2,000 |
||||||||||
|
77,200 |
+ |
33,000 |
+ |
10,000 |
+ |
9,000 |
= |
NIL |
+ |
1,29,200 |
||
|
(h) |
Increase in cash |
4,000 |
|
|||||||||
|
Increase in capital (Income) |
|
4,000 |
||||||||||
|
81,200 |
+ |
33,000 |
+ |
10,000 |
+ |
9,000 |
= |
NIL |
+ |
1,33,200 |
||
|
(i) |
Decrease in capital |
|
(3,000) |
|||||||||
|
Decrease in cash |
(3,000) |
|
|
|
|
|
|
|
|
|
||
|
|
78,200 |
+ |
33,000 |
+ |
10,000 |
+ |
9,000 |
= |
NIL |
+ |
1,30,200 |
|
